escort ankara

Reporter

This could be a game changer for financing Africa’s transformation

It is estimated that around $170 billion is required per annum to finance the African Development Bank’s High Five Agenda. Moreover, Africa’s annual infrastructure gap is estimated anywhere between $68 – $130 billion a year.

It is estimated that around $170 billion is required per annum to finance the African Development Bank’s High Five Agenda. Moreover, Africa’s annual infrastructure gap is estimated anywhere between $68 – $130 billion a year.

When placed within the context of the continent’s growing population, youth bulge and economic potential, the need for increased private sector involvement is immediate. Decades of public spending, for instance on infrastructure has not been sufficient to adequately address the gap in the quantity or quality of much-needed infrastructure across the continent.

Click here to watch weekly episodes of our Housing Development Programme on AIT

Africa does need a pool of investible funds that are accessible and long-tenured to finance its transformation. There is, therefore, an obvious need for Africa to significantly formalize its economies, create businesses that operate as corporate entities, and separately from their owners, as well as the right policy, regulatory and economic environments that are attractive to long term capital. Together with effective institutions for capital intermediation and appropriate investment market places, connecting providers and users of capital, such as the Africa Investment Forum, Africa can accelerate its economic and social transformation.

Across regions and in specific countries, there are several silver linings in the cloud. Much of it thanks to the active engagement of the private sector, and this is increasingly through financial markets.  This year, we witnessed the Initial Public Offer (IPO) and listing on the Johannesburg Stock Exchange of Vivo Energy’s, that raised over $740 million, which remains the largest listing of an Africa-focused business since 2005. Moreover, one of the most talked about IPOs was the MTN Group’s Ghana offering.

As investors focus greater attention on opportunities, what is coming into sharp focus is the premium that investors and markets are placing on good governance, market depth, the rule of law, policy and regulatory environments.

Aside from South Africa whose Johannesburg Stock Exchange market capitalization is around $1.06 trillion, most African financial markets remain small.

Despite challenges, Africa’s private sector and financial markets present strong possibilities and realistic potential for bridging the financing gap critical for the continent’s economic and social transformation, and the achievement of our priorities in agriculture, regional integration, energy, industrialization, and improvement of the standards of living across the continent as well as the sustainable development goals.

The fact is, the private sector and financial market contribution in helping to close the financing gap is neither a miracle nor a mirage. It is not a miracle as it is based on unleashing the full potential of the real economy and encouraging investment. It is also not a mirage as the public and private sector must continue to work together, and through the markets and other intermediary institutions, to raise capital especially the much needed long term funding.

The Africa Investment Forum, November 7 -9, 2018, will no doubt help raise the bar when it comes to bringing together all stakeholders,  public and private, and matching investment capital with the private sector, bankable projects and the continent’s ambitious goal of reducing its multi-billion dollar financing gap,  including for infrastructure.

Source: Stella Kilonzo, Senior Director, Africa Investment Forum, African Development Bank

 

Sales, prices and rents fall in Abu Dhabi in third quarter of 2018, latest data shows

Property sales in Abu Dhabi fell in the third quarter of 2018 as demand fell while residential prices and rents also declined, according to the latest index report.

The data from the Asteco market review also shows that prices have now fallen by 1% quarter on quarter and 8% on an annual basis but there are variations depending on location while off-plan and new properties are more on demand than existing homes.

Click here to watch weekly episodes of our Housing Development Programme on AIT

Prices in Al Reem Island and Al Reef Downtown areas, for example, decreased by 11% year on year while Al Reef Villas and Al Raha Gardens recorded average annual declines of 6% in the third quarter.

Asteco recorded the delivery of around 2,150 residential units in the quarter with 60% located within the Abu Dhabi Investment Zones, including but not limited to Al Reem Island, Al Raha Beach and Yas Island.

Lamar, situated on Al Raha Beach, comprising 430 units, represented the single largest project handed over and in addition, several buildings within the Rawdhat district were also completed, with further inventory expected for delivery over the next six to 12 months.

Although more delays are likely, Asteco projects another 3,100 apartments and villas will be handed over prior to the end of 2018 within the Al Reem Island seeing around 1,000 units, Yas Island and Saadiyat Island 900 units, Abu Dhabi Island 470 units and the rest in Abu Dhabi mainland, including 580 villas.

