Excerpt
TABLE OF CONTENTS
Acknowledgement
List of Tables, Figures and Boxes
List of Acronyms
General Notes
Chapter One
BACKGROUND..
1.1 Motivation and Relevance.
1.2 The Research Approach.
1.3 Scope of the Study.
1.4 Research Questions.
1.5 Organization of the Research...
Chapter Two
RESEARCH METHODOLOGY.
2.1 Research Design.
2.2 Choice of Methods.
2.3 Selection of Cases.
2.4 Purpose of Data Collection.
2.5 Type of Data.
2.6 Sources of Data.
2.7 Data Collection Techniques.
2.8 Data Analysis Technique.
2.9 Validity and Reliability
Chapter Three
LITERATURE REVIEW..
3.1 Home Ownership and Rental Housing.
3.2 Public Rental Housing (PRH)..
3.3 Measuring Public Rental Housing Management.
3.4 Global Experiences of PRH.
Chapter Four
CONTEXTUAL BACKGROUND
4.1 Introducing Ethiopia and its Capital; Addis Ababa.
4.2 Rental Housing in the Context of Housing Development of Ethiopia.
4.3 Current Rental Housing Market in Addis Ababa.
4.4 Current Public Housing Programs.
Chapter Five
CASE STUDY.
5.1 Agency for Government Houses (AGH).
5.2 Case Studies..
Chapter Six
FINDINGS AND IMPLICATIONS
6.1 Analysing the Context
6.2 Development Process of Apartments Constructed by AGH...
6.3 Current Tenants of the Apartments
6.4 Management Performance of AGH.
Chapter Seven
PROPOSED STRATEGY.
7.1 The Way Forward..
7.2 Background.
7.3 Program Design.
7.4 Development Process
7.5 Management..
7.6 Further Research Issues.
Bibliography.
Appendices.
Appendix A: Questionnaire for socio-economic profile of tenants
Appendix B: Questionnaire for measuring tenant satisfaction
Appendix C: Interview with key informants.
Appendix D: Fist of Interviewees (Key informants)..
Appendix E: Questions for Focus Group Discussion
Appendix F: Current status of AGH; evicting tenants
Appendix G: New public rental housing for low-income households in Addis Ababa.
Appendix H: Current institutional structure of AGH.
Abstract
Rental housing takes the biggest share in Addis Ababa ’s housing stock; above 50 percent. 37% is the share of the private rental sector; which is characterised by continuous rise in rent price and is becoming unaffordable for many poor households. Contrary to this is the public rental housing sector (PRH); it provides the most affordable housing units so far. With unrevised rent price and contract the sector has become permanent affordable shelter for many. Government policy that promotes home ownership has frozen the production of new PRH units.
The study examines existing PRH stock in Addis Ababa in search of potentials and lessons for further developing the sector in the future. It focuses on apartments constructed by Agency for Government Houses (AGH); and studies development process, target group and management. Based on findings the study also proposes a strategy for developing the sector anew.
Key words: Public rental housing, tenant, target group, Agency for Government Houses, housing management, development process, Addis Ababa
Acknowledgement
This thesis would not have been possible without the tremendous support and advice that I received from different people. I am grateful for the insightful comments and guidance I received from my advisor Yonas Alemayehu Soressa. I have deeply appreciated having his guidance throughout this process, and thank him for supporting all of my academic endeavours.
I would also like to thank the people I interviewed for this thesis. From agency for government houses, I interviewed Ato Asnake Bekele preventive maintenance director, Ato Mequanint Aychew research and project management team leader and Ato Lakew Tefera follow up maintenance officer; in addition to their supply of resources I ask they have helped me get a better understanding of how the agency operates. Their experience and enthusiasm made the case study more exciting and real.
I would also like to thank Mari Halebro for her valuable feedback after reading the thesis at different stages; and Henok Assefa for his support during the field work and data analysis. My brother Aschenaki Hailu has helped me in editing and translation work which I am grateful for. I would also like to thank my friends and people who have helped in the thesis one way or another.
Finally, my sincerest thanks go to my mother and brothers for their unending support, unfailing hospitality, and encouragement.
Yehnew Hailu Habtewold June 2016
List of Tables, Figures and Boxes
List of tables
Table 3.1 housing tenure for selected cites.
Table 3.2 program, target group and financing of South Korea National Public Rental Housing program..
Table 4.1 Housing census of 1994,2007 and forecasted for 2011.
Table 4.2 transfer price vs. market rental and selling price of condominium Houses in the city of AA...
Table 4.3 Kebele housing, amount of rent..
