JIMMA

UNIVERSITY
JIMMA INSTITUTE OF
TECHNOLOGY
ARCHITECTURE AND URBAN PLANNING
PROGRAM

COURSE: INTRODUCTION TO HOUSING

GROUP ASSIGMENT
NAME ID No
Zemran Girma-------------------------------------------RU0182/12
Semahegn Demeke ----------------------------------RU2196/12
Abdisa Haji------------------------------------------------RU1677/12
Submitted to: Ms. Betelehem Hailegebriel
Submission Date: - 11/03/2023
 Acknowledgement
This research would not have been possible without the support of the community members who
participated in the research and shared their insights and experiences, the school head department and
instructors who provided guidance and support throughout the research process, and our instructor Ms.
Betelehem Hailegebriel.
I would like to express my sincere gratitude to all of these individuals and organizations for their support.
I am deeply indebted to them for their help in making this research a success.

Table of Contents
A. Condominium Housing Programs in Addis Ababa...............................................................................1
I. Condominium Housing Typologies...................................................................................................1
II. Commercial Units..............................................................................................................................4
III. Communal Buildings.........................................................................................................................5
IV. Case Study: - Bole Gerji – The Condominium Pilot Project.............................................................6
V. Expected Results and Achievements.................................................................................................7
VI. Unexpected Results and Achievements.............................................................................................7
VII. Unexpected Challenges Facing the Program.....................................................................................8
VIII.Criticism.............................................................................................................................................8
IX. Conclusion.........................................................................................................................................9
B. Condominium Housing Programs in Jimma City................................................................................10
I. Socio-Demographic Characteristics of Condominium Residents....................................................10
II. Affordability of Condominium Housing in Jimma Town...............................................................11
III. Availability of Basic Services and Facilities in Condominium Housing........................................14
IV. Waste Management in the Condominium Housings.......................................................................14
V. Low Quality Construction Material Usage......................................................................................16
VI. Poor Building Orientations..............................................................................................................18
VII. Criticism...........................................................................................................................................19
VIII.Conclusion.......................................................................................................................................20
As A Strategy Addis Ababa City Housing Strategy Housing..................................................................27
Housing Typologies and Land Requirement...........................................................................................31
Housing Typologies.................................................................................................................................31
Guiding principles, Goals and Strategies.................................................................................................32
Implementation Strategies and Tools.......................................................................................................32
Support packages and schemes................................................................................................................33
Housing supply pyramid..........................................................................................................................34
20/80 Housing program...........................................................................................................................35
40/60 Housing program...........................................................................................................................36
Housing Association................................................................................................................................38
Housing Association Villa Types............................................................................................................38
Case Study...................................................................................................................................................39
I. Overview of Redevelopment...............................................................................................................39
I. Emergent Issues...............................................................................................................................43
II. Management & Community Leadership..........................................................................................43
III. Resident Services.............................................................................................................................45
 IV. Safety...............................................................................................................................................46
V. Place Identity and Cohesion.............................................................................................................48
Findings from the Case Study..................................................................................................................50
Green Infrastructure.................................................................................................................................50
Public Spaces:..........................................................................................................................................50
Sustainable Transportation and Infrastructure:........................................................................................50
Mixed-income Housing:..........................................................................................................................50
I. Housing Finance Mechanisms.........................................................................................................50
II. Housing finance system in the global context.................................................................................52
References....................................................................................................................................................58

Table of Figures
Figure 1: The colossal condominium site of Jemo I, II and III; Addis Ababa..............................................1
Figure 2: Project sites include unit blocks arranged around outdoor green space. Sengatera LDP 1...........2
Figure 3: Breakdown of unit typologies in each condominium block...........................................................2
Figure 4: Actual Condominum at gerji and Condominium models at the HDPO.........................................3
Figure 5: Condominium Block Typical Floor Plan, SNNPR. MH Engineering..........................................4
Figure 6: Condominium Block Elevation, SNNPR. MH Engineering.........................................................4
Figure 7: Condominium sites include commercial units at ground level in an effort to create mixed-use
environments..................................................................................................................................................5
Figure 8: A communal unit in Bole Summit, Addis Ababa...........................................................................5
Figure 9: Gerji Condominium........................................................................................................................6
Figure 10: Improper waste discharge by residents in some selected site....................................................15
Figure 11: Condominium Site found on Sar-Sefer Site...............................................................................17
Figure 12: Condominium at Sar-Sefer with poor building orientation........................................................18
Figure 13: New and future housing surrounding a park at Oakwood Shores..............................................21
Figure 15: Oakwood Shores residents discussing their...............................................................................25
Figure 16: One of the parks in Oakwood Shores.........................................................................................29
List of Acronyms
ETB- Ethiopian Birr
GTZ- Deutsche Gesellschaft fur Technische Zusammenarbeit
GTZ is GTZ International Services
HDPO- Housing Development Project Office
IHDP- Integrated Housing Development Program
HIS- Institute for Housing and Urban Development Studies
MFI- Micro-Finance Institution
MHE- MH Engineering
MSE- Micro and Small Enterprises
MWUD- Ministry of Works and Urban Development
UN-HABITAT- United Nations Human Settlements Program
USD- United States Dollars
Condo(s) – Condominiums
 1. Review and criticize Condominium housing programs both in Addis Ababa and
Jimma city.

A. Condominium Housing Programs in Addis Ababa

The other name for Condominium Housing; Integrated Housing Development Program (IHDP) is a
government-led and financed housing provision program for low-and middle-income households in
Ethiopia. The program was launched in 2004 (1996 in the Ethiopian calendar) by State Minister
Oqubay Arkebe, then the Mayor of Addis Ababa. (French & Hegab, 2010)
The IHDP has impressive targets. The mandate of the IHDP is to reduce slum areas in the city by 50
percent and address and improve the unemployment percentage in the capital within five years,
through the building of nearly 400,000 new units nationally. As of mid-2010, the government had built a
total of 80,257 housing units in Addis Ababa. (French & Hegab, 2010)
Source 1: UN-HABITAT / Katherine Hegab:

Figure 1: The colossal condominium site of Jemo I, II and III; Addis Ababa

I. Condominium Housing Typologies

Densification is the driving concept behind condominium housing. The Integrated Housing Development
Program (IHDP) believes that is generally more expensive to create lateral development than vertical
development so high-rise housing should be encouraged, especially in valuable inner-city locations.
IHDP projects range in density from 175 to 300 households per hectare. At present condominium
blocks are ‘ground floor plus four storeys (G+4) in height, in some cases five storeys (G+5), therefore
avoiding the need for a mechanical lift, which minimizes associated construction and maintenance
costs. However, in the most recent condominium project, located in Addis Ababa’s Lideta district,
condominium blocks are ground floor plus seven storeys (G+7). Although this model requires an internal
lift which increases construction and maintenance costs, the value of the centrally located land
necessitates the higher density to maximize the use of the inner-city land on which it is located. (French
& Hegab, 2010)

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 Source 2: HDPO

Figure 2: Project sites include unit blocks arranged around outdoor green space. Sengatera LDP 1

There are four unit typologies incorporated into each condominium block: a studio, 1-bedroom, 2-
bedroom, and 3-bedroom unit types. Each unit includes a bathroom, which includes a shower, flush-
toilet, and basin, and a separate kitchen. Each unit has water, sewerage, and electricity connections.
Typically 40 percent of units are 1-bedroom as statistics have shown that the balance between floor-area
and purchasing price of a 1-bedroom unit is the most popular amongst condominium-applicants. The
unit types are distributed evenly across each storey, rather than each storey having only one type to
encourage a mix of income groups. (French & Hegab, 2010)
Source 3: HDPO

Figure 3: Breakdown of unit typologies in each condominium block

The same overall design strategy is used across all projects, although minor modifications are made to
make each project site specific. The site layout of the condominium blocks, commercial units, and
communal buildings depends on the specific site, responding to available land area, land typography,
and required densities. The Housing Development Project Office (HDPO) hires new architects through a
competition system to avoid monotony between sites. (French & Hegab, 2010)
The arrangement of the space on a condominium site should accommodate not only green areas but
also schools, playgrounds, and commercial hubs – spaces which can provide enough revenue to

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subsidize the housing. This would create a mixed-use neighborhood which serves its community and,
most importantly, avoids displacing people socially. The condominium blocks are constructed from a
frame of reinforced concrete (a mix of in-situ and pre-cast) with masonry infill walls, plastered both
inside and out. Units are handed to beneficiaries with skim concrete floors to reduce costs for the
government. Windows and doors are made from metal frames with single glazing. The modular design
reduces construction times and allows for the repetition and adaptation of designs across projects. The
design utilizes standard sizes of materials therefore reducing costs further (for instance standard hollow
brick dimensions are kept to remove the need for cutting them to size). (French & Hegab, 2010)
Source 4: UN-HABITAT / Katherine Hegab

Figure 4: Actual Condominum at gerji and Condominium models at the HDPO

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 Figure 5: Condominium Block Typical Floor Plan, SNNPR. MH Engineering

Figure 6: Condominium Block Elevation, SNNPR. MH Engineering

II. Commercial Units

Ten per cent of each condominium site is allocated to commercial purposes, primarily small shops located
at ground level but also plots of land for commercial use. The commercial units are sold, not rented, and
the plots of land for commercial use are leased. These commercial units are small shops, restaurants,
pharmacies, salons and music shops. Although there are no restrictions on commercial activities, the units
are not appropriately sized for large-scale industrial enterprises and therefore can only accommodate
small businesses which do not require special spaces or service provision. (French & Hegab, 2010)
The provision of commercial units aims to ensure mixed-use occupation of condominium sites, which
have several benefits over purely residential developments. (French & Hegab, 2010)

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 Source 5: UN-HABITAT / Katherine Hegab

Figure 7: Condominium sites include commercial units at ground level in an effort to create mixed-use environments.

III. Communal Buildings

The provision of communal buildings to condominium sites was an attempt to respond to the cultural
needs of residents. The function of the communal buildings is to provide a protected space for residents
to perform traditional tasks such as slaughtering goats, hand washing laundry, and cooking extensive
meals: activities the housing units themselves cannot accommodate. They are typically freestanding
masonry buildings located in the open courtyards created by the condominium blocks. Although the
provision of communal units is well intentioned, the post-occupation management of the communal
buildings has proven problematic and there remains no overall coherent program approach. Initially, the
price of the communal buildings was not included in the unit purchase price, which has created
accessibility and use problems. (French & Hegab, 2010)
Source 6: UN-HABITAT/ Katherine Hegab

Figure 8: A communal unit in Bole Summit, Addis Ababa.

IV. Case Study: - Bole Gerji – The Condominium Pilot Project

Bole Gerji in Addis Ababa was the first condominium project to be constructed in Ethiopia. It was
initiated by Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ) and the Addis Ababa City
Administration in 2002, following a request from the Mayor. The first master plan for the design of the
project was drawn by renowned Architect Fasil Giorgis and accommodated 750 housing units,

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composed of studios, 1 and 2-bedroom typologies; an office building and several commercial units. The
scheme was the first major building project in Addis Ababa to introduce sub-contractors which, in turn,
avoided the formation of stack-profits. During its launch in 2004, GTZ was the managing agent for the
Bole Gerji site working on behalf of the City Government in their hiring of contractors and daily
laborers, who were directly employed by GTZ. (French & Hegab, 2010)
As the project was the first of its kind in Ethiopia, it received considerable support for its construction
and major work was completed in a stint of eight months, although some elements remained
unfinished. Government agencies had been responsible for the delivery of the water supply and
electricity so as to reduce costs further, but these bodies proved to be inefficient. External plastering was
not carried out before it was time for residents to move in and, as a result, the exposed walls suffered
from weathering. Internal walls within each unit remained absent of plaster to keep costs to a
minimum, so people undertook the role of plastering the internal surfaces themselves. Unfortunately, they
followed this by pouring the plaster residue onto the GTZ-landscaping and killing many of the flowers.
(French & Hegab, 2010)
Source 7: Facebook

Figure 9: Gerji Condominium

Since the condominiums were transferred, they have been criticized for their substandard quality and lack
of synchronization between separate construction events at the time of their erection. However, the
government say they have learned from their mistakes at Bole Gerji and amongst their new moves, they
have made it a requirement to plaster all houses both internally and externally on future project sites. As
this was the Pilot Project, the lottery draw system of condominium allocation had not been established
and most units were not distributed at random; instead they were given to Government employees already
living in Gerji, and businessmen, architects and lawyers. (French & Hegab, 2010)
Community groups have been self-formed and between themselves, residents plastered and painted their
communal parts, planted new pockets of landscaping and organized the security gate separating the site
from the main road. (French & Hegab, 2010)

V. Expected Results and Achievements

There are three main areas that the program aimed to address and in which achievements have been made:
(i) The program has made a positive impact on the country;

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 The IHDP has had a major positive impact on the capacity of the following four sectors of the
country: construction, skilled-labor, the manufacturing industry, and transportation. (French
& Hegab, 2010)
(ii) It is of a large scale and produces units at very low cost; and
The program has achieved its goal of delivering housing at low cost. In fact, the costs are
extremely low, with units costing around ETB 1,000 (USD 77) per m 2, whereas if private
contractors constructed them on the free market they would cost ETB 2,500 (USD 193) per
m2. (French & Hegab, 2010)
(iii) Achieves a physical improvement in the housing and urban environment.
The program has achieved several housing and urban development aims. Residents that have
moved into condominium housing have a greatly improved physical environment compared
with their previous housing. All units have basic services and infrastructure and unit owners
have security of tenure.

