Housing Planning for Urban Low-income Groups with an emphasis on Their Financial Capabilities, Housing Line of Poverty in Kurdistan Province urban population

One of the elements of the permanent development is housing. Unlike everyday used goods, housing, after fulfilling the need for it, would become a kind of investment since it gets value continually. Other than its economical value, it increases in value and demand due to its social, cultural, body-physical, psychological, health (spiritually and physically). Low-income groups of different societies, generally, are incapable of providing appropriate house thanks to economical (financial) problems and intense increase in the price of housing. Also, the ability of such groups to save money and making use of government facilities is limited. Such a condition in a defective cycle will, always, bring about a gap among offer and demand, effective demand, and potential housing demand amongst these weak groups. Kurdistan Province is considered as one of the critical regions of Iran according to norms of housing inventory and housing investment and the rate of house-ownership is too low in its first five Decile. Allthe above mentioned reasons have caused housing a serious question so that homelessness and home-badness is slipping towards higher Deciles.
The study is a fundamental-applied one and has adopted a qualitative and quantitative method for analyzing its data. The required information and statistics for analysis and investigations such as society’s income Deciles, the area of a home to Decile, owners/tenants per cent, financial capabilities, and absolute-relative line of poverty are collected from the authentic source of Iran Census Center.
Quantitative analyses are performed through indirect method functions and Stone-Garry Function. At last, for estimating and calculating the absolute line of poverty EVIEWS software, and for the relative line of poverty SPSS and Excel software were used.
Investigating the index of the area owned by urban families in the province demonstrates that in the studied period, we have witnessed a drastic decrease. This decrease in the lower Deciles of the society equals to 38% of the beginning of the period and 28% in the highest Decile.
Ownership rate has shown a general decrease, too. The average rate of 82.63% in 1375 has lessened to 61.4% in 1385. The percentage of tenants’ population in all Deciles has grown and, on the average, moved from 13.68% in1375 to 26.83% in 1385.
The proportion of tenants in high-income Decilewas 5 timesmore than low-income one at the beginning of the period. However, at the end of the period, the proportion was 4.6 times.
Employment rate has accelerated partially so that in the first Decile with 21.05% in 1375 has reached 50% and totally it has grown to 78.5% from 74.74%.
The proportion of food cost to total costs among non-owner families id more than 32%. And the cost of housing has formed the major portion of the cost of such families.
For investigating financial capability of different Deciles regarding house provision, indirect function has been applied which suggests a large amount of difference among different income Deciles according to the function results so that the first six Deciles , literally, cannot afford house provision, at least 60m2; however, the tenth Decile has an unusual ability. At the end, the researcher has tried to identify absolute line of poverty through Stone-Garry Function Method and EVIEWS software and relative line of poverty- the basis was half and 2/3 of median rate which is 75m2 based on 1390 plan of urban families’ cost and income. Accordingly, the absolute line of poverty of housing is 50m2 and the relative line of poverty with half of median rate is 37.5m2, and with 2/3 of median rate is 50m2. Therefore, 13.7% of urban families are living under absolute line of poverty, 6.5% are under relative line of poverty (half of the median rate), and 17% are underrelative line of poverty (2/3 of the median rate).
The results of the study suggest that there are numerous principal problems in the realms of housing economy and market. Furthermore, one can witness the impacts of several factors in housing sector such as economy’s major condition, inflation rate, the growth in the price of land, the growth in the price of construction material, growth in the gap between effective demand and potential demand, the low amount of government’s bestowed facilities for either purchasing or building house, and applying rigid rules and regulations regarding house construction.
All the above-mentioned factors have caused a harsh situation for low-income groups of people for obtaining appropriate house. In addition, as time passes, it has been becoming worse. Hence, during the period of the study, the inability of people regarding providing suitable house has slipped to the middle Deciles of the society which was only 3.
Based on what has been discussed, applying some proper strategies, policies, and decisionsseems necessary in order to provide the required (economical, legal, cultural, and urban civilization) factors for low-income groups. Some steps like reforming urban civilization’s rules and regulations, facilitating construction license, increasing facilities related to purchasing/building house, collecting suitable rules and regulations concerning gradual house construction,adopting applied steps to decrease brokerage in land and housing market, and to decrease taxes related to housing sectormust be taken.
Guidelines:Using the potential of the local environment (materials, labor Vnyrvy) for the manufacture and supply of housing and a positive attitude in recognition of informal settlements,Department of Financial Management - Legal and urban households in need of support,Creating an efficient financial system for the provision of housing for low-income groups,The actual transfer of land to build housing for low-income groups and identify them,Potential deterioration of tissues to provide housing for low-income groups, the reformist approach is based on the empowerment of low-income groups.
Politics:Detailed and accurate identification and implementation of policies to help low-income groups by ID,Establish clear lines of credit to finance a special fund of funds identified,Increasing the supply of rental housing acquisition condition,Promote ways of a making incremental housing - further decreases the share of the cost of housing for vulnerable groups,Buying and selling land and housing management repeatedly applying clear rules and strong enough to prosecute enforcement actions.