Table 5.1 Tenant satisfaction with quality of houses..
Table 5.2 Tenants’ satisfaction.
Table 6.2 Tenants character in percent...
Table 7.1 Proposed target groups and financing mechanisms.
List of figures
Fig 2.1 Research design..
Fig 2.1 Selection process of cases..
Fig.3.1 Systems approach to user’s housing satisfaction
Fig.4.1 Location map of Ethiopia...
Fig.4.2 Main source of housing in post-revolutionary Addis Ababa...
Fig.5.1 current institutional structure of AGH
Fig. 5.2 Land of AGH in Addis Ababa...
Fig 5.3 Apartments constructed by AGH along Bole road.. Ill
Fig. 5.4 Partial view of Apartments constructed by AGH... Ill
Fig.5.5 Location map of selected case are; Apartment 16..
Fig.5.6 key informants for development process of apartment 16.
Fig.5.7 original design vs. constructed of apartment 16..
Fig 5.8 Location map of selected case area; 7 apartments..
Fig.5.9 clean environment and enough parking..
Fig.5.10 external faced of the houses were repaired recently.
Fig.6.1 Development process for apartment 16..
Fig.7.1 Proposed financing mechanism..
Fig.7.2 Proposed housing occupation.
Fig.7.3 Proposed management responsibility..
List of boxes
Power and duties of AGH..
Cost and return analysis of proposed strategy
List of Acronyms
Abbildung in dieser Leseprobe nicht enthalten
General Notes
- Unless stated; sources for pictures, tables and figures are by the author
- The exchange rate of 1 USD is about 21 ETB.
Chapter One BACKGROUND OF THE STUDY
1.1 Motivation and Relevance
A large proportion of residents in cities and towns of developed as well as developing countries are tenants (UN-HABITAT, 2003). Despite this, the number of governments actually trying to support rental housing development is rather small. In the twentieth century, public housing was a common response to urbanization and the urban housing problem in many countries; developed and developing (Chen et al, 2014). Because of change in political and economics ideology in the west and lack of finance in developing countries; public rental housing did not continue as a housing solution for many of these countries and remained a neglected area of national housing policy (UN-HABITAT, 2003). In contrast; with pressure from urbanization and economic growth recently there is remarkable revival in PRH in the Asian and other emerging urban economies; and governments in Asia have concluded PRH have a vital role to play in the urbanization process (Chen et al, 2014).
In Ethiopia generally and Addis Ababa specifically the emergence of PRH is accidental; associated with the coming to power of a socialist regime. Where the socialist government decides to nationalize extra land and houses owned by the private sector and changes them to state ownership (Ashenafi, 2001). Following the nationalization two institutions were established to administrate and manages the nationalized houses; urban dwellers association (Kebele) and AARH (now AGH). Apart from management of the units these institutions were given the power to construct additional rental housing units. Where the kebles did not construct any rental units and AGH achieved the construction of 6656 villas and 66 apartments almost 25 years ago (AGH, 2015 & Ashenafi, 2001). Currently both are out of the construction industry even though there is still big housing shortage in the city.
According to the Addis Ababa Housing Development Project office; there was a housing backlog of about 250,000 housing units in Addis Ababa alone (AAHDP, 2004). The problem is exasperated by the increasing rate of new household formations and migration. In order to alleviate the housing problem in the city by constructing condominium houses, the Addis Ababa city government has designed a housing project in which redevelopment of the dilapidated inner city is given emphasis. The Housing Development Project Office and the Housing Agency were established to replace one-third of the inner-city dilapidated houses per year and transfer to residents at a subsidized rate. The main target groups are tenants residing in Kebele houses, which make up almost 90% of the inner city housing units (EEA, 2006/07). The Office intends to build a total of 150, 000 houses which is 50, 000 condominium housing units per year starting from 2004/05, the performance in the same year was not encouraging as only 12, 000 housing units (8 % of the plan) were built and transferred to urban dwellers (ibid, 2006/07).
According to the Housing Development Project Office, the potential clients of the housing units were identified to be those with monthly income of over 750 ETB. This group constitute about 11 % of the total inhabitants of the city (EEA, 2006/07). The housing problems of the rest of the inhabitants are assumed to be addressed through the rental options mainly by the private sector (ibid, 2006/07). The private rental sector in Addis Ababa is driven by free market and rent price is increasing in fast rate and the sector fails to deliver housing with affordable price let alone adequate. The sector is forgotten by government and professionals in the field; it is only recently that the government announce rent control mechanism which is still not in effect. The choice of public rental sector as a research subject was thus influenced by these discussions. The fact that the sector is not well developed In Ethiopia was also additional motivation to choose PRH as subject for study.
