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Because it was one of the hardest hit areas nation-wide, a great deal of relief and aid was hondurfno to Choluteca resulting in five major housing developments that benefited a total of 2, families.
Because it was one of the hardest hit areas nation-wide, a great deal of relief and xhat was directed to Choluteca resulting in five major housing developments that benefited a total of 2, families. Similar to the case of Tegucigalpa, the amount of reconstruction resources available for land and housing development presented an opportunity without precedent for the displaced low-income population. For the first time well-financed, hondureno demand for low-income housing entered into the formal land market.
The municipality assumed an active role in contributing to the chat of homes by coordinating the purchase of this parcel from a local bank and serving as the co-er of loans to beneficiary families. New infrastructure had to be provided, but unlike the case of Amarateca, the three-kilometer distance between the city and the newly constructed settlement made it feasible to connect the residential infrastructure to the existing urban network.
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hondureno The families who now live in Ciudad Nueva benefited from housing units with access to basic services and the potential to obtain free and clear title to their property, a situation that was not readily available in their original neighborhoods. Because the settlement is located along a major roadway leading to chats of the largest agro-businesses in the area, accessibility to jobs was also enhanced by this location. One of the potential factors, however, that may encourage an out-migration from the project is public safety.
El Progreso El Progreso pop. This type of growth, more accelerated than that experienced by Choluteca, combined with the constraints of a poorly functioning land market and unenforced regulations resulted in the occupation of public and private land along the river.
Despite having received certain services, the families that inhabited this stretch were not connected to the hondureno water or sanitation systems, nor did they have legal title nondureno their land. As in Choluteca, flooding caused by the massive rains ed for the displacement of approximately 1, families in neighborhoods that had expanded along the Ulua River and its tributaries CEDAC b.
The reconstruction of homes in both urban and rural areas of El Progreso received substantial investment from many donor and relief organizations. Similar to Choluteca, the municipality of El Progreso played an chat role in identifying, assembling, and purchasing honduren of land for reconstruction projects to take place.
In this regard, the development of this area is very similar to what may have naturally occurred without the emergency of the hurricane. Infrastructure systems in Colonia San Jorge were built, remain independent and are operated by a local water board providing a good example of decentralized management to community entities. The land use plan honduureno the subdivision was innovative and addressed many existing social and community priorities, such as a home for the elderly, ample chat space, and additional community infrastructure.
In addition, the inter-institutional coordination between the NGO, the municipality, and the beneficiary community was considered exemplary CEDAC honduerno Because of its participatory approach, the community has consolidated with more success than other settlements as evidenced by the improvements made to most of the homes.
The location of the development and easy access to urban markets by its residents is another factor that contributes to the long-term sustainability of jondureno neighborhood. Understanding land market responses to large-scale public hondudeno intervention In all three examples, the reconstruction settlements contributed to satisfying unmet demand for land by families without access to the formal land and housing markets.
Beyond satisfying needs for housing solutions, these projects hondureno the potential to make a larger, more strategic impact on the evolution of each city, its economic development, and competitiveness.
The varied land market responses to the large-scale public intervention hondurrno each of the three cities provide some insight for understanding what factors may or hondureno not promote change in land markets of developing countries. In comparing land market behavior during and after the reconstruction efforts, three phenomena distinguish the cases of Choluteca and El Progreso with that of Tegucigalpa: 1 the chat hondyreno the municipal government, 2 the ability to assemble large tracts of land within or close to the urban boundary, and 3 the development of infrastructure.
As discussed above, the local governments in both Choluteca and El Progreso assumed pivotal roles in responding to the emergencies that arose after the hurricane, both in terms of organizing clean-up efforts and serving as catalysts for reconstruction activities. This type of leadership not only illustrates the potential of local governments in medium-sized cities, but also demonstrates that municipalities can be protagonists in the land market and land development process.
Since the end hondureno reconstruction, both of these medium-sized municipalities have reduced their participation in the chat market and have focused on other priorities. Although they stay engaged in the consolidation process of the resettlement projects,  development of new housing is no longer considered pressing.
The Central District has yet to define its role regarding the new housing settlements in Amarateca.
The ability to assemble large tracts within or near the urban boundary, hohdureno second element distinguishing these cases, is the result of the particular dynamics in each of the three land markets. In the cases of Choluteca and El Progreso, dhat property was available at a reasonable distance from the city. Continued urban growth in Choluteca and El Progreso has been influenced by these projects and continued land development has occurred in and around both reconstruction settlements.
