Module 4

Land Pooling/Land Readjustment An Alternative to Compulsory Acquisition
M04: How should Land Readjustment Projects Be Designed and Implemented?
How should land readjustment projects be designed and implemented?
In Module 3, we have discussed the policy goals that land readjustment can achieve, and under what conditions. This
module will propose a stylized procedure for designing, implementing, monitoring, and scaling up land readjustment
projects.
It is important to state explicitly at the onset that our suggested procedure is not intended to be universal. As
mentioned repeatedly in this course, contexts matter. When considering the application of this procedure to a specific
land readjustment initiative, it must be adjusted to reflect local conditions.
Overview:
We divided the procedure into seven stages including: (1) context assessment; (2) initiation; (3) preparation and
organization; (4) design and approval; (5) implementation; (6) completion; and (7) evaluation and scaling up. We will
present detailed steps for each stage — such as land valuation during stages 2, 4, and 6 — and the establishment of an
appeal and conflict resolution system throughout stages 3 to 5.
Important considerations:
Before specifying the detailed steps for each stage, there are important considerations to which we must pay attention
throughout the entire process.
Consultation with stakeholders:
Although we organize relevant tasks in a step-by-step manner in our presentation, these steps are interconnected and
nonlinear.
More importantly, different sequences and parallel operations will be needed depending on the local context.
Furthermore, there are some activities that need to be performed throughout the entire process. For instance,
consultation with stakeholders should be done at every step along the way, because a vital component of land
readjustment is to establish proper engagement and communication with all involved parties. As argued in Module 3,
this is for ensuring the transparency of the project, which will help to establish an informed consensus among all
stakeholders. A coherent set of consistent and regular consultations with stakeholders can also build trust and
reciprocity, thereby nurturing a sense of local ownership of the project by the members to guarantee the sustainability
of the redevelopment efforts in the long run. That said, in communicating with the public, it is important to keep in
mind that information that is made publicly available to all stakeholders at strategic times needs to be well thought
through and clearly conveyed, because misinterpretation of the concepts or intents of land readjustment could emerge
if stakeholders do not have an adequate understanding of the approach.
Page 2 of 39
Constant evaluation:
Another cross-cutting activity is to have an independent entity constantly evaluating the progress of the project. This
entity would provide feedback to the implementing agency and all stakeholders on how to improve the implementation
strategy and activities to ensure that the project is moving towards the desired direction.
Interim evaluation reports can help manage the stakeholders’ expectations of the project outcomes. Any deviations
from expected circumstances or achievements will be identified and reported to all stakeholders in a timely manner so
that all understand the challenges encountered. If these challenges are beyond the control of the implementing agency,
stakeholders will adjust their expectations based on the new reality. This task is especially crucial in developing
countries where political and economic conditions are constantly in flux.
Page 3 of 39
Initial context assessment:
Now, let’s look at the detailed steps for each stage. We will start with initial context assessment. Initiating a land
readjustment project requires a careful assessment of the area of interest to determine if the selected neighborhood has
enabling macro and micro conditions to facilitate the implementation of the project.
Three aspects of land readjustment:
A context assessment for land readjustment includes three aspects.
First, initiators will need to examine the historical, cultural, political-ideological, and constitutional opportunities for and
constraints on adopting land readjustment. For instance, as mentioned in Module 2, many Latin American countries
have provisions in their constitutions stating explicitly that there are social functions of land, and any increases in its
value should not be totally retained by private landowners. This kind of political ideology and constitutional order will
help the implementation of land readjustment. In contrast, other countries may believe that private property protection
has very special meaning in ensuring the freedom and liberty of its citizens. This might require more efforts on the part
of the initiators to explain to landowners their responsibility to share their land value increase with the public for local
infrastructure construction and financing. Knowing these differences within the macro environments will have
significant bearing on the promotion of land readjustment.
Second, based on a review of the larger institutional context, initiators need to acquire a preliminary understanding of
the legal, social, and economic implications of different forms of property ownership and their inter-relation. This can be
achieved by studying the existing formal land management system and related laws, informal property relationships, the
demand for land, and the buoyancy of the land market. Policy issues could include, but are not limited to:
 What types of buildings are permitted to be built?

