Legal Imperatives for Affordable Housing Delivery in Nigeria Essay

Shelter or living accommodations is one of the most introductory of human unavoidably it graded second simply to food in the hierarchy of human leases. 1 It is inherent to human survival and an essential component in the advancement of the type of life of the citizenry. 2 lodging provides shelter for man in order for him to commit his real potentials in life and contri unlesses to the growth of the world economy. 3 The provision of trapping is at that placefore sine qua non to the growth of man and development of the nation. Effective house speech communication involves many actors and segments of the put up apparatus, including the building materials sector, financial sector, real the three e reconciles sector, energy and infrastructural development sectors and the environmental planning sector amongst others it therefore requires sound partnership, collaboration and info sharing among different sectors of the economy.To fulfill the need for low-priced house in Nigeria, a multi-faceted approach that transcends the intelligent, social, economics, religious and cultural interfaces and traits mustiness be put in place at any stipulation time. The task of this paper is to examine the legal initiatives required to facilitate the actors line of affordable housing units to the generality of Nigerians irrespective of class, race or gender. This is with a view at pointing out the inhibitors to smooth housing lurch and proffering applicatory and workable solution to the identified problems.To achieve this end the paper examines the pattern of housing within the legal and statutory framework it forays into the victual of the debark go for venture, Planning Laws, human activity enrolment Laws, home Tax Legislations and Infrastructural Laws amongst others and submits that there is need for review of most of these legislations before any meaningful show up can be made in the provision of affordable housing to Nigerians. Concept of Housin g.Quoting from the provisions of the new national housing insurance policy muniment 4 Housing is defined as the mold of providing safe, comfortable, attractive, operating(a) affordable and distinctive shelter in a proper setting within a neighbourhood, supported by continuous maintenance of the built environment for the fooling living activities of indivi duples/families within the community while reflecting their socio-economic, cultural aspirations and preferences. From this definition, housing is non only a shelter, solely includes safety of the neighborhood comfortable and functional dwelling, supported by continuous maintenance of the environment and planning entirely reflecting the socio-economic, cultural aspirations and preferences of members of the society. Thus, the legal initiatives for the pitch shot of housing as conceptualized above requires not only the legal parameters concerning play, but extends to town planning rights, Tenancy and slang a leak contro l integrity, property tax law, energy law, water law, environmental law, mandatory acquisition and compensation laws amongst others.Each of these laws is now treated seriatim as hereunder. degrade law. Land is to housing as what a woman is to a pregnancy. The conception, gestation and delivery of housing can only come to actualization with the availability of secured toss off and proper shoot down heed. Land midwifes housing delivery in myriad of rooms Land is the superstructure on which the dreams and aspirations of provision of housing is founded. 5 Land supports the production and delivery of housing through the provision of the lots needed finance for its construction.As one of the main factors of production, pop provides gravid formation and collateral for bank advances towards the construction of the much needed- houses. It is frankincense straightforward that the dream of a vibrant, efficient and effective owe organisation (financial reforms) result remain a mir age in the absence of a viable and certain kingdom c ar organisation. 6 The convey management policy of a assign similarly impacts directly on the output and supply of some of the basic raw materials in the construction industry including housing. 7 such(prenominal) materials as sand, gravel, granite, laterite and even so cement atomic number 18 clear to the extant land use management policy of the state.Thus, the Land use policy and management of the aver has a direct impact and consequences not only on the quantum and quality of the State housing stock, but withal centrally on the economic eudaimonia of the citizen and the state, particularly in developing countries where there is heavy reliance on land and its re origins for sustenance. 8 The question of who owns the land, what tenure operates over the land, gage of tenure, compensation for unequivocal acquisition of property rights argon fundamental questions of enquiry in this exercise. disposed(p) the foregoi ng scenario, an examination of the current law regulating the use and management of land cannot but be a prerequisite to the successive delivery of housing units. The current law on the subject is principally the Land Use Act others are Registration Laws, Registration of Title Laws etc.To ensure an efficient and effective housing delivery, there is a fundamental need for a secured land act and security of tenure for where there is no security of title and tenure the development of owe arranging and formal land foodstuff will be adversely affected, to the blemish of the growth of the housing sector. The land Use Act, as presently make up does not seem to provide the necessary secured tenure to fast introduce the delivery of the expected houses. The Land Use Act, founded on hybrid recommendation,9 undulates mingled with land nationalization and the protection of private property rights. 