VI. Unexpected Results and Achievements

In addition to the aforementioned anticipated achievements, the program has achievements that were not
anticipated yet contribute to its accomplishments. There are three main unexpected achievements:
(i) High demand and support for the program;
The demand results from attractiveness of the condominium units to low- and middle-income
Ethiopians, predominantly those living in Addis Ababa, since unit ownership offers the
opportunity to not only improve one’s housing conditions but also to take advantage of the
wealth generation opportunity which owing a unit provides, with the unit being an extremely
secure private asset. (French & Hegab, 2010)
(ii) The creation of many low-income landlords; and
Ironically, most condominium unit landlords are the very low-income households and many
of these landlords were previously unemployed. There are no legal or local community
administration restrictions on this strategy and no checks made on unit occupation. It is
financially advantageous for unit owners to rent out their property, with rental charges more
than covering the mortgage repayments. (French & Hegab, 2010)

(iii) Positive changes to the rental housing market.

As a result of the above mentioned practice, a significant supply of rental property has been
introduced in Addis Ababa that has in turn reduced the city’s market rent level. This has
made rental options more affordable for all income sectors. (French & Hegab, 2010)

VII. Unexpected Challenges Facing the Program

In many respects the program is extremely successful yet it faces five main challenges that need to be
acknowledged and addressed. The first two concern beneficiary and program finance:
(i) The affordability of units for low-income households
While the IHDP has the laudable aim of targeting the low-income sector of the population,
unfortunately experience has shown that the ‘poorest of the poor’ are not benefiting from the
IHDP due to inability to afford the initial down-payment and monthly service payments. The
‘poorest of the poor’ are primarily excluded from securing a unit because they do not have
the financial capacity to pay the required down-payment. (French & Hegab, 2010)
(ii) The unsustainable financing of the program as a whole

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 The current financial approach underpinning the program is unsustainable. In order to
continue the program and meet the ambitious completion targets, secure finance is necessary.
Commencing projects requires considerable funding and capital outlay from city government
finances, which are reportedly already stretched. (French & Hegab, 2010)
(iii) Beneficiary consultation and management, project specific issues (location, built
environment design, and construction quality), and
Although the program makes explicit effort to consult widely on development plans, provide
compensation in the case of relocation, and support the transition of relocated people through
temporary housing, several problems have been raised. (French & Hegab, 2010)
(iv) The lack of post-occupancy management, monitoring and evaluation.
One of the major challenges facing the project concerns post-occupation management and
monitoring, which have received very little attention to date. The program has no systems in
place for post-occupancy engagement on issues such as community cohesion, maintenance of
communal areas, and the establishment of community groups and community based
management of facilities. (French & Hegab, 2010)

VIII. Criticism
However, the IHDP or condominium housing has positive impacts; it also highlights several challenges
for implementing large-scale low-cost housing projects:
 Developing approaches to address the capabilities of the ‘poorest of the poor’ who cannot afford
formal condominium housing.
 Enhancing the capacity of all stakeholders involved, including those in the public and private
sectors, as well as beneficiaries.
 Finding cheaper ways of building to reduce the need for cement and reinforcing bars, which are
becoming prohibitively expensive.
 Considering housing quality, not just quantity. The challenge, which is far from new, is to
improve the quality (of built environment design and construction) without reducing quantity or
significantly increasing costs.
 Carrying out slum clearance and resettlement based on procedural protection and due process
prescribed by international human rights, to avoid forced evictions.

As a Recommendation,
 Serious attention should be given to the affordability of condominium units. Many low-income
households are excluded because they cannot afford the down-payment or monthly mortgage and
service repayments.
 Financial support mechanisms are needed to improve access to Condominium Housing (CH)
units for the low-income sector. Likewise, specific attention needs to be given to women-headed
households who, although given preference in the lottery, cannot secure a unit due to lack of
financial capacity.
 Opportunities for beneficiary involvement in the planning and design should be explored in an
effort to make the built environment more responsive to local lifestyles and culture.
 The quality of the construction should be improved. This requires continual capacity building of
professionals and contractors as well as on-site quality checks (of construction processes and raw
materials) by trained professionals.

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IX. Conclusion
In light of Ethiopia’s previously uncoordinated and inefficient housing sector, the IHDP demonstrates
significant achievement in ‘going to scale’. It has impacted on the country beyond the provision of
housing units. It has improved the economy, created employment opportunities, brought capacity
development, and promoted micro- and small-enterprises. Work remains to be done, however, to improve
the program so it achieves its target of improved living conditions for more Ethiopians and especially for
its lowest income group.

B.Condominium Housing Programs in Jimma City

Based on a data collected through questionnaire, 78(37.14%) of the participants are condominium house
owners. As it is studied that most, 28, (35.90 %), of the participants who possess and reside in
condominium houses are engaged in their own private business. Government employees took the second
place. They constitute 26.92 % (21) of the total participants condo owners. The number of house wives
constitutes 16.67% (13) of the overall number of condominium owners who live in the houses. Besides,
the number of participants hired in NGOs constitutes 3.85 % (3) of the respondents who own a
condominium house. But, the number of unemployed, and those who work on family businesses is very
small. Their number is 5(6.41%) and 8 (10.26%) of the participants respectively. (GEBREMARIAM, et
al., n.d.)

I. Socio-Demographic Characteristics of Condominium Residents

Table 1: Socio-Demographic Characteristics of Condominium Residents

Items Frequency Percentages

1. Sex
Male 123 58.57%
Female 87 41.43%
Total 210 100%
2. Age Category
Less than 18 24 11.43%
18-35 82 39.05%
36-64 94 44.76%

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 65 and above 10 4.76%
Total 210 100%
3. Marital status
Married 53 24.24%
Divorced 15 7.14%
Widowed 21 10.00%
Single 121 57.62%
Total 210 100%
4. Family Size
Less than 3 132 62.86%
3-7 71 33.81%
8 and Above 7 3.33%
Total 210 100%

The above table shows that 123 (58.57 %) of the participants are male while 87 (41.43%) of them are
female condo residents. This indicates condo houses are less preferable by women than their men
counterparts. In terms of age distribution, 24 (11.43 %) of the participants members of households are less
than 18 years old while 82 (39.05%), 94 (44.76%), and 10 (4.76%) of the participants are aged between
18-35, 36-64, and > 65 respectively. The number of respondents aged less than 18 and > 65 is smaller
comparing to the number of participants of other age groups. This implies that condominium houses are
less suitable to reside for minors aged less than 18 and for older people who are physically weak.
(GEBREMARIAM, et al., n.d.)
The table above also shows the marital status and family size of the respondents. Accordingly,
53(25.24%), 15(7.14%), 21(10%) and 121(57.62%) of the respondents are married, divorced, widowed
and single respectively. The greater number of unmarried people living in the condo houses indicates that
the houses are less preferable to people who have a family like a wife/husband, children etc.
(GEBREMARIAM, et al., n.d.)
Finally, 132(62.86%) of the participants have a family size of less than 3 members while 71(33.81%) of
them have 3-7 family members, and the remaining 7(3.33%) of the participants have a family size of 8
and above. The higher proportion of residents with smaller family size in the study area reveals that
condominium houses are not suitable for people with a large number of family size. (GEBREMARIAM,
et al., n.d.)

II. Affordability of Condominium Housing in Jimma Town

Based on the data collected through questionnaire, 78(37.14%) of the participants are condominium house
owners. As the next pie-chart reveals that most, 28, (35.90 %), of the participants who possess and reside
in condo houses are engaged in their own private business. Government employees took the second place.
They constitute 26.92 % (21) of the total participants condo owners. The number of house wives
constitutes 16.67% (13) of the overall number of condo owners who live in the houses. Besides, the
number of participants hired in NGOs constitutes 3.85 % (3) of the respondents who own a condominium

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house. But, the number of unemployed, and those who work on family businesses is very small. Their
number is 5(6.41%) and 8 (10.26%) of the participants respectively. (GEBREMARIAM, et al., n.d.)

Summary of occupation of sampled condo house owners in

Jimma

29%

Work on Private Business

Hired in Gov't Offices
House Wife
30%
Work in Family Business
Unemployed
Work in NGO's

18%

4%
7% 11%

Table 2: Average monthly income, Housing typology, source of income and Monthly payment of condominium house owners in
Jimma town

Items Frequency Percentages

Average monthly income

<1000 ETB 11 14.10%
1000-2000 ETB 21 26.92%
2001- 4000 ETB 28 35.90%
4001-6000 ETB 10 12.82%
6001 ETB and above 8 10.26%
Total 78 100%
Housing Typology
Studio 9 11.54%
One bed room 26 33.33%
Two bed room 20 25.64%
Three bed room 15 19.23%
Shop 8 10.26%

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 Total 78 100%
Monthly Payment
Less than 400 ETB 9 11.54%
401-800 ETB 13 16.67%
801-1200 ETB 41 52.56%
1201 ETB and above 15 19.23%
Total 78 100%
Source of Income to repay the
monthly required amount
Own personal income from 49 62.86%
employment
From family and relatives 13 16.67%
Income from renting other 16 20.51%
condo house(s)
Total 78 100%

Based on the above table, most of the condo owners live in one, two and three bed rooms. This shows
owners prefer studios and shops to rent than to live themselves in these houses. That’s why only
9(11.54%) and 8(10.26%) condo owning participants live in studio and shops use for business purposes
respectively. However, 26(33.33%) live in one bed room condominium house while those who own and
reside in 2 bed room and 3 bed room condo houses are 20(25.64%) and 15(19.23%) owners and residents
respectively. In this regards, a data obtained from focus group discussants of Kella site, revealed the
reason why most of the studios are currently resided by tenants. That is: due to the fact that studio houses
are small in size, it is very difficult to live in them for a long period of time. A bed and all the other staffs
have to be in a single room. Even there is no a separate space for kitchen. What is separated in the class is
only a toilet. The rest of the things, they need to put them on the same room. It seems to be a store house
than a place they are going to live in. Above all, if residents have a family and live in a studio, life would
be too hard to them. These and other factors force owners to rent studio condo houses.
(GEBREMARIAM, et al., n.d.)
The table above also indicates the average monthly income of the respondents who own and live in the
study area, and the amount they have to pay per month to the Commercial Banks of Ethiopia including
the interest of the principal loan. Accordingly, 11(14.10%), 21(26.92%), 28 (35.90%), 10(12.82 %) and
8(10.26%) of the participants who own and live in the condo houses earn less than 1000 ETB, 1000-2000
ETB, 2001-4000 ETB, 4001-6000 ETB, and above 6000 ETB per month respectively. Besides,
13(16.67%) of the owners reported that they earn their income from the support of families and relatives
while 16(20.51%) and 49(62.82%) of them are renting other house(s) and generate personal income from
employment respectively. (GEBREMARIAM, et al., n.d.)

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 III. Availability of Basic Services and Facilities in Condominium Housing
Table 3: Residents’ perception on water provision

Items Frequency Percentages

Are you satisfied with the supply of water on the

condominiums?

Absolutely satisfied 0.00 0.00%

Not bad 161 76.67%

Absolutely dissatisfied 49 23.33%

Total 210 100%

In average, how many days per week can you

get access to the supply of water?

