2014 World Bank Land and Poverty Conference Incrementally securing urban tenure: Promising practices, March 24-27, Street NW Washington DC

March 25th, Vertical Title Schemes to Address the Urban Sprawl Issue Pauline MALAPLATE Conseil Supérieur du Notariat

March 25th, Challenging Issue: Urban Sprawl - outward spreading of cities - conversion of agricultural land to residential use. How to make a better use of a limited resource ?

March 25th, Densification - higher density cities are more sustainable than low density cities. - Public services - Transportation - land use planning is not enough to increase the urban density.

March 25th, Vertical Urban Development - simple and appropriate title scheme for vertical urban development in developing and emerging countries - designing land rights that allow vertical development. - designing association rules to manage vertical housing.

March 25th, Cityscape of Paris - the City of Paris has the highest urban density in the Developed countries - more than 21,000 inhabitants/sqr. Km - even 42,000 in some parts of the city.

March 25th, History of commonhold in France Napoleonic Code (art. 664) stipulated that properties - could share a common building or plot governed by a housing collective, - while the airspace and floor space within the individual units still be considered privately owned. - Differed from traditional English property law which required the legal owner of the residential unit to also own the surrounding land. - improved by Notaries in the 1860s' in Paris - regulations in 1938 revised in 1965

March 25th, Lessons Learned years of Case Law - thousands of cases to find out the problems and design proper answers - trial and error process - this expertise help to save time when drafting: - new regulation - contracts templates relating to commonhold

March 25th, Interprofessional Group - Notaries - > drafting - land surveyors and/or architects - > description of the building and units - property managers - > management issues

March 25th, Framework Legal Tools - Framework legal tools that can be adapted to a country-to-country basis. - Basis of discussion to tailor a solution that fits in the country legal system. - Purpose: - make it possible (regulation) - make it happen (implementation)

March 25th, Commonhold - system of freehold tenure of a unit - within a multi-occupancy building, - with shared ownership and responsibility for common services.

March 25th, Setting up the Commonhold - deed of division of the ownership into several fractions known as "units” - registered at the Land Registry: each unit is identified in the public records

March 25th, Association - The unit-holders collectively constitute a single legal entity: the unit-holders' association. - Purpose of the association: - to preserve the building, - to maintain and manage the common parts, - to safeguard the rights relating to the property or the commonhold, - and to carry out all operations required in the common interest.

March 25th, Land - Ownership of the land is not a requirement. - Commonhold may be based on: - long-term leases, - volumetric divisions (on public equipment's, commercial real estate, … )

March 25th, Units - Each unit comprises a private area and a share of the common parts. - This share: - is expressed by a fraction. - is in proportion to the relative value of each private area, in relation to the value of all of the units. - The method of calculation, duly determined by a surveyor, is stipulated in the deed of division setting up the commonhold.

March 25th, Common Parts - General common parts: - undivided property of all the unit-holders - used by all of them. - Special common parts: - undivided property of several unit-holders - reserved for their use.

March 25th, Commonhold regulations - intended use of the property (private areas and common parts) - allocation of responsibility for the charges among the unit-holders, - rules relating to the enjoyment, use and maintenance of the private areas, - rules relating to the use and maintenance of the common parts, - rules relating to the operation and governance of the commonhold, - obligations of the unit-holders to contribute to the common service charges, - method of payment and method of collecting the sums due, - votes of each unit-holder corresponding to the share of the common parts attached to each unit belonging to that unit-holder.

March 25th, Rights and obligations of the unit-holders - unrestricted enjoyment of the private area and the common parts, according to: - the commonhold regulations, - the rights of the other unit-holders - the intended use of the property. - contribution to all the common service charges - the costs of maintenance, repairs, preservation of the property, property management and the governance of the commonhold - in proportion to the fraction of the common parts attached to each unit

March 25th, Commonhold governance - Unit-Holders association - General Meeting - Board of the association - Management monitoring - Commonhold manager - Day-to-day management

March 25th, Transfer of Units - Information of the new right holder - Technical - Financial - Obligations of the present right holder - Account’s settlement

March 25th, Elinor Ostrom’s Design Principles 1. Clearly defined boundaries 2. Rules regarding the appropriation of common resources 3. Collective-choice arrangements that allow most resources appropriators to participate in the decision-making process 4. Effective and accountable monitoring 5. Scale of graduated sanctions for resources appropriators 6. Self-determination of the community recognized by higher- level authorities 7. Mechanism of Conflict Resolution

March 25th, Delivering the Expertise - Bottom Up approach - Participative design - Low Tech Solutions - As simple as possible

March 25th, The END