The report shows that rents continued to fall, with apartment rents down by 3% on average quarter on quarter and by 11% year on year, with the highest declines in middle and lower end properties.

Villa rental rates followed a similar trend, down 1% quarter on quarter and down by 8% year on year. Al Reef Village and Hydra Village registered a more pronounced quarterly drop of 4%.

The falls are the result of new supply and subdued levels of demand, largely attributed to a bearish economic/business outlook. ‘These conditions contributed to an increase in vacancy rates, particularly in buildings with lower quality specifications,’ the report says.

Source: PropertyWire

Survey suggests mortgage lending is not fit for today’s lifestyles

 

The mortgage industry is failing to keep up with modern borrowers’ needs, according to a new survey which shows applications from 54% fell for ‘normal’ reasons.

This number of applicants were rejected for lifestyle choices, including being self-employed or because they were buying a converted home, the study from lender Together shows.

Others who were rejected for being a contract a contract worker or taking a dividend, or buying other types of property such as conversions or high rise flats.

Pete Ball, personal finance chief executive officer at Together believes that the situation is unacceptable and said that many mainstream lenders needed to keep pace with the demands of these types of borrowers.

Click here to watch weekly episodes of our Housing Development Programme on AIT

‘Some banks and building societies remained reliant on a computer automated approach, and outdated and rigid criteria when deciding mortgage applications but the world has changed,’ he pointed out.

‘People’s pay, working patterns and pensions have altered beyond all recognition from 30 or 40 years ago. Even where they live, who they chose to live with, or the type of property they want to buy is vastly different from a generation earlier. What was previously thought to be normal simply doesn’t exist anymore,’ he added.

Together’s research, which was conducted by market researchers YouGov, asked about 2,000 people about mortgage applications and the reasons why some of them had fallen out of the mortgage application process.

It builds on earlier research by the Intermediary Mortgage Lenders’ Association (IMLA) which revealed a significant proportion of the UK population fail to secure a home loan between an initial enquiry and the time they would receive a mortgage offer.

The latest survey discovered that, of those rejected, 12% were denied because of their employment type, while 3% had insufficient employment history. This could be despite potential borrowers being in a good position to repay their mortgages.

Some 10% were denied because the property they wanted to buy was considered non-standard, which could mean anything from a converted barn to a high rise apartment. Self-employed workers are also being locked out of the mortgage market by some lenders at a time when labour market data shows the population of people who are working for themselves has increased by a quarter in the past decade to 4.8million.

Those aged between 18 and 34 were worst hit overall with 66% who took part in the survey failing to get on the housing ladder because of the way they live and work nowadays, which may mean they do not meet some mainstream lenders’ criteria

Older people also seem to be missing out, the research suggests. A total of 46% of over 55s were denied home loans, some because they were too near retirement age. This could pose a growing problem in the future, as the age of the UK population rises, said Ball pointed out, with the number of people aged 65 and over in England and Wales is projected to increase by 65% to more than 16.4million in 2033.

‘People are living and working longer and have varying ideas of what their perfect home will be at different stages throughout their lives. Unfortunately, much of the mainstream mortgage market has been slow in catering for these potential borrowers, who make up a wide section of society. The market needs to continue to adapt to make sure it remains fit for purpose,’ said Andrew Montlake, of mortgage broker Coreco.

The survey also found that 18% were turned down because they had a low credit score or a lack of credit history, while for 9% it was because their deposit was too small and 16% said they were not earning enough to afford repayments on their home loan.

Some 27% of rejected applicants who did not obtain a subsequent mortgage were put off ever going through the process again, rising to 32% for over 55s. Some 10% of those who withdrew a mortgage application or enquiry the last time they were unsuccessful pulled out before receiving an offer as they found the process too complicated, and 7% said there were too many stages while 28% who were originally unsuccessful have not secured a mortgage.

Source: PropertyWire

Australia is ranked as the safest place in the world to invest in property

Australia is the safest country for real estate investment, followed by the United States and the Netherlands while Venezuela is the least safe, according to new research.

The analysis of 52 countries from the global real estate market report published by Scope Investor Services puts Germany in fourth place, then Switzerland and then the UK.

After Venezuela the next riskiest nation to buy property in is Argentina, followed by Russia, India, Brazil and then Turkey.

‘After nine years of strong and often double digit returns, real estate investors face a daunting task while guarding against a market correction, if not recession, in 18 to 24 months’ time,’ says Wolfgang Kubatzki, managing director at Scope Investor Services.