 What are the floor area ration (FAR) and site coverage ratio?
 What types of taxes will be imposed for normal land transaction (and registration)?
 What types of property tax will be imposed on landowners, and in what amounts?
 Are there any exemptions granted for special transactions or types of property?
Page 4 of 39
In some situations, it is also important to understand the role and weight of any powerful, formal or non-formal
leadership groups. At this stage, when a specific site has not been chosen, a review of the secondary information such as
laws, government documents, and existing research reports will suffice.
Third, with the knowledge acquired in the above two steps, initiators need to acquaint themselves with societal relations
that reflect the interactions and relationships between four key sectors—the government, market, communities, and
non-governmental organizations.
In terms of the government, the factors for investigation will include the level of social trust in the government, fiscal
structures and inter-relationships among all levels of government, and inter-jurisdictional coordination mechanisms. If
the project is related to informal settlements, an investigation will also have to be done to assess the national-, regional-,
and local-level policies with regard to illegal housing and their implications for the design of land readjustment. This
combined knowledge will ultimately be used to evaluate all land redevelopment options at the conceptual level to
determine the best possible plan for the neighborhood.
The initiators also need to analyze the residential, commercial, and industrial demands for land. This will allow them to
assess the extent to which land readjustment could be self-financing by selling surplus land plots made available by the
proposed project. Land market information will also be useful for future negotiations with landowners and other
interested parties.
Communities are unique, and each has its own multi-dimensional nature and complexity. At this stage, an
understanding of the general formats and meanings of community engagement, participation, and communication in the
country and different regions will be useful. It is important to know how past public outreach strategies have shaped the
relationships between the government and citizens. We also need to know the general demands and desires of the
population. All this information could be obtained by interviewing selected community leaders, policymakers, and
analysts. More detailed information about a specific community will need to be gathered through a household survey
once a neighborhood is chosen for the implementation of the land readjustment project.
Local and international nongovernmental agencies can be very active in neighborhood organizing and local service
provision to residents. Yet, their involvement can also vary from one area to another. Thus, it is important to find out
their roles in various neighborhoods and their overall relationships with communities and the government. This
information will help initiators evaluate if their presence may help promote land readjustment to a specific
neighborhood. Again, more detailed information about some NGOs will be needed when a site for implementing land
readjustment is identified.
Page 5 of 39
Government agencies play critical roles in urban planning, economic development, and infrastructure financing and
construction. They are the key public goods and social services providers. More importantly connections to international
aid agencies are normally done through the national and regional governments. If the project initiators are local agencies,
possible requests for financial and technical supports will be submitted to the central and regional governments for their
consideration and approval. The central government may then contact the World Bank, UN-Habitat and other agencies
for further assistance for the local project.”
The main task is to identify the proper roles for each of these actors and design specific responsibilities for them so that
they will be able to work with each other to move the project forward.
Project initiation:
After initiators have gained a general picture of the nation and regions, and feel that there are no insurmountable
hurdles for implementing land readjustment, they can enter into the project initiation stage.
Role of initiators:
The first step of the initiation stage is to select a city and then a site for the project, if the initiator is the government. If
the project is initiated by landowners or a nongovernmental agency, they will of course choose their neighborhood as
the project site. For the purpose of simplifying our discussion here, let’s assume that a national government in
partnership with local authorities initiates the project of infill redevelopment here. As mentioned repeatedly before,
different levels of government, landowners, informal land occupants, non-governmental agencies, and private
developers can organize land readjustment for peri-urbanization, inner city revitalization, and post-disaster and post-
conflict reconstruction. We use the national government as the initiator for an infill redevelopment project here only as
an example.
The initiators may analyze a few potential cities for redevelopment by conducting a “SWOT”
(Strength/Weakness/Opportunity/Threat) analysis for each city. The SWOT analysis is a simple listing of the area’s
strengths, weaknesses, opportunities, and threats for redevelopment, helping the initiators to decide if land
readjustment or other approaches should be used to achieve the redevelopment goals. After comparing these SWOT
analyses, if land readjustment is considered suitable for at least one (or perhaps more) cities, the initiators will identify
Page 6 of 39
this one of the suitable locations as a pilot city. After choosing a city, the same selection procedure can be used to find a
suitable site for the project using SWOT analysis.
Upon selection of the location of the pilot project, the initiators and key stakeholders should create and agree on a set of
land readjustment principles to guide the design and implementation of the project. These principles could include the
need to ensure equity in land exchanges or the transparency and inclusiveness of the decision making process.
Furthermore, these principles should be based on some rough estimates of the possible benefits and costs of the
proposed development for all parties — including the affected households, different national and public agencies, public
or private developers, and the general public in the selected city. At this stage, some rough estimates will be sufficient,
because the prime objective is to raise the interest of all stakeholders in discussing the development potential rather
than committing to them some specific benefits and costs of the project.
In order to better understand the chosen community, the initiators may investigate questions including, but not limited
to:
 What is the structure of the community (e.g., existence of different interest groups within the neighborhood)?
 Who are the leaders of the entire community and of the subgroups?
 What are the non-governmental organizations active there?
 What are the relationships between different stakeholders, and how do the communication channels work?
 What are the means and processes of community engagement and participation, if any?
 What are the social relations within the community, especially those between informal leaders and their
members, and between more affluent households and the poor families and the underprivileged groups?
It is also vital to have an understanding of the local government and their discretion in deciding on urban land
management and planning issues as well as their capacity to undertake a complex project and negotiations with other
stakeholders.
The compilation of the background information will be sufficient to contextualize a risk analysis and develop a strategy
for: (a) managing community issues and resistance; and (b ensuring a participatory process that fits local customs and
contexts.
With proper risk assessment and strategizing, the initiators will then need to establish an initial buy-in from local political
and community leaders to ensure their continuous supports for the project.
Page 7 of 39
As discussed in Module 3, building governance should be one of the main objectives of land readjustment. Thus, it will
be useful to create some baseline governance indices for project evaluations throughout the process. The World Bank
has created the Land Governance Assessment Framework (LGAF) in which a set of comprehensive indices was composed
to keep track of the governance development in various developing countries. The LGAF and proposed matrix can be
downloaded in the reference section.
Preparation and organization:
After securing the initial buy-in from local political and community leaders, the initiators can start preparing and
organizing for the proposed project.
Consider organizational structure:
Depending on the nature of the community and their relationship with the local government, there are different
organizational structures for project coordination. The first option involves identifying a leading agency with strong
institutional links with other ministries and government units to coordinate the preparations of the project.
Page 8 of 39
Form an advisory committee:
The second option relies on organizing an advisory group whose members are from elected local residents, local non-
governmental organizations, professional groups, and state and local government units. The head of the group will
report directly to the mayor or head of the township.
Other steps:
When the organizational structure is established, the project objectives and targeted beneficiaries will be identified. This
will create a set of expectations for the project that can be presented to the stakeholders facilitating transparency for
the project. More importantly, the final outcomes will be compared with these goals and intended beneficiaries to
assess the effectiveness of the undertaking. With these project objectives in mind, alternative redevelopment
approaches should be reviewed, paying special attention to the suitability of land readjustment within the current
planning framework and identifying possible conflicts.
Once this initial planning for the project is complete, it will be time to communicate the idea to the community. The
advisory committee should discuss with the community representatives the rights and responsibilities of participating in
land readjustment. They should explain the objectives of the project and its financial and social benefits as well as risks
of the project to assess the acceptance level of affected households to the idea.