A new housing policy and strategy[1]; recently promoted by the government named as 10/90, 20/80, 40/60 and cooperative developments, mainly focused on the capital city. The program achievement depends on the saving capacity of the applicants. The city’s government has achieved the registration of more than 800,000 inhabitants only for the two programs; 20/80 and 40/60. The registration criteria needs for an applicant to be age of 18 and above, do not own any kinds of housing units and be able to deposit the monthly saving. These are people who are mainly young and live with their parents or rent someone’s house or their only option/preference is renting, these are people who are expected to pay for current rent and future saving. Since the programs achievement depends on the saving capacity of these applicants; it is highly unlikely to the program to materialize when people have to pay in two fronts. These was also another motivation to take on this subject of study; to be more specific the fact that myself being one of the applicants for the program and seen the difficulty of paying in two fronts have motivated me to work on PRH scheme.
According to population and housing census conducted by CSA[2]in 2007, and forecast for 2011; 58.8% of housing in Addis Ababa is delivered by the rental sector, 37% is the share of the private sector and the remaining by the public rental sector mainly by the Kebele (CSA, 2007). Though the figures tell a lot about the importance of the rental sector in the housing market of Addis Ababa; the attention given is relatively small. Previous researches conducted (in AAU generally and EİABC specifically) on the sector mainly focuses on the public rental sector; it is difficult to find one done on the private sector. Even those researches on the public rental sector are done on Kebele houses. This research which takes up public rental sector as a subject of study focuses on another of the two PRH providing agencies; Agency for Government Houses (AGH)[3]. This will make the research an additional resource on the subject matter. Another relevance of this research can be constructed from the approach chosen which is to see the sector as another housing delivery strategy. Previous researches (conducted in EİABC) on public rental housing mainly focus on the physical and spatial dimensions of the houses; spatial transformation, physical conditions and issues related to tenancy were major issues discussed.
1.2 The Research Approach
Taking public rental housing as study topic is not new thing in housing studies; there are also plenty of researches conducted on the subject at EiABC/Addis Ababa University. Public rental housing in Ethiopia and specifically in Addis Ababa represents a sector that once was major housing delivery mechanism (during the socialist government, 1975-1991) and now (after the change in government) left out of its role, but physically remind untouched. The approach chosen here is to search ways on how to put back the sector to its previous role, and considers the sector to be one way of providing housing for the city of Addis Ababa in the future. For these reasons the study focuses on two major points:
- Study and understand how PREI units were developed in the past and picks lessons for the future. In doing so, the study examines the development process of apartments constructed and managed by AGH from inception through construction to post-occupation, evaluate management of the units and identify which social group is the beneficiaries (tenants) of the units. Lessons were also drawn from international experiences elsewhere.
- Based on findings on the above points and international experiences proposes possible strategy on how to develop the sector in the future.
1.3 Scope of the study
1.3.1 Spatial scope
Spatially the research focuses on those apartments constructed and managed by AGH in Addis Ababa. Data collection is limited to two apartment blocks located along Bole Road selected as a case study area; ‘apartment 16’ and ‘7 apartments’. Data collected from the two case studies are different; this is because the case studies are chosen to address different issues. Data regarding development process are collected from ‘apartment 16’ and data about tenants and their satisfaction towards the management are collected from ‘7 apartment’ residents and environment.
1.3.2 Thematic scope
The scope of the study is limited to the investigation of AGH’s rental apartments in Addis Ababa in terms of development process, management of units and tenants’ socio-economic status. Reviewing of supportive literatures is also part of the paper on ways and schemes of supplying rental housing to citizens in urban areas by governments. Other PRH Issues like rent arrears, administration rules and rent policy are not focuses of the research; they will be discussed in short only for the sake of discussions and recommendations. The study is limited to answering the research questions posed.
The empirical investigation is confined to the apartments constructed by AGH, by taking selected cases studies. There are apartments nationalized and transferred to AGH while in construction; which the agency later finishes the construction with its own money. These apartments are not considered in this research as apartments constructed by AGH.