Click here to watch weekly episodes of our Housing Development Programme on AIT

But he pointed out that investors should look at more than a country’s risk with London, Tokyo, Shanghai, Singapore and Paris among the top 20 cities by real estate volumes last year.

According to Manfred Binsfeld, director at Scope Investor Serviced, the key may be to take a long term structural view of the property market, while avoiding home country bias, particularly for investors who aren’t satisfied with the idea of switching into cash or paying down debt despite the uncertainty ahead.

He explained that disruptive developments within the real estate industry offer fresh opportunities which could cushion markets and portfolios ahead of the next downturn.

Examples include ballooning demand for short lease or shared office space, e-commerce and the rethinking of bricks and mortar retailing, and the logistics boom, another consequence of surging e-commerce.

Changing demographics are spurring innovation, such as growing mixed-use development to serve ageing populations in advanced economies and young, rapidly urbanising populations in less advanced economies, Binsfeld also pointed out.

The report says that cities are competing more to attract young talent and high tech companies to create technological innovation hubs and fund managers want more diversified portfolios as protection against future downturns.

For the more immediate cyclical outlook, the report suggests that real estate markets faces robust demand side factors such as tight labour markets, rising incomes and population growth in many markets.

However, it adds that over supply is not yet a widespread problem, except in some cities outside Europe and North America, such as Sao Paulo, Jakarta, and Shanghai. In most markets, levels of construction activity have been modest for a while. Others are near their peak in the development cycle.

‘Investors also need to assess where individual markets are in the real estate cycle, characterized by local trends in rental growth and vacancy rates. When it comes to office real estate, cities in the early phase like Seoul and Warsaw and late phase like London and Shanghai may offer investors opportunities to capture future rental growth even as a downturn looms,’ Binsfeld concluded.

Source: PropertyWire

 

Stakeholders believe CBN proposed MGCs can help bridge Nigeria’s housing deficit

The break of dawn may be near for Nigeria’s housing industry, as stakeholders pulled in a BusinessDay survey are optimistic that the Central Bank of Nigeria’s (CBN) proposed Mortgage Guarantee Company (MGC) may bring solution to the ever widening housing deficit in the country.

 This is following CBN’s exposure draft on the regulation for the operation of MGC in Nigeria which was published on the apex bank’s website on October 20th directed to banks, federal mortgage banks, Nigeria mortgage refinancing company and mortgage banking association of Nigeria.

The industry stakeholders said the initiative is a game changer and it is good for the market.

Adeniyi Akinlusi, President of Mortgage Banking Association of Nigeria and also Chief Executive, TrustBond Mortgage Bank said “we have been working with CBN and we know that MGCs is good for the industry. The initiative will help reduce the housing deficit, ownership deficit as Nigerians will have more access to mortgage.”

Click here to watch weekly episodes of our Housing Development Programme on AIT

“Putting a guarantor in place will enable an average Nigerian to access mortgage, and this is going to go a long way in making home ownership in the country easier,” a property analyst who pleaded anonymity told BusinessDay on phone.

Nigeria’s apex bank disclosed in the exposure draft that it is with effort to promote a mortgage financing and advance home ownership in the country that it has proposed the introduction of MGCs in Nigeria.

“MGCs are designed to deepen the mortgage market through increased access to mortgage finance and enhancing credit risk with mortgage lending institutions. This is furtherance of the CBN’s Objective of promoting affordable financing and a safe and sound financial system,” CBN explained.

Meanwhile, a Mortgage Guarantee Company is a financial institution established to provide guarantees or partial guarantees to lenders against losses resulting from borrower’s defaults on residential mortgage loan.

 

On how the proposed MGCs will help bridge the about 22 million units housing deficit in a country that has the highest population in the African continent.

Akinlusi explained that MGCs will help deepen the market because the volume of mortgage transactions will increase owing to the guarantees on mortgages.

“This means that mortgage banks will be encouraged to give out more loans knowing that there is now guarantee on them,” he said.

Another industry experts who asked not to be quoted because of the position he occupies said the MGCs will help bridge the housing challenges in the country, although to some extent.

“This initiative will help reduce capital requirement for any mortgage by about 50 percent. This means less capital can be used, when a guaranteed loans is issued,” the analyst said anonymously.

