REGENERATION POLICY IN THE UK

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AN OVERVIEW OF REGENERATION POLICY IN BRITAIN

by

Richard Groves Senior Lecturer

Centre for Urban and Regional Studies University of Birmingham

KRIHS/CURS WORKSHOP ON URBAN REGENERATION

REGENERATION POLICY IN THE UK

TWO DIFFERENT TYPES OF POLICY:

• PRIVATE SECTOR HOUSING RENEWAL

• ‘URBAN’ REGENERATION

PROGRAMMES

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PRIVATE SECTOR HOUSING RENEWAL

A LONG HISTORY – MID-19

^TH

CENTURY ORIGINS ORIGINALLY HEALTH OBJECTIVES – TO

ERADICATE DISEASE

MORE RECENTLY TO MAINTAIN MINIMUM STANDARDS IN PRIVATE SECTOR HOUSING IMPLEMENTED BY LOCAL HOUSING

AUTHORITIES

FOR MANY YEARS CONCERNED WITH ‘SLUM CLEARANCE’ BUT SINCE THE WAR WITH RETENTION AND IMPROVEMENT AS WELL

PRINCIPLES (until recently)

A MINIMUM STANDARD – ‘THE FITNESS STANDARD’

IF PROPERTY FALLS BELOW STANDARD AN LHA MUST:

• GIVE GRANT AID TO IMPROVE

• TAKE ENFORCEMENT ACTION TO IMPROVE OR DEMOLISH

• INCLUDE WITHIN AN AREA-BASED PROGRAMME OF IMPROVEMENT OR DEMOLITION

WITHIN A SPECIFIED PERIOD

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A SOPHISTICATED PROGRAMME

OVER TIME GOVERNMENT POLICY

BECAME INCREASINGLY SOPHISTICATED :

• AN ARRAY OF DIFFERENT TYPES OF GRANT AID

• DIFFERENT TYPES OF AREA DESIGNATIONS

• GRANTS FOR DIFFERENT PURPOSES, E.G.

DISABLED PEOPLE; TO IMPROVE ENERGY EFFICIENCY; TO PROVIDE LOCAL FACILITIES, ETC.

THIS PROCESS CULMINATED IN THE USE OF ‘BLOCK’ GRANTS TO IMPROVE WHOLE NEIGHBOURHOODS OF HOUSES

SYSTEMATICALLY TO CARRY OUT:

• EXTERNAL WORKS TO PROPERTIES

• INTERNAL WORKS TO PROPERTIES

• ENVIRONMENTAL IMPROVEMENTS

• COMMUNITY FACILITIES

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BUT, VERY EXPENSIVE FOR GOVERNMENT - SINCE 1990s

• SUBSTANTIAL DECLINE IN CAPITAL BUDGETS

• MORE DIVERSE OBJECTIVES (ENERGY

EFFICIENCY & EQUAL OPPORTUNITIES AGENDAS)

• CHANGING POLITICAL PERCEPTION OF HOME OWNERSHIP

ALL OF WHICH RESULTING IN

• DECLINING PROGRAMMES

• EMPHASIS MOVING FROM NEIGHBOURHOOD RENEWAL TO INDIVIDUAL PROPERTIES

REGENERATION PROGRAMMES, IN THE MEANTIME, ARE MORE PROMINENT THESE HAVE DEVELOPED FROM LOCAL PROJECTS UNDERPINNED BY ‘SOCIAL PATHOLOGY’ INTERPRETATIONS OF POVERTY IN THE 1960s

THROUGH ‘PROPERTY LED’ REGENERATION INITIATIVES IN THE ’80s

TO, THE CURRENT ‘NATIONAL STRATEGY

FOR NEIGHBOURHOOD RENEWAL’ DESIGNED

TO COUNTER ‘SOCIAL EXCLUSION’ IN POOR

NEIGHBOURHOODS

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THERE ARE A WIDE RANGE OF CURRENT URBAN REGENERATION PROJECTS IN BRITAIN

THE ‘NEW DEAL FOR COMMUNITIES’ (NDC) PROJECTS ADOPT A MULTI-DISCIPLINARY APPROACH TO:

• IMPROVE EMPLOYMENT PROSPECTS, EDUCATION AND SKILL TRAINING

• ADDRESS PROBLEMS OF SOCIAL EXCLUSION

• IMPROVE AND PROTECT THE ENVIRONMENT (INCLUDING HOUSING)