1.4 Research Questions
The research questions are based on purpose of the study and theoretical rationales. The purpose of the study is to propose a working strategy for developing PRH for the city of Addis Ababa through the study of existing PRH apartments. For this reason the study focuses on three major aspects of PRH; development process, beneficiaries and management; this is because theoretically these are issues that makes the provision of PRH difficult. Government in many countries found it expensive to invest their limited resources on such public housing. Even those countries that found the resources to build failed to deliver the units to those really in need. Through political control, corruption and nepotism PRH in many countries “changed hands and ended up with income groups higher than the target groups”. Unlike other housing programs the work with PRH continues after occupation; since the units remains property of the state the management continues; which many governments found difficult. Based on these theoretical rational three main questions are posed:
1. What was the development process of apartment
constructed by AGH?
a. Who were the actors involved in the development process?
b. What was their respective role?
c. What was the financing mechanism?
d. What was the process of land acquisition?
2. Who are the tenants?
a.Who are the designated target group according to the agency policy?
b.What is the socio-economic profile of tenants currently occupying the units?
c.Are the current tenants eligible for Public Rental Housing?
3. What is the management performance of the institution?
a. What is the level of tenant satisfaction towards the management?
b. What are challenges faced by the management?
In addition to the above questions the study has also additional interest. Beyond understanding the context through the theoretical issues; the study seeks to propose a workable strategy for developing PRH in Addis Ababa in the future. Hence based on this purpose of the study a fourth normative question is posed:
4. What is the way forward?
a. How should the sector be developed in the future?
1.5 Organization of the Research
The research is organized in to seven chapters; chapter one introduces the whole research. Motivation and relevance, the perspective from which the research is approached, research questions, scope and limitations are discussed in this chapter. Chapter two illustrates the general research methodology and specific methods used for the research. Validity and reliability of the research method are also parts of the chapter. Chapter three is literature review; it discusses the research topic in different context, defines terminologies, prompts the research questions and presents global experiences for the research topics. Chapter four presents contextual background to rental housing in Ethiopia generally and Addis Ababa specifically. Chapter five presents backgrounds to the case, general description and maps of the case areas; data collected from the case areas are also presented in this chapter. Chapter six discuses research findings and implications; based on the data collected and analysed different findings are presented. Based on findings on the previous chapter analysis of the context is also presented on this chapter. The final chapter; chapter seven ends the research paper by giving answer to the normative question through strategy proposal.
Chapter Two RESEARCH METHODOLOGY
2.1 Research Design
Research is a process of gaining a better understanding of a subject under investigation. Undertaking a research demands to come up with research design and strategy to produce data and technique to collect, analyse and interpret data, which is methodology. In this chapter I will discuss the methodology chosen for this thesis with rationality behind it. In order to gain a deeper understanding of the rental apartments of AGH a case study method has been chosen. The collection of data in this thesis comprised primary data from interviews, secondary data from literature such as previous work of other researches within the research field and analysis of archival documents of the agency. This chapter also presents the issue of validity and reliability in case study research.
Abbildung in dieser Leseprobe nicht enthalten
Fig 2.1 Research design
2.2 Choice of Methods
Based on the specific objectives of research, research can be classified as descriptive, explanatory, or exploratory research (AAU, 2009). As this research is exploratory type, the researcher choses to use case study method. Exploratory research is conducted when there are no earlier studies to which reference can be made for information (AAU, 2009). It focuses on gaining background information and helps to better understand and clarify a problem. Yin in his book suggests examining three things about the research to choose the appropriate research strategy; the type of research question posed, the extent of control an investigator has over actual behavioural
events, and the degree of focus on contemporary as opposed to historical events (Yin, 2003). Case study is a preferred strategy when how or why questions are being posed, when the investigator has little control over events, and when the focus is contemporary phenomenon within some real- life context (ibid).
Based on the first criteria the research questions posed are what and who type of questions; for these types of questions Yin suggests to use archival and/or survey strategies. He also has mentioned that the clarification does not imply that the boundaries between the strategies or the occasions when each is to be used are not always sharp (Yin, 2003). This perhaps is one occasion where the boundary drawn by Yin based on the types of questions posed is not a clear one.
The first type of questions posed are what types of questions ‘what was the development process?’ and ‘what is the management performance?’ Even though they are what types of question their goal is to develop proposition for further inquiry. Yin in his book case study research design and method sees such types of questions as a rational for conducting an exploratory study (ibid). When research is an exploratory study all kinds of research strategies can be used including case study; furthermore; background study of the case reveals that the agency have used almost the same housing development process for all apartments it constructed. Hence specific characters can be drawn for the apartments from specific case studies. The second what type of question is what is the management performance of the agency; the method used is to measure the performance through tenants’ satisfaction survey and interview with the management body. So the sub-questions posed here are; ‘are tenants satisfied with the management and service delivered by the management body?’ here too conclusions can be drawn by studying specific cases since it is the agency itself that manages all apartments under study.