 

Meanwhile, Nigeria government had in time past introduced a number of laudable reforms to enable mortgage lending institutions achieve their core mandate of creating mortgages to improve home ownership. These reforms are aimed at addressing capital and governance requirements as well as restricting their activities to concentrate on mortgage and project financing.

However, the subsectors have been plagued with paucity of long terms funds, foreclosure difficulties, inability to meet existing underwriting standards, to concentration of risk on the mortgage lender.

Nigeria’s current mortgage to GDP ratio is estimated at 0.6 percent, as opposed to 2 percent in Ghana, 31 percent in South Africa, 32 percent in Malaysia, 77 percent in the United States and about 80 percent in the United Kingdom.

Also, the 2018 second quarter  figures reported by the National Bureau of Statistics (NBS) shows that the real estate sector reported Gross Domestic Product (GDP) growth of -3.88 percent compared to the -9.40 percent rate recorded in the previous quarter, in what is the 10th consecutive quarter in contraction since the first quarter of 2016.

“The concept of MGC is therefore designed to further deepen the mortgage market through access to mortgage finance and sharing of credit risk with mortgage lending institutions. MGCs guarantee will reduce or replace equity contribution that would otherwise disqualify mortgagors from accessing mortgages as required by the uniform underwriting standards,” the exposure draft reads.

The objectives of the MGCs as stated in the draft shall be to support mortgage originators such as Primary Mortgage Banks (PMBs) and commercial banks to increase mortgage lending by guaranteeing or partial guaranteeing against losses resulting from borrower defaults on their residential mortgages or on their mortgages loan portfolio.

“As a financial institution, the MGC would be under the regulatory and supervisory purview of the central bank of Nigeria,” CBN cited.

 

The guarantee company as disclosed by Nigeria’s apex bank can carry out the following permissible activities; full or partial guaranteeing or residential mortgages loans; invest in government securities, assume ownership of residential property in the event that a lender is unable to dispose of foreclosed property. Provided that such holding shall not exceed 20 percent of its shareholders’ fund unimpaired by losses without the Bank’s prior written approval.

But it is however not permitted to carry out among other things  the following; acceptance of demand, savings and time deposits, or type of deposits; Grant consumer, commercial or mortgage loans; originate primary loans; estate agency or facilitate management; project management relating to real estate development , foreign exchange; and commodity and equity trading.

Dolapo Omidire, Founder of Estate Intel, a real estate research firm,  had said that “MGC is something that can help the mortgage industry, it will make mortgage which seems to be out of reach for the average Nigerians more accessible.”

Although CBN also proposed that the financial requirements which may be varied as the CBN considers necessary, consist of the following; minimum capital N6 billion. Non-refundable application fee of N100,000, Non-refundable licensing fee and change of name fee of N1 million and N50,000 respectively.

A major challenge as cited by the apex bank that has limited the growth of mortgage creation by primary mortgage banks in the country, is lack of mortgage refinancing facility to provide long term refinancing which mortgage business mots of necessity have.

“The Nigeria Housing Finance programme (NHFP) has made efforts towards overcoming this hurdle through the launch of a mortgage refinance company which mitigates the risk of asset and liability mismatch from the books of mortgage lenders,” it noted.

Source: Endurance Okafor

AfDB to invest $500m in new city wide sanitation projects

 

The African Development Bank on Tuesday announced a new initiative to promote innovation and citywide inclusive sanitation services for sub Saharan Africa’s urban inhabitants with an investment of $500m.

A statement issued by the bank said that its Africa Urban Sanitation Investment Fund Programme, with support from the Bill & Melinda Gates Foundation, would fund the initiative designed to focus on the poor.

The Gates Foundation, in partnership with the Government of the People’s Republic of China, showcased the new initiative at the Reinvented Toilet Expo that began in Beijing on Tuesday, the AfDB said.

Click here to watch weekly episodes of our Housing Development Programme on AIT

The Reinvented Toilet Expo brought together private and public sectors leaders pushing for faster adoption of innovative, pro-poor sanitation technologies in the world’s developing regions.

“The potential impact of this new initiative – created to address urban sanitation in a comprehensive way, ensuring that the poor are also sustainably catered for, is long over-due,” said Director of the Bank’s Water Development and Sanitation Department, Wambui Gichuri.

Gichuri added, “Support from the Bill & Melinda Gates Foundation enhances the Fund’s ability to address sanitation in urban areas for greater outcomes, including in health, nutrition, environment, and employment.”