No access at all 21 10%

1-2 days 28 13.33%

3-5 days 158 75.24%

6-7 days 3 1.43%

Total 210 100%

Although access to water is the common problem of the town these days, being in the condominium
houses has its own additional problems. That’s why no respondent is fully satisfied with the provision of
water in the condos. Besides, being on the ground floor gives you a privilege to get an access to water
than those who are in the upper floors. This is due to the reason that the water loses a power to go up.
Since majority of residents are living in the upper floor (i.e. 1st and 2nd floor), based on the above table,
most of the residents (161), (i.e. 76.67%) are neither absolutely satisfied nor totally dissatisfied while 49
(23.33%) of the participants are totally dissatisfied with the provision of water in the condos. However,
majority of the (158) (i.e. 75.24%) have an access to water from 3-5 days in a week while 28 (13.33%)
and 3(1.43%) of the participants have an access to water between 1-2 and 6-7 days of a week while 21
(10%) of the participants don’t have access to water. (GEBREMARIAM, et al., n.d.)

IV. Waste Management in the Condominium Housings

The data on the practice of waste management in the selected condo sites of Jimma town, is presented as
follows:

Table 4: Waste management in the condominium housing

Items Frequency Percentages

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 Which one of the following explains the
condition of the safety ditches, sewage holes in
your site?

They are functioning very well 0.00 0.00%

They are nearly stopping functioning 51 24.29%

They are buried/ open not getting proper 159 75.71%

protection, and functioning unsatisfactory

Total 210 100%

Majority of the respondents, 150(71.43%), believe that most condominium residents have a bad habit of
waste management practices. This indicates that the living environment of Jimma condominiums is not
suitable to live in. This could have negative impact on the health of residents. In this regard, it is only
5(02.38%) of the participants replied that there is a very good practice of waste management practice
while 55(26.19%) of them are to the opinion that majority of the residents discharge wastes properly. The
bad waste disposal habits of residents is manifested in various ways. The most common habit, according
to the majority (93, i.e. 44.29%), of the respondents is to discharge wastes on the fields, in front of their
doors. (GEBREMARIAM, et al., n.d.)

Figure 10: Improper waste discharge by residents in some selected site

However, some respondents thought that the point of discussion has to be whether a functioning waste
management system exists in the condos or not. In this regard, 57( 27.14%) of the respondents think that
though residents are not good in discharging wastes properly, the problem is not about know how to
discharge or they don’t bad waste disposal practice affects their health. Rather, there is no proper and
functioning facilities/ or infrastructure by which they can discharge wastes properly. Some throw away
wastes in to the ditches. This results sewage overflow and blocked. (GEBREMARIAM, et al., n.d.)

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 V. Low Quality Construction Material Usage
The use of low-quality building materials in condominium housings in Jimma, Ethiopia is a widespread
problem. This is due to a number of factors, including the following:
 High demand for affordable housing: The demand for affordable housing in Jimma is high, and
this has led to a boom in the construction of condominium housings. However, the high demand
has also led to some developers using low-quality building materials in order to reduce costs.
 Lack of regulation: There is a lack of regulation in the construction industry in Ethiopia, which
makes it easy for developers to use low-quality building materials.
 Corruption: Corruption in the construction industry is also a problem, and this can lead to
developers using low-quality building materials in order to line their own pockets.
 Lack of awareness: Some homeowners are not aware of the dangers of using low-quality
building materials, and they may be misled by developers who promise high-quality housing at a
low price.
The use of low-quality building materials can have a number of negative consequences, including the
following:
 Structural problems: Low-quality building materials can lead to structural problems in
buildings, such as cracks in the walls and foundation. This can make buildings unsafe to live in
and can lead to collapse.
 Health problems: Low-quality building materials can also release toxic chemicals into the
air, which can cause health problems for residents.
 Increased maintenance costs: Buildings made with low-quality building materials require more
maintenance, which can be expensive for homeowners.
 Reduced lifespan: Buildings made with low-quality building materials have a shorter lifespan
than buildings made with high-quality building materials.

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 Figure 11: Condominium Site found on Sar-Sefer Site

The following are some specific examples of low-quality building materials that are commonly used in
condominium housings in Jimma, Ethiopia:
 Poor Quality Plastering: Plaster that is not properly mixed or applied can crack easily. This can
make walls and ceilings look unsightly and can also allow moisture to seep in, which can lead to
further problems.
 Substandard Concrete: Concrete is often made with too much water and too little
cement, which makes it weak and brittle.
 Poor quality steel: Steel used in rebar is often of poor quality, which makes it susceptible to
corrosion.
 Cheap electrical wiring: Electrical wiring is often made with cheap plastic that is not fire-
resistant.
 Low-grade plumbing pipes: Plumbing pipes are often made with low-grade materials that are
prone to leaks and bursts.
 Poor quality windows and doors: Windows and doors are often made with cheap materials that
are not weatherproof.

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 VI. Poor Building Orientations
Poor building orientation is a common problem in condominium housings found in Jimma, Ethiopia. This
is due to a number of factors, including the following:
 Lack of planning: Many condominium housings in Jimma are built without proper
planning. This can lead to buildings being oriented in a way that is not conducive to energy
efficiency or comfort.
 Cost-cutting: Developers may cut costs by orienting buildings in a way that minimizes the need
for expensive features such as sun shades and awnings.
 Lack of awareness: Developers and homeowners may not be aware of the importance of
building orientation and its impact on energy efficiency and comfort.
Poor building orientation can have a number of negative consequences, including the following:
 Increased energy costs: Poorly oriented buildings require more energy to heat and cool, which
can lead to increased energy costs for homeowners.
 Reduced comfort: Poorly oriented buildings can be uncomfortable to live in, as they may be too
hot in the summer and too cold in the winter.
 Increased glare: Poorly oriented buildings may be subject to excessive glare from the sun, which
can make it difficult to see and can be uncomfortable for residents.

Figure 12: Condominium at Sar-Sefer with poor building orientation

The following are some specific examples of poor building orientation in condominium housings found in
Jimma, Ethiopia:

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  Buildings that are oriented directly east-west: East-west oriented buildings receive the most
sunlight on their east and west facades. This can lead to overheating in the summer.
 Buildings that are too tall: Tall buildings can block sunlight from reaching neighboring
buildings. This can make neighboring buildings dark and uncomfortable to live in.
 Buildings that are too close together: Buildings that are too close together can block airflow
and trap heat. This can make both buildings uncomfortable to live in.
 Buildings that do not have adequate sun shading: Buildings without adequate sun shading are
more likely to overheat in the summer.

VII. Criticism
Here are some specific criticisms of condominium housings in Jimma, Ethiopia:
 Poor quality plastering: Many condominium housings in Jimma have poor quality plastering,
which can lead to cracks, blisters, and loose plaster. This can make walls and ceilings look
unsightly and can also allow moisture to seep in, which can lead to mold growth and other
problems.
 Poor building orientation: Many condominium housings in Jimma are poorly oriented, which
can lead to overheating in the summer and excessive glare in the winter. This can make living in
these units uncomfortable and unpleasant.
 Lack of ventilation: Many condominium housings in Jimma lack adequate ventilation, which
can lead to stuffiness and poor air quality. This can be a health hazard, especially for people with
respiratory problems.
 Lack of community spaces: Many condominium housings in Jimma lack common areas where
residents can socialize and interact. This can make residents feel isolated and disconnected from
their neighbors.
 Lack of security: Many condominium housings in Jimma lack adequate security measures,
which can make residents feel unsafe. This is especially a concern for women and children.
Overall, condominium housings in Jimma, Ethiopia have been criticized for their poor quality, lack of
amenities, high prices, density, and lack of green space. These criticisms are valid and should be
addressed by developers and policymakers.

As a Recommendation; the following issues should be considered;

 Improve the quality of construction: Developers should use high-quality materials and
construction methods when building condominium housings. This will help to ensure that
buildings are safe and durable.
 Provide basic amenities: All condominium housings should have basic amenities, such as
parking, security, and recreational facilities. This will make living in these units more convenient
and pleasant.
 Make condominium housings more affordable: Developers should make condominium
housings more affordable for people with low incomes. This could be done by offering subsidies
or by building smaller, more affordable units.
 Reduce the density of condominium housings: Condominium housings should be less densely
packed to reduce noise pollution, traffic congestion, and provide more privacy for residents.

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  Provide more green space: Condominium housings should have more green space to make them
feel less cramped and more pleasant.
 Use high-quality plaster: Developers should use high-quality plaster that is properly mixed and
applied to avoid cracks, blisters, and loose plaster.
 Orient buildings properly: Buildings should be oriented so that they receive the most sunlight
on their south facades and have adequate sun shading to protect east and west facades from direct
sunlight in the summer.
 Provide adequate ventilation: Buildings should have adequate ventilation to ensure good air
quality. This can be achieved by using natural ventilation or mechanical ventilation systems.
 Create common areas: Condominium housings should have common areas where residents can
socialize and interact. This could include things like playgrounds, parks, and community centers.
 Improve security: Condominium housings should have improved security measures, such as
fencing, gates, and security guards. This will make residents feel safer and more secure.

VIII. Conclusion
Despite a number of condominium houses are built in Jimma town, almost the program fails to meet its
objectives. First of all, the houses are built with the intention of benefiting residents of the town, not
residents from elsewhere. The housing, housing transfer and urban development agency did almost
nothing to upgrade residents’ awareness on the importance of the housing program to the poor and middle
income sections of the society. This results in the houses are transferred to people who are not from
Jimma, to people who rich either have their own houses in the town, and to Jimma University which is
not in the scope and intention of the housing program.

2. Make a compilation and assessment on the planning and design policies, strategies
and manuals related to housing.
Norms and standards of the Addis Ababa/ Regional cities structure plan components

1. Standards for social mixity: land budget share for high, middle and low-income groups in detail
planning and corresponding plot area standards in intermediate and expansion areas (income group
percentage modified according to Effective Demand).
Income Social mixity Assumed plot Assumed population Remarks
groups percentage area for a unit in share to respective
m.sq. plot sizes

High – 5% 300 (average plot 50% Average plot area is calculated from information
income area) obtained from lease office. However the use of land

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 500 (average plot 50 % requested for such housing shall be regulated by the
area) guidelines provided in consecutive sections of this
document.

Middle- 21 % 150 50% Plot area adopted from existing standards. Part of this
income 175 50% income group could also be allocated the 120 m. sq.
plot, depending on circumstances.

Low- 74% 75 25% Housing for the low-income is proposed to be

income 95 25% developed through block approach and there should not
be individual plots below 150 m. sq. Therefore these
105 25%
plot areas are proposed to be used only as a basis for
120 25% land budget estimation. Rental housing to be provided
by the government and private developers are also
assumed to have similar average plot areas. The
percentage corresponding to plot standards could be
modified according to the objective realities and over
all implementation results of consecutive periods.
There should also be an option of 150 m.sq.
plot depending on local conditions

NB: From the total housing need the effective demand is 73%. Taking this effective demand to be 100%;
the Percentage of high, middle and low-income group to be allocated minimum serviced land (for rental,
owner-occupied, real estate developers etc.) respectively is 5, 21 and 74%.

2. Area/HH standards in core, intermediate and expansion areas

Areas Average land area per House Hold (M. sq./HH)
For pure residential use For housing units and For housing units,
supporting physical and supporting physical and
social infrastructure social infrastructure and
services higher level uses
Core 40-80 80-100 100-120
Intermediate 80-130 130-140 140-150
Expansion area 125 185 215

 It shall be noted that the area standard for core areas are not plot area par se but are the
ground area share of pure residential use per household. Communal spaces and facilities are
excluded. For example a G+2 building that accommodates 20 families (mixed use at ground
floor and the other floors for housing) will have 800-1600 m. sq. ground area. Such
arrangement works for condominium housing and related mixed uses. Thus it is
recommended that as far as applicable and practicable such buildings and housing typologies
should be built in core areas of the city.
 Neighborhood services and higher-level uses should be developed using guidelines, standards
and norms proposed by this and other component studies.

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 3. Housing typologies

Area Housing typology Remarks

The city core G+0-G+5, row houses, duplex, Existing low-income households
cluster, flats in rental and should also be integrated in High-
condominium walk-up density residential developments of
apartments. core areas through renewal projects.

