Land Readjustment in Colombia - By Erik Vergel-Tovar

TITLE: Mr.

NAME: Erik Vergel-Tovar

POSITION: PhD Candidate in City and Regional Planning

University of North Carolina at Chapel Hill, US

EMAIL: [email protected]

‘SLUM UPGRADING USING PARTICIPATORY AND INCLUSIVE LAND READJUSTMENT:

DEFINING THE RULES OF THE GAME’

EXPERT GROUP MEETING (EGM)

Nairobi, 3rd and 4th of December, 2013.

mailto:[email protected]

Outline

• Land Readjustment LR in Colombia

• Policy Paper (CONPES) Slum upgrading

Colombia 2009

• LR Case Study: Chía (Colombia)

• Settlements upgrading and economic analysis:

experiences in Latin America

• LR – settlements upgrading propositions

1900 1920 1940 1945 1955 1965 1980 1990 1997 2010 2019

Stage I - Experimentation Stage II - Implementation Stage III - Comprehensive

1917

Plan for the

“Future City”

1920

Influence from the City

Planning USA UK - Barcelona

1945

International Experts Consultancy

Le Corbusier, Sert Wiener

1950

International Agencies – The Development

Plan

1950 - 1997

“Urbanism Code” Effects

1947

Law 88

Regulator

Plan

1989

Urban

Reform

Law

1997

Territorial

Development

Law

POT

2005

Colombia

2019

Vision

Livable

Cities

2010 - 2014

Coordination

Water &

Sanitation

Transportation

2005

1978

Organic

Law 61

Urban

Developme

nt

Source: Adapted from Pinto (2009)

Land Readjustment Tool

Land Readjustment (LR) - Colombia


Why?

What?

How?

POLICIES

OBJECTIVES

STRATEGIES

GENERAL

URBAN

RURAL

INSTRUMENTS

PROGRAMS

PROJECTS

LONG TERM

MEDIUM TERM

SHORT TERM

12 YEARS

8 YEARS

4 YEARS

Law 388 - 1997


• Social function of the property

• Public (general) interest prevails (private interest)

• Fair distribution of loads (costs) and benefits

• Public function of the urbanism

• Democratic Participation

“In order to complement economic and social

planning with spatial realm”

Planning Principles – Law 388/97


Law 388 /1997

Source: Ministry of Housing of Colombia and DNP (2009)

MASTER

PLAN

(POT)

Main city planning instrument

Land use planning at the local level – (Decentralization)

Land Use Planning Main Instrument - POT

LAND

URBAN LAND – density - infrastructure - public services

URBAN EXPANSION LAND – future urban growth

RURAL LAND – agriculture – protected areas - natural resources

SUB-URBAN LAND – rural land - urban and rural mixed use

PROTECTION LAND – urbanization is prohibited

CLASIFICATION

Land Readjustment (LR) - Colombia Application of LR method (Law 388/97)

URBAN LAND

URBAN EXPANSION LAND

Partial Plan

PP Urban

Expansion

Land development type*:

Development

Land Treatment:

Renewal

Land Development type*: Redevelopment

• Partial Plans (land management instruments) in which LR method has been

applied (equal distribution of loads -costs and benefits).

• Land “development types”*: renewal, redevelopment and expansion

Partial Plan

PP Urban

Renewal

* “treatment” in the land use planning framework of Colombia


Partial Plan PP Urban Expansion

Partial Plan PP Urban Renewal

CPIU 4

CPIU 1 CPIU 2

CPIU 3

CPIU 1

2 3

4

• Expansion, redevelopment and renewal within City Planning-

Intervention Units (CPIU).

• Slum upgrading?

Partial Plan PP Urban Redevelopment

CPIU 1

LR – method for fair distribution of loads and benefits

Application of LR method (Law 388/97)


*Identification, formulation or implementation stages

Source: DNP (2011)

Bogota 7,243,698 384 18,849 36 35

Medellin 2,281,085 107 21,362 27 17

Cali 2,183,042 121 18,057 15 8

Barranquilla 1,174,971 86 13,717 2 2

Cartagena 888,012 78 11,399 1

Cucuta 591,530 59 9,987 2 3

Bucaramanga 516,005 49 10,557 2

Pereira 381,153 31 12,371 26 8

Manizales 360,020 35 10,292 2

Pasto 333,123 25 13,378 2 1

Neiva 307,508 45 6,870 1

Armenia 279,500 32 8,723 1 2

Popayan 235,785 27 8,653 2 1

Itagui 226,713 12 18,629 1

Barrancabermeja 172,384 24 7,138 4

Chia 83,710 76 1,046 1 0

Total 17,258,239 1,191 11,939 114 88

City# Partial Plans

(approved 2010)

Urban Population

(2009)

Urban land area

(km2)

Density

(pop/km2)

## Partial Plans

Urban renewal* 2010

Partial Plans in Colombia

None for slum upgrading


1. LR method and Partial Plans. Adaptation of LR method in

Colombia through City Planning Intervention Units (CPIU).

2. Slum upgrading and Partial Plans. There is not regulation

framework for slum upgrading measures in Partial Plans.