• ENCOURAGE AND SUPPORT GROWTH IN THE LOCAL ECONOMY

• REDUCE CRIME AND DRUG ABUSE AND IMPROVE COMMUNITY SAFETY

COMPARISONS WITH AREA REGENERATION PROGRAMMES IN KOREA

APPROPRIATE AT A NUMBER OF LEVELS

• STRATEGIC POLICY

- REALISATION IN BOTH COUNTRIES THAT PROPERTY-LED APPROACHES ARE

INADEQUATE TO TACKLE THE PROBLEMS OF THE URBAN POOR

- HENCE A PRIMARY ROLE IN

STRENGTHENING OF LOCAL ECONOMIES,

SKILLS TRAINING & LOCAL EMPLOYMENT

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• SOME CONVERGENCE OVER THE ROLE OF THE STATE

- IN BRITAIN MEASURES TO ENHANCE THE ROLE OF LOCAL COMMUNITIES AND TO DIVERSIFY LEADERSHIP ROLES IN AREA- BASED STRATEGIES

- IN KOREA, AN ENHANCED ROLE FOR GOVERNMENT AGENCIES IN SEEKING TO REDUCE THE DISPARITY OF OUTCOMES BETWEEN ‘WINNERS’/OWNERS AND

‘LOSERS’/TENANTS

AND IN OPERATIONAL ACTIVITIES, E.G.

RESPONSIVENESS TO POORER COMMUNITIES

- CAPACITY BUILDING AND

EMPOWERMENT MEASURES MORE PROMINENT IN PROGRAMMES IN BRITAIN

- AN EMPHASIS ON ENHANCED

COMMUNICATION AND THE ROLE OF

NGOs IN KOREA

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ESTATE REGENERATION IN LEE BANK

BIRMINGHAM

Christopher Watson

Centre for Urban and Regional Studies

Regeneration in England

• Two types

• Regeneration of older 19

^th

century private housing

• Regeneration of 20

^th

century public

housing estates

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This presentation is about the regeneration of Lee Bank

• A 20

^th

century public housing estate in the City of Birmingham, Britain’s second largest city

• By the late 1970s, more than 30% of

Birmingham’s housing was rented from the local authority

• With more than 100,000 dwellings, Birmingham was the biggest municipal landlord in Western Europe

Changing Policies for Council Housing

• Birmingham was very much affected by

changing government policies on council

housing, introduced from 1979 with the

election of Mrs Thatcher’s Conservative

Party government.

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What did the Conservatives do?

• The right to buy

• Public spending reductions in housing

• New local authority building programme cut

• Home ownership encouraged

• Local authorities encouraged to transfer their housing stock to new landlords

• Privatisation

The effects

• A declining public sector in housing

• Residualisation of the local authority sector in housing (concentration of the socially and economically deprived and of others with little or no choice in the

housing market)

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Lee Bank and the Central Estates

• Built 1950s to 1970s – slum clearance estates, one mile from city centre

• 27 tower blocks, many maisonette blocks

• Poorly designed, badly constructed

• Many physical problems

• Many social and economic problems

• Lack of investment in repair,

maintenance and housing management

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Estates Renewal Challenge Fund

• Introduced 1996/97 until 2000/01

• 39 schemes in England involving 28 local authorities

• 43,000 dwellings included

• GBP 488 million paid in grant

Estates Renewal Challenge Fund

• Launched by government to facilitate transfers of the most deprived local authority estates using a mixture of public and private finance

• Recognised low or negative value property

• New landlords need public sector cash to

achieve viable business with affordable rents

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Estates Renewal Challenge Fund provided finance for

• Dowries to be paid to new landlords, to cover negative valuations

• Small regeneration schemes within the boundaries of the bid

• New landlord’s set up costs

• A nominal sum towards the local authorities costs

• Some pre-transfer works

Why did Birmingham apply for Estates Renewal Challenge

Funding?

