Community Mortgage

“In many poor and developing countries, land markets, prevailing policies, practices and institutions limit many of the working poor’s access to secure tenure and adequate land for housing. The Philippines is one such country, where patterns of urban growth and development make it difficult for the poor to remain in the cities where employment and other opportunities exist.”

“Through the Community Mortgage Program, the Government lends funds to informal settlers organized as a community association, making it possible for them to buy a piece of land that they can occupy permanently. The land can be on-site, presently occupied by the community, or an entirely new site to where the community intends to relocate. The CMP also offers loans for site improvement and house construction even if, in reality, the majority of CMP loans are issued for the acquisition of land. The CMP was designed to be a demand-driven approach; it is the community that needs assistance that decides to participate in the programme and initiates the process. In an on-site project, informal settlers can obtain ownership of the land they occupy by buying it through a community mortgage loan. One of the requirements is a subdivision plan, where the houses and plots are then re-aligned or re-blocked to conform to minimum subdivision standards. An off-site project, on the other hand, requires relocation to another area that the community chooses and purchases.”

“To be eligible for loans, informal settlers have to have a homeowners’ association (HOA) with at least nine households but no more than 200. After an association has complied with the minimum requirement and met certain criteria, the Social Housing Finance Corporation approves the mortgage and advances payment to the landowner. The group loan is payable monthly for up to 25 years at 6 per cent interest per annum. The land to be purchased serves as collateral for the loan. The HOA is considered to be the borrower.Throughout the process, it is responsible for preparing documentary requirements, negotiating with the landowner, collecting the monthly amortizations of itsmember-beneficiaries, and ensuring that their financial obligations to the lending institution are met. The HOA also enforces sanctions on community members, and oversees the re-blocking and enforcement of the subdivision plan.”

“The Philippines is the fourth most populous nation in East Asia. Growing at an average rate of 2 per cent annually, the population is currently 92 million, of which an estimated 63 per cent live in urban areas. Metro Manila, or the National Capital Region (NCR), is the largest urban centre in the Philippines. At present, its 16 cities and one urban municipality together had an estimated population of 12 million. If the current trend prevails, the Philippines is projected to be 70 per cent urban in less than a decade with an urban population of around 86 million. Unregulated urban growth and acute poverty have resulted in severe housing problems. Of the roughly 10 million Filipino families living in cities today, an estimated 3.1 million lack security of tenure with 2.7 informal settler households in Metro Manila alone according to data from the National Housing Authority in 2007.” Source: Innovative urban tenure in the Philippines, summary report, UN-Habitat / Global Land Tool Network. Picture: Christoph Mohr

Do It Together; Mutirão

Heliopolis is a favela within the city of São Paulo. Estimated is that within this favela 190.000 inhabitants live without having a legal address. In the seventies people invaded land and build this city themselves. Nowadays a share of the inhabitants rise into middle class. Part of the inhabitants still live in very poor conditions. Although the structures along the streets are actually quit good, the inside of the building blocks conceal a different quality, often with scarce space and daylight in a moist environment. Now that the city of São Paulo aims at the upgrade of favelas in the city the idea of mutirão becomes an alternative for the outplacing and verticalization of inhabitants.

“Rio established Operação mutirão which for the first time deemed resident participation necessary in community upgrades and relied on their own labor. The government provided engineering assistance and materials left over from other construction sites. Similarly, in 1968 governor Negrão de Lima gathered a group of architects, economists, and planners to form a program that offered design support and long term, low-interest loans on construction materials to residents: the Companhia de Desenvolvimento de Comunidades (Community Development Company, or CODESCO). CODESCO had residents vote on where within the community new streets would run and made sure to keep families together when moving people from one part of the neighborhood to another”. (

“In Portuguese, the word “mutirão” is used to describe “a meeting place, an opportunity to work together toward a common goal” (Harrison, Huchzemeyer & Mayekiso, 2004). “Mutirão, a word from Tupi Guarani, an indigenous language of Brazil, translates as a group of people who work together to create something that benefits all,” (Habitat for Humanity, 2010). In an urban context, it often means neighbors getting together to construct part or all of their homes together, people helping to build each others’ houses instead of doing it on their own, particularly during portions of building which require a great deal of work during a short period which one family, alone, cannot deliver. This kind of mutirão has been commonly used in past decades by international development agencies and governmental programmes for construction projects. It is also the basis for international volunteer programs like Habitat for Humanity.  It was a way to save money on the one hand, and give people the chance to be a part of such projects, on the other.” (




This June the 10 million guests have already booked a room via Airbnb. Airbnb, which refers to Air-bread-and-breakfast is website which let you put your spare room or apartment for rent on the internet. It creates a community around these accomodations which often are way more exciting than an average hotel. Airbnb shows the demand for specific small scale accomodations in the city as opposed to the larger hotel chains and offers potential for anyone to start a ‘hotel at home’.