If the project plan is well received, it will be time to conduct a pre-feasibility study for the potential site. Pre-feasibility
studies could be conducted in different ways depending on the availability of data and time. We will provide more
detailed information about the feasibility study later on. In general, the key components of a pre-feasibility study may
include:
 a preliminary legal analysis to determine if the proposed project can be implemented within the existing legal
frameworks for guiding property transactions and land use;
 a tentative topographic study and surveying to ensure that the selected site is suitable for construction; there
will also be some roughly estimated project costs and benefits to determine the financial feasibility and the
initial capital requirement for the project; and
 a preliminary assessment of the potential economic, social, and political risks of the proposed project. We will
discuss each of these risks in detail later on.
Page 9 of 39
The information and estimates relating to these factors will only be for the consumption of the advisory committee and
a few key stakeholders to enable them to make a tentative decision on whether or not to move the proposal forward. A
detailed feasibility study will be presented after the proposal has gone through the first stage of approval.
Disagreements will be inevitable, especially when the number of involved stakeholders is large. An impartial appeal and
conflict resolution mechanism should be put in place. Members of the appeal and conflict resolution committee could
comprise community leaders, mediation professionals, and technical experts. Under what conditions individuals can
appeal and how disagreements should be resolved will depend on local customs and the legal system of the specific
country.
Governance indicators should be updated to assess any progress on, or improvements achieved through, building an
open and inclusive decision-making system.
Grievance Redress Mechanisms
As mentioned above, timely and satisfactory resolutions of landowners’ and other residents’ complaints can improve the
participation rate. Hence, creating effective grievance redress mechanisms is essential for designing and implementing
land pooling. These mechanisms are also the best protection for the poor and underprivileged groups from being
marginalized. The effectiveness of these mechanisms relies on three factors: (1) a clear project commitment to
grievance redress; (2) well-designed internal processes for investigating and addressing grievances; and (3) tailor-made
procedures to fit unique environments.
Page 10 of 39
The World Bank has proposed six steps to handle project complaints:
 survey existing formal and informal in-country grievance redress mechanisms and build on them,
 estimate users and assess available resources for these grievance redress mechanisms,
 develop operating procedures, guidelines, and flowcharts for the grievance redress process,
 publicize a grievance redress policy to demonstrate a credible commitment to resolving project complaints,
 train staff to handle compliant, and
 design communication strategies to reach out to the poor and other marginalized households.
A detailed discussion of these steps is available in a World Bank document downloadable at the following Website:
https://openknowledge.worldbank.org/handle/10986/12524
Design and approval:
After the advisory committee has convinced the key political and community leaders that the proposed land
readjustment is viable and beneficial for the neighborhood, the organizers can enter into the project design and approval
stage.
Page 11 of 39
Conduct a household survey:
The first step in the project design phase is to ensure community participation by conducting a household survey in the
selected neighborhood. This will help identify the high-priority needs and preferences of the poor and other vulnerable
groups including women, youths, and the elderly. This will also provide the project team a comprehensive profile of the
targeted neighborhood and its residents. For those of you who are interested in learning how to conduct a household
survey in your countries, you may refer to the article, “Conducting Mini Surveys in Developing Countries,” by Krishna
Kumar of U.S. Agency for International Development for some useful tips and example. You can download this article in
the Resource Section of this training module.
Form a preparatory group:
Once the survey results are analyzed, the community’s preferences should be incorporated into the design plan. Then,
the affected households should be mobilized to form a preparatory group themselves. It is important that the
preparatory group comprises formal and informal property owners and renters, with a balanced mix of gender and age.
Within this group, the organizers must devise an effective communication and engagement strategy that is consistent,
informative, and adaptable to the fluidity of local conditions.
Page 12 of 39
Feasibility study:
The preparatory group will then ask an independent entity to conduct a detailed feasibility study based on the
information gathered from the pre-feasibility study.
Legal feasibility:
There are at least six components of a detailed feasibility study.
First, as mentioned earlier, legal feasibility is usually an indispensable section of a feasibility study. The legal analysis
may include: (a) the delineation of all public and private landownership; (b) the accuracy of land registration and the
definition of informality; (c) property disputes and conflict resolution mechanisms; (d) the land management laws and
enforcement modalities; and (e) the possible existence of antiquities or natural resources underneath the settlement.
Page 13 of 39
Technical feasibility:
Second, another component of the feasibility study will be related to technical feasibility and that starts with a
topographic survey. This will ensure that the site as well as the soil will be suitable for redevelopment. This aspect of
the study also includes neighborhood plans and site subdivision based on the master plan and detailed plan. Information
about transportation infrastructure such as highway and transit lines, commercial facilities, factories, hospitals,
graveyard, etc. should also be collected. A housing design typology may also be proposed here in accordance with the
residents’ preferences gathered from the household survey.
Financial feasibility:
Third, based on the site and housing designs, the researchers can conduct a financial feasibility analysis of implementing
the land readjustment plan. Financial feasibility is divided into three parts: (a) an estimation of the initial capital
investment for the project; (b) the projected cash flow for all construction stages; and (c) the sources of financing. Then,
a risk assessment section will conclude the financial assessment of the project.
Page 14 of 39
Community acceptance:
Fourth, the community is one of the key players; thus, it is vital to understand their needs, preferences, and degree of
receptivity to and acceptance of the proposal. This session will review issues related to: (a) community willingness to
participate in land swapping; (b) issues related to beneficiary identification; (c) arrangements for non-qualifying and non-
participating households; and (d) minimization of the risks of unintended adverse effects of redevelopment on existing
residents.
Implementation feasibility:
Fifth, the implementation feasibility can be assessed by examining the possibilities and constraints of organizing different
stakeholders to execute the project. A temporary task force appointed by the preparatory group could be in charge of
project implementation. International experiences have shown that implementing a land readjustment project requires
a multi-disciplinary team. Team members normally comprise legal experts, urban designers, architects, financial analysts,
professional builders, community organizers, and negotiators from both the public and private sectors. More
importantly, land readjustment also needs seamless coordination among government agencies to provide vital
information about property rights and land use planning. Their cooperation is also needed to identify beneficiaries,
review and approve detailed redevelopment plans, and build basic infrastructure.
Page 15 of 39
Environment impact analysis:
Last, but not least, an environmental impact assessment is undertaken to predict the environmental consequences
(positive and negative) of the redevelopment plan prior to the decision on whether to move forward with the proposal.
A formal impact assessment may be governed by rules of administrative procedure regarding public participation and
documentation of decision-making, and may be subject to judicial review. The impact assessment may propose
measures to adjust environmental impacts to acceptable levels or to investigate new technological solutions.
Risk assessments:
In preparing the pre-feasibility and detailed feasibility studies, the initiating agency should also assess the potential risks
involved in undertaking the project. There are generally three types of risk.
First, there are economic risks involved in using land readjustment to facilitate land development or reutilization. These
economic risks come from the uncertainty of the real estate market. Like all other markets, property and land prices go
ups and downs. If a project is initiated at the time of boom but ended when the market slows down, the projection of
using land reserves to raise funds to recover a portion of the project costs may not materialize. If this situation occurs,
participating landowners may have to pay additional money to the initiating agency if one of the original objectives is to
self-finance part of the project costs. If landowners could not make the payment, both the national and local
governments may be liable to cover the shortfalls. In other words, all key stakeholders could be at risks of losing money
if the prediction of the property market cycle is incorrect.
Page 16 of 39
Second, there are also political risks of undertaking land readjustment projects. If for various reasons the project fails,
leaders of the public agencies that promote, design, and implement the project could face public criticisms. This risk is
particularly prominent when initiators are only experimenting with the technique. That said, the high risk could also
bring huge reward, because the public agency could become the pioneer in land readjustment in its country if the
project succeeds. Public agencies in other cities will follow its lead.
Third, land readjustment entails social risks. The re-parceling of land sites could create disputes over property