• Previous funding regime ended but renovation work on Lee Bank had only just begun

• Residents demanded action

• There was not enough money from

mainstream programmes to deal with

Birmingham’s housing problems

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Birmingham’s housing problems

• The City Council owned nearly 100,000 dwellings:

• 353 tower blocks

• 20,000 pre-war council houses

• 20,000 post-war flats and maisonettes

• Over 50 non-traditional property types

• 50% of properties without central heating

Birmingham’s housing problems

• The total spend needed to deal with these problems was estimated at GBP 1 – 2 Billion

• The amount available for housing

investment in the whole of Birmingham

in 1998/99 was GBP 35 Million

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Birmingham Applied for Estates Renewal Challenge

Funding

• The application was developed in consultation with the residents of Lee Bank and other parts of the Central Estates

• The application was successful

• A grant of GBP 56 million was agreed

• The condition was that residents must vote for and the city must agree to transfer the estates to a new landlord

Optima Community Association

• Became the new landlord

• Received the transfer of 2,800 dwellings

• Developed a comprehensive regeneration framework for the area

• The transfer took place in 1999

• The programme will last 8-10 years

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What is Optima?

• A housing association

• Independent of the local authority

• Registered by the Housing Corporation

• Strongly tenant led

– The Board of Management has 15 members – 7 tenants

– 5 independents

– 3 City Council nominees

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Objectives

• Achieve community stability

• Widen housing choice

• Reduce crime and fear of crime

• Promote training and employment

• Provide investment to complement the city centre

• Enhance the quality of life for residents, especially through health, education, the economy and the environment

The regeneration programme

• Refurbish 1,500 properties

• Demolish 1,300 properties

• Build 550 homes for rent

• Achieve 1,000 homes for sale, offices, shops, a hotel and leisure facilities

• A social and economic programme

• Radical housing management improvements

• A complete overhaul of the housing repairs

service

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Refurbishment

• Completion of Y Blocks external works completes all 14 tower blocks.

• All internal contracts

complete.

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Refurbishment

• Contractors engaged for lift refurbishment.

• Benmore lifts refurbished, Sentinels started

April 2004 with

Lee Bank blocks to follow.

• Communal decorations programme. Benmore and Sentinels started May 2004 with Lee Bank to follow.

Refurbishment

Environmental works

• Ottawa Tower

complete, Middleway blocks on site ground remodelling.

• Benmore and Sentinels

environmental works

started April 2004.

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Refurbishment

Five Ways

• Improvement scheme on site.

• 4 blocks complete, 5 in progress, 4 due to start.

Clearance

• Overall Clearance Programme Totals 1,347 Properties

• 1,131 properties rehoused

• 921 properties demolished

by mid-2004

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Clearance

• Lytham Croft demolition completes original Lee Bank residential clearance

• Remaining 4 Woodview tower blocks planned for 2005.

• Haddon Tower – explosive demolition planned for late 2005

• Lea and Vaughton Houses – latest demolitions

New Build – completed

Murrell Close

• 15 family houses for rent

• 15 flats for rent in one 4 storey block

• All allocations for Optima returners

• Completed January 2004

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New Build – on site

Rickman Drive

• 18 flats for rent in one 4 storey block

• A new community hall for Spring Vale

• Completion due November 2003

New Build – on site

Wheeleys Lane

• 126 flats for sale in 3 five storey blocks

• 14 houses for rent and 26 houses for sale

• Completion due from

December 2004

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New Build – start 2004

Wheeleys Lane

• 29 flats for rent for Haddon Tower

• 24 flats for sale

• 16 houses for rent and 6 houses for sale

• Completion due September 2005

New Build – start 2004

Bath Row (Five Ways)

• New offices for Focus Housing Association

• Started on site January 2004

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New Build – start 2004

Stone Road – 88 flats

• 58 for rent

• 30 for private rent through Family Housing Association

Private Sector Development

After the transfer

• A development framework was approved

• Commercial agents were appointed

• Planning consultants were engaged

• Marketing consultants were appointed

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Private Sector Development

• The Central Estates were ‘rebranded’ as Attwood Green

• Lee Bank was rebranded as Park Central

• Aim to link new private developments with those in the adjoining Convention Quarter and City Centre

• Developers invited to tender to become Lead Developer for Park Central

Private Sector Development

• Three companies short-listed

• Crest Nicholson appointed in November 2000

• Proceeds from the sale of land to Crest Nicholson are being re-invested by

Optima in other parts of Attwood Green

• Ambitious development plan now

underway at Park Central

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Blocks Complete Blocks Complete at Autumn 2008 at Autumn 2008

18

16 4

27

28 30

30

22

11 17

34 6

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Social and Economic Programme