The African Water Facility Urban Sanitation programme (2018-2022) aims to establish the first African Urban Sanitation Investment Fund. The programme builds on the partnership between the Gates Foundation, the African Water Facility and the African Development Bank started in 2011.

The bank said it was committed to raising at least $500m in new city-wide inclusive sanitation investments for the AUSIF from public and private sources alongside African Water Facility.

At least 30 per cent of those resources would finance non-sewered sanitation innovation that directly served low-income communities, it said.

The AfDB said that the partnership enabled the African Water Facility, an initiative of the African Ministers’ Council on Water hosted by the bank, to structure the AUSIF to leverage public and private sector investment.

It would also enable the fund to build a pipeline of projects under a new set of sanitation investment principles called City Wide Inclusive Sanitation, the bank added.
Source: Everest Amaefule

British Government wants to build not just more homes but beautiful home

A commission to champion beautiful buildings as an integral part of the drive to build the kind of new homes communities need has been announced by the Government.
The Building Better, Beautiful Commission will develop a vision and practical measures to help ensure new developments meet the needs and expectations of communities, making them more likely to be welcomed rather than resisted.
Secretary of State for Housing, James Brokenshire, explained that the move follows the recent rewriting of the planning rulebook to strengthen expectations for design quality and community engagement when planning for development.

Click here to watch weekly episodes of our Housing Development Programme on AIT

He pointed out that the new rules also ensure more consideration can be given to the character of the local area and the commission will take that work further by expanding on the ways in which the planning system can encourage and incentivise a greater emphasis on design, style and community consent.
He also believes that it will raise the level of debate regarding the importance of beauty in the built environment and aims to promote better design and style of homes, villages, towns and high streets, to reflect what communities want, building on the knowledge and tradition of what they know works for their area.
It also aims to explore how new settlements can be developed with greater community consent and to make the planning system work in support of better design and style, not against it.


‘Most people agree we need to build more for future generations, but too many still feel that new homes in their local area just aren’t up to scratch. Part of making the housing market work for everyone is helping to ensure that what we build, is built to last. That it respects the integrity of our existing towns, villages and cities,’ said Brokenshire.
‘This will become increasingly important as we look to create a number of new settlements across the country and invest in the infrastructure and technology they will need to be thriving and successful places,’ he added.
‘This commission will kick start a debate about the importance of design and style, helping develop practical ways of ensuring new developments gain the consent of communities, helping grow a sense of place, not undermine it. This will help deliver desperately needed homes, ultimately building better and beautiful will help us build more,’ he concluded.
Welcoming the announcement Policy Exchange director Dean Godson said that its research and polling has found that local support for development increases across all income groups when beauty is made a priority.


‘This commission represents a fantastic first step. Placing beauty at the heart of housing policy is the biggest idea in a generation,’ he added.
Sir Roger Scruton has been appointed to chair the commission, with further commissioners to be announced in due course.
Rents in Barcelona have fallen and the latest forecast suggests that they are set to fall by around 5% in the third quarter of 2018 to around €17.3 per square meter.
The figures from property portal Idealista show that the fall in rents was most notable in the prime districts such as Eixample where they were down by 9% to €17.7 per square metre, in Gràcia down by 7% to €16.5 per square metre and in Barcelona Old Town down by 3% to €19.1 per square metre.
However, rents are not falling in all parts of Barcelona. For example, the areas of Nou Barris and Horta Guinardó saw rents rise, up 8% and 5% respectively.


There has been a readjustment in rental prices in Barcelona which were beginning to be beyond the reach of many residents, according to Rod Jamieson, managing director of real estate agents Lucas Fox.
‘The cost of living is continues to be lower than that of many other major European cities, not to mention the huge lifestyle benefits, and so Barcelona continues to be a major lure for foreign entrepreneurs and professionals,’ he pointed out.
‘For property investors, the Catalan capital also remains an extremely attractive proposition with rental returns of up to 5% in some prime districts,’ he explained.
Indeed, figures from Lucas Fox shows that its number of rental completions increased by 36% in the first six months of 2018 compared to the same period on 2017 and up 76% in the first nine months of the year.
Idealista figures also show that average rents in Valencia were up by 10% at the end of the third quarter of 2018, at €9 per square metre, compared to the end.