The third research question posed is’ who are the tenants?’ again pre-study conducted have shown that the agency both during the previous and the current government uses a criteria developed by the agency itself to select its tenants; this means that the researcher can draw conclusion by studying specific case studies. These and the fact that the researcher has no control over actual behavioural events and the focus of the research being on contemporary events; case study strategy is used for this research paper.
Case study is one among several ways of doing research, such as experiments, surveys histories and analysis of archival information (ibid). Yin explained the case study methodology in two different ways. The first technical definition is from an empirical point of view. Case study research is an empirical inquiry, which can be constructed from single or multiple cases on the research area. “It investigates a contemporary phenomenon within a real-life context, especially when boundaries between phenomenon and its context are not evident” (Yin et al, 2003).
The second technical definition presents a case study inquiry, which comprises data collection and analysis strategies (Yin, 2003). Case study inquiry copes with the technically distinctive situation in which there will be many more variables of interest than data points and as one result. It relies on multiple sources of evidence, with data needing to converge in a triangulating fashion and another result and benefits from the prior development of theoretical propositions to guide data collection and analysis.
Case study research is a type of research which combines all the other research strategies alone, as such covering the logic of design, data collection techniques, specific approaches to data analysis (ibid).
2.3 Selection of Cases
The selection of apartments constructed by AGH as a general case for the study is framed based on the purpose of the study. Since the purpose of the research is to study PRH as another alternative strategy of housing delivery for Addis Ababa in the future; studying the nationalized PRH units has no or little significance for later recommendations. To be more specific the study of development process; needs a housing program developed for specific purpose and target; which is not the case in nationalized PRH units of Kebele and AGH.
2.3.1 Sampling technique
Initially all 16 apartment projects constructed by the agency were considered as a possible candidates for investigation. Later, an investigation of all possible cases has led me to understand; some apartments are fully occupied by tenants with same background; like the ‘3 Apartments’ in bole road which are occupied by parliament members or like London Cafe Apartments by Addis Ababa University teachers and CMC Apartments which are rented out for people who can pay in USD. So one criteria of choosing case study areas was the diversity of tenants’ background.
There are many reasons to choosing single case-studies; one is the representativeness of the case or the case being typical (Yin, 2003). This is the reason behind choosing single case study area for this research. The case chosen represents the general apartments constructed and administrated by the agency. Based on the above constructed criterion; seven apartment blocks acted as one neighborhood (7 Apartments[4]) are selected as a case study area to study tenants’ satisfaction and tenants’ socio-economic profile.
For the study of development process of the apartments another case area is chosen (Apartment 16[5]); this is because the development process of many of the apartments is not properly documented for easy reference. This is mainly associated with the time the apartments were constructed; many of them were constructed more than 25 years ago. The apartment chosen as a case here is constructed relatively recent; because of this the agency has documents available in its archive and there are employees of the agency who were involved in the development of the apartments. These two reasons
have made ‘Apartment 16’ an ideal case area for this study. To sum up; criterions developed by the researcher to choose the case areas are:
- The diversity of tenants background and
- Availability of data for development process
Abbildung in dieser Leseprobe nicht enthalten
Fig. 2.2 Selection process of cases
2.4 Purpose of Data Collection
The purpose of data collected was to understand the issues of the study which are highlighted below.
2.4.1 Development of rental housing sector in Addis Ababa
The origin of both the private rental real estate and the public rental housing in Addis Ababa in respect to the different governmental period starting from the original development of the city. The origin, development and participation of the institution under study (AGH). Current rental sectors in the city and actors involved.
2.4.2 Development process of AGH apartments
The development process of apartments constructed by AGH; from project initiation to occupation; financing mechanism, land acquisition and occupation are data collected.
2.4.3 Tenants socio-economic profile
The tenants of the apartments based on their income, position in the society, future plan etc.; to understand who the beneficiary are as a group.
2.4.4 Management performance
Management performance and problems of the agency (AGH) based on tenants satisfaction survey.
2.5 Type of Data
2.5.1 Primary data
Primary information concerning tenant’s income and family structure was obtained from questionnaire distributed. Information’s regarding tenants’ satisfaction level was also obtained from questionnaire distributed to individual tenants. Interview was also conducted with responsible employees of the agency regarding, development process and management. Maps both from the agency and some other sources, photographs from the field observations and focus group discussions are also primary data collected.