• An important element in the regeneration of Attwood Green

– Employment

– Community Enterprise

– Crime and Community Safety – Education

– Health and Family Support – Young People

– Empowering Communities – Arts

Evaluation

• Much progress is being made

• The original ERCF grant of GBP 56

million is expected to result in a total

investment in Attwood Green of GBP 350

million over 10 years

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Evaluation

• Is success due to transfer? Yes, in part, because there was no politically acceptable alternative. But other approaches might have been possible in different political

circumstances

• Public sector investment and continuing

commitment are essential to the success of the project

Evaluation

• Resident involvement has been essential and the project would not have happened without their determination

• But a heavy price for residents

– The long time-scale

– Clearance and rehousing for many

– Noise, dust, dirt, disruption for those who

remain ‘living on a building site’

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Evaluation

• Must judge not only on physical success but also on the effectiveness of the social and economic programme

• How will residents be affected by changes in the tenure and social mix of the estates?

Acknowledgements

Thanks to Alan Murie, Stephen Hall, Simon Kimberley and Lesley Whitling for some of the photographs and information included in

this presentation

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0

ChulChulKohKoh Korea Housing Institute Korea Housing Institute

Hwan

Hwan--Yong ParkYong Park Kyungwon

KyungwonUniversity, KoreaUniversity, Korea Nov.

Nov.20020044

Emergence of Planned Development Emergence of Planned Development

In Urban Renewal In Urban Renewal:

From Piecemeal to Comprehensive Planning From Piecemeal to Comprehensive Planning

Emergence of Planned Development in Urban Renewal Emergence of Planned Development in Urban Renewal

The 1960s Land Readjustment Sites

The Center of the City The Center of the City

The 1970s Land Readjustment Sites The 1980s Development Projects Urban Area set aside from LRS

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2 Research Focus

Research Focus What happens

What happens (Phenomenon) (Phenomenon) How to verify it

How to verify it (Empirical study),(Empirical study), How to respond to it

How to respond to it (Policy Implication)(Policy Implication)

Presentation Focus Presentation Focus

Introduction of study Introduction of study

Conceptual Changes in Urban Residential Redevelopment Conceptual Changes in Urban Residential Redevelopment Historical Development of Problem Solving for Redevelopment Historical Development of Problem Solving for Redevelopment Emergence of Planned Development in Urban Renewal Emergence of Planned Development in Urban Renewal

Main Concentration of Study Main Concentration of Study

Urban residential renewal is operated under three kinds of progr Urban residential renewal is operated under three kinds of programs ams

Housing Redevelopment (HR), Housing Redevelopment (HR),

Residential Environment Improvement Program (REI), Residential Environment Improvement Program (REI),

site improvement type, site improvement type, multi

multi--family housing construction type family housing construction type mixed type

mixed type Multi

Multi--family Housing Reconstruction Program (MHR). family Housing Reconstruction Program (MHR).

The three residential renewal programs have unique characteristi The three residential renewal programs have unique characteristics incs in

Project site, Project site, Socio

Socio--economic characteristics of residents, economic characteristics of residents, Residents before and after redevelopment, Residents before and after redevelopment, Housing type of their development outcomes.

Housing type of their development outcomes.

I. Introduction I. Introduction

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4 HR and REI have been used

HR and REI have been used for deteriorated single

for deteriorated single--family detached houses family detached houses that are usually scattered around hillsides that are usually scattered around hillsides Sites are places of low

Sites are places of low--income householdsincome households

Saving housing costs by sharing houses with other hous Saving housing costs by sharing houses with other households.eholds.

The HR and REI programs are carried out in a form of city planni

The HR and REI programs are carried out in a form of city planning projectng project with governmental assistances and controls,

with governmental assistances and controls,

such as sale of government owned land and small housi

such as sale of government owned land and small housing provision. ng provision.

MHR has been used MHR has been used

for middle

for middle--income households in multiincome households in multi--family housing sites family housing sites No government assistance is provided.

No government assistance is provided.

Little government control is applied.

I. Introduction I. Introduction

Urban Renewal Planning Instrument Urban

Renewal Form Development

Subject & Target

• Centralized planning

• Public welfare priority

• Housing Provision for New Households

• Comprehensive planning

• Urban Renewal Program

• Site planning

Redevelopment

• Residents' opinion considered

• Private Rights Protection

• Resettlement of existing inhabitants

• Community renewal program

• Model cities program

• Construction agreement

Rehabilitation

• Residents participation

• District identity

• Preservation of existing function

• Community Development Block Grant (CDBG)

• Making Villages (まちづくり)

• Community-Based Housing

Gentrification &

Regeneration I. Introduction

I. Introduction

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6

II. Conceptual Change in Urban Residential Redevelopment II. Conceptual Change in Urban Residential Redevelopment

1.

