1. To improve the living conditions or develop new housing for people
in squatter settlements.
2. To create a sense of security through land/housing tenure for the poor.
3. To improve public utilities, facilities, and the surrounding environment.
4. To create a living environment that is secure, beautiful, respectful,
with the community’s way of life.
5. To create a holistic development plan that takes into account social
factors as well as physical improvements.
6. To empowered poor communities so that they will be acknowledged by
the society at large.
7. To create a community management system that has transparency and networking
8. To create a database of squatter settlements and their development
plans throughout the country.
9. To create a participatory development process in which the community
each province oversees their own housing, economic, and social development
10. To create new roles for educational institutions and universities
so that they could fully
participate in community development and research.
11. To create more flexible laws that are compatible with the development
(The communities should participate in the drafting of the new laws themselves)
12. To distill and synthesize new knowledge from each community so that
it could be
widely available to other communities and the public.
Key Steps in Starting the Baan Mankong
1. Identify the stakeholders
and explain the program.
2. Organize network meetings which may include visits from people in other
3. Organize meetings in each urban poor community, involving municipal
staff if possible
4. Establish a joint committee to oversee implementation. This includes
urban poor community and network leaders and the municipality; also local
academics and NGOs. This committee helps to build new relationships of
cooperation to integrate urban poor housing into each city’s overall development
and to create a mechanism for resolving future housing problems.
5. Joint committee holding a meeting with representatives from all urban
6. A survey organized to cover all communities with information collected
about all households, housing security, land ownership, infrastructure
problems, community organizations, savings activities and existing development
initiatives. Doing the survey also provides opportunities for people to
meet, learn about each-others’ problems and establish links.
7. From the survey, develop a plan for the whole city.
8. While the above process is going on, support community collective savings
as these not only mobilize local resources but also strengthen local groups
and build collective management skills.
9. Select Pilot projects on the basis of need, community’s willingness
to try them out and learning.
10. Prepare development plans for pilots, start the construction and use
implementation as learning center for other communities and actors.
11. Extend improvement processes to all other communities, including those
living on the fringe of society such as the homeless and migrant workers
12. Integrate these upgrading initiatives into city-wide development.
This includes coordinating with public and private land-owners to provide
secure tenure or alternative land for resettlement, integrating community-constructed
infrastructure into larger utility grids, and incorporating upgrading
with other city development processes.
13. Build community networks around common land ownership, shared construction,
cooperative enterprises, community welfare and collective maintenance
of canals and create economic space for poor (for instance new markets)
or economic opportunities wherever possible within upgrading.
Budget & Funding Methods:
- On-site Upgrading Subsidy: 25,000 baht (US$715) per family for for onsite-communities
- Reconstruction Subsidy: 35,000 baht ($1000) per family for communities
rebuilding their settlement on the land they now occupy or for communities
relocating to different land and rebuilding there. This is the standard
subsidy, but in special cases where the cost of filling land or infrastructure
is very high, the per family subsidy can go up to 45,000 baht
(US $ 1,285)
- Additional Subsidies: Additional subsidies are available (as necessary,
not aways) to help communities do heavy land filling if their land is
low-lying, to install household sewage treatment systems, to landscape
the newly upgraded settlement (20,000 Baht or $600 per community), to
liven up the visual character of the new community (200,000 Baht or $6,000
per community), to construct temporary houses in case of fire or eviction
(18,000 Baht or $500 per community), or to construct a community meeting
house (18,000 Baht or $500 per community).
2. Land/Housing Loan
Soft loans are made available from CODI to families
to purchase new land (in case of relocation) and to improve their houses
or build new ones after upgrading or relocating, with interest rates subsidized
by the program, so loans can go to the community cooperatives at 2% annual
interest (the non-subsidized CODI housing loan rate is 4%). The
ceiling for land and housing loans put together is 300,000 Baht ($9,000)
per family, and in general, housing loans alone go up to a maximum
of no more than 150,000 - 200,000 Baht ($6,000) per family. All loans
are made collectively to the community cooperative, not to individual
families. With both housing and land loans, the community cooperatives
must have saved 10% of the amount they borrow from CODI and keep that
10% in their community saving account during the repayment period.
More recently, this loan subsidy has been handled a
little differently. Now, communities can receive the loan interest rate
subsidy in the form of one-time housing/land cash payment of 20,000 Baht
($600) per family, at the start of the upgrading project. The cooperatives
then pay CODI's standard non-subsidized interest rate of 4% on whatever
land and housing loans they take. Most cooperatives add a 2-3% margin
on top of this (to support their activities and create a fund for late
repayments), so individual cooperative members pay 6-7% interest on their
land and housing loans.
A grant equal to 5% of the total
infrastructure subsidy will be made available under the upgrading program
to whatever organization the community (or the community network) selects
to assist and support their local upgrading process. This could be an
NGO, another community network, a local university, a group of architects,
or a local government agency.
4. Process Support
This is the subsidy the
program provides to support all the various activities that go with such
a large national upgrading process, including exchange visits between
cities, seminars at various scales, meetings, coordination costs, on-the-job
training activities, support for the community network's involvement in
the upgrading process and salaries.
How is this different from
the conventional approaches?
Urban poor community organizations and their networks are the key actors
and control the funding and the management; they also undertake most of
the building (rather than contractors) which makes funding go much further
and brings in their own contributions
2. It is demand driven as it supports communities who are ready to implement
improvement projects and allows a great variety of responses, tailored
to each community’s needs, priorities and possibilities (for instance
communities choose how to use the infrastructure subsidy)
3. It promotes more than physical upgrading; as communities design and
manage their own physical improvements, this helps stimulate deeper but
less tangible changes in social structures, managerial systems and confidence
among poor communities. It also helps trigger acceptance of low-income
communities in the city’s larger development process as legitimate parts
of the city and as partners
4. It works to develop urban poor communities as an integrated part of
city; people plan their upgrading within the bigger city development framework
5. Government agencies are no longer the planners, implementers and construction
manager delivering for beneficiaries.
6. Secure tenure is negotiated locally in each case – and this could be
done through a variety of means such as cooperative land purchase, long-term
lease contracts, land swaps or user rights.