The intermediate zone G+0-G+5 flats in rental and Medium density area
condominium walk-up apartments
Expansion areas Formal/informal, Low density areas
incremental cluster and/or row
housing G+0, G+1- G+4 and flats in
walk-up apartments
Refer to the density standards of respective areas presented below.

Housing area standards

Income-group Minimum habitable
housing standard (m2 )
Low-income 20 It consists of a multi-purpose room (13 m2),
toilet (3 m2) and kitchen (4 m2) will be built
at the first phase and an additional bedroom
of 10 m2 at the final stage.

Middle-income 30 It consists of a living room (13

m2), toilet (3 m2) and kitchen (4
m2) and 10 m2 bedroom at the first
phase and an additional bedroom
of 10 at the final stage.
High income -

4. Existing and proposed population density levels in Addis Ababa and the proposed
intervention mechanism
No. Density Proposed Proposed net Catchm Proposed intervention mechanism
zone Net house population ent
hold density levels in radius
Density Addis Ababa and
HH/Hect. ( Inh./hect )
areas
included
in the
density

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 zone
1 Core 125-380 650-2000 Areas within 5 Maintain the density by encouraging
Area Km radius: the change of housing typology
Merkato, from single to multi storey walkup
Teklehaimanot, buildings (through condominium
Piazza, Lagaar,
and other systems) and introduce
Mexico,
Kazainchis etc. required services within the space to
be obtained. Most of the housing in
this areas are Kebele owned so an
appropriate privatization mechanism
shall be prepared.
2 Interme 80-125 400-650 Areas between Increase the existing density by encouraging
diate core and infill. residents to build rental units within their
Zone existing properties for housing other uses.
Also allow people to sell part of their
properties to other users.

80-125 400-650 Infill areas Increase the density to the proposed level by
identifying and encouraging devt. of new plots
within the existing infill areas.

3 Periphe 54-80 280-400 Existing To be developed according to the

ry and non-and density and other guidelines
Expan. partly proposed in this and other structure
areas built-up plan component studies
areas.

 Gross residential density in expansion areas (where all levels of uses are included) will be 246
inh/hect. Or 47 households/hect.

6. Minimum basic physical infrastructure service standards at wide weave grid level.

No Services Minimum requirement The lowest Level Remarks

of provision

1 Road Gravel Collector Compacted and well

surfaced with gravel
2 Access roads Well compacted At block level At the first phase but has
to be upgraded as the
settlement develops.
2 Water Main water lines and Collector Public taps are proposed
public tap to be provided for the
low-income group
3 Electricity Main lines Along collector House to house
streets connection has to be
provided at the
completion of the
construction
4 Telephone Public telephone At least public House to house
phone have to be connection has to be

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 provided at provided after the
selected spots residents started to live
in the area.

7. Standards for plot preparation: Housing development type and corresponding percentage
breakdown according to income sub-category (modified based on the effective Demand).
Housing Percent. Percentage breakdown according to Remark
development Share from income subcategory (%) taking
type tot. those in the column at the left as
Housing 100%
Low Middle High

Rental- 25% 45 35 20 Interventions by the City

apartments, Government to make rents
villas, simple affordable are very important
units, & low-cost Use of local materials in the
housing construction of low-income rental
housing should also be allowed
Real estate 7% - 25 75 Regulatory mechanisms and relevant
housing laws and by-laws shall urgently be
set-up and enforced.
Individual 45% 74 21 5 Provisions for improvement of
builders through affordability shall be considered
cooperatives
Formal 20% 100 - Minimum regulations should be
Informal implemented urgently.
Public housing 3% 100 - - Responsible institution should be
by City Govt, set-up to coordinate individual
institutions and efforts of supporting the urban poor.
organizations

8. Land-use Mixity standards

No. Housing component Proposed percentage from the total specific
settlement area
Core Intermediate Periphery
1 Residence 35-45 40-50 50-65
2 Administration, Commerce including 20-30 15-25 5-10
mixed commerce, residence, service, and
other compatible uses.
3 Services 10-20 15-25 5-10
4 Manufacturing (only non-polluting 0-5 0-5 5-10
compatible activities should be allowed in
core and intermediate areas)
5 Recreation, and green areas 5-10 5-10 10-15
6 Roads (local access and collector streets) 15-20 15-20 15-25

 The actual land-use mixity will be result of specific site conditions.

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 9. Site Occupancy Ratio Standards

N0 Plot size Site Occupancy Ratio (SOR)

Number of stories.
<150 - Single storey detached Max. 75%
- Single storey attached Max 65%
- Two and three storey detached Max 60 % (rental or condominium)

150-175 - Single storey detached middle-income- Max 65%

- Single storey semi-detached - Max 60%
- Single storey attached - Max 55%
- Two and three storey detached - Max 60% Two and three
storey semi-detached -55%
- Two and three storey attached - Max 50%
175-250 G+1-G+2- Min 65 %
250-400 G+0, G+1 Min 65 and 50% respectively
400-600 For G+2, G+1-and G+0 Min 45, 50 and 65 Respectively.
>600 G+0, G+1, G+2 Min 40% and above shall be allowed. In doing
so proposed facilities and building elements shall be
considered.
In allocating land for high-income, minimum Site Occupancy Ratio should not be lower than 40
per cent for G+2 housing units and the maximum not more than 65 per cent for G+0 residential
complexes Maximum SOR for low and middle-income housing in expansion areas should be 75
and 65% respectively.
10. Household sanitation standards
 A housing unit should have a septic tank or a connection to a public sewer system
 Size of septic tank (clear space) should correspond to family size and within a range of 8-
27 cu.m for economical and efficient usage
 Setback standards of septic tanks stipulated in the building permit document should be
respected.
11. Greenery and Environmental norms and standards
 One plot one tree for plots of area up to 150 m sq. and 1 tree for every additional 100 m sq.
plot area.
 12-25 % of a plot area should be unsealed (for greenery and natural open space so that rain
water should percolate to the ground, decrease water discharge and reduce runoff).
 Green areas of different standards (Neghibourhood-city level) should be provided and
developed according to the norms and standards provided in the Social Facilities
component.
 In any case an average of 0.5-1m sq./person should be reserved for green spaces

As A Strategy Addis Ababa City Housing Strategy Housing

The magnitude of the need for social services and infrastructure such as housing depends, among others,
on the size of the population and its growth. The population of Addis Ababa will reach at least 4.4 million
at the end of the plan period. Since urbanization is unavoidable particularly in light of the transition the

24 | P a g e
country is making from a predominantly rural towards an urban-based economy, one of the immediate
challenges is “how to provide affordable and adequate housing within a livable environment”. This
chapter presents a short summary of the housing strategy of the plan for the next ten years.
The first two parts will present the forecast made regarding the number of houses that will be needed
during the next ten years and the general principles that the plan has adapted. This is followed by the
goals and strategies to guide the delivery of housing and address some of the challenges that beset the
sector. The fourth part deals with two critical issues of the sector: housing typologies and land
requirement. The fifth section deals with housing finance. The remaining three parts describe
macroeconomic implications of housing finance, institutional and regulatory interventions, and phasing.

Housing demand
The demand for housing during the planning period is forecasted taking into account six important
variables, namely the existing stock, population growth, backlog, dilapidation, overcrowding, conversion
and contingency.
More specifically these variables refer to the number of housing units currently in use, housing that will
be needed to accommodate new family formation (which is a function of population growth), housing
units to be constructed to meet the current backlog, housing units to be demolished due to their
dilapidation, housing units that will be needed to address. Overcrowding, housing units that will be
converted into other uses, and contingency. Thus, considering these factors, the total number of housing
units that have to be built during the next ten years within Addis Ababa is estimated to be 1,172,195.

Guiding principles, Goals and Strategies

Considering the vision of making Addis Ababa “Africa’s diplomatic capital”, the plan adapts the
following five guiding principles:
 Compact and green development with good balance between open and green spaces and the built
form;
 Mixity among income groups, housing typologies and land uses;
 Balanced growth through appropriate distribution of housing, economic activities and
infrastructure;
 Efficient use of land in the city centre, along mass transit lines (along LRT, BRT and future
Metro lines) and renewal of slum neighborhoods; and
 Environmental sustainability through protection of the natural ecosystem.

Apart from estimating the magnitude of housing requirements during the planning period, an important
question to ask is “how to build 1.2 million housing units during the next 10 years and address other
challenges in the sector.” Part of the answer to this question lies in understanding the government’s
position towards the sector as stipulated in its policy documents including the GTP, the broader national
urban development policy and the more specific housing policy. The general direction that is stipulated in
these documents focuses on the following five “guiding principles”: affordability, social mixity, compact
development (vertical development rather than sprawl) and strong government intervention in the
delivery, improvement of quality of housing stock and living environment through upgrading and
renewal, and linking employment creation efforts with housing programs. On the basis of these positions,
the Plan has developed five goals and specific strategies to achieve each goal.
Goal 1: Increase the housing stock in the city with particular focus on affordable housing
The Plan adopts two types of strategies. The first and the most important one is related to the production
of affordable houses. The share of the low income group which represented 80% in 2002 has declined to
66% in 2012 and is expected to go further down to 35% when the country achieves the middle income
status. The issue will thus be how to build 420,000 housing units for the low income group. As will be
indicated below, considering different subsidy packages, the Structure Plan recommends that the
government focuses on this particular sector. The second set of issues refers mainly to “choice of tenure

25 | P a g e
type”, which has to be seen in combination with affordability. This is also very important since in many
countries the way people want to occupy a house is not necessarily related to their ability to pay but “with
their choice/preference to own or rent”. Thus, what is depicted in the diagram below shows a combination
of the most feasible housing delivery options.
Given its experience in constructing more than 150,000 units during the last few years, the government
has successfully built the capacity of the construction sector. Thus, there is now more confidence if the
role of the government is limited to the following:
 Direct provider of low cost housing (to 35% of the families) and infrastructure (i.e.
 mainly access roads, drainage canals and water lines);
 Developer of serviced land to meet the estimated requirements (almost 889 ha/year);
 Regulator of distortions in the market as a result of lack of information, monopolistic
 and oligopolistic behavior of actors, etc.;
 Protector of public interest through standards and regulations; and
 Enabler of the private sector to perform efficiently.
Goal 2: Improve the quality of the housing stock and the living environment in residential
neighborhoods
Of the total of 628,986 housing units that were available in 2007, about 40% (270,000) are considered
unfit for living (i.e., of substandard quality) 2 . According to the data obtained from CSA, 40% of the units
constitute single room housing, 14.3% do not have toilet facilities, 20% do not have kitchen, 2.32% lack
private water connection. From the living environment point of view, many of the residential
communities in the city lack proper open spaces for socializing.
Towards making the city “livable,” the following strategies are suggested:
In-situ redevelopment: this is a kind of redevelopment that is undertaken without relocating existing
residents. Relocation is avoided unless found necessary for safety, security, environmental reasons, etc.
Under such circumstances, relocation will be undertaken on voluntary and group basis by giving fair
compensation to those to be relocated. The imperative in promoting in-situ redevelopment benefits
residents through improvements in living environments, while preserving their social capital and
economic networks.
Conditional privatization/restitution of public owned houses: though most of the Kebele owned
houses that are known for their dilapidation and poor aesthetic quality are located within the inner city,
there are also quite a considerable number of Kebele houses located within the intermediate and outer
zones.

Housing improvement objective will not be attainable if these houses are disregarded. Thus, the most
feasible strategy to upgrade the quality of these houses is conditional “privatization”; transfer to sitting
tenants under the condition that ownership will only be transferred when the houses are improved to a
minimum level of standard.
Conditional legalization of informal settlements: legalization and conditional legalization on the basis
of investment on the stock (as elaborated later) is another strategy to improve housing conditions in
informal areas.