1. Cooperative Housing Redevelopment Program (CHR)Cooperative Housing Redevelopment Program (CHR) Slum clearance was the only method

Slum clearance was the only method

utilized in the deteriorated residential areas until 1 utilized in the deteriorated residential areas until 1973 973 because of

because of unmaturedunmaturedsocio-socio-economic circumstances for renewal.economic circumstances for renewal.

Urban residential renewal was not a main concern for governments Urban residential renewal was not a main concern for governments

because of limited monetary availability for housing i

because of limited monetary availability for housing investment. nvestment.

All of resources were invested in economic development All of resources were invested in economic development housing was little concerned from the perspectives of

housing was little concerned from the perspectives of city planning.city planning.

Four HR programs have been used since 1973.

Self-Self-Help Rehabilitation (SHR) was the first programHelp Rehabilitation (SHR) was the first program AID Loan Program (ALR) in 1973,

AID Loan Program (ALR) in 1973, Trust Redevelopment (TR) in 1978, Trust Redevelopment (TR) in 1978,

Cooperative Housing Redevelopment Program (CHR) in 198 Cooperative Housing Redevelopment Program (CHR) in 1982.2.

1960 1970 1980 1990

Residential Environment Improvement Program

68 73

73

76 80

80 78

83 87

89

Housing Reconstruction Cooperative Housing Redevelopment Consignment Redevelopment

AID Loan Project

Self-Help Rehabilitation Official Permit & Site Improvement

Relocation and Citizen Apartment Construction

<Figure 2> Historical Change in Residential Renewal Programs<Figure 2> Historical Change in Residential Renewal Programs

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8 1991 1992

1993 1994

1995 1996

1997 1998

1999 2000

Redevelopment

Residential environment improvement program Reconstruction

0 50 100 150 200 250

Cooperative Housing Redevelopment

Residential Environment Improvement program Housing Reconstruction

<Figure 3> Distribution of Residential Renewal Sites by Program <Figure 3> Distribution of Residential Renewal Sites by Program TypeType

Until now, CHR has been understood as the most efficient way Until now, CHR has been understood as the most efficient way

to improve deteriorated houses to improve deteriorated houses

in terms of financial burden, resident agreement, and

in terms of financial burden, resident agreement, and role allocation role allocation of urban redevelopment.

of urban redevelopment.

The concept of CHR is The concept of CHR is

A joint operation of housing redevelopment bo A joint operation of housing redevelopment bodies dies

between residents and a construction co between residents and a construction company.mpany.

Lessening financial problems associated with d

Lessening financial problems associated with development, evelopment, one of strong obstacles for redevelopme

one of strong obstacles for redevelopment. nt.

The mechanism of the method is The mechanism of the method is

Residents provide residential land Residents provide residential land

The costs are born by the company in advance The costs are born by the company in advance

and reimbursed after completion of the p and reimbursed after completion of the project. roject.

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10 It is an introduction of market mechanism to the housi

It is an introduction of market mechanism to the housing redevelopment.ng redevelopment.

There should be additional housing construct There should be additional housing constructionion

in addition to those consumed by

in addition to those consumed by the current residentsthe current residents The surplus is supplied to the households ou

The surplus is supplied to the households outside the project area. tside the project area.

The income from housing sale is the main fac The income from housing sale is the main factor tor

for sound project feasibility to

for sound project feasibility to be sustained. be sustained.

What is necessary for the operation is What is necessary for the operation is

the existence of ample density gap for high d

the existence of ample density gap for high density development ensity development for additional housing constructio

for additional housing construction.n.

CHR has been the most useful method for residential re

CHR has been the most useful method for residential redevelopment. development.

Almost all of HR sites were carried out by CH

Almost all of HR sites were carried out by CHR since 1984.R since 1984.

However, the feasibility of CHR will be influenced However, the feasibility of CHR will be influenced by recent introduction of new policies by recent introduction of new policies

segmentation of residential land us segmentation of residential land use e decrease in the floor area ratio fo

decrease in the floor area ratio for residential landr residential land

If CHR is evaluated to be infeasible, If CHR is evaluated to be infeasible,

the current residents should bear more burden

the current residents should bear more burdens of redevelopment.s of redevelopment.