3. Funding. Japanese LR counts on national subsidies but this is not

the case in Colombia.

4. LR and land development types. LR has been a useful method

for development but more complex for renewal.

5. Self-financing. Japanese approach (reserve land); Colombian

approach (density bonuses, additional floor area ratio (FAR), land

value increments and provision of facilities).

Outline



Colombia 2009





International Context Colombia 1970s

1980s

1990s

2000s

Negligence

Eviction

Self-help “in situ”

Habitat Agenda 1996

Capacity Building Strategy

MDG Goal 7 Target 7D

Best practices: participatory upgrading

City Development Strategy – Cities Alliance

PRIMED Medellín

Ley 9 – Urban Reform

Law 388 /97 (Partial Plans – LR)

CONPES 3305 Urban Policy

MDG Report Colombia

Law 1151 PND 2006-2010

CONPES 2808 Urban Policy

CONPES 2729 Housing Policy

CONPES 2326 Human Settlements

CONPES 3604 Slum Upgrading 2010s

Source: Adapted from CONPES 3604 (2009)

CONPES 3604 Slum Upgrading Strategy - Colombia

Impact evaluation Slum Upgrading

Redevelopment – Slum Upgrading

LR – PILaR – GLTN – UN_HABITAT

CONPES 3604 Slum Upgrading Strategy - Colombia

Housing shortage – Colombia

Source: Census data, DANE (1993, 2005)

* Census data attributes: services, structure, overcrowding conditions, kitchen condition

Lack of urban

services* for

897,543

households

(81,4%).

1,341,730 1,185,607

1,093,077 1,031,256

2,940,183

5,993,484

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

1993 2005

54,7 %

20,3 %

25 %

73 %

12,6 %

14,4 %

8’210.347

5’374.990

13

Qualitative shortage Quantitative shortage

CONPES 3604 Policy Paper Slum Upgrading Strategy - Colombia

MA

ST

ER

PL

AN

- PO

T

LO

CA

L D

EV

EL

OP

ME

NT

PL

AN

PR

OG

RA

M

Type of

intervention

UPGRADING

High risk areas

No mitigation

RESETLEMEN

TS

Studies

•Public services

feasibility

•Public space

feasibility

•Legal procedures

Tools Issues

•Partial Plan

•CPIU

•LR

•Slum

upgrading

•Action Plan

•Resettlement

Plan

•Norm

•Options

•Priority

•Financing

Agency

Slum

Upgrading

Program

Resettlement

Program

3. MANAGEMENT

2. PLANNING

Zoning (risks

and hazards)

Risk

and

hazards

Studies

Manager

Operators

4. IMPLEMENTATION

Socioeconomic

characteristics

Needs assessment

COMMUNITY PARTICIPATION

1. SELECTION

•Public services

feasibility and

housing supply

options

Areas suitable

for upgrading

Manager

Operators

•Norm

•Options

•Priority

•Financing

LR



Upgrading measures public space

(built environment)

Upgrading measures private

space (Housing)

Socioeconomic dimension (across dimensions)

1. Risk areas

2. Regularization (legal procedures)

3. Public services (W&S)

4. Environmentally protected areas

mitigation

5. Accessibility and transportation

6. Public spaces and facilities

1. Land titling

2. Housing improvements

3. Redevelopment (new housing units):

• Terraces (if feasible)

• Open areas

• Land Readjustment

1. Community participation

2. Institutional strengthening

3. Public safety

4. Income generation activities 15

Land Readjustment



$3,400.00

$3,600.00

$3,800.00

$4,000.00

$4,200.00

$4,400.00

$4,600.00

Leticia Florencia Buenaventura Barrancabermeja Apartadó Cúcuta

US$ per Household

US$3,700

192

HH

338

HH

400

HH

500

HH

338

HH

114

HH


6 Slum upgrading projects (IADB – Ministry of Housing)

Outline



Colombia 2009





LR case study – Chía (Colombia)

Municipality of Chia (at the north of Bogota)

Partial Plan Mercedes de Calahorra (MC)

Urban expansion LR project

Source: Google Earth (2013) City planning department of Chia (2012)


LR project (2007) LR Project (2010)

Source: Google Earth (2013) City planning department of Chia (2012)

• Issue to be addressed: housing shortage and scarcity of serviced land

• LR type: urban expansion (sprawl prevention) planned urban growth

2000 2003 2005 2007 2009 2013 2011


• 57 Land parcels with a total area of

152,508 square meters (15 hectares)

• 51 landowners (before LR)

• 89% of landowners have participated in

the project

• 39% of land contribution for roads and

public spaces

7 Years (approximately)

Formulation and Negotiation with landowners

$26.32

$71.05

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

Before After

Average land price

(before-after LR - USD$ per sq. meter)

Source: Partial Plan MC technical documents, city planning department of Chia and interviews (2009, 2012)

5 Years + (on going)

Implementation: Roads-infrastructure-facilities

Land development Replotting

2020

LR Completion

20 years urban expansion project

LR Case Study – Chía (Colombia)

Source: DNP (2013)

Project General Data

Implementation agency: Municipality of Chia

Built-up area (after LR): 0.36

Floor area ratio FAR (LR): 1.27 (“self-financing”)

Population density: 374 hab./ha (before LR

14inhab/ha)

No reserved land (for self-financing)

Development intensity (after LR): 116,300 m²

Public space index: 9,12 m²/hab.