Plot rearrangement and compulsory public space sharing: As mentioned above, particularly in the
already built up areas, acquiring adequate land for infusing neighborhood level infrastructure and services
such as access roads and playgrounds is very difficult unless some demolition is made. The major reason
is the haphazard plot arrangement in residential neighborhoods, while in some cases schools and other
government institutions also contribute to the situation. A neighborhood level plot rearrangement as well
as partnership agreements in the use of facilities and spaces could be one strategy not only to overcome
the shortage of land for community use but also to promote the efficient use of land in urban areas.
An independent design jury: in consideration of the new government sponsored multi-storey housing
projects that so far have exhibited a stark similarity and monotony, a committee made up of, among
others, architecture and urban planning departments in higher educational institutions, professional

26 | P a g e
associations, residents, and the City Government could be established to supervise the quality of building
and/or housing designs to be submitted by design studios. By bringing different professionals and
experiences together, such a committee could contribute to the creation of a pleasant urban environment.
Goal 3: Ensure balanced social and land/building use mix
Addis Ababa is currently facing three serious problems regarding the desire to achieve a balanced housing
mix. The first is related to the more recent proliferation of gated communities, especially in recently
developed settlements and older neighborhoods where the affluent reside. Such gated communities are
mushrooming at an alarming rate, which is going against the mixed social fabric that identifies the city
from most other cities. Today, many old established communities and new public housing areas are
putting concrete walls and gates following the pattern set by some developers on the outskirts of the city.
If this trend continues unabated, we will witness the tragic transition from “Addis Ababa: the African city
where the poor and rich live together” to “Addis Ababa: the city of gated communities.” The second
problem is related to the mix of residential functions with other socially unacceptable uses such as the so
called “Massage Bet”, “Shisha Bet”, “Zig Bet”, “Chat Mekamia Bet”, “Chifera Bet”, etc. that have
penetrated and in some cases, have taken over many decent residential neighborhoods in the city. The
third is related to centres. Developments in such areas and along major development corridors do not
leave space for residential functions since it is less profitable. The result is that such areas in the city have
become dull outside working hours and during weekends (Sundays) and holidays, thereby killing the
vitality and vibrancy of such areas.
One of the goals of this plan is therefore to address these two critical issues. As a strategy, the first
challenge requires that, at least in the short term, all fences in gated communities that have blocked access
to public spaces (such as streets, parks, open recreational areas, etc.) have to be removed to increase the
rate of social and housing mixity in the already built up areas of the city. Development of housing for low
and middle income groups on adjacent land to real estate developments, and infill/densification of
condominium sites that have low density through the introduction of middle and high income housing
should be applied. Apart from the above two strategies, the future of housing development has to see the
promotion of compulsory social mix at the level of blocks and/or buildings (when high rise buildings are
selected), providing financial incentives in the form of low land lease price, and the provision of
development priority and incentives to those that develop socially mixed housing.
Regarding housing mix with other non-compatible uses, the application of prohibitive planning approach
for specific type of functions that are not compatible with residential functions has to be instituted. To
attain mixed land/building uses, the provision of conditional building permit to those that mix housing
with other uses and incentives (planning, financial, etc.) can be used.
Goal 4: Achieve compact and green development
More than 90% of the houses in the capital are one storey buildings which indicates that land is not
efficiently used. Out of the total built up area, almost one third (8,339 ha) is occupied by one storey mud
houses. Other than this, population density is close to 65 people/ha for the total land area; and net
population density (for the built up area) is 125 people/ha. This makes Addis Ababa more densely
populated than some of the most populated metropolis in the US (New York and Los Angeles) and
Europe (Moscow and Paris), Tokyo and Buenos Aires. Addis Ababa is the fourth most densely populated
city in Africa following Lagos, Cairo and Kinshasa. Paradoxically, housing density in the city is much
lower than what is found in some of these cities. This is also an indication of overcrowding. Nonetheless,
for a city whose expansion area is already exhausted, a plausible option for housing development for
Addis Ababa remains increasing density.
Linear redevelopment: the first two blocks (100 m depth) on both sides of LRT lines and one block on
both sides of BRT lines (50m depth) should be identified as strategic corridors for intensive residential
development (150 hu/ha.). Densification along such areas, besides making the investment in mass transit
more profitable, will also allow people to get access to such transportation services nearby.
Inner city renewal: at least 50% of inner city slum areas will be identified for building walk-up
apartments by way of promoting vertical redevelopment. It is estimated that more than 90% of the built-
up area within 5km radius from the city centre is considered as slum. Though this proportion is expected

27 | P a g e
to have been slightly reduced as a result of recent large scale renewal activities undertaken by the City
Government, such areas still hold potential for redevelopment.
Yet, existing residents should be integrated within the new built environment to be eventually developed
as suggested in Goal 2.

Goal 5: Guarantee the provision of shelter for the homeless

It is estimated that between 10,000-20,000 people in Addis Ababa are homeless. As shelter is a basic
human right, the following strategies are devised to provide shelter to the homeless.
Religious organizations: the provision of social support to the needy is a major part of the obligation of
religious institutions and it is on the ground of such humanitarian and spiritual justifications that such
organizations are granted urban land free of charge. Thus, one of the strategies to be adapted is to
convince religious institutions to provide shelter to the homeless as part of a broader social development
intervention.
Woreda administrative offices to mobilize resources for the construction of social housing:
Woreda offices have the capacity and experience to mobilize financial resources from people residing and
working within their respective jurisdictions (and philanthropic institutions) for social purposes, including
the provision of modest shelter for the homeless. Kebeles have an added advantage of identifying land
that can be (at least temporarily) used to construct such shelters.
Thus, if churches, mosques, Kebeles and other philanthropic institutions can build shelters that can
provide sleeping spaces or beds for 10,000 homeless people per night at least, the target could easily be
attained.

Housing Typologies and Land Requirement

Once the backlog is identified and the goals and strategies are defined, the next step is
Identifying housing typologies for the different income groups, estimation of land requirement and
housing finance as well as defining appropriate institutional arrangements.
Housing Typologies
Identification of appropriate housing typologies that meet the needs of the different income groups is
important. As shown in the table below, the proposal ranges from the “site and service” type of
incremental houses to the most luxurious villas and multi-storey buildings that are intended to attract FDI.
This step is very important to calculate the amount of land that would be required to build the total of 1.2
million houses within the next ten years.

According to the Addis Ababa City Structure Plan, the demand for housing during the planning period is
determined by several factors. These factors include the existing housing stock, population growth,
backlog, dilapidation, overcrowding, conversion, and contingency.
To estimate the housing demand, the plan takes into account the number of housing units currently in use,
the need for housing to accommodate new family formations based on population growth, the
construction of housing units to address the existing backlog, the demolition of dilapidated housing units,
the requirement for housing to address overcrowding, the conversion of housing units for other uses, and
contingency factors.
Based on these variables, the plan estimates that a total of 1,172,195 housing units need to be built within
Addis Ababa over the next ten years to meet the projected demand for housing.

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 Population in 2023 Address new Total
family Replace Contingency Address needed
formation dilapidation (20%) Backlog

4,408,656 207,015 269,814 500,000 500,000 1,172,195

rounded off
to 1.2
million

Guiding principles, Goals and Strategies

 Increase the housing stock: The plan aims to expand the number of houses in the city, with a
special emphasis on affordable housing options.
 Improve housing quality and living environment: The plan seeks to enhance the standard of the
housing stock and the living conditions in residential neighborhoods.
 Ensure balanced social and land use mix: The plan strives to maintain a balanced mix of social
classes and land uses within the city.
 Achieve compact and green development: The plan is committed to promoting development that
is both compact (making efficient use of space) and green (environmentally friendly).
 Guarantee shelter for the homeless: The plan includes a commitment to ensuring that all homeless
individuals in the city have access to shelter.
 Each of these goals is accompanied by specific strategies designed to achieve them.

Implementation Strategies and Tools

The building height regulation aims to promote efficient land use and create a harmonized skyline in the
city. The regulation excludes buildings for social services, cultural activities, manufacturing, storage,
military camps, international organizations, and sports facilities. The city has historically developed with
low-rise structures, resulting in an incoherent skyline. The first building height regulation was introduced
in the 1986 Master Plan, but it was not fully implemented. In 2002, the regulation was revised, lowering
the minimum building height and deregulating height requirements in most parts of the city, leading to the
construction of many 10-story buildings and above. In 2010, the regulation was revised again, considering
factors such as development pressure, land and infrastructure utilization, heritage preservation, social
equity, safety, security, and aesthetics. The new regulation aimed to attract investment, enhance the city's
status as an African diplomatic capital, and generate income from tourism. It adopted a polycentric
development concept, consisting of 10 areas, and emphasized the preservation of the city's history and
quality. The provisions from the 1986, 2002, and 2010 regulations form the basis for the new building
height regulation, which aims to simplify implementation and address previous shortcomings. The
regulation seeks to create a distinctive skyline, streetscape, and overall image for city branding by
regulating height, setback, and volume/bulk of developments.

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Background
• Population 80 million, over 950 towns and Cities, double digit economic growth
• Pressing Slum condition
• Housing shortage
• unemployment condition
Housing and Slum Upgrading Targets in GTP
1) Construct of 500,000 housing units
2) Create 400,000 Job opportunity (housing sector)
3) Reduce the number of slum dwellers by half (60% to 30%)

What has been done?

• Over 200,000 housing units has been constructed /women are the beneficiary group/
• 370,000 job opportunities
• Completed piloting
• Over 25 slum Renewal projects successfully conducted
• In 16 towns slum upgrading – infrastructure and services /KFw and World Bank/

Housing strategy
 To guide the government intervention and participation of stakeholders in the sector.
 To Integrate and coordinate efforts to enable access to housing by the poor and mid income level
households.
 To integrate the sector with employment creation.
 To encourage saving and arrange financial schemes

Support packages and schemes

• Free land supply
• Taxation
• Technical support
• Establish saving schemes
• Loan arrangement
• Undertake Capacity building

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Housing supply pyramid

Figure 13: Housing supply pyramid

10/90 Housing Program

Figure 14: 10/90 Housing program

Figure 15: Housing cost and saving

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20/80 Housing program

Figure 16: 20/80 Housing Program

Figure 17: Housing cost and saving

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40/60 Housing program

Figure 18: 40/60 Housing program

Figure 19: Housing cost and saving

1) In industrial zones, higher educational institutions and in other organizations

 Government support is geared to support them with

 Design and technical support Land on low lease price
 Infrastructure

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 Figure 20: Typical floor plan

Housing Association

Figure 21: Housing Associations supported by org.

Housing Association Villa Types

Figure 22: Housing Association Villa Types

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 3. Conduct a case study on the good practices from other countries inner city
redevelopment projects relevant to our country.

Case Study
I. Overview of Redevelopment
The Chicago Housing Authority’s (Diane K. Levy (Urban Institute), Harris Beider (Institute of
Community Cohesion), Susan Popkin,, 2010)(CHA) Plan for Transformation is the largest public housing
revitalization effort in the United States. The changes that the CHA’s transformation of its distressed
public housing has wrought over the past decade have been dramatic and have changed the city’s
landscape markedly. Most striking is the absence of the massive high-rises that dominated the landscape
in some of the city’s poorest neighborhoods for half a century.