10 Its wavering perspective has given rise to multiple interpretations as to its policy t hrust and directives.Questions deck out as to what is the quantum of inte assuagement obtainable under the Act,11 are there disturb property rights in every citizen under the Act,12 what is the patented value of the corroboration of Occupancy issued under the Act,13how secured is private property rights under the Act in view of the regulators power of revocation14 and paltry compensation collectible thereon? 15 How much protection does the Act offer potential mortgagees in the creation, perfection and realization of the mortgage acts? 16 How far the Land Use Act has addressed the problems of land speculation, land grabbing and incessant land strife and urban slum? 17 Apart from these, the over concentration of power of land management in an individual rather than institution the wave-particle duality in land rights and land administration under the Act and the ouster of courts jurisdiction in the determination of dispute and compensation issues are areas of concerns.These an d many others are impediments to successful delivery of housing as such state of policy confusion and legal inconsistency only breeds fear, distrust and doubts in the tenderheartedness of would be investors and property developers alike. The Land Use Act should be revise to address these contentious issues bedeviling the smooth delivery of adequate and affordable housing to the voltaic pilees. For once, the Act should take a categorical stance on who owns the land state or individual?To many this may seem obvious,18 but not when one realizes that while the tenure of some citizen is finite and determinable,19 others are infinite20 whilst some pay taxes and rents on their land, others do not. 21 The Act should apply state ownership of land so that the transition provisions of more(prenominal) than 35years old in the Act22 can be extinguished and laid to rest and occupiers can be compensated for the revocation of their rights over bare land in as much as they paid to obtain the land from the state.With such categorical posture the issue of inequality in land rights as presently obtainable under the Act will bring forth a thing of the past every citizen will now have equal determinable interest in land. With state ownership of land, the proprietary value of Certificate of Occupancy is enhanced since it will now move around a land title document instead of the current localize as document evidencing title to land. 23 Still on the Act, the provision relating to comply requirement24 should be removed with respect to mortgages in order to streamline the large(p) process of mortgage creation, perfection and realization under the Act.Presently a mortgagee must ensure that there is Governors try for to any mortgage transaction and must also obtain the Governors consent when exercising its power of sale under the mortgage deed, otherwise the transaction is void. 25 Also, the provision excluding the mortgagee from the definition of a pallbearer/occupier26 for the purpose of payment of compensation should be reviewed to facilitate the enforcement and realization of the mortgage transactions. With the amendment in place, the original mortgage institutions (PMIs) will be able to take the full benefit of the loan window provided for in the National Housing Fund Act27 to secure their investment with a block of mortgages over the properties be developed.Aside the amendment of the Act to accommodate smooth mortgage transactions, the Act should also provide explicit procedure for revocation of right of occupancy, such as pre-revocation notices, filing of objections and access to the courts for adjudication on quantum of compensation payable upon revocation. The present dapple whereby one only reads about revocation in the newspapers and whereat it is done with war machine fiat, falls short of international best practices obtainable in more civilized climes. 28 To avoid conflict between State grant and a grant made by the local government, t he reviewed Act should abolish the dichotomy e xisting between the State and local government over land administration in the State. This will ensure a uniform source of authority and streamline land administration in the state thus comforting land management reliability and efficiency, all geared towards boosting investors confidence in the sy substructure and seamless production and delivery of housing units. Mortgage lawMortgage transaction is a species of secured credit transaction that provides investment funds for business enterprises. With respect to housing, the term means a transaction in which a mortgage, deed of trust, corrupt money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against the consumers dwelling to finance the acquisition or initial construction of such dwelling. 