Otherwise, the areas will be turned into slum

Otherwise, the areas will be turned into slumsooner or later.sooner or later.

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12 The background of REI introduced in 1989

The background of REI introduced in 1989

new housing provision had minimal effects on the urba

new housing provision had minimal effects on the urban renewaln renewal in areas of low

in areas of low--income households. income households.

To apply variance or special exception of the Buildin To apply variance or special exception of the Building Code g Code

for the improvement of individual parcels.

The introduction of CHR showed dual aspects of housing redevelop The introduction of CHR showed dual aspects of housing redevelopment. ment.

The increased feasibility was one thing, The increased feasibility was one thing,

which was always a bottle neck of housing r

which was always a bottle neck of housing redevelopment.edevelopment.

Replacement of densely aggregated low

Replacement of densely aggregated low--income households income households by middle

by middle--income households. income households.

Housing constructed is large

Housing constructed is large--scaled and luxurious scaled and luxurious It exceeded housing burden of native residents It exceeded housing burden of native residents It decreased the resettlement ratio dramatically.

It decreased the resettlement ratio dramatically.

2.

2. Residential Environment Improvement Program (REI)Residential Environment Improvement Program (REI)

Question raised : for whom the housing redevelopment was operate Question raised : for whom the housing redevelopment was operated. d.

The solution was to introduce the REI program The solution was to introduce the REI program through enactment of the legislation in 198 through enactment of the legislation in 1989. 9.

It was a temporary law effective until 1999 It was a temporary law effective until 1999 and was extended its force to 2004.

and was extended its force to 2004.

REI is applied to sites of single

REI is applied to sites of single--family detached houses family detached houses The final output of REI has three forms

The final output of REI has three forms Site improvement for individual buildings, Site improvement for individual buildings, Land substitution for multi

Land substitution for multi--dwellings lower than four stories, dwellings lower than four stories, Multi

Multi--family housing construction. family housing construction.

It looks like combined outcomes of HR and MHR programs.

The similarity and complexity of these three types provides The similarity and complexity of these three types provides

background for policy makers to propose a new law enac background for policy makers to propose a new law enactment, tment, the law of 'Urban and Residential Environment Renewal' the law of 'Urban and Residential Environment Renewal'in 2003.in 2003.

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14 REI program is for low

REI program is for low--income householdsincome households

REI program should be related with the minimum housing standard REI program should be related with the minimum housing standard of 1998. of 1998.

The standard requires The standard requires

satisfaction of residential facilities (kitchen, Bath

satisfaction of residential facilities (kitchen, Bathroom, Running water),room, Running water), bedroom usage by age and sex of household members,

bedroom usage by age and sex of household members, floor area size standards (house size, number of room floor area size standards (house size, number of rooms). s).

If one of the three standards is not satisfied, If one of the three standards is not satisfied,

the households are classified as substandard.

Using the population and housing census of 2000, the statistics Using the population and housing census of 2000, the statistics of the of the qualified households for the whole nation is as follows:

qualified households for the whole nation is as follows:

((Based onBased ongeneral households)general households)

Households under minimum housing standard : 23.4 Households under minimum housing standard : 23.4

(34.4% in 1995) (34.4% in 1995)

Among households under minimum housing standards Among households under minimum housing standards

Households under residential facility standard : 74.3%

Households under bedroom usage standard : 14.8%

Households under floor area size standard : 39.1%

Households under three type standards : 5.3%

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16 It would be possible to figure out solutions as follows:

It would be possible to figure out solutions as follows:

Substandard housing for residential facilities could b

Substandard housing for residential facilities could be improved e improved by repairs and rehabilitation

by repairs and rehabilitation

Other substandard housing could be improved Other substandard housing could be improved

by residential relocation and urban redevel

by residential relocation and urban redevelopment projects. opment projects.

However, it may not be a realistic strategy However, it may not be a realistic strategy

since it is impossible to install kitchens, toilets, b

since it is impossible to install kitchens, toilets, bathrooms athrooms in a very limited space of housing.

in a very limited space of housing.

Best alternatives for substandard households are Best alternatives for substandard households are

To carry out community renewal projects for the facili To carry out community renewal projects for the facilities.ties.