2.5.2 Secondary data
Secondary information was gathered from government departments. The information in form of policy documents and other official documents on government policy regarding public rental housings were gathered from the ministry of construction urban development and housing. The Central Statistical Office issued survey reports on housing, population and poverty. The document collected contains information about the condition of housings, their number and government national housing polices. The secondary information also includes documents by the agency on the development process of the apartment chosen for study. Tenants list and the waiting list are also secondary data collected from AGH.
2.6 Sources of Data
2.6.1 Primary data sources
Individual dwellers
Selected individual dwellers have participated in filling the questionnaires prepared; in addition to the questionnaires some have participated in focus group discussion.
Selection of informants'. 25% of all tenant households of case area were selected randomly based on floor of occupation on the apartments. Out of the total 112 households 30 has been approached as informants. One tenant from every floor of each of the 7 apartments was selected.
Selected employees of AGH
Selected employees of the agency were also approached in search of important data and information. The major selection criteria were their current position in the agency especially those employees involved in housing management; and their Involvement during the development of the selected case area for the study of development process.
The physical environments under study
The physical environments of the case areas were also source of data. Most of the physical components such as: condition of the houses and environment; the type and conditions of infrastructure, utilities, common spaces and social and service facilities were sources of data to study quality of services delivered by the management body.
2.6.2 Secondary data sources
AGHs’ archive
AGHs’ archive has been an important data source throughout the whole process; documents were collected from the agency different departments. The different departments of AGH have been visited by the researcher many times starting from the first weeks of the research inception. Some other references were also found in the agency library which is one department established for its employees.
2.7 Data Collection Techniques
In this research the data collection technique used are questionnaire, archival study, semi structured interview, field observation and photography
2.7.1 Primary data
Questionnaire
Two questionnaires were developed to collect data about the tenants and to measure their satisfaction level towards the management and services provided by the management body. To identify tenants the questionnaire developed was constructed based on the different character of tenants found from literature. The questionnaire involves questions like the tenants income, their migration statos, their position in the society and their future plan regarding housing.
The second type of questionnaire was developed to measure tenants’ satisfaction; it is the product of a combination between past researches from various countries and later reconstructed to achieve the researcher’s aims. Questions like tenants’ satisfaction regarding rent price, housing management and maintains were part of the questionnaire.
Though both questionnaires were prepared in English they were later translated and presented for the respondents in the local language, Amharic. Focus group discussion
Corruption, favoritism and the issues of third party tenants and other issues on management were also investigated through a focus group discussion conducted with tenants of selected case areas.
Direct observation
Condition of buildings, quality of the neighborhood and services were recorded on site. The observation was conducted parallel with the administration of the questionnaires.
Semi structured Interview
Two semi-structured interviews were conducted with employees of the agency; employees engaged in management and administration of the case area were the first ones; their view towards their performance in management and administration challenges and their recommendations were questions raised during the interviews.
The second interview was conducted with employees that were involved in the development of the apartments; their knowledge regarding the development process of the apartments like financing, land acquisition and occupations were part of the interview.
Photographs
Photographs all taken by the author; were used to record conditions of buildings and their component, neighborhood conditions and quality of the environment.
2.7.2 Secondary data
Documents
Various documents were referred during the whole process; government policies, tenants’ waiting list, list of tenants, historical document of the agency, newspapers, articles, maps and Google images were collected. Map produced by the agency showing all houses and land of the agency was used to measure areas.
2.8 Data Analysis Technique
Data collected from the field were later analyzed both qualitatively and quantitatively. Qualitative data were analyzed both during data collection and after but Most of the major systematic reflections and analyses were done after the completion of the fieldwork. Qualitative data collected for the study of development process were analyzed in comparison with current public housing development trends; to draw implications. Quantitative data for measuring management performance was later analyzed manually.
Generally the data analysis process for the research is sorting out the data from the field work in relation to the key issues; so that it yields implications for further recommendation. In addition to the analysis of interviews and questionnaires; maps, photographs, aerial photos and secondary written documents were interpreted in relation to the key issues of the research questions and were incorporated as part of the case reports. GIS have been used in analyzing maps found from AGH.
2.9 Validity and Reliability
Validity and reliability in research determine the overall quality of the research; four tests are commonly used for the purpose applicable for any empirical social research; construct validity, internal and external validity, and reliability are tests used in different phases of the research (Yin, 2003). The quality measures for this research are adopted from these methodologies. These tests applied in this research thoroughly in data collection, and analysis to maximize the quality level, with the exclusion of internal validity. Testing internal validity is not applicable in case studies rather it is useful in undertaking quantitative surveys (ibid).