Source :Propertywire

Fashola task top management officials on team effort to improve service delivery

 

The Minister of Power, Works and Housing, Babatunde Fashola has tasked top management officials of the ministry and its agencies to imbibe a team spirit by understanding and relating with one another to enhance efficiency and effectiveness in their working relationship and service delivery.
He said “a lot more can be done and even better done if there is understanding amongst the officers”.
In his keynote address delivered at the 5th edition of the Top Management Retreat of the Ministry with the theme: Public Service and the Ease of Doing Business, held in Sokoto over the weekend, the Minister said the purpose of the retreat was to afford participants the opportunity to review policies and programmes of the Ministry and its agencies with the aim of improving the quality of service offered to the public.

Click here to watch weekly episodes of our Housing Development Programme on AIT

This was contained in a statement signed by Assistant Director, Information for: Director, Information Eno Olotu (Mrs)said According to him, the retreat “provides an opportunity to stand back and reflect, where we are, have we improved and also look back to see where we can improve upon”. He also noted that issues of growth and prosperity are determined by what they do as they are entrusted to do them.

The Minister said, in spite of the drop in the country’s ranking by one point from 145th to 146th from the World Bank’s ranking which he attributed to competitive improvement by other countries, there has however been a remarkable improvement in the area of ease of doing business in Nigeria with the Presidential Order . Reeling out the growth indices in the three infrastructure sectors of the economy: Power, Transportation and Construction from statistics supplied by the National Bureau of Statistics, Fashola highlighted the growth of +7.59% in the 2nd quarter of 2018 as against -11.61% in the same period of 2015 in the Power sector, Transportation recorded +21.76% as against +4.84% and Construction had a growth of +7.66% as against +6.42% during the same period.

Taking cognizance of the season of the ‘Ember Months’ and the pressure on infrastructure due to increased activities and movements, the Minister urged participants to reposition and be pro- active in overcoming such challenges and devise strategies to improve on service delivery during the period.


Permanent Secretary, Works and Housing Sector of the Ministry, Alhaji Mohammed Bukar, said the theme of the retreat was apt in view of the administration ‘s issuance of Executive Order 001 on the Ease of Doing Business in May 2017. He said the Ministry has keyed into the Order particularly in the implementation of procurement processes and response time to enquiries and staff matters.

In a paper presented by Alhaji Aliko Dangote GCON, President of Dangote Group, focus was on the importance of adequate infrastructure including regular power supply, motorable roads and affordable housing in the development of the Nigerian economy. He observed that for the Ministry to make significant impact, it must think “outside the box” on how to fund its project, noting that the reliance on budgetary allocations which he said is usually grossly inadequate and often not timely released to allow for prompt executions and implementations of the projects.

Dangote suggested that the funding of the Ministry could be improved upon through collaboration with the private sector and strategic funding such as the SUKUK , levies on petrol, tax credit refund and other innovative funding options for infrastructure.
He said the Ease of Doing Business in Nigeria would improve the level of business transaction in the country and position private companies to make more profits and in turn pay more taxes to the government.


In the Works sector of the Ministry, he obliged the setting up of toll gates in order to raise funds to ensure proper roads maintenance like the Highway Trust Funds in the United States of America was advocated . Also, the need to reduce the cost of gas and make it available and ensure payments are made in Naira to local purchases were advocated for the power sector by the business mogul. For potential massive job creation in the housing sector and called for reduction in cost of building a house, sponsor research on construction of low cost housing and improvement of access to mortgage and private sector partners.

Also, in a paper titled : Repositioning the Federal Roads Maintenance Agency : Plans and Progress, presented by the Managing Director of the Federal Roads Maintenance Agency (FERMA), Engr Nurudeen Rafindadi,highlighted efforts by the agency to efficiently maintain and manage all Federal Roads to keep them in safe and secured condition for the enhancement of the economic well beings of Nigerians.
In attendance at the retreat were also the Hon Minister of State 11 in the Ministry, Surv. Suleiman Hassan Zarma, Permanent Secretary, Power, Engr Lious Edozien, Chief Executives of the Ministry’s Parastatals and Agencies and Directors of the Ministry.

Source: Mashe Umaru Gwamna

Co-Living Goes Affordable

The co-living trend — in which renters lease sleeping quarters that are often tiny, and share common living space with roommates — now has the city’s official backing.