boundaries between neighbors. There needs to be a mechanism to resolve this potential problem. Furthermore, poor
households or small landowners and occupants could be marginalized if the decision making rules are primarily based on
landownership instead of “one household, one vote.” Last, but not least, renters could be subjected to displacement if
there is no well-designed policy to protect their rights and welfare. All these potential social issues could add up to
political challenges by the poor that could undermine the legitimacy of the project and the stability of the economy.
All public projects involve risks. The important consideration is to identify these risks early on and to design effective
mitigation strategies to minimize these risks in accordance with local contexts. There are no all-inclusive risk mitigation
strategies for dealing with these issues for all countries.
Page 17 of 39
Risk Mitigation
Although there are no all-inclusive risk mitigation strategies for dealing with land-readjustment risks for all countries,
there are general principles that policy-makers could follow in designing a risk mitigation policy. Risk mitigation refers to
a decision-making situation under which all potential outcomes and their likelihood of occurrences are known to the
decision-makers. In contrast, uncertainty refers to a situation under which their outcomes and probabilities of
occurrences are unpredictable. In other words, unlike risk, uncertainty is unknown in advance and thus hard to mitigate.
In developing countries where the state is not governed by the rule of law, unanticipated changes in a political regime or
governmental policy are common causes of uncertainty. We focus on the extenuation of the identifiable economic and
social risks from the perspectives of the vulnerable groups here.
Different people have different levels of risk tolerance. Thus, ways to deal with risks are diverse.
First, some people are risk-averse. Putting this argument in the context of land pooling, a risk-averse resident will likely
refuse to participate in land swapping. If the super-majority of landowners in her neighborhood has agreed to a land-
pooling proposal, this person must transfer her land to an implementing agency for redevelopment. The agency must
present her with options. It could acquire her property at a fair market value or negotiate a settlement. If both methods
fail, the project team could ask the government to purchase the asset compulsorily. Regardless of the method used, the
project team must explain to the resident how these alternatives will impact her livelihood, household finances, and
resettlement options to allow a decision based on her risk-tolerant level.
Second, if a landowner decides to take the risk of joining a land pooling effort, she or he must monitor several factors to
avoid any losses. The landowner does not need to monitor these factors; instead, she and her neighbors could jointly
hire an expert to perform this task. They could also form a cooperative to manage their investment and provide financial
advice and services to the community.
More importantly, monitoring will only be useful if the landowners can sell their right to obtain a piece of serviced land
(or a housing unit) when the changing conditions require her to do so. Thus, to lower the financial risks for the
participating parties, it is advisable to permit the transfer of land (or apartment) entitlement to a third party when
redevelopment is still in progress. This idea may raise the concern of the potential gentrification of the neighborhood. To
Page 18 of 39
mediate this issue, if the owners want to sell their entitlement, a cooperative formed by the community might have the
first right of refusal. The cooperative must offer the participants a fair market value for acquiring their property rights.
Project participants, their hired consultants, or the cooperative should pay close attention to the following factors:
Performance of the real estate market:
It is useful to keep track of the supply and demand of land and housing units within the city and adjacent neighborhoods.
The supply and demand of land can affect the value of the returned plot. Changes in macroeconomic conditions,
population size, demography, and interest rates are also important factors. Knowing the reasons for the fluctuation in
property prices and their trajectories will help the participating parties to decide whether to hold, sell, or buy the land
entitlement.
Progress in public investments:
The quantity and quality of public infrastructure can influence land and property prices. The project organizer often
promises to upgrade public works in the land-pooling proposal. The participating owners must ensure that the
implementing agency undertakes these investments according to the original plan. Public participation and consultation
will allow stakeholders to monitor project implementation. Community monitoring can avoid any delay in the project,
thereby reducing the financial risks for the participants.
Local employment opportunities:
Another economic factor is local employment opportunities. In most cases, land-pooling projects generate construction
jobs for the residents. The project team should provide the participants with appropriate occupational training.
Information about job vacancies should be accessible to the entire community, especially the vulnerable groups.
Availability of small business loans:
Small business loans (or microfinance) could help the poor manage the risk of income losses. They are particularly useful
for women who may need to stay home to look after their family members. Running a small business at home can
provide the flexibility for these women to earn a supplementary income while fulfilling their household responsibilities.
Unemployment Insurance and Housing Assistance:
Most countries provide unemployment insurance and affordable housing assistance to their citizens. If the participants
of a land-pooling project could not find jobs or affordable shelter, they may be protected by the national unemployment
insurance and social housing programs. Again, information about these social safety nets should be available to all
community members. Depending on its financial situation, the land-pooling project should insure the losses of
unemployment and shelter caused by its undertaking. It would be unfair to ask the general taxpayers to cover these
project costs that may lead to moral hazards.
Risk can also be transferred from a risk-averse person to a risk-taker. Land-pooling participants may negotiate a contract
with a financial institution to which they will give the option to buy their land entitlement at a fixed price within a
specific period (say, between the contract date and the end of the project). Land prices will fluctuate during the
contracting period. Thus, the contractual agreement will impose a financial risk on the promised buyer—the financial
institution. To compensate the institution for taking the risk, the participants will pay an annual fee (similar to an
insurance premium) to the company throughout the term of the contract. The company will then invest these payments
in different financial vehicles to generate funds to pay for the potential losses if the land price falls below the contracted
price. If the land price rises higher than the contracted price, it is unlikely that the participants will exercise their right to
sell their land entitlement to the institution. The financial institution will then keep the annual contract fees.
Page 19 of 39
For the participants, they are protected against any price fluctuation because the value of the returned land is fixed.
They have transferred the market risk to the financial institution that has promised to buy their land entitlement even if
the market value of the land falls below the contracted price. If the land price goes up, they could keep the asset for
their own use or sell it in the open market.
Scenario analysis:
When performing the technical and financial feasibility assessments, some analysts employ the technique of scenario
analysis. This sort of "what if" analysis is to evaluate various possible outcomes according to different actions. These
scenarios could be based on different parameters such as:
 preferences of landowners (or users) between land-based and value-based land swap;
 levels of contributions both in terms of land and extra payments that participating residents are willing to put
into the project;
 visions for the future built form of the neighborhood;
 development densities;
 levels of local infrastructure investment and social services; and
 land allocation for different uses such as private and public development, open space, and public facilities.
The prime objective of scenario analysis is to show stakeholders how their decisions may affect the built form of their
neighborhood and the financial viability of the project. These tentative drawings (or sketches) with financial projections
in turn will provide them with relevant information to make collective decisions. More importantly, the 3-D (three-
dimensional) site plans, as shown in the slide, are not intended to direct the attention of stakeholders to the physical
aspects of the project. Rather, these drawings are to show them an array of options, so as to entice them to engage in
meaningful discussions. In other words, this is a form of guided community participation.
Page 20 of 39
Scenario analysis (contd.)
A series of meetings with stakeholders during the assessment period—not just in the beginning and at the end—should
be held to enable them to participate in devising, improving, deciding, and validating these scenarios. Analysts can
develop multiple scenarios recursively with decisions from the initial rounds of exchanges acting as inputs into the future
discussions for an incremental refinement of the financial plan. The objectives are to:
1. solicit inputs from local residents, public officials, and other stakeholders based on their preferences and needs
in a persistent and regular manner;
2. allow stakeholders to compare the financial implications of different types of development scenarios,
highlighting tradeoffs between the desired level of public services and the required capital investment;
3. promote civic engagement by using the proposed project to increase the interactions among stakeholders to
generate a true sense of citizenship; and
4. empower stakeholders to make financially informed decisions to ensure sustainable buy-in.
This procedure is very different from the traditional approach in which financial experts will not normally work side-by-
side with urban designers and architects. This approach is to involve the financial team earlier on when different design