Otherwise, clearance redevelopment would be the second Otherwise, clearance redevelopment would be the second. . For site choice and implementation of improvement plan For site choice and implementation of improvement plans, s,

it is important to know spatial distribution

it is important to know spatial distributionof substandard of substandard households by jurisdiction and redevelopment

households by jurisdiction and redevelopment site. site.

3.

3. MultiMulti--family Housing Reconstruction Program (MHR)family Housing Reconstruction Program (MHR) The CHR program has had positive effects on

The CHR program has had positive effects on

Housing reconstruction for deteriorated apartments Housing reconstruction for deteriorated apartments Stimulating strong demand for apartment reconstruction Stimulating strong demand for apartment reconstruction.. MHR has been concentrated on

MHR has been concentrated on low

low--rise apartment in low density inducing high financial feasibilitrise apartment in low density inducing high financial feasibility. y.

Legal basis for MHR is Legal basis for MHR is

The amendment of 'Housing Construction Stimulation' la

The amendment of 'Housing Construction Stimulation' law in 1987 w in 1987 The main target of MHR is

The main target of MHR is multi

multi--family housing that should be older than 20 years family housing that should be older than 20 years special allowance is given to single

special allowance is given to single--family detached housesfamily detached houses For single

For single--family houses, resident agreement of 100% is requiredfamily houses, resident agreement of 100% is required

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18 MHR sites should be satisfied by the conditions of possibilities

MHR sites should be satisfied by the conditions of possibilitiesfor for safety accidents because of housing deterioration safety accidents because of housing deterioration excessive repair costs for rehabilitation,

excessive repair costs for rehabilitation, remarkably low land use level.

remarkably low land use level.

Normal resident agreement is Normal resident agreement is

80% of subdivision owners and rights to vote, respecti 80% of subdivision owners and rights to vote, respectively. vely.

The ratio should be up to 90% when the project plan is

The ratio should be up to 90% when the project plan isapproved.approved.

It should be 100% when the project construction starts It should be 100% when the project construction starts..

Building safety evaluation for MHR is one of most important stag Building safety evaluation for MHR is one of most important stages. es.

There have been strong doubts for There have been strong doubts for

The selection of safety evaluation organizations The selection of safety evaluation organizations Evaluation results, which is paid by the site coope Evaluation results, which is paid by the site cooperatives ratives

Hence, the application procedure for safety evaluation is change Hence, the application procedure for safety evaluation is changedd

The cooperatives for MHR request a mayor for the eval The cooperatives for MHR request a mayor for the evaluationuation The mayor can designate an organization to carry out.

The mayor can designate an organization to carry out.

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20 MHR program is often compared with CHR

MHR program is often compared with CHR

their differences provide merits and drawbacks their differences provide merits and drawbacks in public consideration, operation easiness,

in public consideration, operation easiness,tenant treatment. tenant treatment.

First, MHR is not necessary to designate the site First, MHR is not necessary to designate the site since its legal base considers it as a citizen

since its legal base considers it as a citizen--based building based building construction project.

construction project.

Second, MHR is not necessary Second, MHR is not necessary

to establish a development plan from the public side to establish a development plan from the public side to review the plan in the city planning level.

to review the plan in the city planning level.

Third, legal obligations for tenants are not existed for MHR Third, legal obligations for tenants are not existed for MHR

MHR and CHR have strong similarities in stimulating housing mark MHR and CHR have strong similarities in stimulating housing markets.ets.

New housing satisfies housing demand of current resid New housing satisfies housing demand of current residentsents Housing surplus can be produced by the density gap Housing surplus can be produced by the density gap

The surplus is sold in the outside market The surplus is sold in the outside market The surplus provides development capital g

The surplus provides development capital gains for the residents. ains for the residents.

The programs provide different opportunities for three parties The programs provide different opportunities for three parties Current residents: housing enlargement and new housin Current residents: housing enlargement and new housing g Housing builders: housing construction in inner city Housing builders: housing construction in inner city areasareas Potential buyers: new housing supply in already estab

Potential buyers: new housing supply in already established urban areas. lished urban areas.

