URBAN MANAGEMENT

RASHID MKC Reg No: 2080200014 1) Describe Land as a crucial resource from the perspective of a citizen/resident and from the perspective of a planner (planning office). (08 marks) Every human activity requires some elbowroom. Land, first and foremost denotes space. The qualities of land include attributes such as the topographic, structural, agricultural, and mineral properties of the site; the climate; the availability of clean air and water; and finally, a host of immediate environmental characteristics such as quiet, privacy, aesthetic appearance, and so on. For a citizen all these things and the availability of such local inputs as labor supply and community services, the availability of transferable inputs, and the accessibility of marketsenter into the judgment of what a particular site is worth for any specific use. Land a scarce local input, but it is appropriate to keep in mind that in an increasingly populous and urban economy, more and more of what were initially the free gifts of nature (such as water, clean air, and privacy) are assuming the character of scarce local resources, and this scarcity constrains the concentration of activities in somewhat the same way as does the inherent scarcity of space itself. Competition for space in an urban area is highly complex because of the many ways in which an activity affects its close neighbors. Due to increasing population, it is increasingly urgent need to match land types and land uses in the most rational way possible, so as to maximize sustainable production and satisfy the diverse needs of society while at the same time conserving fragile ecosystems and our genetic heritage. So for the proper utilization of land, planners are required and land-use planning is done. Planner do the systematic assessment of physical, social and economic factors in such a way as to assist and encourage land users to select land-use options that increase their productivity, are sustainable and meet the needs of society. Farmers and other land users can, and should, take an active part for, bringing to bear their special knowledge of problems, constraints and needs for improvement. They research and gather data from a large variety of sources, recognize various environmental and regulatory constraints, and formulate and analyse various site design scenarios as part of helping clients make informed decisions regarding land development. A Planner has: Ability to research and analyse information on a wide variety of topics (population, employment, environment, transportation, storm water, wastewater, etc.). Master of techniques for involving a wide range of people in making decisions. Understanding of local, state and federal government programs and processes. Ability to communicate and coordinate with engineers, architects, surveyors, realtors, and a variety of other professional consultants. Understands spatial relationships, physical design, and how cities work. Understanding of the social and environmental impact of planning decisions on communities. Ability to work with the public and articulate planning issues to a wide variety of audiences. Ability to function as a mediator or facilitator when conflicts occur. Understanding of the legal foundation for land use regulation.

Ability to solve problems using a balance of technical competence, creativity and strategical thinking. Understanding of geographic information systems and office productivity software. Ability to envision alternative scenarios, identify and weigh advantages and disadvantages, and to develop and pursue win-win solutions when applicable. 2) Discuss the advantages of Land Readjustment as a technique for urban land management. Discuss with illustration, the key steps involved in its procedure. Briefly discuss the application of LR in a country where it has been widely utilized. (15 marks) It is one of the best readjustment technique for planned provision of supply of urban land and urban environmental infrastructure without external investment on a parcel of organically developed land that is hazard. The concept of land-pooling consists in acquisition of a plot of land divided into a large number of small parcels belonging to an equally large number of land owners; plan and provide all necessary infrastructure such as road, water supply, drainage, electricity and telephone, open spaces, community service area; consolidate and re-plot the parcels and give back to the owners. The cost of planning and providing infrastructure is covered from the land itself to be contributed by each landowner. Thus, the owner gets back about 12- 30% smaller piece of land but with all necessary infrastructure including parks and open spaces. Moreover, the original irregular shape plot is converted into a nice regular geometric shape. Thus, land-readjustment can be defined as a land management technique for carrying out unified design, servicing and sub-division of a group of separate land parcels for their planned urban development with the sharing of the project costs and benefits between the land owners and recovery of the project costs by the sale of some of the developed plots. It is also defined as re-platting of a usually sizable area of land with multiple owners and it subsequent (re)development under a unified plan. It is a method of urbanization that has been used successfully in a number of countries. It provides a particularly attractive method by which to finance basic infrastructure for new development. Principles of land readjustment: To provide maximum number of developed plots To conserve agricultural land, cultural heritage and environment. Maximum participation of local people. To control the rapid unplanned urban growth and its impact on environment. To provide employment opportunity to local people. To provide infrastructure and utilities to organically developed land and raise standards of living. Procedure of land readjustment: Identification of the group of adjoining landholdings for pooling which is then designated as the land pooling area; Assessment of the value of each landholding in order to calculate each landowners share in the project; Preparation of a draft pooling scheme (and supporting financial plan) in consultation with the landowners and the relevant government authorities (the highway, public utility, etc. authorities); Public exhibition, review and amendment of the draft scheme followed by central government approval of the final scheme and its publication; Preparation of engineering works designs;