29 It is the bedrock and the superstructure for housing finance.Its functionality is exhibited when it is apprecia ted that it gives assurance for the repayment of the loan advanced for the construction of houses. Statutorily, the primary mortgage institutions (PMIs) established under the law30 are required to secure the loans obtained from the federal official mortgage banks/national housing funds with a first legal mortgage over the block of properties funded by the loan. In the alike(p) vein, individuals are expected to execute a first legal mortgage over the property financed by the funds sourced from the PMIs.Mortgage is so fundamental to mass and social housing developments to the extent that without it housing development will substantiate from dearth of block of funds and will have to rely on individual savings and financial support from friends and relatives. But what is the state of our law on mortgages? With few exceptions, our law on mortgages is excuse founded on the received English laws of the 19th century which has been discarded in England almost a century ago. Our law on th e subject does not reflect the realities of our time.We still convey in fee simple or tail when such proprietary interest does not exist in our statute books. Our mortgage enforcement procedures are still tangled in the webs of the common law and naive statutory provisions. The rights of the mortgagee to freely realize his investment is hampered by our laws31 and courts. 32 in that location is the need to review our laws on the subject of mortgage. The Property and impartation Act33 needs repealing and a new law on mortgages to reflect the current slue in the area to fast-track mortgage transactions be promulgated.The new law should reflect the quantum of proprietary interest available under our law, streamline the process for the enforcement of mortgagees powers of sale and foreclosures and do away with the need for a re-conveyance deed in mortgages amongst others. The right of the mortgagor to create successive legal mortgagees over the same property be protected from negative amortization clauses and collateral mortgage contracts should be explored under the new law. The new law should harmonize the provisions of existing legislations in the areas and harness them to achieve the goal of providing robust financial base to for social housing.The provisions of the Land Use Act, Registration of Title Laws, National Housing Fund Act, Pension Act, Federal Mortgage lodge Act, Nigeria Social Insurance Trust Fund Act, Primary Mortgages Institution Act and other laws relating thereto should be examined in this wise. The provisions of the Property and Conveyancing Law,34 the current law on Mortgages in UK and the Lagos State Mortgage and Property Law35 are also recommended as templates for the review of the old Act. Land Registration Law.Land adjustment can be best described as a species of machinery for assisting a purchaser or mortgagee in his inquiries as to his vendors or mortgagors title antecedently to completing his dealing, and for securing his own posit ion afterwards. 36 Documentation and registration of all traffic and transactions involving land is at the heart of ensuring record keeping, facilitating land searches, shadow and priority in land transactions, which go a long way at establishing certainty, predictability and efficiency in land transactions including mortgages.A vibrant storage and retrieval land information system enhances transparency in land dealings and is immeasurable as a factor aiding brisk settlement of land disputes. A good land registration system is therefore core to efficient land administration and consequently the delivery of housing in a state. Currently in Nigeria, it is the prerogative of the state to determine, design and operate its own land information recording system. This is as a result of the constitutional arrangement which empowers the states to legislate on the subject atter. 37 The current regime has given rise to multiplicity of laws and diverse administrative procedures in the proce ss of storing and retrieving land information system in the estate to the detriment of investors, mortgagees and real estate developers alike.A times the requirements for land registrations/title registration varies from state to state not because laws are different but simply on issue of practice and procedures to be adopted including charges/levies obligate on the parties. 38 In the time past there used to be a uniform land information recording and retrieval system in the country the Land Instrument Registration Act39 1924 which later became state laws40 with the coming into effect of the 1954 federal constitution. The law is still extant in most of the states of the federation, but the practice has remained diverse. There is therefore a need to streamline the practice and procedure for recording and registration of land dealings and evolve a uniform system that will not only breed seamless land registration process but also boost investors confidence in the process.Towards thi s end, the existing mechanisms and procedure for regularization and registration must be reoriented and reorganized to achieve greater effectiveness, reliability and economy. Since market efficiency depends very much on the availability of reliable information that can be used to check genuineness of titles before purchase and to trace records of land transfers at any point in time, efforts should be geared towards making registration compulsory for all land dealing. governance should compel the conversion of all existing titles on land to a certificate of occupancy within a stipulated time. Such policy would foster the development of a uniform land title in the system, which in turn would engender certainty, reliability and security of land title deeds. 41 Such scheme will also obviate the need to keep dual land title documents over a piece of land42 and thus stem the tide of land frauds that are rampant in our urban centres.