IntroductionThere is no doubt that housing is one of the basic necessities for human beings. However, it has remained a critical problem for millions of poor people in developing countries (Bihon, 2007).As a result of increasing urban homelessness and the growth of slums, from the 1950s governments throughout the world started to develop various strategies and intervene more directly in the procurement of urban housing (Wakely, 1988). The two decades 1950-1970 saw the political independence of many colonies in Asia, Africa and the Caribbean and a new economic independence, and these brought about significant industrialization and dramatic urbanization in many Latin American countries (Wakely, 1988; Wakely, 1988). In some countries, the government subsidy was redirected from the low-income groups to low-middle income earners and then switched from individual householders to the (profit-motivated) producers of housing -real estate developers and bankers (UN Habitat, 2003).Today, housing for low-income families is a major component of all towns and cities in Asia, Africa, Latin America and the Caribbean, typically covering 60-80 percent of the developed land area of towns and cities and accounting for 50-70 percent of the value of the fixed capital formation of urban areas of which they are an integral part (UN-Habitat, 2003).Like most urban centers of developing countries, most cities and towns in Ethiopia face a plethora of problems, including an acute and ever-worsening housing shortage (Solomon & McLeod, 2004). In Ethiopia, until recently, there was no specific legislation that recognized citizens' right to housing or which imposed a duty on the government to recognize that right. Nevertheless, there were few national coordination policies regarding housing and urban development. During the first half of the 20th century, land and housing in Ethiopia were controlled by a few individuals and groups, where housing supply was mainly controlled by the landowning elite who constitute less than one percent of the population but own more than 70% of the arable land (UN-HABITAT, 2007). Following the 1974 land proclamation (No. 47/1975), ownership of all urban land and extra houses were transferred to the government in an effort to enforce a fair distribution of wealth across the country (Teshome, 2008). State sponsored urban housing construction has begun in the late 1980s (Mulugeta, 1995). With emergence of the current government in 1991, Leasehold as a land tenure system was introduced in 1993 and then revised in 2002 and 2011 (UN-HABITAT, 2010).Since year 2005, Ethiopia has been implementing an ambitious government led low and middle-income housing programme. The programme involves a radical shift from the single-storey detached housing typology (government owned rental housing) to a new condominium typology (private homeownership). According to the programme, all slums would be cleared within ten years. To make the programme feasible, the state transferred the overall responsibility for the housing sector to the regional administrative level. At the regional level, the Bureau of Works and Urban Development (BWUD) is responsible for urban management and development issues.According to empirical assessment of housing study by HCAFEDO, 52 percent of the total population of the capital city, Addis Ababa, earns a monthly income of less than 167 USD (HCAFEDO, 2011). Based on this observation, it would be obvious that the housing standard of the city is incompatible with the affordability of the majority of the residents to build their shelter. The situation is not different for most towns in Southern Ethiopia, especially to the capital of Southern regional state (Hawassa city administration). In the city administration, high income group earning more than Ethiopian birr 2000 (100 USD) accounts for only 8 percent, middle income getting monthly income of 670 - 2000 accounts 26 percent and low income residents, those getting less than birr 670, account for 56 percent. …
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