2.9.1 Construct validity
Construct validity is an important test in data collection and analysis. According to Yin, 2003, construct validity is also problematic in case study due to the fact that people who have been critical of case studies often point to the fact that a case study investigator fails to develop a sufficiently operational set of measure and that subjective judgments are used to collect the data (Yin, 2003). In this research the data are collected using operational questionnaires that have been developed and used by other researchers and proven to be effective. For instance
- The performance of the management body is measured through ‘tenant satisfaction measure’ a standardized method used by many researchers and institutions for the same purpose; and has proven to be effective.
- The character of tenants is studies using questionnaires constructed from literature review; previous study of tenants character by different researchers and institutions.
However, three tactics are commonly applied to increase construct validity (Yin, 2003). The first is the use of multiple sources of evidence in a manner encouraging convergent line of enquiry. During data collection the researcher gathered data from multiple sources to find out information about similar concerns. For instance;
- The performance of the management body in managing and delivering services is studied using tenants, interview with management staffs of the agency and report by the agency.
- To identify who the tenants are the researcher has used the tenants and the agency lists of tenants and interview with the management staffs.
- The development process of the apartments was studied by referring to documents and interview with employees of the agency.
2.9.2 External validity
The most common critics in case studies are on drawing generalization. It had been argued that generalizing from single cases could result mistakes in many researches (Yin, 2003). The common argument establishes its basis on the analogy between samples and the universe, which could be applicable for survey researches. Survey research relies on statistical generalizations, whereas case study on anlytical generalizations (ibid). In constructing external validity for analytical generalization Yin argues to use theory in single case studies; this is to say the investigator should strive to generalize a particular set of results to some broader theory (ibid). For instance in this research; theories about the character of tenants of PRH is the domain to which the results about tenants character is generalized.
2.9.3 Reliability
The objective of Reliability is to be sure that if a later investigator followed the same procedures as described by an earlier investigator and conducted the same case study all over again, the latter investigator should arrive at the same findings and conclusions (Yin, 2003). The goal of reliability is to minimize the errors and biases in a study. The major concern to create reliability is documenting every step of the process by using the case study protocol or keeping a case study data base. In this research all necessary data collected and their sources has been documented as annex; list of interviews, pictures of major data collected and questionnaires and interviewees are indicated in the annex.
Chapter Three LITERATURE REVIEW
3.1 Home Ownership and Rental Housing
3.1.1 Housing ownership and tenure
To understand what the rental housing market is, it is necessary first to understand what housing ownership is. UN-HABITAT (2003) defines owners as those with the legal or de facto[6]right to occupy, let, use or dispose of their dwelling. This includes those who are in the process of acquiring the right to ownership (e.g., through payments on a mortgage) (UN-HABITAT, 2003). According to this definition the ownership right is only limited to the dwelling structure not the land it is built on as in the case of Ethiopia where land is occupied through lease. There is also the issue of legality of tenure left out in this definition; there are people especially in third world countries which exercise those rights on lands they occupy illegally.
Thus to understand exactly where the rental market lies in housing ownership category it is better to see it as one of the housing tenure types. There are different kinds of tenure; the rental housing market (or rental housing sector) is a specific type of tenure, a subdivided sector, together with other sub-markets constitutes the entire housing market. Housing tenure refers to the financial arrangements under which someone has the right to live in a house or apartment. According to this definition, housing tenure could also be translated into the term “housing rights” or “property rights”. It gives the occupants certain kinds of rights but meanwhile, also a bundle of limitations. According to Donner there are five main groups of tenures with decreasing ownership rights (Donner, 2000). Donner identifies these tenure types as
- Full Ownership: it is usually for single-family dwellings, owned by the owner, financing with mortgage loan, and entitling to all attributes of ownership
- Co-ownership: it is usually for multifamily dwellings, which are owned by co-owners, financing with mortgage loan, and entitling to all attributes based on group agreement.
- Common property: it is usually for multifamily dwellings, which are owned by shareholder of a housing cooperative, financing with capital share, with social functions.
- Shared ownership: Tenants usually have part of the ownership, financing with capital share and limited disposal right.
- Non-ownership: Occupant pays rents and no right to dispose the dwelling. The only type of dwellings separates the owner and occupant.
3.1.2 Rental housing
Global rental housing market Hundreds of millions of people live in rental housing in all part of the world cites, despite this the sector is neglected in many government housing polices (UN-HABITAT, 2003). Besides providing shelter for many citizens the sector also generates income for many families. Few governments have formulated polices to help the sector grow and regulate it; still many governments promote home ownership this is because they believe that building homes creates jobs, stimulate the economy and foster social and political stability (UN-HABITAT, 2011).