Compulsory acquisition and consolidation of the landholdings, roads, etc. in the designated pooling area; Raising of short-term loan for working capital; Carrying out of land servicing and subdivision works by contractors and relevant government authorities; Physical and legal subdivision of land into streets, parkland and sites for buildings; Sale of some of the building sites to recover costs and repay the loan; Distribution of the other sites to the landowners; and Final cash adjustments to achieve each landowners precise share of the project. Advantages of land readjustment: The consolidation of fragmented landholdings offers the opportunity for better area wide design and planning and for the more efficient provision of neighbourhood infrastructure. Land readjustment provides a more flexible method for achieving this objective. It also limits public sector costs and avoids some of the political confrontations and disruptions engendered by traditional methods of urban renewal. Land readjustment limits the public sector's financial burden, in fact re-platting through the manipulation of land titles rarely requires more than small exchanges of cash an attractive feature to local governments whose resources are often insufficient to finance infrastructure or project costs for desired redevelopment. Development projects using land readjustment give property owners an opportunity to participate in the plan-making process; they are generally more politically acceptable than projects implemented through government land purchase or condemnation. Land readjustment also may result in residents' losing their normal mean of income during redevelopment and in the displacement of tenants. With land readjustment however it is easier to include specific procedures that enable residents to return to the project area. The flexibility of the land readjustment technique allows it to generate surplus funds for various objectives. Usually any surplus resulting from the sale of "financial resource" land is returned to the original landowners. But it would be entirely possible to use a portion of it to underwrite such elements of a project as low income housing. Disadvantages of land readjustment: This method is time consuming, since the procedure prescribed for preparation and implementation of such land pooling or readjustment schemes is unduly complicated and cumbersome. Betterment charges are assessed at the beginning of the land pooling or readjustment scheme preparation. Due to the inordinate delays in finalizing schemes, the betterment charges levied on finalization of the scheme do not meet the cost of the infrastructure provided. Application of land readjustment: The use of land readjustment in Taiwan to promote efficient land use and accelerate urban development is relatively recent, evolving out of a program of agricultural land consolidation begun in 1962. Its most successful application has been in Kaohsiung, the second largest city and a major port.

The country's Equalization of Urban Land Rights Act, passed in 1954, authorizes local governments to undertake pooling projects, and requires the consent of half of an area's landowners owning half the project area. Land undergoing readjustment is first appraised by the Urban Land Value Appraisal Committee, according to a large number of value factors spelled out in the law, and this appraisal essentially the difference between the preadjustment and post-adjustment values of a landowner's property forms the basis for determining landowners' contributions for public use and cost-equivalent land. Landowners receiving greater benefits may be required to make larger contributions. Except in unusual circumstances land for public use is not to exceed 25 per cent of the project's total land area. But, additional cost-equivalent land contributions may be required to cover engineering and construction costs. In Kaohsiung, the maximum amount of total public use and cost-equivalent land allowed is 40 per cent of the project area. Kaohsiung's experience with land readjustment has been positive. Among its effects the city has rapidly modernized; property tax revenues have increased; city expenditures for infrastructure and public facilities have been minimized; landowners have reaped the benefits of increased land values; and sanitation, public safety, and other environmental conditions have improved. Given this record, Taiwan will likely see an increase in the number of land readjustment projects undertaken both by the government and by private land owners. 3) What do you understand by land banking and what are its advantages? What are the threats that may arise from land banking? Discuss the concept of a Community Land Trust. (10 marks) Land banking is the practice of purchasing land with the intent to speculate or hold on to it until such a time as it is profitable to sell it on to others for more than was initially paid. Land is popular as an investment as it is a tangible asset. The intended increase in value may come from inflation, conversion for use as housing, or potential for extraction of raw materials. Typically parcels of land desirable for land banking are those that lie directly in the growth path of rapidly developing cities. Land banking in developing countries is a concept most often associated with accessing land for public purposes such as for housing, managing land markets and directing land speculation. The initial goal is to buy undeveloped land that will increase in value because it lies in the path of urban growth. The investment objective is to identify these parcels well in advance of the developers and wait for the value to be realized. Land banking is not only a tool to public authorities for economic growth but in a private sector context, land banking is associated with the purchase of land for investment purposes and land speculation. It is also used as a profit-making endeavor. The guiding principles of land banking in developing countries are as follows: To improve access of the poor and other specific target groups to land To support the implementation of urban development projects To reduce inflation in land prices and reduce land speculation To promote public/private partnerships To improve the land tenure structure There are three fundamental actions to land banking namely: a) Land acquisition The land acquisition process for land banking is critical. If government entities wish to acquire and hold land, they need to purchase it first. International land banking practice has