ideas are contemplated and presented to stakeholders for consideration. The financial team can enhance the discussions
by providing estimated monetary benefits and costs for each design scenario. The purpose of combining design and
financial analysis together is to ensure that stakeholders, some of whom may not have the necessary training or
expertise, can properly understand both financial and non-financial implications of different scenarios when making their
decisions. This will assure the inclusiveness of the decision-making process.
Page 21 of 39
After feasibility study:
After the detailed feasibility study has been completed, the preparatory group should organize a series of public
meetings to allow the entire community to set decision making rules collectively for approving the land readjustment
proposal. This particular step is extremely important, and project organizers must pay special attention to this stage in
the process.
These rules include :
a) the project approval criterion based on either the supermajority of land ownership or a one-household-one-vote
system;
b) criteria for determining the eligibility to vote;
c) the percentage of consenting land interests required to approve the project; and
d) the formulation of the land exchange ratio based either on land area or value. Also, all stakeholders need to
agree on the steps needed to achieve external approval (e.g., city/municipality), internal decisions, the
participation process, information disclosure, and conflict resolution (because it is inevitable to have some
disagreements arise among participants during the design and implementation processes). It is also important to
agree on the steps to handle cases where a participant/stakeholder wishes to leave the process.
It is important that informal land occupants and renters, both female and male and poor and rich, can vote on the
proposal. This is to safeguard the interests of all stakeholders. The occupancy rights of informal settlers and renters may
give them the eligibility to vote, depending on the country’s law and customary rules. Informal land claims, especially for
renters, is a very complex social and legal issue that is beyond the scope of this training course. In general, formal and
informal property owners and claimers should negotiate their rights and responsibilities according to local political and
social contexts. We advise you to consult with community leaders and legal experts for inputs to facilitate designing a
method to consider informal land claims that is acceptable to all stakeholders.
Page 22 of 39
Determining the land exchange ratio:
The basic principle for determining the land exchange ratio is that the net worth of each landowner’s asset will be kept
at least the same after land readjustment. There are two ways to determine the land exchange (or contribution) ratio—
“land area-based” and “land value-based” calculations.
In the land-area-based calculation, the prime objective is for the municipality or implementing agency to obtain
sufficient space to build local roads and other public facilities. For example, if the municipality needs 30 percent of the
private land area in the chosen site to build additional local infrastructure and public facilities to accommodate the new
development, then every landowners or occupants will have to contribute 30 percent of their landholdings to the project.
The compensation for the land foregone will be in the form of the increased land value of the remaining 70 percent of
the landholdings retained by the participating landowners. Landowners would be willing to give up their land because
the increase in value of the remaining serviced urban plot would hopefully be more than enough to compensate them
for their loss of 30 percent of the area of their farmland.
Indeed, landowners could enjoy even larger financial gains if there were no land contribution. However, we need to
keep in mind that this increase in land value is not totally due to landowners’ investment and effort. The legal
permission to change the farmland into urban use is a government regulatory decision that may not have anything to do
with the landowners. More importantly, another reason for the increase in land value is the provision of local
infrastructure, which benefits mainly local residents and business owners. Thus, it is reasonable to ask these parties to
pay for these public goods upfront in the form of land.
Page 23 of 39
In some situations, the contribution (or exchange) ratios do not always involve land. Instead, participating owners
contribute development rights to the project, which is normally called vertical land readjustment. For example, owners
of apartment units may surrender their land rights to a developer in order to increase the development density of the
building in a strategic location. The participating owners will receive finished units as an investment return after the
building is redeveloped. This method has been used frequently in Hong Kong (see Lin and Lin 2007 for details).
Another way to calculate the land exchange ratio is the land-value-based method.
Land value-based calculation:
The main idea of the value-based method is to request landowners or occupants to share with the public the benefits of
urban development. The basis of determining individual land values are estimated market values before and after land
readjustment. We will use an example to illustrate the calculation.
Before the start of planning and land readjustment, Ms. B has an agricultural plot with area of 1,000 square meters. The
agricultural market value of the plot is US$100 per square meter, thus her total real asset value is US$100,000. At the
same time, the market value for serviced urban plots after land readjustment is estimated to be US$350 per square
meter; thus, by converting her farmland into an urban plot with services, Ms. B could potentially gain as much as
US$250,000 in real asset value.
Again, because Ms. B does not have anything to do with the land use change and infrastructure investment, the
government on behalf of the public could ask Ms. B to contribute 30 percent of her landholding to the project for making
space available for roads and other public facilities. As a result, Ms. B’s potential profits will be cut from US$250,000 to
US$145,000.
Page 24 of 39
More land could be requested from Ms. B for financing the construction costs. Let’s say an extra 10 percent of the land
is requested to pay for the construction costs of the infrastructure. Ms. B’s potential net financial gains will be further
reduced to US$110,000. In other words, the land exchange ratio in this case will tie closely to the amount of land and
investment capital needed for local infrastructure. In this example, Ms. B is still better off (i.e., in terms of potential
increase in real asset value) by participating in the land readjustment than keeping her land rural, even though the land
exchange ratio is 0.6 (or a 40 percent land contribution rate).
Although this method could possibly help the municipality and the implementing agency raise more funds for land
readjustment, they will need more information and technical expertise to estimate the construction costs and market
prices of land before and after land readjustment. In some cases, participating landowners may not receive land of
higher value back; instead, they might obtain multiple apartment units whose aggregate value is at least equal to or
higher than the value of land that they contributed to the project prior to land readjustment. Land or apartment values
are usually difficult to estimate in developing countries; thus, the land-area-based approach could be a simpler way to
calculate the land exchange ratio.
Assessment of land value:
If the municipality wants to use the value-based exchange approach, land value assessment before and after land
readjustment becomes an important operation. The government must consider two important factors before using this
method. First, it is necessary to determine whether relevant and reliable market data for land value is available. Second,
local governments and/or practitioners must have the proper technical knowhow to assess land value. If we assume
that both conditions exist, land value assessment could start as explained next. Because of limited time, we only
introduce the basic concepts here. Participants should consult with technical experts in this area for more detailed and
context-specific design of their land value assessment method.
First, an assessor must understand the extent to which a landowner (or holder) possesses each element of the bundle of
rights in order to estimate the fair market value of land. In some situations, land occupants may only hold the use right
of land, whereas in other cases, they possess almost all elements of the bundle including the right to use, develop,
transfer, bequest, and benefit from land. An assessor should not always assume freehold as the dominant form of land
tenure in developing countries.
Second, market value equals market price only when: (a) there is no coercion over either the buyer or seller in an
attempt to force a transaction; (b) the buyer and seller are well-informed; and (c) a reasonable time is allowed for
Page 25 of 39
exposure (of the asset for sale) in the open market. In developing countries, where development of the land market is
still at its infancy, the meaning of market value needs to be qualified carefully.
Third, the conventional practice of land value assessment is based on the highest and best use of land. In other words, it
is the use that will generate the highest return to the land over a period of time. The highest valued use must be: (a)
reasonably likely to occur; (b) legally permissible; (c) physically possible; (d) adequately supported by the market; and (e)
financially feasible. Again, an assessor must consider all these factors when assessing and comparing land value before
and after land readjustment.
Fourth, as indicated above, highest and best use of land is determined by zoning, building codes, and the provisions of
public infrastructure and social services in the entire neighborhood. Thus, an assessor also needs to examine both legal
and governmental factors in valuing land.
Last, but not least, an assessor must study site-specific factors, including: (a) the lot shape; (b) soil and drainage
conditions; (c) access to public facilities; (d) location and setting of the land parcel; and (e) off-site and on-site
improvements. All of these factors affect land value.
The sales comparison approach:
The first most commonly used method of assessing land value is the sales comparison approach. Under the “rules of
evidence,” a bona fide sale of the subject property is considered the best evidence of market value. In the absence of a
