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March 12th, 2010

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Exploring innovative financial instruments for funding affordable housing and urban infrastructure PDF Print E-mail

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The International Conference on land and property taxation and financing infrastructural and housing development in urban areas, jointly organized by the Warsaw Office of the United Nations Human Settlements Programme (UN-HABITAT), the Global Land Tool Network (GLTN) and the Ministry of Infrastructure of the Republic of Poland, was successfully concluded last week in Warsaw.

Over 60 participants from around the World and representing various stakeholders in the field attended the event. Seventeen papers exploring policies and instruments for improving equitable, affordable and sustainable land and property taxation, charges and fees, were selected for presentation.

Participants at the Conference acknowledged that there is no one-for-all solution. They called for the balance between taxes on property and land and other instruments. Presentations and discussions covered an array of innovative approaches to land and property taxation policies, reforms and tools for a range of purposes, including revenue generation for new investments and for further financing urban infrastructure and development, and integrated urban planning and management.

Participants expressed their concern that some current taxation policies hinder harmonious and sustainable urban development. It was noted that inadequate land and property taxation systems can indeed lead to speculation in land and on the housing market, thus increasing prices, making them unaffordable for low income households in cities.

Presentations emphasised that land taxation policies can encourage land and property owners to develop or improve land and housing to the full extent that its value warrants, or to make way for others who will. Consequently, building lots are used efficiently; dilapidated inner-city areas and buildings are returned to good use, which reduces urban sprawl and decay.

In the financial turmoil which we have witnessed, with its consequences for equitable and sustainable urban development, the Conference brought into the forefront innovative taxation policies and practices for improved urban land and property management that may further inspire urban decision-makers and in future expand the tax base targeted at urban development.  

Finally, the Conference demonstrated the need for further dialogue in the area of land and property taxation at global and regional levels, to capitalize and build on the range of related knowledge, tools and practices which were discussed.

The report of the meeting and the proceedings of the Conference “Financing Affordable Housing in Cities: Towards Innovative Land and Property Taxation systems”, 15-16 October 2009, will be made available in the near future at www.gltn.net and www.unhabitat.org.pl