1. Low-income Housing Finance CODI Experience

2. CODI in brief Founded in 2000
A public organization: having a government institution status with flexibility in organization management
Main objective: strengthening poor community organizations

3. Current Activities Citywide slum upgrading ( “Baan Mankong”)
Poverty Alleviation (Supporting communities in savings, credits and loans and community development plan, etc.)
Community Welfare
Assisting in setting up of Community Organization Councils throughout the country
Promoting natural resource management and sustainable agriculture
Solving land and housing disputes in rural areas

4. CODI strategies
To play supporting role in community development process
People, not CODI, are the owners and key actors of the process
To coordinate with govt. agencies, NGOs, other civic groups
To promote community-based savings
To use finance as a tool for development

5. CODI Network Community Development Committee Academics Supported
Agencies
NGOs
Local
Authorities
Others
WELFARE
LAND - HOUSING
SAVINGS - CREDIT
COMMUNITY
ENTERPRISE
ENVIRONMENT
OTHERS

6. CODI provides financial support by lending its capital funds to community organizations.
At present, CODI credit facilities comprise four types of loans as follows;
- Loans for housing and development
- Loans for community enterprises/income generation
- Loans for holistic development
- Short-term revolving funds

7. Income Generation Activities

8. Baan Mankong Housing Program Citywide slum upgrading
a breakthrough in solving slums on a citywide scale
Comprehensive approach in dealing with problems of land tenure, infrastructure, environment, construction and financing
Combination of self support, government subsidy and private cooperation
Lead to amendments in rules and laws which are obstacles to housing solutions for the poor

9. BMK demonstrates strong PPP partnership
P- Poor people/communities as key actors in identifying problems, developing plans to resolve problems and implementing those plans themselves
P- Public; government, CODI, local authorities, etc. Government as subsidy provider: CODI as facilitator, provider of long-term housing loan
P- Private sector; NGOs, professionals, educational organizations etc. provide technical support

10. solutions suitable for all communities
City-wide upgrading involving many possible city development actors and find various secured housing solutions for all communities in the city
City-widesurvey /
joint planning,
search forsolutions
together
Find various
solutions suitable for all communities
in city
Community
Municipality
Other
dev.agencies
On-site
Upgrading
Land-sharing&
reconstruction
Reblocking &
readjustment
Resettlements่
Row-house
Flat
Detach house
Row-housing
Mixed approach

11. Baan Mankong Procrss City-Wide Planning
Organize meetings of stakeholders
Establish joint committee to oversee implementation
Survey all communities to identify problems and create holistic plan
Develop housing, land tenure and policy plan for whole city

12. Set up community working team
Form savings groups
Mobilize local resources, strengthen local groups, and build collective management skills
Set up community working team
Collect information about land, housing, physical infrastructure, income, employment, problems, and existing development initiatives

13. Conceptualize housing and development goals regarding land tenure, upgrading scheme, involvement of local authorities, NGOs, etc.
Formulate financing plan
Work with architecture and engineer on developing housing designs and infrastructure
Submit detailed plan to BMK committee

14. all communities in districts and city
Community Survey
all communities in districts and city
Community survey of all households
In the community and all communities in the city carried out by community people
การ

15. Participatory planning process

16. Loan process Loan approval Loan disbursement
Screened by local and regional committees before being sent to CODI
Approved by BMK sub-committee comprising reps from communities, CODI, NHA,GSB, GHB
If loan amount exceeds THB50 mln.(~USD1.7), approved by CODI board of directors
Loan disbursement
Loans are disbursed in tranches based on progress of project

17. Progress of Baan Mankong (up to March 2011)
Number of project approval 882
Number of cities
Number of communities 1,552
Number of families 91,822
Govt. subsidy (THB mln. ) 4,706

18. Baan Mankong Chantaburi
Before and after

19. Baan Mankong: Financial Aspect

20. Providing Flexible Financial Support
for City-wide Upgrading by Communities
Upgrading of infrastructure and social
facilities
Grant
2) Local management cost
3) Support for exchange visits, capacity
building, seminars, coordinator
Members
Loans
From CODI
Revolving Fund
Interest 4 %
Communities
Members
Members
Government
Subsidy
Banks

21. Source of Financing Three components of BMK financing:
Local communities’ own savings (10% of project cost)
Government subsidy-THB80,000(~USD2,667) per family
Housing loan from CODI

22. Government subsidy
Subsidy is given to community not to individual family
Allocation of THB80,000 (~USD2,667)
Infrastructure development 55%
Financial support 30%
Project management (incl. 15%
meetings, training, exchange visits, etc.)

23. CODI loan
A collective loan to community organization, not to individual household
Collective land tenure
Loan maturity is 15 years and is payable in 180 equal monthly installments
Interest rate is fixed at 4% p.a.
Maximum loan amount per household is THB 300,000 (~USD10,000)
CODI finances up to 90% of the project cost.

24. Loan Security: 1) Land and buildings are mortgaged with CODI
2) Guarantee agreement signed by chairman, committee and all members of the community organization.

25. Re-lending to members
A loan from CODI is on-lent to individual household with a margin of 2-3% added to e interest cost.
The margin is set aside for the purpose of loan administration, community welfare and serves as a cushion for loan repayment in case any member fails to meet his or her obligation in any particular month.

26. Community organization Loan management by community
subgroup
Community organization
Subgroup management
Subgroup daily savings
Loan collection
Group guarantee
Help members who cannot pay
Interest 4%
CODI
Community Cooperatives
on lends to members
at 6-7 %. Margin for community
development,
management and welfare
Loan management by community

27. BMK Loan Performance (as of Mar.2011)
(Accumulated amt.) THB mn.(USDmn.)
Approval ,464(149)
Disbursement ,700 (90)
Repayment (17)
Outstanding ,181 (73)
NPLs %
Beneficiaries
No. communities 1,119
No. households 25,866

28. Funding sources Current funding sources for long-term housing finance
CODI initial capital fund approx. THB 2,800 mln.
Government budget (2009) THB 3,000 mln.
CODI-GHB Refinancing scheme THB mln.

29. CODI-GHB Refinancing scheme
Total amount: THB 500 mln.
GHB agrees to refinance BMK loans from CODI at the same interest rate and same terms and conditions
CODI and GHB agrees on mechanism to compensate GHB for interest rate differentials

30. Project assessment Key success factors Barriers
Strong community leadership
Flexible, affordable financing for the poor
People process which suits poor community livelihood
Barriers
Public land-use policies
Certain rules and regulations
Coordination among relevant agencies

31. Challenges Future funding for the program Scarcity of affordable land
Linkage between formal and informal financial markets

32. New look of a slum in Pitsanuloke province

33. Bangbua Community before upgrading

34. Bangbua community during completion

36. Thank You