Inclusionary housing financial mechanisms in developing city: a case study of Dhaka

Abstract

Inclusionary housing policy is practiced in many cities in the North in response to housing affordability. However, this policy is  implemented in few cities in the South. It is needed to understand the financial approaches of this planning tool to implementing in  the cities there, which is under researched. This research reviews the financial mechanisms for implementing inclusionary housing  policy in a case study city Dhaka, the capital city of Bangladesh. A qualitative and thematic analysis of secondary data has been  performed. This research has revealed that presently lack of financial capacity is the major challenge of implementing inclusionary  housing in Dhaka. Different financial mechanisms can make it possible to introduce inclusionary housing in Dhaka, such as mobilizing  revenue; mobilizing resources of the community; different types of partnerships; capturing the capital gains; cross subsidy; easy  financial packages for the low-income bracket. The inclusionary housing financing mechanisms/components need to be integrated  with each other for effective financial management.