occurred in situations where the public sector has been able to purchase land cheaply. Given the scale of land purchase for land banking, managing the cost of land is vital. In India, in this method, the public planning authorities/development agencies acquire large areas of land from agricultural landholders (farmers) under the Land Acquisition Act of 1894. Compensation paid to farmers is based on prevailing agricultural land prices. To minimize opposition to acquisition farmers are paid prices marginally higher than agricultural land prices. Then a master plan of the area is prepared, laying out the roads, plots for social amenities, and plots for sale. Roads and infrastructure are then built, using government funds or loans. Serviced plots are then sold for urban uses at market rates, which are most often much higher than the rate at which land is acquired. b) Land management The management of large parcels of land over a long time period requires considerable resources. Maintenance and security issues are vital especially in locations where land is in prime position for economic, transportation and social opportunities c) Land development One of the core functions of land banks is managing the redevelopment of the parcels of land. The land can be transferred to private developers or non-profit organisations. However as public entities, they need to ensure when redevelopment does happen, it does so within the interests of the local community and according to their strategic objectives.

Community Land Trusts (CLTs): Community Land Trusts (CLTs) are local, regional, state-wide or national organizations that protect lands that have natural, ecological, recreational, scenic, historic or productive value. Land Trusts are commonly associated with land practices in the USA and in this context they also acquire, manage and protect land. According to Tom Peterson, Community Land Trusts in particular are concerned with housing and community development issues. CLTs own land but they sell buildings on the land to individual owners. These owners are most often low income households. The functions of CLTs include: a) Ensuring that low income households have access to land b) Maintaining housing affordability c) Facilitating home ownership (Peterson, 1996). CLTs are non-profit corporations with a board of trustees. They often deal with the most difficult development projects including low income housing. 4) Study THE URBAN LAND (CEILING AND REGULATION) ACT, 1976 of India and discuss its salient features. What do you think are its advantages and disadvantages in the Indian context? (07 marks)