On Thursday, the New York City Department of Housing Preservation and Development is expected to announce a pilot program that will allow developers to vie for public financing to create a more affordable version of the dorm-style living arrangement that has emerged in some of the city’s priciest neighborhoods. Much of what already exists is at or above market rate, with some buildings offering additional amenities to residents.

The city’s pilot, called ShareNYC, will seek proposals for private development sites that favor mostly income-restricted units, including those for very low-income renters. The units will vary in design, but will likely run between 150 and 400 square feet per bedroom, may or may not have private bathrooms, and will include a common kitchen and living space that is shared with other roommates, according to a briefing on the program and an agency official. A mix of conventional and market-rate units will also be considered.

The deadline for submissions is March 14, 2019.

Click here to watch weekly episodes of our Housing Development Programme on AIT

Versions of this kind of housing have already sprung up around the city, but restrictions on the maximum number of unrelated roommates (up to three), and constraints on most ground-up construction in this category, sometimes called “single-room occupancy,” or S.R.O., have limited what developers can build.

Some of these existing co-living arrangements may be less expensive to rent than larger, conventional units, but still veer toward luxury prices. With this pilot, city officials are hoping to create new models of shared housing that will bring down construction costs and incentivize the creation of more affordable units.

“It’s really a decision that reflects what we see in the world — a shortage of small apartments,” said Maria Torres-Springer, the department’s commissioner, who noted that about two-thirds of households in the city consist of just one or two people, yet less than half of available housing caters to them.

Even the smallest apartments are often out of reach for many renters. More than 436,000 single adults living in New York in 2015 were rent-burdened, meaning they spent more than 30 percent of their income on rent, according to an analysis by New York University’s Furman Center. Among them, 250,000 spent more than half of their income on rent.

Building smaller units, with higher density, could be one way to create more affordable units, said Jessica Yager, the executive director at the Furman Center.

“We show that as the units get smaller, the amount of money needed to support the development is less,” she said.

In one hypothetical model that the Furman Center considered, in which it assumed no land costs, a developer would have to lease a small studio for $1,480 a month to be profitable — an affordable rent for someone making about $59,200 a year. In the same circumstances, a co-living unit, in which the tenant shares a common kitchen and bathroom, could offer a room for $840 a month, affordable to someone making $33,600 a year.

The idea is far from new. For many struggling New Yorkers, co-living is just another name for informal room-sharing, said Sarah Watson, the deputy director of the Citizens Housing and Planning Council, a nonprofit research organization.

“We’re moving toward nontraditional households, and our housing stock hasn’t quite caught up yet,” she said.

According to the group’s 2017 census analysis, almost a quarter of New York adults were unmarried, considered low-income (making $58,481 a year or less), and living in a shared apartment with family or roommates. The data also dispel the stereotype that only the very young and relatively affluent seek these arrangements: Among that group, the median income was $22,000 and the median age was 36, she said.

Part of what the city is seeking in the proposals is answers to questions that anyone who has roomed with strangers might ask: Who cleans the living room? Who pays for damages to the common area? Who buys the toilet paper?

All entrants must address how their project will manage tenant relations, and the city will likely look to models established by private companies who are already in this space.

“We mitigate the risk that someone is a freeloader,” said Brad Hargreaves, the founder and chief executive of Common, a co-living management company with 319 beds in New York City and another 400 in the works. His company not only furnishes the bedrooms and shared spaces of the apartments, but also pays for routine toiletries and cleaning services, which he said could otherwise become points of conflict in the home.

“A lot of people see that we’re buying the toilet paper and, oh my god, you’re pampering these people,” said Mr. Hargreaves. But he argued that it was just a small way to keep the peace. (Olive oil and Windex, for instance, are also provided.)

Residents pay for the privilege. Prices for a co-living unit at the Baltic, a project in Brooklyn’s Boerum Hill neighborhood with both co-living and traditional apartments, range from $1,950 to $2,100 a month. Considering these are furnished units with amenities, that is somewhat less expensive than conventional studios in the area, which asked for a median $2,200 a month last quarter, according to StreetEasy. Mr. Hargreaves said it was more typical for their co-living units to lease at about 20 percent less than conventional studios.

Source: Stefanos Chen

porno - mobil porno - türkçe porno - sex izle - seks hikayeleri - sohbet numaraları
Translate »
escort sakarya escort edirne escort kayseri escort konya escort ısparta escort bornova