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Figure 23: New and future housing surrounding a park at Oakwood Shores
 The challenges the CHA faced in attempting to transform its public housing were enormous. The agency
was one of the largest housing authorities in the country and had an extraordinary number of distressed
units. Decades of failed federal policies, managerial incompetence, financial malfeasance, and basic
neglect had left its developments in an advanced state of decay. Conditions inside the developments were
appalling, with crime and violence overwhelming and gang dominance nearly absolute. The crack
epidemic of the 1990s swept through CHA’s developments, making conditions even worse for the
residents and the problems more visible to outsiders. By the early 1990s, CHA’s high-rise public housing
developments had become a national symbol of the failure of federal housing policy—and of antipoverty
programs in general. (Diane K. Levy (Urban Institute), Harris Beider (Institute of Community Cohesion),
Susan Popkin,, 2010) New and future housing surrounding a park at Oakwood Shores. (Diane K. Levy
(Urban Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

In the 1995, the U.S. Department of Housing and Urban Development (HUD) took over the housing
authority. One of HUD’s main goals was to reverse the CHA’s image and show that it was possible to
reclaim these profoundly distressed communities, the strategy that would eventually become the basis for
CHA’s Plan for Transformation. The centerpiece of this effort was the $6 billion HOPE VI program,
which provided financing for the demolition and replacement of hundreds of distressed developments
across the nation.8 9 The CHA became the largest recipient of HOPE VI funds, and the agency launched
its first revitalization effort in late 1995. The full Plan for Transformation, 15 encompassing all of CHA’s
family developments, was initiated in 1999, when HUD returned the CHA to city control. (Diane K. Levy
(Urban Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

Oakwood Shores is the largest of CHA’s public housing redevelopment efforts. In 2000, the CHA
received a $35 million federal HOPE VI grant to support the redevelopment of three adjacent projects
with more than 3,000 units on 94 acres of land. These public housing developments, Ida B. Wells Homes
(1941), including the Wells Extension, Clarence Darrow Homes (1961), and Madden Park Homes (1970),
were located just south of Chicago’s central business district, the Loop, and near Lake Michigan. Public
housing, like the city itself, was highly segregated by race and the population of the three developments
was entirely African-American. (Diane K. Levy (Urban Institute), Harris Beider (Institute of Community
Cohesion), Susan Popkin,, 2010)

Like the rest of CHA’s family housing, by the 1990s, the Wells/Madden community was physically
deteriorated and overrun with drug trafficking and gang violence. In 1995, two young boys threw a five
year old out of the window of a vacant unit in the Darrow Homes, a crime so horrifying that the CHA
moved to quickly demolish the four high-rises. By 2000, the Wells/Madden community and surrounding
areas were marked by extreme poverty, poor quality subsidized and privately owned housing, failing
schools, and very high levels of crime. The toll on physical and mental health, educational attainment and
future prospects was, for many residents, devastating (Popkin 2010). (Diane K. Levy (Urban Institute),
Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

As with its other properties, the CHA led the redevelopment effort for the Wells/Madden site, applying
for and receiving the $35 million HOPE VI grant and leveraging it with other public and private funding.
The MacArthur Foundation also invested heavily in the community, making it one of its New
Communities sites. While the CHA held meetings with residents and solicited input as to what the
community would look like and what rules would be established to determine who could return, the effort

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was driven from the top. (Diane K. Levy (Urban Institute), Harris Beider (Institute of Community
Cohesion), Susan Popkin,, 2010)

Once redevelopment activities began, residents were relocated from the existing housing units to
available units in other public housing developments or provided a Housing Choice Voucher with which
they could search for and rent housing on the private market. Residents also could choose to leave on
their own; the CHA evicted some households that were in violation of their lease. To return to the newly
built housing, families had to apply for a unit and meet the selection criteria, which now included
employment requirements, drug testing, a background check for felony convictions, and other factors.
Original residents were not guaranteed a home in the new development.

(Diane K. Levy (Urban Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010).

The CHA is replacing Wells/Madden with Oakwood Shores, a mixed-income and mixed tenure
development that connects better to the broader community via a new street grid and park space. The
original development area includes an additional 20 adjoining acres 16 that were considered blighted.
Once completed, new development will have 3,000 housing units, divided roughly equally into public
housing, affordable, and market-rate rental units and units for sale. Phase I includes 325 rental units,
including approximately equal numbers of public housing, affordable and market-rate units, plus 124
homeownership units; these units were partially occupied at the time of the site visit. The portion of units
targeted to any one income tier is meant to remain constant even as tenants come and go. In addition to
the new housing, infrastructure and parks, there is a building which houses the leasing and management
offices and provides community meeting space. In addition, there is a new elementary school that was
constructed on the site in conjunction with the Wells/Madden redevelopment. (Diane K. Levy (Urban
Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)The Community
Builders (TCB) is the lead developer and manager for Oakwood Shores. TCB is a national nonprofit
urban housing developer with approximately 100 developments located across the country, including 15
HOPE VI sites. Granite Development Corporation, a Chicago-based company, is the developer of the for-
sale units. (Diane K. Levy (Urban Institute), Harris Beider (Institute of Community Cohesion), Susan
Popkin,, 2010)

The redevelopment was to have been led by the McCormack Baron company (now McCormack, Baron,
and Salazar) but the company and the Chicago Housing Authority were unable to reach agreement on a
contract. In 2002, Oakwood Boulevard Associates was selected as the master planner, of which TCB has
remained the lead partner. In addition to Granite Development Corporation, the partnership includes
Ujima, Inc.—a community-based social service organization. The housing built during the second phase
of construction, including a new mid-rise building that was leasing units at the time of the visit, are
“green.” The city of Chicago is pushing developers to meet city goals to reduce energy consumption and
lessen environmental impact in general. In response, TCB is building brick exteriors, which staff said is
more expensive, installing green roofs (water and heat-absorbing plants), and putting in solar panels that
heat water. In addition to the environmental impact, the green roofs and solar hot water serve to lower
residents’ energy bills. Construction at Oakwood Shores, including green roofs. (Diane K. Levy (Urban
Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

The majority of new residents in Oakwood Shores are African American. The racial diversity of the
community has changed little since redevelopment, though diversity of 17 income is much greater now

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that the available housing includes market-rate rentals and for-sale units. Some former public housing
residents have been able to purchase a home in Oakwood Shores. TCB staff told of 13 families that have
taken advantage of a home buying assistance program that covers a third of the mortgage cost for 15
years. Subsidized and nonsubsidized units as well as rental and for-sale units are integrated throughout
the development. The multiunit buildings mix public and market rate units on each floor as well as for-
sale and rental units in an effort to reduce any tendency for residents to interact only with similarly
situated households. (Diane K. Levy (Urban Institute), Harris Beider (Institute of Community Cohesion),
Susan Popkin,, 2010)

Because of the economic downturn, it will take longer than originally expected to complete the
redevelopment. At the time of the site visit, construction focused on rental units rather than for-sale
homes and condominiums. TCB staff said that they still had many land parcels for such homes to be
developed. Consequently, some occupied buildings in Oakwood Shores are next to construction zones or
empty lots. The downturn also has affected the availability of funds for the development of additional
community spaces. Leasing and sales of the market-rate units has slowed. Staff said that the moderately
subsidized for-sale units were moving well, which helps the development’s overall financial picture. The
economy also has affected the availability of funds to develop additional community spaces. (Diane K.
Levy (Urban Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

According to TCB staff, there have been additional investments in the surrounding area since
redevelopment began. Private developers are building high-end houses nearby, and staff hope that there
will be a higher quality grocery store in the near future than what currently exists, along with other retail
located within walking distance. At present, residents need to take public transit or drive to get to jobs and
shopping options. Remaining challenges include the fact that many residents still face serious economic
and social disadvantage. TCB staff involved in service delivery spoke about detached parents and
children exhibiting serious health problems ranging from poor eyesight to hunger. (Diane K. Levy (Urban
Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

I. Emergent Issues
The scope of change that is taking place in Oakwood Shores is leading not only to a change in
management structure but to a complete overhaul of the physical environment and near total change in
who resides in the community. In effect, Oakwood Shores is starting almost from scratch, which contrasts
sharply with the approach to redevelopment in Castle Vale that has taken place with involvement of
original residents who remain living in the community. However, even with these important differences,
it is clear that many of the same issues affect both communities: changes in management and leadership,
resident services, safety, and changing norms. (Diane K. Levy (Urban Institute), Harris Beider (Institute
of Community Cohesion), Susan Popkin,, 2010)

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 II. Management & Community Leadership

Figure 24 Oakwood Shores residents discussing their

A core challenge TCB staff face is that of managing a housing development not only diverse in terms of
residents’ income but also in terms of life experience; the new development houses extremely low income
public housing residents and higher-income, market rate tenants and owners. As a result, residents
moving into Oakwood Shores have vastly different backgrounds and the challenge for staff is to figure
out strategies to make the community work well for all. As one person pointed out, it is easier to manage
a site where the residents are similar in some way, such as an all-market rate or all-affordable rate housing
development. Oakwood Shores residents discussing their development with the research team (Diane K.
Levy (Urban Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

There are limits to who can live in Oakwood Shores. Though original public housing residents who opted
for a temporary relocation when they left Wells/Madden can apply to return to Oakwood Shores, they are
not guaranteed a unit in the new development. Staff are challenged to find a balance between leasing units
to disadvantaged households who lived in the public housing developments and ensuring other residents
are happy. As a staff member said, “not everybody can live here because not everyone will achieve.”
“Putting ‘problem people’ here wouldn’t be fair to people who can follow rules.” Screening rules,
mentioned previously, are meant to prevent people from moving in who might bring drugs or criminal
activity into the development. (Diane K. Levy (Urban Institute), Harris Beider (Institute of Community
Cohesion), Susan Popkin,, 2010)

During the site visit, management staff spoke about efforts to improve their approach to managing the
mixed-income development. TCB commissioned studies to identify areas for improvement, including
hiring ethnographers to stay with families and provide feedback to staff on management shortcomings
from residents’ perspectives. Findings from this research indicated that TCB was not well connected to

39 | P a g e
residents. Partly in response to the feedback, TCB recently had changed its management structure. The
new approach, intended to improve relations with residents, moves away from a silo structure where staff
only worked in their area of expertise, such as property management or community initiatives, to a more
collaborative approach that encourages staff to work together to better address community and individual
residents’ needs. (Diane K. Levy (Urban Institute), Harris Beider (Institute of Community Cohesion),
Susan Popkin,, 2010)

Staff talked about race in relation to management challenges saying that how management staff respond
to residents, most of whom are African American, is central 19 to setting the tone for inter-racial
dynamics in Oakwood Shores. In an effort to avoid the reputation of staff from a nearby development,
where residents perceive staff talk down to them, TCB staff said they try to treat residents as customers,
regardless of race or income. The majority of staff from other departments had been African American
until TCB recently hired more nonblack employees. This was done in an effort to present a vision of at
least Oakwood Shores staff as diverse to support efforts to attract a more diverse resident base. (Diane K.
Levy (Urban Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

In addition to management challenges, TCB also is involved with early efforts to support community
building and resident leadership. Staff hope to encourage residents to form a sense of community
membership rather than ties along lines of income or tenure type, or length of time in the community.
TCB has tried to create bridges by establishing committees that are open to anyone in the development,
renters and owners. Staff also have shifted from holding large, community-wide meetings to discuss
resident concerns to meetings organized by building. Because multiunit buildings house renters and
owners, and families across the income spectrum, staff think these meetings help focus participants on
shared issues. Staff said the meetings are now less likely “to devolve into grouse sessions.” One staff
member talked about the organizing skills many public housing residents have saying the middle-income
residents, who tend to be less organized, might be able to learn from their poorer neighbors. As residents
develop skills in working together and effectively advocating for their needs in Oakwood Shore, TCB
staff hope to lessen their involvement with the resident groups. (Diane K. Levy (Urban Institute), Harris
Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

One of the redevelopment goals for Oakwood Shores was to enable the integration of the development
with the surrounding neighborhood, ending the isolation that marked the public housing developments.
Staff and some residents talked about a first step in building community ties; residents from the broader
area met to discuss what kind of neighborhood people want the area to be. The initial meeting led to the
formation of the Bronzeville-Oakdale Neighborhood Association (BONA). The residents we met talked
about the “painful” process of people getting to know each other and working through disparate goals and
visions for what the area would be and who would lead. Particularly noted was the challenge of bridging
long-term residents’ sense of entitlement and expectations of leadership with new residents’ sense that
they are the future. Newer residents can tend to view those who have lived in the area for years as part of
the neighborhood’s problems. BONA has been able to develop a long-term plan for the area that
subsequently was approved by the Chicago City Council. According to one community leader, the plan
calls for a return to the diversity the neighborhood once had by setting a goal around increasing the
percent of new households that are white. (Diane K. Levy (Urban Institute), Harris Beider (Institute of
Community Cohesion), Susan Popkin,, 2010)

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 III. Resident Services
The change in management structure to a more collaborative approach has minimized the division
between property management and resident services staff. The new, close connection between these
departments is based on the idea that it will lead to better resident outcomes and a reduction in
management costs. In short, the management philosophy appears to be that supporting residents’ efforts
to increase their individual success will benefit the development venture as well. TCB said that funding is
always a battle and they are always cobbling together resources to continue the level of management and
services for residents staff believe is necessary. (Diane K. Levy (Urban Institute), Harris Beider (Institute
of Community Cohesion), Susan Popkin,, 2010)

Staff spoke about using a big stick and a big carrot with residents—they will provide high management
and offer a range of supports to residents in recognition of the challenges many people face. They want to
develop relationships with residents that extend beyond collecting rent without becoming social workers.
Staff offered examples of management and resident service staff working together. If a tenant loses a job,
but works with staff to find a new one, property management will offer leniency on the rent payment.
Staff can also help tenants who are late with rent connect to job-related services or apply for
unemployment insurance. These types of supports were described not as “social services but as resources
[available to everyone] to help everyone get to baseline.” Baseline was the term used during a number of
conversations to refer to the behavioral norms being established in the community, such as employment.
A resource specialist is available to work with residents to identify any problems and connect people to
services offered either on-site or off-site by partnering service providers. (Diane K. Levy (Urban
Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

Two key areas of resident support, in addition to employment assistance, are financial services and health
care. Staff has found that the financial services are of interest to residents across income levels and tenure
groups. An outside organization has offered workshops and individual counseling on financial
management and planning. There are financial literacy programs targeted to youth as well. TCB staff
hope the financial services will lead to a higher rate of employment among poor residents, higher income
for people employed, and a reduction in the number of youth dropping out of high school. The health
status of many lower-income residents is very poor, with people dealing with severe asthma, diabetes, and
even post-traumatic stress disorder (PTSD). TCB is lobbying a local hospital to build a clinic within
Oakwood Shores. Staff also have reached out to a clinic that serves people without a regular doctor,
hoping that the medical staff will be able to work with residents in need. (Diane K. Levy (Urban
Institute), Harris Beider (Institute of Community Cohesion), Susan Popkin,, 2010)

It is clear that TCB staff do not view the mixed-income model alone as sufficient for developing
successful communities where residents are self-sufficient and management is cost-effective. They see a
strong need for resident services both to benefit residents 21 themselves and to increase the likelihood the
property will be successful over time. Service provision is part of the management plan for the
foreseeable future. (Diane K. Levy (Urban Institute), Harris Beider (Institute of Community Cohesion),
Susan Popkin,, 2010)

IV. Safety
Everyone we spoke with during the site visit talked about improvements in safety since the Wells/Madden
public housing developments were demolished and the first phase of Oakwood Shores had been occupied.
Staff, residents and police officers said the rate of crime, including violent crime, is much lower.

