Experience with Low-income Housing Finance

Bangladesh’s Experience with Low-Income Housing Finance” by Mohd. Shamsul Haque provides an in-depth analysis of the housing challenges faced by low-income populations in Bangladesh and explores various strategies and initiatives undertaken to address these issues. This summary encapsulates the key findings, methodologies, and implications presented in the study.​

Introduction

Bangladesh, characterized by its high population density and limited land availability, faces significant challenges in providing adequate housing for its citizens. A substantial portion of the population resides in substandard housing conditions, lacking essential infrastructure and services. Recognizing housing as a fundamental human right, the Bangladeshi government, along with various non-governmental organizations (NGOs), has initiated multiple programs aimed at improving housing conditions for low-income groups.

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Housing Sector Overview

The National Housing Policy (NHP) of 1993 marked a pivotal shift in the government’s role from being a direct provider to an enabler in the housing sector. This policy emphasizes facilitating housing initiatives, particularly for the weaker sections of society, through collaborations with NGOs and the private sector. Key government initiatives include:​

• Cluster Villages: Designed to rehabilitate homeless and disaster-affected individuals in coastal regions.​

• Ideal Village Projects: Targeted at providing housing solutions for low-income men and women.​

• Shelter Projects: Focused on offering temporary housing for displaced populations.​

• Housing Funds: Allocated to NGOs to facilitate housing for the rural poor.​

• Return to Village Projects: Aimed at relocating urban slum dwellers back to rural areas with better living conditions.​

Challenges in Housing for the Poor

Despite these initiatives, several challenges persist:​

• Substandard Housing Materials: Many low-income families construct homes using inadequate materials, rendering them vulnerable to environmental adversities.​

• Limited Financial Resources: The inability to accumulate savings for home repairs or improvements forces many to seek high-interest loans from informal sources.​

• Natural Disasters: Frequent flooding and river erosion lead to the displacement of numerous families, exacerbating the housing crisis.​

Low-Cost Housing Technologies

In response to these challenges, various organizations and local innovators have developed low-cost housing technologies, especially following natural disasters like the 1987 flood and the 2007 Cyclone Sidr. These designs prioritize affordability, durability, and adaptability to local conditions. Common features include:​

• Elevated Plinths: Floors raised above ground level to mitigate flood risks.​

• R.C.C. Pillars: Reinforced Cement Concrete pillars providing structural stability.​

• Bamboo Posts: Utilized as supplementary support structures.​

• Corrugated Iron Sheets: Employed as roofing materials for durability.​World Bank+4UN-Habitat+4ADB+4

• Bamboo Mat/Jute Stick Fencing: Used for walls, offering cost-effective solutions.​

• Earthen Floors: Often constructed with a mixture of clay and cow dung.​

These designs are tailored to the specific needs, preferences, and financial capacities of the homeowners, ensuring cultural appropriateness and sustainability.​

Urban Housing Challenges

Urban areas in Bangladesh face unique housing challenges due to rapid population growth and limited space. The influx of rural migrants seeking employment opportunities has led to the proliferation of informal settlements and slums. Addressing urban housing requires integrated approaches that combine affordable housing solutions with improved infrastructure and services.​

Role of Financial Institutions

Financial institutions play a crucial role in facilitating access to housing finance for low-income groups. Innovative financial products tailored to the needs of these populations, such as microfinance for housing, can enable families to invest in home improvements or new constructions. Collaborations between banks, NGOs, and government agencies are essential to develop and implement effective housing finance mechanisms.​Airdrive

Conclusion

Bangladesh’s experience underscores the multifaceted nature of the low-income housing challenge. While significant strides have been made through policy initiatives, technological innovations, and financial mechanisms, continuous efforts are required to address the evolving needs of the population. Sustainable solutions necessitate a collaborative approach involving government bodies, NGOs, financial institutions, and the communities themselves to ensure that every citizen has access to safe and adequate housing.​

Also Read: Housing Finance Institutions in Bangladesh- A Comparative Study on BHBFC & DBH​

External Link: National Housing Authority – Bangladesh