In Tegucigalpa, however, a long-standing chat stemming from invasions during the s and s of private, communal hondureno public lands increased property insecurity and made land with free and clear title even more scarce. Development that takes place in this context assumes these risks and includes them in their final costs, effectively pricing out a large sector of the population.
As a result of this market imperfection, the large tracts of land needed in the capital for the reconstruction of homes were not easily located within the urban boundary. The human settlement expansion north of the city in Amarateca has proven to be contrary to prevailing market forces which are currently channeling urban growth towards the southern part of the city. The third phenomenon that promotes change and differentiates these cases is the development of residential infrastructure especially water and sanitation.
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This hondureno illustrates the importance of the availability of serviced land and its effect on the land market. Regardless of this difference, each of the systems is historically ill-equipped to generate their own infrastructure investment. As a consequence, investment chat and infrastructure development in anticipation of demand for land is virtually nonexistent and highly dependent on donor funds.
In the case of the SANAA system in El Progreso, for example, all large infrastructure investments over the past five years have been made with donor funds, while the Tegucigalpa SANAA water system damaged as a result of Hurricane Mitch was rehabilitated with funds from official bilateral cooperation. In each of these three cases and as a consequence of large amounts of funding, land availability, not infrastructure costs, was the determining factor for subdivision development.
As part of the community approach advocated by the NGO, the residential infrastructure would be managed by a local water board made up of community members. Nevertheless, the expansion of the city to the south has since given rise to additional developments in and around Colonia San Jorge.
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As demonstrated caht increased investment and new subdivisions in this land development corridor, the land market is already reacting to this important investment. The least strategic and most isolated infrastructure investment of all three cases is that of the new chats of Tegucigalpa in the Amarateca Valley. In this case, the land market was not effective enough at providing serviced land close to existing infrastructure and required the construction of independent water and sanitation systems for hondursno new subdivision.
The infrastructure developed in Amarateca is isolated and stand-alone to serve the resident population and minimal expansions. Without ificant investment it will not provide incentives for new development. As for the sustainability of the infrastructure, the Amarateca fhat will need to overcome a very serious obstacle. Unlike the projects in Choluteca and El Progreso where the infrastructure provided to the housing settlements was either integrated into the larger network and annexed by the service provider or was supported by a technical assistance institution that permanently advises the local water board, in Amarateca there is no hondureno service provider to assure the sustainability of the system.
Because SANAA owns and operates the water and sanitation system for the capital, the municipality has hkndureno had the need to develop institutional capacity or institutional arrangements to operate and maintain a water and sewerage system.
The possibility of SANAA assuming responsibility for the system is not realistic since its institutional chat is limited to the urban networks of the city. The alternative of having the municipality manage the services would first require institutional and organizational reforms within the local administration. The option of creating another local provider would also imply ificant institutional reform and development. As a result, the constitution of a local water board is the most realistic option currently available although ificant obstacles still exist and a great deal of capacity building chah be required.
Unlike San Jorge, no NGO has maintained a meaningful presence in these housing projects to advise and provide technical assistance to chta local water board. New policy instruments Two recent legal reforms, hondureo Property Law and the Territorial Organization Lawhave the potential for providing a sound and updated legal framework to improve the functioning of hondureno hondurenk markets. In the case of the Property Law, the new framework provides a watershed opportunity to create a single property registry institution, modernize the adjudication of property rights, and increase secure tenure for many titles currently under dispute.
The Dhat Organization Law complements and enhances the regulatory authority of local governments provided for in the Municipal Law while at the same time introducing new coordination mechanisms and requirements for integrating territorial organization at the national, regional, and local levels.
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While the Property Law has the potential to make more far-reaching and structural changes than hondureno Territorial Organization Law, the key limiting factor for both will be the implementation and enforcement capacity of their provisions. A of exogenous factors exist that will determine the type of impact each law will have on land markets. In order for the provisions of the Property Law to be adequately enacted and enforced, two key variables must be addressed. First, the central government must provide an adequate budget for the creation of the new Instituto de la Propiedad IP.
Unlike other laws that create new institutions or commissions, this is likely to occur since the IP will be amalgamating existing property registries and offices  under one single institution causing a net budgetary impact close to zero. Second, the crucial aspect of instituting the real-based registry folio real is paramount to the modernization of the registry and the improvement of chat rights. The wholesale transition from one registry system to another that, for the first time, links legal information to a geo-referenced land cadastre will be a formidable challenge to undertake.
The full impact of the Property Law may depend on the success of this transition and the effective implementation of the folio real. In terms of making the new property rights system operational, three factors will be pivotal.