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Residents are less worried now that the public housing developments are gone and see Oakwood Shores
as a good place to live, for the most part. People also talked about improved relations between community
members and police, who now are credited for their positive engagement. However, problems remain
that, if left unchecked, people fear could threaten the gains in safety. Management staff sees addressing
safety and security concerns as part of their charge.

People with whom we met attributed the improved safety to who lives in the development and to police
relations. Once prospective tenants pass the screening requirements and move into Oakwood Shores,
those who are 18 and older must pass periodic drug tests to remain in the development. This rule applies
to all residents, including market-rate tenants. According to staff, management was against instituting
such a rule, but original residents on the committee to formulate residency requirements wanted it to
avoid the severe drug problems that plagued the area before redevelopment. The drug tests are scheduled
so that residents who use drugs have the chance to get clean. Management staff said they are willing to
work with tenants who are making a concerted effort to get off drugs, but users who do not make an effort
will be evicted for a failed test.

TCB staff said they work closely with the police, who know the troublemakers in the area. The police
officers we interviewed talked about the importance of opening channels of communication, which
depend upon a certain level of trust that was missing in the past with public housing residents. Now these
residents are more inclined to report problems rather than withhold assistance. While acknowledging
improvements, the police said building positive relationships is still a work in progress.

Figure 25 One of the parks in Oakwood Shores

One effort police described was getting area churches more involved with youth. An officer visited each
church in the community and convinced most of them to become a “safe One of the parks in Oakwood

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Shores haven.” Participating churches each sponsor an activity, such as choir, theater, or basketball.
Youth from the area can attend any activity, which helps break down the geographic barriers and sense of
territoriality among youth. The police show up at the activities and have found their presence increases
participants’ sense of security, which encourages participation. Efforts such as this fit well with the
Chicago Alternative Policing Strategy (CAPS) that involves increased police engagement with people and
institutions.

While crime is down and police are more involved in positive ways compared to the past, the community
still faces serious problems. Two issues mentioned by staff, police, and some residents involved problems
in local parks and uninvolved parents. Residents described one of the two parks near the edge of
Oakwood Shores as a dangerous place where shootings were frequent, though both area parks were said
to be unsafe. There are many children in the development but few safe places to play so children are kept
inside more than people would like, according to residents. Another reason cited for keeping children
inside was concern that one’s child would be blamed for the actions of other children. The police officers
talked about the lack of parental involvement in some children’s lives to a degree that the children are
running around with no supervision and causing trouble. Lack of parental supervision is such a problem
that police and TCB staff said they sometimes need to step in to play a parental role. The police officers
with whom we met said there needs to be a community center that brings children and youth together
from across the area, similar to the church-based activities, and positive activities for children of all ages.
However, obtaining funding for such an effort is an ongoing challenge.

V. Place Identity and Cohesion

Oakwood Shores is a young development, partially built and occupied but not yet near the end of
construction. As building moves forward, TCB staff, community leaders and residents also are engaged in
efforts to establish community norms through imposition of rules for behavior, development of
community organizations, and discussions about neighborhood history. What struck us during the site
visit were the discussions around what could be termed “place identity”—the use of history in efforts to
frame the community today and efforts to establish community standards for behavior. These discussions
were not focused solely on Oakwood Shores, but included the broader community of which it is a part.
The tensions that interview respondents and discussion group participants identified among Oakwood
Shores residents could be understood as alternative views on what history is relevant in understanding the
community today and perhaps to establishing new community norms.

The vast majority of residents of Bronzeville, as the broader neighborhood is known, are African
American. An influential community leader who met with us spoke of the “old and 23 stable character” of
the area that was established in the mid- to late 19th century, when Chicago’s leading (white)
businessmen and their families lived in Bronzeville; some of the old mansions are undergoing renovation
today. Framing the area in such broad historical terms allowed the community leader, who is African
American, to draw upon a notion of (positive) community standards that predate and are not limited to
those associated with the public housing developments in later years. It is this older time that she, at least,
puts forth as integral to the identity of Bronzeville and as the starting point for discussions of
contemporary community norms.

This period, however, was marked by lease covenants that prevented African Americans and Asians from
living in the neighborhood. Only racial minorities with domestic jobs could even enter white Bronzeville.
The community leader explained that over time later owners of many mansions divided the houses into

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units for rent, which served as a workaround to the lease covenants, opening the neighborhood to racial
minorities. She points to this period as one of greater racial diversity in the community, drawing on it as a
precedent for contemporary efforts to increase diversity.

The subsequent period of Bronzeville she discussed was the time dominated by the public housing
developments. As longer-term neighborhood residents aged, new younger residents, with “different
standards” came to the area because of the developments and people associated with them. According to
the community leader, the new standards that took root as the developments declined were outside the
neighborhood’s historical norms; the public housing decades were, in this telling, an anomaly from
Bronzeville’s history of being a healthy community.

While saying people do not “want to be stuck in yesterday,” the leader tells the neighborhood story in a
way that offers elements from past history to draw upon when talking about actions now. The
neighborhood history dovetails with staff efforts to determine behavior norms in Oakwood Shores. A staff
member of TCB said, “Now is the key time to establish the identity of the community. Now we have
about 500 units and eventually there will be 3,000 units. We have to establish a baseline now to create the
identity and norms for the community as it grows.” TCB staff talked about their hands-on approach with
early efforts to establish “baseline norms” and to support integration of residents into a community. They
want to steer people to function well as an integrated community before stepping back and letting things
unfold. They view the leasing requirements and rules for the use of open and public space as ways to help
integration happen by providing incentives for some residents to change their behavior to align with the
new community norms. Staff also think the quality school located in Oakwood Shores will help over time
as children from different backgrounds interact.

The history also provides an historical platform for TCB staff and the neighborhood association to market
the development and the area in ways to attract a more racially 24 diverse resident base. While tensions
are present to some degree between new and long-time community members, staff at Oakwood Shores
and most BONA members have embraced the goal of creating a racially diverse community. While
BONA developed a neighborhood plan that includes a goal to attract more nonminority households to the
area, TCB staff are marketing the development in ways to reach a more diverse population.

Findings from the Case Study

We learnt some useful ideas and we should bring and apply the following concepts to our country:
Green Infrastructure: Integrating green infrastructure elements such as green roofs, urban parks, and
rainwater management systems can enhance the sustainability and resilience of inner cities. Cities like
Singapore, Vancouver, and Copenhagen have implemented innovative green infrastructure solutions to
mitigate the urban heat island effect, manage storm water runoff, and improve air quality.

Public Spaces: Creating well-designed public spaces is another crucial aspect of inner city development.
Parks, plazas, pedestrian-friendly streets, and waterfronts can enhance the quality of life for residents and
attract visitors. Cities like Barcelona (Spain) with its famous Las Ramblas promenade or Singapore with
its Gardens by the Bay are examples of successful public space design.

Sustainable Transportation and Infrastructure: Improving transportation systems and infrastructure is

crucial for the overall development of inner cities. By learning from successful experiences, cities can

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enhance mobility, reduce congestion, and promote sustainable transportation options. Key areas of focus
include.

Mixed-income Housing: Creating mixed-income housing developments can help revitalize inner cities
by attracting a diverse population and fostering social integration. Cities like Chicago (USA) with its
mixed-income housing initiatives have successfully revitalized neighborhoods and improved the quality
of life for residents.

4. Discuses on the housing finance system both in the global context and in Ethiopia.

I. Housing Finance Mechanisms

Housing finance is the provision of financial resources for home ownership. Homebuyers intending to
buy a house can use their money by borrowing from financial institutions and paying back both capital
and interest. (Housing Finance Mechanisms in Thailand, 2008)
The term housing finance or housing loan is commonly known as loan provided by lenders for
households to cover the purchase, construction or renovation of housing units. Usually it is used
interchangeably with the residential mortgage loan. In different studies housing finance is described in
terms of mortgage loans. (Tigist & Dr. G. S. Batra (Professor), 2020)
Housing finance systems vary across different countries and regions, depending on the level of economic
development, financial sector depth, legal and regulatory framework, and socio-cultural factors. Housing
finance is important for the development of the housing sector, as well as for the economic and social
well-being of the population. However, housing finance also faces many challenges and constraints, such
as affordability, accessibility, availability, and stability.
Some of the features of the financialization of housing are:
 The expansion and integration of global capital markets, which enable the flow of funds across
borders and regions for housing investment.
 The securitization and diversification of housing finance instruments, such as mortgage-backed
securities, covered bonds, real estate investment trusts, etc., which increase the liquidity and risk
transfer of housing loans.
 The deregulation and liberalization of housing finance markets, which reduce the barriers and
regulations for entry and operation of financial intermediaries and investors.
 The emergence and growth of new actors and agents in the housing finance system, such as
private equity funds, hedge funds, rating agencies, brokers, etc., which increase the complexity
and opacity of the system.
 The increase in household debt and leverage, which make households more vulnerable to
financial shocks and instability.
In Ethiopia, the housing finance system is underdeveloped and faces many challenges. According to a
report by CAHF, some of the main characteristics and problems of the housing finance system in Ethiopia
are:
 The low level of financial inclusion and access to formal financial services, especially for low-income
households. Only 23% of the housing market is financed through mortgages, while more than half is
financed informally through relatives, friends, and savings groups. (denge, 2022)
 The dominance of public banks and government programs in the provision of housing finance. The
private sector is neglected and constrained by high interest rates, limited funding sources, strict
collateral requirements, and weak legal protection.
 The lack of adequate developer financing for housing construction. The supply side of the housing
market is largely dependent on the government’s Integrated Housing Development Program (IHDP),
which has been criticized for its inefficiency, corruption, and poor quality. (denge, 2022)

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 The mismatch between demand and supply of affordable housing. There is a huge gap between the
income levels of households and the prices of formal housing units. The IHDP units are often
unaffordable or inaccessible for low-income households, while the private sector caters mainly to
high-income segments. (denge, 2022)
 The absence of a secondary mortgage market or other long-term funding mechanisms for housing
finance. The primary mortgage market is shallow and short-term oriented, with high interest rates and
low loan-to-value ratios. There is no securitization or bond issuance for housing finance in Ethiopia.
(denge, 2022)