Estimated project cost: USD$ 50 million

Municipality investment: USD$ 1,66 million


LR Case Study – Chía (Colombia)

Public space & Facilities LR Land use

Land

Development

(Blocks)

Public space

axis

New roads

Facilities

Commercial

Residential

Mixed


LR Case Study – Chía (Colombia) Distribution of costs and benefits

* Assumption: approximately 20% of the costs will be paid by all inhabitants of the municipality.


General costs (City)

- Water and sanitation infrastructure

- Main roads

Local costs (LR project)

- Water and sanitation piped connections for land developments

- Public services connections for land developments

- Secondary roads (including pedestrians streets and access to facilities)

Approximately 50% of additional square meters are for Affordable Housing developments

Item USD$

Estimated selling price (real estate property) 49,256,227.09

Estimated selling price serviced land 8,357,209.91

Urban development costs* 3,433,999.96

Land with higher development intensity (benefits) 74.56

Cost per square meter 24.24

Benefits per square meter (without costs) 59.00

Benefits per square meter (discounting the costs) 33.99

Outline



Colombia 2009


• Settlements upgrading and economic

analysis: experiences in Latin America


Settlements Upgrading and Economic

Analysis – Latin America

Interamerican Development Bank (IADB) applying

economic analysis to slum upgrading projects

(Colombia and Ecuador)

• Assumption: slum upgrading implies higher costs

than new affordable housing developments

• Economic analysis: costs of slum upgrading

should not be higher than the benefits they bring

to society

Source: Foundations of Sustainability in Building Cities, Rojas, IADB (2010)



Four techniques to estimate the alternatives for

slum upgrading interventions (goal: most

efficient):

1. Minimum cost

2. Cost-effectiveness

3. Weighted cost effectiveness

4. Cost benefit analysis (CBA)




Costs Benefits

• Factors:

- Incremental costs (construction,

operation, maintenance)

- Negative externalities

- Sunken costs (excluded)

• Shadow prices (market prices)

•

• Opportunity cost

• Government interventions

• Economic ≠ Financial (property

tax)

• Good and services provided by

the project (privately consumed)

• More complex valuation

techniques (public and

semi=public goods)

• Hedonic price models, surveys,

willingness to pay



Analysis – Latin America Monitoring indicators – settlements upgrading programs


Economic benefits Logical framework indicators Description

Incidence of diarrhoeic illnesses Reduced by 15% at the end of the

projectEffective utilisationof basic

services

80% of households in the

intervention area are connected to the

sewerage network and using it

Service provision 15 months of implementation:

- 9,800m drinking water

- 10,200m of sewage connection

- 1,504 water, sanitation and

eletricicty connections

Avoided costs from the reduced

incidence of diarrhoeic illness

Economic benefits Logical framework indicators Description

Change in behavior 80% of the population agrees that the

parks are a good place for recreation

and make regular use of them

Acceptance of the service 80% of the population finds that the

parks are a good recreation option

Provision pf the service or good After 15 months of implementation:

one multi-purpose park has been

Reduced costs of accesing

recreation areas and reduced

expenses in pest control in

community areas

Colombia

Quito

(Ecuador)

Outline



Colombia 2009





LR settlements upgrading propositions

Propositions for the EGM Workshop:

1. Legal framework: LR for slum upgrading

requires the support from land use planning

regulations.

2. Landownership – property rights issues:

LR could be applied in slum upgrading

projects in order to facilitate regularization

processes (public land).



3. Upgrading and resettlement: LR method

could reduce vulnerability (environmental

risks and hazards) through replotting

measures

4. Public and private realms: LR can provide

the framework for interventions on public and

private areas (after regularization measures)



5. Economic analysis: LR method may provide

a framework to define the costs and benefits

at different levels (city – neighborhood)

6. Costs and benefits: LR method may be a

useful approach to estimate costs and benefits

of upgrading measures (private and public

realms)



7. Self-financings: LR method in settlements upgrading may provide opportunities for self-financing but there are issues that need to be addressed:

- Reserved land (location – property rights – market forces)

- Redevelopment & Affordable Housing (multifamily developments vs. single family attached – density – land use mixed)

- Cross subsidies (national and local government subsidies – upfront costs)

- Value capture (legal framework – property rights – market forces)

8. Development and redevelopment: LR method may provide the framework needed for redevelopment processes in settlements upgrading (Mumbai, India)

Thank you!

Looking forward to working with all of

you in this Workshop

Erik Vergel-Tovar

PhD Candidate in City and Regional Planning

University of North Carolina at Chapel Hill

EE.UU.

[email protected]

mailto:[email protected]

Land Readjustment in Colombia - By Erik Vergel-Tovar

Presentations & Public Speaking

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