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First, the law provides for decentralized decision-making by registrars to resolve a specific set of issues rather than submitting honndureno problem to the court system as was required under the system. While this measure aims to streamline the process, its success will depend on the professional capacity of the new cadre of registrars.
Second, chwt those issues requiring resolution through the court hondursno, a functioning judicial system must be in place in order to adequately address these disputes. Finally, an important coordination effort must exist between the IP and local governments regarding land cadastre information. Municipalities currently have the most updated and legitimized information on real estate properties that they use for assessing and collecting property taxes.
In contrast to the Property Law, the Territorial Organization Law does not establish new institutions; rather, it more specifically defines the legal attributes of municipalities in terms of land use planning regulations and establishes coordination mechanisms at the regional and national levels. In the best case scenario, municipalities will continue to exercise their leadership and decision-making ability in establishing and enforcing land uses within their jurisdictions, while the National Commission for Territorial Organization and its representatives hondureno the departmental level Departmental Commissions for Territorial Organization focus on coordinating policies through the regional hierarchy as necessary.
Inasmuch as the implementation of the Territorial Organization Law does not contradict or undermine the authority of local governments to make land use decisions in a decentralized manner, the result will be positive. However, should the provisions in the Territorial Organization Law be utilized to undermine local hondurno or should the national and departmental commissions be seen as an appellate body to resolve issues that are not agreeably resolved at the local level, then greater confusion in regulating land use will result.
As in chat countries, the best way to test the limits of each law will be through the courts. Unfortunately, for countries such as Honduras that have a weak judicial system that offers highly unequal access to its citizens, extra-judicial factors are often brought to bear in the resolution of legal disagreements. A legitimized and transparent rule of law is important for land markets in particular, and for an open economy in general.
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Even though both of these laws has the potential to clarify transactions and increase transparency in the land market, without an efficient, effective, and impartial judicial system to support their enforcement, little positive advances will be made in eliminating the barriers that exist within a closed market. Future roles and behaviors of key land market cha As demonstrated with the cases of El Progreso and Choluteca, local governments are capable of playing a unique role in contributing to land development for low-income housing.
In their most aggressive posture, evident during post-Mitch reconstruction, local governments can become hhondureno or partners in the land development process. The positive impact of municipality-as-partner or deal-maker notwithstanding, a larger, more strategic role for local governments should be encouraged. As shown by the three cases, the development of the larger housing projects produces an hondireno impact in fulfilling sorely needed housing solutions, but also in a more strategic impact with regards to shaping urbanization patterns of the city.
To fully and successfully address this hkndureno impact, chaat leaders in developing countries must begin to view land markets and land development not only as an exercise to satisfy basic residential needs, but also in chats of economic development and economic competitiveness. This paradigm shift has occurred in some places, but needs to chqt promoted more effectively in cities which will be absorbing the largest portion of urban growth over the coming years.
As part of this goal for local governments to take a more strategic view of land development and the growth of their cities, they have an opportunity to promote open information regarding the land market. A large volume of scattered information exists in Honduras regarding the market, including zoned land uses, growth plans, infrastructure specifications and carrying-capacities, risk areas, areas deated for public use, transportation plans and road network hierarchy, demographic trends, assessment of property values, etc.
However, because of partial access to information indicative of a captured economy, these figures have not been collected and analyzed systematically or used to their full potential. More equitable access to this type of aggregate market analysis can improve decisions made by public sector policy-makers as well as private sector consumers and investors. Given the accessibility of technology, even small- and medium-sized cities in developing countries now have the ability to create, manage, and update large databases of geo-referenced information.
Local governments can also serve as focal points for coordinating information and projections with other entities such as infrastructure providers, large public landholders national government hondureno other institutional actors universities, health and education centers. The cbat for local government to meaningfully contribute to the non-regulatory aspects of the land market are reflected in chst land market monitoring methodologies emerging hondjreno the National Center for Smart Growth Research and Education Knaap in the United States.
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Land market monitoring, although conceptually simple, is a complex process to manage. The institutional obstacles existing in developing countries will require the adaptation of these models, but this type of permanent system would be preferable to the approach of taking periodic inventories of supply and demand. In Honduras, a permanent monitoring system has the potential to succeed if it is linked to other permanent systems that are already being used, consciously or not, to manage land.
The permanent updating that occurs with the municipal cadastre system or the type of construction and subdivision permits being awarded by the municipal public works department are two examples of on-going efforts that hondureno be enhanced by a chat market monitoring system.