II. Housing finance system in the global context

1. Banking reform
State banks were originally non-profit motivated, having primitive loan servicing and no loan
underwriting. The assessment of different risks was lacking and in fact there were no trained mortgage
bankers. (HOUSING FINANCE SYSTEMS FOR COUNTRIES IN TRANSITION, 2005)
Their privatization has been seen as the most effective way to improve their performance. However, for
various political reasons privatization was often postponed, and this contributed to the number of
financial and bank crises in the region during the 1990s. In order to prevent increases in unemployment,
Governments often pushed unreformed State banks to extend risky credits to enterprises having serious
economic problems, but in the end huge public subsidies were poured into the banks to preserve their
liquidity and cover their losses. (HOUSING FINANCE SYSTEMS FOR COUNTRIES IN
TRANSITION, 2005)
Though the timing was not always the same, the banking crisis was a feature that appeared in nearly all of
the countries in transition, including the advanced Visegrad countries.
All or nearly all former State banks have already been privatized in the Czech Republic, Albania,
Slovakia, Poland, Hungary, the Russian Federation, Estonia, Latvia, Republic of Moldova, Bulgaria,
Romania and Croatia. (HOUSING FINANCE SYSTEMS FOR COUNTRIES IN TRANSITION, 2005)
The State has considerable influence in the banking sector in several countries of the former Yugoslavia,
Lithuania, Belarus, and Ukraine and so on. The lowest interest rate spread (average lending rate minus
average deposit rate) was attained in Hungary (3 per cent in 2000), the Czech Republic (3.7 per cent), and
Estonia (3.9 per cent); the highest spread was found in inflationary economies: Belarus (30 per cent),
Ukraine (28 per cent) and the Russian Federation (18 per cent).Measured by market share in mortgage
outstanding among different banks on the market, the Czech Republic has the most competitive system.
(HOUSING FINANCE SYSTEMS FOR COUNTRIES IN TRANSITION, 2005)
2. Legal framework and property registration
Many countries enacted laws permitting mortgage lending. The Czech Republic, Poland and Hungary
passed much-needed legislation relatively early; in other countries this did not happen until quite recently:
in the Russian Federation in 1998 and in Romania in 1999. (HOUSING FINANCE SYSTEMS FOR
COUNTRIES IN TRANSITION, 2005)
In addition, in some countries legal regulation on eviction is not supplemented by adequate provisions for
social assistance to the households concerned, which is an absolute necessity. (HOUSING FINANCE
SYSTEMS FOR COUNTRIES IN TRANSITION, 2005)

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Much work has been done with respect to reopening, restructuring and establishing property
registers/cadasters. Even in those countries which had a higher percentage of homeownership at the
beginning of transition, registries were not up to date and considerable effort has still to be made to make
them a reliable source of information on property titles. (HOUSING FINANCE SYSTEMS FOR
COUNTRIES IN TRANSITION, 2005)
3. Residential mortgage loans extended by universal banks
Commercial/universal banks are often the main providers of residential mortgage loans. In countries in
transition they certainly have the largest share of the mortgage market, though their performance is still at
an initial stage in many of them. Often only short-term housing loans (up to ten years) are available, with
a much lower loan-to-value ratio than in standard developed economies (though legislation, generally,
allows a higher ratio). Adjusted or completely variable interest rates and the denomination of loans in
foreign currencies are used to deal with uncertain inflation in the future. Such products hold little
attraction and housing loans remain a minor component of bank assets. The “lower standard” (high
interest rates, short maturity, low loan-to-value ratio, conservative underwriting) and a very low number
per capita of outstanding residential mortgage loans are typical for Romania, Republic of Moldova,
Albania, Bulgaria, the Former Yugoslav Republic of Macedonia, Serbia and Montenegro, Bosnia-
Herzegovina and Croatia. In Slovakia, Lithuania, the Russian Federation and Slovenia there was also a
relatively low level of market mortgage financing at the end of the 1990s. Hungary, Estonia, Poland and
the Czech Republic (partially also Latvia, Slovakia and Slovenia) are among the countries witnessing a
boom in the mortgage loan market. (HOUSING FINANCE SYSTEMS FOR COUNTRIES IN
TRANSITION, 2005)
4. Mortgage banking / Mortgage securitization
Legislative framework for “exclusive” mortgage banking (the establishment of special mortgage banks)
has been passed in Hungary and Poland; since 1998 several mortgage banks in these countries have
already had a successful bond issuance. Legislation on mortgage banking has also been introduced in
some other countries (Latvia, Estonia, the Russian Federation, the Czech Republic, Slovakia, Bulgaria
and Romania), but in these countries the establishment of a separate special institution is legally not
required. This means that universal banks can obtain a license for a bond issuance as long as mortgage
banking operations and assets are kept in separate legal and accounting records. The mortgages serving as
collateral for mortgage bonds are legally segregated to serve as first-rank collateral for the bonds in the
event of default or bankruptcy. Special regulations are then applied only to those mortgages that will
serve as collateral for mortgage bonds. (HOUSING FINANCE SYSTEMS FOR COUNTRIES IN
TRANSITION, 2005)
5. Contractual savings for housing
Contractual savings for housing are popular among countries in transition. The schemes vary; systems
adopted by the Czech Republic, Slovakia, Hungary and Croatia are similar to the German model
(establishment of separate financial institutions, Bausparkassen, while in Poland and Slovenia they are
administered by universal banks.
The Polish system of housing savings (KM), established in 1996, differed in important respects from the
Bausparkasse system; interest rates on both savings and loans were variable (pegged to the discount rate
of the national bank) and the program was operated through universal banks. Saving premiums took the
form of a tax credit, the minimum saving period was only two years, savings could be used only for
housing loans, and the whole scheme was run on a not-for-profit basis. Due to its not-for-profit character
and only indirect fiscal support the system was not very popular among both banks and clients and a new

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system combining the features of Bausparkasse and KM has been prepared. (HOUSING FINANCE
SYSTEMS FOR COUNTRIES IN TRANSITION, 2005)

III. Challenges on accessing finance source for housing both globally and in
Ethiopian context.

In Global Context
 In developing countries, especially in most African countries, majority of households lacks access to
housing loan provided by formal financial institutions because of Poverty, low level of income,
underdeveloped financial system, high interest rate and inflation are the main factors stated in
different literatures for inaccessibility of housing finance for households. (Tigist & Dr. G. S. Batra
(Professor), 2020)
 Accordingly Low income coupled by unaffordable housing products on the market has limited the
ability of middle and low income households to access of housing finance. (Tigist & Dr. G. S. Batra
(Professor), 2020)
 High price of house which resulted from increase in construction materials and high interest rate on
loan for housing affected the household in getting access to finance for housing. (Tigist & Dr. G. S.
Batra (Professor), 2020)
 While discussing the problems on financing Doling, et al (2013) stated that housing finance in
developing countries is limited to those with high and steady income levels. Initial down payment of
about 30% or higher of the value of the unit is required from borrowers to secure finance for housing
and the amount of mortgage may be large relative to income. While those who cannot secure loan for
housing are forced to save for many years to purchase or built their house. (Tigist & Dr. G. S. Batra
(Professor), 2020)
 The affordability issue of Housing and interest rate on loan, qualification constraints/eligibility
criterion for prospective borrowers such as down payment/equity contribution which range 10% to
20%, additional collateral requirement besides the mortgaged property, collateral in the form of titled
land and insurance coverage are among the main factors restricting households to access housing
finance in developing countries. (Tigist & Dr. G. S. Batra (Professor), 2020)
 Various studies have shown supporting result as to land title requirement as a collateral in most
developing countries, for example Nilsson (2017), explained the need of real property as a collateral
such as land by lenders. (Tigist & Dr. G. S. Batra (Professor), 2020)

In Ethiopian Context
 Ethiopia faces the challenge of not being able to supply sufficient new affordable housing and
upgrade existing stock to meet the demand of the required 471 000 units annually, particularly for
households in the lower income brackets (denge, 2022).
 Cooperatives, individuals and private developers cater mainly for the high end of the market, albeit in
low quantities. Government is left to fill the deficit. (denge, 2022)
 The Government Integrated Housing Development Program (IHDP) has supplied 280 000 subsidized
condominium units between 2004 and 2016. However, because of the high demand for these units,
prices have surged between 200% and 300% since the program launch. Moreover, the program has
only managed to supply 2% of the demand in the market. This all points to a long waiting list for
affordable housing in Ethiopia. (denge, 2022)
 Terms of financial intermediation and low disposable incomes are to blame for the unaffordability on
the demand side, with high cost of development, land, and infrastructure hindering the supply of
affordable housing units.37 The IHDP has had some positive impact, with 53% of IHDP houses being
allocated to female-headed households. Effective spatial planning for this program has reduced

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 environmental degradation, thus improving the quality of life of inhabitants and promoting social and
economic activities. (denge, 2022)
 Affordable financing to buy housing is inadequate, due to the high interest rates on mortgages, the
low number of mortgage providers and the high collateral requirements to secure financing. (denge,
2022)

IV. If there is lack of financial source for housing, what effects it implies?

The lack of financial sources for housing can have serious effects on both individuals and society and also
It is important to note that these effects are based on the context within Ethiopia and globally.
Some of these effects are:
1. Homelessness: The most immediate effect is an increase in homelessness. Without adequate financial
resources, individuals and families may struggle to afford safe and secure housing, leading to
homelessness.
2. Informal settlements: In the absence of affordable housing options, people may resort to living in
informal settlements or slums. These settlements often lack basic amenities such as clean water,
sanitation facilities, and access to healthcare.
3. Overcrowding: Lack of financial resources for housing can lead to overcrowding as multiple families
or individuals are forced to share limited living spaces. Overcrowded living conditions can contribute
to health issues and a decreased quality of life.
4. Increased poverty: Inadequate housing can perpetuate the cycle of poverty. Without a stable and
secure home, individuals may struggle to find employment or access education and healthcare
services, further exacerbating their economic situation.
5. Social inequality: Lack of affordable housing can contribute to social inequality by disproportionately
affecting marginalized communities who already face systemic barriers. This can deepen existing
inequalities based on factors such as income, gender, ethnicity, or disability.
6. Health risks: Inadequate housing conditions can pose significant health risks such as exposure to
extreme weather conditions, poor ventilation leading to respiratory problems, and increased
vulnerability to diseases like tuberculosis or COVID-19.
7. Displacement: In some cases, individuals or communities may be forcibly displaced due to lack of
affordable housing options. This displacement can occur due to urban development projects or natural
disasters, further disrupting lives and livelihoods.
8. Economic impact: Insufficient investment in affordable housing can have broader economic
consequences. It hampers construction industry growth and reduces job opportunities in related sectors
while also limiting the potential for economic development in urban areas.

V. The negative consequences of a lack of housing finance system are:

1. Limited access to affordable housing: Without a well-functioning housing finance system,

individuals and families may struggle to secure financing for purchasing or renting a home. This
can lead to limited access to affordable housing options, particularly for low-income households.
According to a report by the World Bank, inadequate access to housing finance is a major barrier
for low-income households in many countries. (World Bank, 2019)
2. Informal and insecure housing arrangements: In the absence of formal housing finance
mechanisms, people may resort to informal arrangements such as renting from informal landlords

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 or living in substandard conditions. These informal arrangements often lack legal protections and
can result in insecure tenure, poor living conditions, and limited access to basic services. (UN-
Habitat, 2016)
3. Housing inequality and social exclusion: A lack of housing finance system can exacerbate
existing inequalities within society. It can widen the gap between those who have access to
formal financing options and those who do not, leading to increased social exclusion and
marginalization of certain groups. (UN-Habitat, 2016)
4. Economic implications: The absence of a robust housing finance system can hinder economic
growth and development. Housing is an essential sector that contributes significantly to
employment generation, construction activity, and overall economic productivity. Without proper
financing mechanisms in place, the construction industry may suffer, leading to reduced
economic activity (World Bank Group & International Finance Corporation, 2020).
5. Financial instability: A lack of adequate housing finance systems can contribute to financial
instability at both individual and systemic levels. For individuals, difficulties in accessing
affordable financing options may lead to higher levels of debt or reliance on informal lenders
with predatory practices. At a systemic level, the absence of proper regulations and oversight in
the housing finance sector can increase the risk of financial crises (World Bank Group &
International Finance Corporation, 2020).

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References
French, M. & Hegab, K., 2010. UN-HABITAT (2010) The Ethiopia Case of Condominium Housing: The
Integrated Housing Development Programme. [Online]
Available at: https://www.humanitarianlibrary.org/

GEBREMARIAM, F. M., Admasu, E. & TEHA, K., n.d. [Online]

Available at: https://aucjc.ro/wp-content/uploads/2017/08/aucjcm-vol-3-2017-5-31.pdf

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