Private sector housing development in Mongolia

With the withdrawal of Soviet funding (about 40% of the housing budget), the rise of hyper-inflation, and the decline in national production, the government has evolved a de facto housing policy which: (1) shifts emphasis from high-rise apartment buildings to single family, privately owned housing; (2) pays special attention to upgrading ger boroughs (i.e., informal compounds containing both traditional nomadic dwellings and individual wooden structures), where 47% of the population of Ulaanbaator lives; and (3) promotes privatization of housing services such as architecture, engineering, and construction, while retaining public ownership of infrastructure utility companies. This paper examines the status of Mongolia"s housing and urban sectors and recommends that the government take the following steps towards establishing a private sector housing delivery system: (1) formulate a housing policy and conversion plan geared to the private sector; (2) design a finance and cost recovery scheme for installing infrastructure services at new housing sites; (3) privatize architecture, engineering, construction, and building materials companies; (4) provide incentives for manufacturers of building materials, especially materials currently being imported; (5) prepare regulatory systems for private housing development (e.g., land registration and appraisal systems); and (6) train public officials and private developers in the areas of private land and housing markets. Final sections of the report detail plans for a 5-day workshop on private sector shelter development and assess future technical assistance requirements.