As can be seen on table 3.1, many cites including Addis Ababa have above 50% of rental housing tenure; the biggest percentage are recorded 89% in Berlin Germany, 82% in Kisumu Kenya and 80% in Hamburg Germany respectively. Addis Ababa has 60% rental housing tenure recorded in 1998.
Characteristics of rental housing As mentioned above rental housing is the only non-owner tenure type, as with ownership it also has formal and informal situations. That is to say that there are tenants with a formal contract with the owner and others with only a verbal contract. It is still difficult to distinguée between the different rental accommodations, according to a survey conducted by UN-HABITAT in different cities of the world the following rental accommodations are identified:
- rooms in subdivided inner-city tenements;
- rooms in custom-built tenements;
- rooms, beds or even beds rented by the hour in boarding or rooming houses, cheap hotels or pensions;
- rooms or beds in illegal settlements;
- shacks on rented plots of land;
- rooms in houses or flats in lower or middle-income areas;
- accommodation provided by employers;
- public housing; and
- Space to sleep rented at work, in public places, even in cemeteries.
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Another distinguishing issue in the rental market is the provider; in many communist countries it used to be the government who provides the rental accommodations (UN-HABITAT, 2003). In many countries it is the private sector that provides the biggest share of the rental housing.
Supply and demand side of rental housing
The supply side: Rental houses are provided by different kinds of landlords, some are rich while others are poor some are formal while others are informal; governments and companies may also rent. Understanding the supply side is important when studying housing especially when the sector under study is as complex as the rental sector. A report by UN-HABITAT identifies five kinds of landlords; small-scale landlords, commercial landlords, public sector landlords, social landlords and employer landlords which can broadly be categorized as the private and the public sector.
The private sectors: Majority of the world rental housings are provided by the private sector, and increasingly by the small land lords. Small scale land lords informal or formal are by far the most common; they build accommodations with whatever capital and space they have, for the purpose of earning income. Commercial landlords operate on a large scale and act in a more professional way. This sector takes up four of the above mentioned five kinds of landlord with some exception of social and employer landlords; both sometimes may be provided by the public sector but mainly are provided by the private sector; on this paper the researcher chooses to categorize them in to the private sector.
1. Small-scale landlords: - these are landlords who rent extra spaces within their compound or buildings; they may be formal or informal poor or middle-income earners. The income from the rent mainly supports the house hold or sometimes it can be the only source of income for the household. Though rare the transition from small-scale landlords to commercial landlords happens, this is because some families find it as a rout to better things.
2. Commercial landlords: - they operate on a larger scale and act in a more professional way. They can be organised as companies; using written rental contract or be ordinary people, the tenants mainly are middle or high-income groups. The housings they provide vary in quality some provide with good quality including building safety standards others provides poor quality housings equipped with minimal services.
3. Social landlords: - are non-profit making organizations, they provide housing mainly for the poor. These institutions may be charities, housing associations or sometimes educational bodies providing for their students. Recently in Western Europe these institutions have taken the task of providing cheap rental accommodations from governments (UN-HABITAT, 2011).
4. Employer landlords: - these landlords are mainly companies which provide rental accommodations for their employees. They can be hospitals providing accommodations for their nurses or government for members of the military. The main reason for providing such accommodations is the expensiveness of the local housing market or sometimes the scarcity of housing as in the case of newly established capital cities; and companies’ will face recruitment problem unless they provide shelter.
The public sector: This sector is now less common than it used to be once but still supply large numbers of housing units in many cities of the world particularly in China, India and some transition economies (UN-HABITAT, 2011). The landlords may be central government agencies or local governments; some provides only for their employees while others rent out to the urban poor. In the twentieth century, public housing was a common response to urbanization and the urban housing problem in western capitalist, European and Asian socialist and developing countries. Yet by the Millennium it was widely perceived as a failure; criticized when it excluded the poorest and most vulnerable, yet condemned when it created concentrations of poverty (Chen et al, 2014).
The demand side: Like the supply side the demand side is also difficult to generalise however there are few common characteristics mainly associated
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[1]Housing policy document prepared by ministry of urban development and construction in 2012
[2]The Federal Democratic Republic of Ethiopia; Central Statistical Agency (CSA)
[3]The Federal Democratic Republic of Ethiopia; Agency for Government Houses (AGH)
[4]Name given to the apartments by the agency
[5]Name given to the apartments by the agency
[6]ownership to homes where the household owns the structure but not the land on which it is built