Because of this, the mechanism of the programs is apt to depend Because of this, the mechanism of the programs is apt to depend upon the housing economy and macro economy fluctuatio upon the housing economy and macro economy fluctuations ns since new demand of outside the market is necessary since new demand of outside the market is necessary

(50)

22

III. Historical Development of Problem Solving for Redevelopment III. Historical Development of Problem Solving for Redevelopment

1. Development Views and Redevelopment Bodies1. Development Views and Redevelopment Bodies There are several factors

There are several factors

in the views and bodies of housing redevelopment oper in the views and bodies of housing redevelopment operation ation

<Figure 3> Factors of Consideration and Development Bodies for

<Figure 3> Factors of Consideration and Development Bodies for RedevelopmentRedevelopment Consideration Factor

Consideration Factor Floor area ratio Floor area ratio Public facility installation body Public facility installation body

Height Controls Height Controls Tenant rental housing Tenant rental housing

Site Residents Feasible Improvement

Surrounding Residents Clean landscape

Local Government Efficient Renewal

Citizens Low-cost Planning

The bodies involved in the redevelopment have The bodies involved in the redevelopment have

their own views and different willingness to pay for t

their own views and different willingness to pay for the program. he program.

The fundamental differences in the ways of thinking ask for The fundamental differences in the ways of thinking ask for

legal and institutional assistances in these private r

legal and institutional assistances in these private redevelopment.edevelopment.

The characteristics of development should be changed The characteristics of development should be changed

by the public involvement rather than the private ope by the public involvement rather than the private operation,ration,

Redevelopment site size should be large enough to improve Redevelopment site size should be large enough to improve

socio

socio--economic circumstances and economic circumstances and conditions of the infrastructure in the area.

conditions of the infrastructure in the area.

(51)

24 There is no disagreement

There is no disagreement

residents are entitled to make decisions for housing

residents are entitled to make decisions for housing redevelopment redevelopment in their deteriorated areas.

in their deteriorated areas.

Literal definition of residents includes Literal definition of residents includes

owners and tenants, regardless of who owns the buildin

owners and tenants, regardless of who owns the buildings and land.gs and land.

But, many people have doubts about the fact But, many people have doubts about the fact

tenants have a right to choose the change of the curr

tenants have a right to choose the change of the current residence. ent residence.

It produces various forms of disputes It produces various forms of disputes

about how to get the best result for tenant about how to get the best result for tenants. s.

2.

2. Institutional Changes in Treatment of TenantsInstitutional Changes in Treatment of Tenants

Treatment of tenants has been varied by Treatment of tenants has been varied by

social perception on the welfare aspect of low

social perception on the welfare aspect of low--income households.income households.

In the early stage, it was a form of charity from ind In the early stage, it was a form of charity from individualsividuals Later it has been understood as a protection scheme.

Later it has been understood as a protection scheme.

The first measure for tenant treatment was announced in 1986.

The payment of housing costs for two months to tenants The payment of housing costs for two months to tenants

living in the sites longer than one month living in the sites longer than one month after the development decision was announce

after the development decision was announced officially d officially from the local government.

from the local government.

The housing costs were based The housing costs were based

on the average household expenditure of urb

on the average household expenditure of urban workers.an workers.

(52)

26 In 1987, another option was added

In 1987, another option was added

the right to purchase one room of small

the right to purchase one room of small--sized apartment sized apartment

The right of one room was not enough The right of one room was not enough

to be an owner since possession of three of them was

to be an owner since possession of three of them was necessary necessary for housing purchase.

for housing purchase.

Not fully effective to the resettlement of tenants Not fully effective to the resettlement of tenants

since they had poor financial abilities since they had poor financial abilities since they sold their right to investors f

since they sold their right to investors for capital gains. or capital gains.

In 1988, another option for tenants was prepared In 1988, another option for tenants was prepared

to minimize social problems to minimize social problems

associated with sale of the right of one ro associated with sale of the right of one roomom A right to purchase a small apartment of 7

A right to purchase a small apartment of 7 pyongpyong(23(23m²)) for exclusive use.

for exclusive use.

In 1989, the governmental policy for tenants was totally changed In 1989, the governmental policy for tenants was totally changed

Permanent Rental Housing provision of 7

Permanent Rental Housing provision of 7--12 12 pyongpyong (23-(23-4040m²)) for exclusive use.

for exclusive use.

The Permanent Rental Housing Units are The Permanent Rental Housing Units are

constructed by cooperatives of housing redevelopment constructed by cooperatives of housing redevelopment,, purchased by the Seoul Metropolitan Government purchased by the Seoul Metropolitan Government