Analysis – Land Market Interventions for Affordable Housing and Urban Development


Analysis – Land Market Interventions

by Malcolm Childress

This new paper presented at the World Bank’s Annual Conference on Land and Poverty in Washington DC on March 26, 2015 presents lessons learned from the U.S. affordable housing practice for improving global outcomes through four land market interventions: land banking, community land trusts, tradable development rights, and exactions. It was written by Chris Andrews of Cloudburst Group and Malcolm Childress of Land Alliance.

Download the PDF here.

Provision of affordable housing and socially inclusive urban redevelopment are some of the most difficult challenges in high-income countries and in the developing world. These challenges result from a complex set of inter-related problems stemming, in part, from issues in land and property rights.

To address social and affordable housing needs at the scale required—community solutions, private financing and government interventions are needed. This paper provides lessons learned from the U.S. affordable housing practice for improving outcomes in low and middle income countries with a focus on four land market interventions: land banking, community land trusts, tradable development rights, and exactions. In the process of examining these lessons learned, a number of useful lessons emerge from the developing countries for U.S. policies, particularly for addressing homelessness and community redevelopment.

Addressing these knowledge gaps, this paper examines examples from the US housing arena to address land-based problems in affordable housing provision and urban redevelopment. The paper focuses on four land-based strategies for improving these areas:

Land Banks
Community Land Trusts
Transferable Development Rights
Exactions

Examining each approach, the paper explores and briefly summarizes their effectiveness and comments on the relevance and application of the programs for efforts in low- and middle-income countries. The paper also briefly presents developing country experiences that may be applicable in informing US affordable housing and community development practices.