The Urban Land (Ceiling & Regulation) Act, 1976 (ULCRA) imposes a ceiling on vacant land in urban agglomerations and provides for the acquisition of such land in excess of a ceiling limit.The Act was enacted to prevent the concentration of land holdings in urban areas in a few private hands and make urban land available for housing of the middle- and low-income groups. The Act came into force in 1976 in 64 urban agglomerations, spread over the states of Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Karnataka, Maharashtra, Orissa, Punjab, Tripura, Uttar Pradesh, West Bengal and all the Union Territories. The Act was subsequently adopted in Assam, Bihar, Madhya Pradesh, Manipur, Meghalaya and Rajasthan. The state of Tamil Nadu had its own Act, known as the Tamil Nadu Urban Land (Ceiling & Regulation) Act, 1978. ULCRA was repealed in 1999 by the Union government through the Urban Land (Ceiling & Regulation) Repeal Act, 1999, and subsequently, it was repealed in the states of Gujarat, Haryana, Karnataka, Madhya Pradesh, Orissa, Punjab, Rajasthan, Uttar Pradesh and all the Union Territories. The ULCRA is still in force in the states of Andhra Pradesh, Assam, Bihar, Maharashtra and West Bengal. Perceived need of the ULCRA ULCRA was passed during the emergency of 1976. The objectives of the Act were to prevent the concentration of urban property in the hands of a few persons and speculation and profiteering therein; to bring about socialization of urban land in urban agglomerations to ensure equitable distribution; to discourage construction of luxury housing leading to conspicuous consumption of scarce building material; and to secure orderly urbanization. The Act provided for imposition of a ceiling on both ownership and possession of vacant land in urban agglomerations; acquisition of the excess vacant land by the state government, with powers to dispose the vacant land for common good; payment of an amount for the acquisition of the excess land; and granting exceptions in respect of certain specific categories of vacant land. Ceiling on ownership of vacant land under ULCRA From the commencement of this Act, no person shall be entitled to hold any vacant land in excess of the ceiling limit in the territories to which this Act applies under sub-section (2) of section 1. In A class cities such as Delhi, Mumbai and Kolkata, the ceiling was 500 sq. metres (0.05 hectares or 5,382 sq. feet) per owner. This figure was arrived at on the basis that a family of four should be entitled to 20,000 sq. feet. Land owned above this limit can be used only if houses for the poor are built on a part of it. In category B, C and D cities, the ceiling was 1,000 sq. metres, 1,500 sq. metres and 2,000 sq. metres respectively. Failure of the implementation of the ULCRA The total vacant land, estimated to be in excess of the ceiling limits, was 2, 20,674 hectares. Almost 40 million houses for the poor could have been built on this land. But the performance of the governments was dismal. As little as 0.4% of the surplus vacant land has been used to create houses for the poor, 56,640 hectares (26%) was exempted under Sections 20 (for reasons of public interest and undue hardships), 5,327 hectares (2%) was exempted under Section 21 (for the purpose of building dwelling units for weaker sections of the society). Out of the excess vacant land of 50,046 hectares vested in the state governments, only 19,020 hectares (38%) could be physically acquired in 22 years of the enactment of the ULCRA. Of this acquired land, 10,910 hectares was put to use for the purposes of the Act, while the remaining 8,172 hectares could not be put to use.

In Maharashtra, 262 acres (106 hectares) was acquired of a total of 30,023 acres (12,150 hectares) rendered surplus. Thus, a mere 0.87% of the vacant land has been acquired over the last thirty years. In Mumbai, Thane and Ulhasnagar, only 5% of the excess vacant land of 4,836 hectares was acquired. In Andhra Pradesh, of the total vacant land of 7,596 hectares, only 2,466 hectares (32%) was acquired, and 1,176 hectares (15%) was used to create housing for the poor. Reasons for the failure of ULCRA There are several reasons for the failure of the ULCRA: The state governments were bestowed with too much discretionary power in granting exemptions. Section 20 granted exemption in public interest, and Section 21 granted exemption on account of undue hardship to the land owner. Since the decisions on these criteria were very subjective, almost all land owners claimed exemptions. This also bred a nexus of corruption between politicians, bureaucrats and the builders. Those who could not gain exemptions went to the courts and the land got embroiled in litigation. The compensation provided for the acquired land was so little that it was almost penal. The maximum compensation was rupees ten per sq. metre. The total compensation could not exceed Rs.2 lakhs per owner. This made land owners reluctant to declare their vacant land as surplus. The ULCRA did not have any provision to ensure that the government created houses for the poor on the land acquired through the Act. For example, the government of Gujarat has surplus land of 1.30crore sq. metres (1,300 hectares) in Ahmedabad, Rajkot, Surat, Vadodara, Bhavnagar and Jamnagar, which has not been utilised to create housing for the poor. Land prices in cities have reached astronomical heights due to the artificial scarcity of land created by the ULCRA. Advantages: The Urban Land (Ceiling and Regulation) Act results in multiple benefits to the urban people. The other benefits will include easing of land prices due to increase in the supply of land, leading to fall in real estate prices, thereby making it possible for the economically weaker sections of the society to have access to housing. Besides, there will be speedy growth in sectors like housing, industry, transport and other urban infrastructure due to better availability of land. About two lakh hectares of land will be available in 64 cities all over the country for housing and urban infrastructure development following the Ordinance. Disadvantages: The Act has been termed as a draconian law and has been criticised severely. The implementation of the Act in the States/UTs has been dismal, mainly due to the following reasons: Vesting of too much of discretionary powers in the State Governments for granting exemptions. Highly expropriator nature of the Act. The Act, as it stands, does not provide for a mechanism to force the entry of the vacant urban land into the land market through appropriate fiscal measures.