sale of the subject land, sales prices of “comparable” land sites are usually considered the best evidence of market value
of the subject land parcel. This is based on the principle of substitution, whereby the market will recognize differences in
utility between the subject land and the best alternatives by difference in price.
Page 26 of 39
As illustrated by the equation in the slide, the market value estimate for the subject property (MV)
is equal to the sale price of a comparable property (Sc)
plus the total adjustment (ADLc) to the estimated value.
Appraisers prefer the sales comparison approach when sales data are available. Three to five comparable sales are
usually adequate, but a larger number would improve confidence in the estimate. An assessor must pay special attention
to issues of comparability, including: (a) similar data of sale; (b) physical attributes of the site as specified in the last slide;
and (c) competitiveness in the same market.
Although the sales comparison method is often used, practitioners must be attentive to the following issues.
First, the sales comparison approach can be operational for assessing land value only if sufficient market sales data is
available. If market data is absent or unreliable, this method may not produce useful estimates for comparing land value
before and after land readjustment.
Second, although adjustments can be established using multiple regression analysis, assessors must be careful with
assumptions. This is especially true in developing countries where land records and government regulations are either
unavailable or inconsistent over time.
Page 27 of 39
Third, ideally when time and resources are available, assessors should cross-check estimates produced by the sales
comparison approach with the ones generated by income and mass appraisal approaches, both of which will be
discussed next. However, cross-checking estimated results produced by sales comparison approach using other
assessment methods will increase the cost of land valuation for land readjustment projects.
Income approach:
Another approach of land value assessment is to estimate what a prudent investor would pay for the subject land based
on net income produced by the property. Theoretically, the market value of a piece of land should equal the discounted
present value of the expected future flow of its income. It can be in terms of rents or estimated cash farm receipts
according to total production and prices received for agricultural land.
As shown in the slide, the income approach involves estimating the net present value
(NPV) of the net income from the land -- which equals the gross income
(R) minus necessary expenses
(C), adjusted by the selected capitalization rate
(r) to estimate the value of the property. Income is based on prudent management and on legally enforceable
restrictions applied to the property, including possible current land use restrictions. Income capitalization incorporates
the principles of time value of money and discounting.
An assessor must consider the appropriateness of the following definitions when adopting the income approach in a
specific context:
 Potential gross income is the income at full occupancy at current market rents;
 Operating expenses is the necessary expenditures to operate the property so that it can continue to produce the
estimated income; and
 Capitalization rate is the conversion factor applied to the income stream to convert it into an indication of
market value of the property. The rate reflects the relationship between a single year’s net operating income
and total land value.
In adopting the income approach in developing countries, the following challenges may be encountered:
It is difficult to project the potential gross income based on market rents and/or agricultural product prices when both
are heavily regulated by government policies; and
There are no standardized criteria for selecting the capitalization rate, which affects the calculation of the net present
value of the net income, and therefore land value, significantly.
Page 28 of 39
Mass appraisal:
Another assessment technique that is often used in industrialized countries is mass appraisal.
We define mass appraisal as a systematic appraisal of groups of properties or land as of a given date. The objective is to
maintain uniformity and consistency of appraisal within the appraisal group. This method could reduce the chance of
corrupt appraisal practices because a large number of parcels are valued simultaneously without attention to any
particular parcel. Statistical quality control is also applied to ensure minimal measurement errors.
Data collected in the property inventory will include land characteristics, improvement features, and location. Some
data will be objective and some will be subjective based on knowledge and judgment. Because contexts differ, assessors
normally carry out a pilot project to design the data gathering method before final data collection.
The fundamental idea of mass appraisal is to estimate the statistical relationship between Y (property value) and several
independent variables (X1, X2,..Xn).
Regression technique finds the best numerical values for the coefficients (a, b1,b2,…bn) for predicting Y from the
independent variables.
The variables in the regression analysis may be either numeric or categorical. This method is used to develop a strong
predictive relationship between property characteristics and property value so that the value of properties that have not
sold may be predicted from relationships identified among parcels that have been sold. It also does not require the use
of all known property characteristics in the model, only those that influence value.
The problem with mass appraisal is that it cannot be used to accurately estimate values of unique parcels and very low
or high quality residences that do not sell often.
Page 29 of 39
Assessment of land value:
As can be seen from these brief descriptions of the conventional assessment methods, land valuation is an art and not a
science. When applying the valuation methods in developing country contexts, assessors may have to make assumptions
about the existence and sometimes the characteristics of the regulatory environment. There is no perfect way to assess
current land value, not to mention to estimate land value after land readjustment.
Thus, it is important to keep in mind that any projected land values for determining the land exchange ratio for land
readjustment are just a starting point for use by the involved parties to negotiate land swaps. As mentioned earlier,
when disputes emerge from different land value assessment perspectives, a formal or informal appeal and conflict
resolution mechanism is needed.
A major deficiency of the above-discussed methods, when adopting them in developing countries, is that they assume
clearly delineated and assigned private property rights transacted in a formal market. In most developing countries, land
tenure relationships are complex and may not be legally defined. The western-type freehold system is only one of many
legitimate arrangements. In many developing countries, landowners who do not possess a legal title are not always
considered as having no land rights or claims at all. Instead, their land rights and claims are recognized by customary
rules or social contracts.
For instance, informal settlers in South Africa and Brazil may not have a legal title to land; but their land occupancy rights
may be fully recognized by the municipality, thereby generating the expectation of ownership on the part of informal
settlers who may in turn transact these administratively recognized land rights in an informal market. The transaction
value of land rights in the informal market can be used as a proxy to estimate the land contributions of informal settlers
to the land readjustment project. Long-term tenants or lessees may also transfer their public and private leasehold
rights informally to other parties without the permission of their lessors. Again, the transacting price of the leasehold
rights could be used as a proxy to estimate the value of these tenancy rights.
When facing these non-western practices, land readjustment experts must pay keen attention to the property claims of
existing residents, governed by informal economic and social rules. Omissions (or denial) of these informal rules and
their importance in governing social and political relationships when designing land readjustment project could lead to
devastating impacts on the urban poor who we want to serve in the first place.
Page 30 of 39
Results of feasibility study:
The results of the feasibility study should be presented to all affected households and interested parties to seek their
approval and obtain their feedback. In preparing the discussion with all stakeholders, it is useful to plan to present more
than one option. The advisory group should use a scenario-analysis approach to propose a set of viable options for the
stakeholders. The scenario analysis will be particularly instrumental when there are development tradeoffs. For
example, stakeholders may have to choose between wider public roads with smaller individual plots and narrower roads
with larger private plots. A comparison of the financial implications of the two options on individual families and the
community at large should also be presented at the meeting. The increasing use of accessible graphic technology has
become an effective communication tool to help stakeholders visualize the proposed scenarios and their purported
benefits.
Given the presented options, all stakeholders will have to discuss the pros and cons of each option and then come to a
consensus on which option will serve their neighborhood better. Not only can the scenario analysis give the stakeholders
a sense of real decision making power, this will also start the process of building a local governance structure which
would facilitate future collective actions.
All households will be asked to vote on different development scenarios, based on the agreed upon project approval
criteria. If a proposal receives the support of the super-majority of the residents, it will be formally approved by the
community.
Page 31 of 39
Legal and administrative review:
Upon the approval of the community, the preparatory group should submit the feasibility study to the city for a legal and
administrative review. During this process, the project initiators should know the basis upon which the city can approve
or disapprove the proposal. Conditions for approval or disapproval have to be determined and made public before the
process starts. Depending on the conditions, the content of the feasibility study could be different.
Organizing public meetings:
After the government has endorsed the proposal, the preparatory group should organize public meetings to announce
the initiative and present a preliminary design of the land readjustment project to residents of the adjacent
neighborhoods to manage community-to-community relations.
Financing of land acquisitions:
If there are households that do not want to participate in the project, the preparatory group may request these
members to sell their property to the community that is represented by the preparatory group. The selling price should
be equivalent to the market value of their land of existing use, because they are not bearing the risk of redevelopment.
Page 32 of 39
For extremely poor households, other relocation assistances should also be provided. If a member is unwilling to sell,
the preparatory group along with the community leaders should try to persuade them to join the project. Asking the
government to acquire the land compulsorily will only be the last resort when nothing else works.
The financing of land acquisition is important here. Project initiators who are the local governments could ask the
central authorities to provide a subsidy or low-interest bridge loan to finance the initial investment in the project.
Alternatively, cities may issue municipal bonds to finance land pooling if the law allows local authorities to borrow funds
to finance local land redevelopment.
Seeking budget allocation:
If the financial feasibility study shows that the land readjustment project will not be self-financing, the preparatory group
should draft a financial assistance proposal that will be sent to both the local government and the state. Financial help
could also be requested from international development agencies. Last, but not least, private investors and banks are
other possible financial sources.
Page 33 of 39
Prevent gentrification:
To avoid speculation, the implementing agency may establish the right of first refusal to allow the community to buy
properties back from members who want to sell their homes. Other strategies for preventing gentrification should also
be devised.
Update governance indicators:
Next, the governance indicators should be updated to assess any progress on improvements in public participation and
the decision making process.
Page 34 of 39
Implementation:
After the completion of the design and approval requirements, the project will go into its implementation stage.
Preparing the neighbourhood:
A series of steps must be completed to prepare the neighborhood for project implementation.
First, the selected neighborhood may be declared as a special redevelopment area. Depending on the country’s laws, as
a special redevelopment zone, legal exemptions could be granted to the implementing agency to assemble and re-
subdivide land or borrow with loans whose interest income could be tax exempt for the lenders.
An implementation agency will need to be formed. It would be responsible for guiding implementation and should be
composed of technical staff from different government agencies and community representatives. This will ensure well-
rounded control and inclusion of different perspectives throughout the project implementation phase. This
implementing agency will be responsible for continuing dialogue with the affected households about the progression of
the project.
To start the redevelopment phase, preliminary action must be taken to relocate the existing households and assemble
the land for re-subdivision. The best strategy to do this is in a rotational manner, namely: to develop an empty lot first
within the settlement and give each of the adjacent residents a smaller serviced plot of higher value in exchange for
evacuating their site. After this is done, another empty lot will be available for redevelopment and resettlement of
another group of residents. The rotation can continue until all residents are resettled within the same neighborhood
without having to move twice. If rotation is not feasible, the implementation agency should provide the affected
households with temporary relocation compensation.
While implementing the development, new subdivisions (or a re-plotting plan) should be developed as well as new
public infrastructure and other facilities. This operation can be carried out by the municipality or the implementing
agency (or both), depending on the negotiation between the community and local government agencies.
During this implementation phase, it is important to monitor the progress and costs of the project.
Again, like in other stages, governance indicators should be updated to measure any improvements in stakeholder
engagement.
Page 35 of 39
Completion:
After the land is readjusted and local roads, urban infrastructure, and public facilities are built, the project is completed.
There remain some key procedures to be undertaken during the completion stage, and these will be discussed next.
After completion:
At this stage, all participating households should have received a new land parcel within the same neighborhood.
Compensation will be made to households whose returned land has a lower value than their original contribution.
Similarly, households that receive a higher land benefits than what they have contributed to the project will have to pay
the difference to the implementing agency.
Landowners’ deeds to the new location and size of their plots will need to be updated with the municipal land registry to
formalize the transaction.
To cover the project costs, the reserved land will be sold to raise funds to defray a portion of the redevelopment costs.
Page 36 of 39
Some of the reserved land plots may not be sold; instead they will be allocated for the construction of social housing or
community facilities. Whether (or how much) reserved land can be used for public goods will have to be decided by the
community collectively.
If the community decides to dissolve the implementing agency, the responsibility of maintaining public infrastructure
and services will be handed over to the municipality. Sometimes the implementing agency may remain just to keep the
neighborhood organized without being involved in the maintenance of public goods.
A property tax or fee will be designed to finance the maintenance of the infrastructure and service provisions. To
measure the improvements made through the project, the governance indicators need to be updated to measure
changes that have occurred.
Evaluation and scaling up:
The final stage of the project will be for reflection and assessment of the possibility of scaling up the land readjustment
approach.
Page 37 of 39
Review:
A review will need to be undertaken by an independent entity to assess the attainment of project goals. This review will
evaluate the outcomes against the objectives established at the beginning of the project, if the original goals have not
been changed during the other stages. If the initial objectives have been modified due to changing situations, the new
goals should be used to measure the effectiveness of the project.
An “exit survey” should be conducted at the household level to assess the degree of satisfaction with the project after
implementation and completion. Workshops should also be organized to reflect on the processes of conducting land
readjustment.
The experiences of the pilot project should be documented to inform the design and implementation of future land
readjustment projects.
This information can also be utilized to guide the formation of new legislation or revisions to existing legal rules to
facilitate future land readjustment projects.
To refine the practices of land readjustment, interested parties could repeat the procedure of land readjustment in other
areas of the city and country to scale up the approach to city- and nation-wide scopes.
Summary:
We started this Module by emphasizing that there is no one-size-fits-all procedure for land readjustment. This is an
extremely important point that is worthy of repeating in our summary. Although we have proposed a sequence of steps
for conducting land readjustment, our proposal is by no means universal. Participants must modify these steps
creatively and add new procedures based on their deep knowledge of the local context.
Despite the variations in steps and processes, there are some common factors that we think may cut across most land
readjustment projects in different contexts of time and place.
First, we believe that land readjustment procedures are about managing peoples’ interactions and expectations and
influencing decisions. As stated repeatedly, land redevelopment requires the cooperation of different stakeholders. Any
one of the players acting alone will not be able to complete all operations of land readjustment. Because the success of
the project rests on a high degree of interdependence among stakeholders, managing peoples’ interactions and
expectations is paramount. When interactions are open and regular and expectations are set correctly, stakeholders will
Page 38 of 39
be able to influence each other’s decisions and agree on the direction of the project. Hence, a high level of participation,
that involves not only the community but all stakeholders, is necessary. More importantly, when stakeholders feel that
their ideas can shape the collective decisions, they will commit to and take ownership of the project. When this is
achieved, a workable local governance structure has emerged.
The close collaborative relationships among stakeholders are crucial for the sustainability of land readjustment because
risks involved in experimenting with this tool can be high. Initiators should never underestimate the risks associated
with the volatile real estate market, shifting of political commitments or regime change, global financial instability, and
the incessant evolution of family structures of the participating households. All these uncertainties make planning and
implementing any land readjustment project challenging. The willingness of the participating parties to stick together
during uncertain or difficult times is critical to the success of any land readjustment project.
Although land readjustment may only be a site-level intervention, it can assist reform initiatives for the government, civil
society, legislation, urban planning and public finance. Land readjustment could provide the platform upon which all
citizens, members of the public and private sectors, and international and domestic non-governmental agencies come
together to discuss policy issues related to a concrete project for solving a targeted urbanization issue. Discussing the
specific details of an actual project will help stakeholders focus on the practicality of the policy debate, not the abstract
and irreconcilable ideologies.
Page 39 of 39

Module 4

Uploaded by

Copyright:

Available Formats

Module 4

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Module 4

Uploaded by

Copyright:

Available Formats

Land Pooling/Land Readjustment An Alternative to Compulsory Acquisition

M04: How should Land Readjustment Projects Be Designed and Implemented?

How should land readjustment projects be designed and implemented?

Consultation with stakeholders:

Initial context assessment:

Three aspects of land readjustment:

A context assessment for land readjustment includes three aspects.

 What types of buildings are permitted to be built?

Preparation and organization:

Consider organizational structure:

Form an advisory committee:

Grievance Redress Mechanisms

 train staff to handle compliant, and

Design and approval:

Conduct a household survey:

Form a preparatory group:

There are at least six components of a detailed feasibility study.

Environment impact analysis:

Performance of the real estate market:

Progress in public investments:

Local employment opportunities:

Availability of small business loans:

Unemployment Insurance and Housing Assistance:

Scenario analysis (contd.)

After feasibility study:

These rules include :

Determining the land exchange ratio:

Land value-based calculation:

Assessment of land value:

The sales comparison approach:

is equal to the sale price of a comparable property (Sc)

plus the total adjustment (ADLc) to the estimated value.

(R) minus necessary expenses

(C), adjusted by the selected capitalization rate

Assessment of land value:

Results of feasibility study:

Legal and administrative review:

Organizing public meetings:

Financing of land acquisitions:

Seeking budget allocation:

Update governance indicators:

Preparing the neighbourhood:

Evaluation and scaling up:

You might also like