El Título en la Mano: The Impact of Titling Programs on Low‐Income Housing in Texas Colonias

Abstract

This article analyzes the impact of The Community Resources Group Receivership Program undertaken from 1998 to 2002 that provided clean property titles to residents in several informal housing colonias (subdivisions) in South Texas. Survey data were gathered from 260 low‐income households comprising two populations: those who had secure title from the outset, and those who were beneficiaries of the land titling program. Focus group interviews were conducted to explore how the beneficiaries construct the meaning of ownership before and after title “regularization.” Formal titling consolidates understandings of absolute property relations in comparison with de facto rights born of use (legal or not), which strengthens people's sense of self‐esteem and potential for political involvement. We found that, contrary to conventional wisdom, title provision per se appears to have little direct impact either upon home improvement or upon residents' receiving enhanced access to credit and financial services. We also found evidence that informality and illegality is likely to reemerge as owners die intestate, and as they revert to informal land market property transfers.

The rise of renters and renting in Texas colonias

“…For example, even were owners (or informal landlords) interested in selling the property, the inefficient housing market makes this a difficult process. First and foremost, the lowincomes of potential homebuyers in colonias severely limit effective demand in the market; although many residents may be interested in buying a colonia home, most would not qualify for traditional mortgages-and banks may in fact be reticent to lend to buyers in colonias, given that widespread underdevelopment and the inefficiency of the market make resale in the event of foreclosure quite difficult Ward et al 2011). As has historically been the case in colonias, most buyers purchased their property through seller-financing, in which the seller transfers title to the buyer (typically through a Contract for Deed agreement, sometimes referred to as a poor man's mortgage).…”

“…Moreover, the location of housing (particularly its desirability and potential for resale) dictates the profit earned by homeowners. In colonias, where property values are depressed due to inadequate infrastructure and an inefficient housing market (Ward and Carew 2000;Ward et al 2011), homeowners are unlikely to benefit from such capital appreciation. Finally, because many colonia homeowners purchase and construct their homes through informal means (self-help and incremental financing, short-term purchase agreements, etc.…”

“…owner-occupied nature of colonia housing markets, highlighting the socio-political antecedents that led to their growth; the different housing types and conditions; the use of exploitative land sale procedures and informal titling mechanisms, and the subsequent prevalence of -clouded‖ 4 titles; the dynamics of the colonia land and owner-occupied housing market; and the nature and extent of the self-help home improvement process and how such improvements are financed (Giusti and Estevez 2011;Larson 1995;Ward 1999;Ward and Carew 2000;Ward et al 2011;Ward et al 2012). However, we know far less about the nature and extent of non-owner populations living in colonias and…”

Self-help housing policies for second generation inheritance and succession of “The House that Mum & Dad Built”

“…Thus argued, programs to provide clean title becomes a policy imperative, although there is a large literature that argues that these claims overreach the reality of ongoing informal market exchanges, little interest in leveraging credit, or of selling out period (Bromley, 2004;Gilbert, 2002;Varley, 2002;Ward, Guisti, & de Souza, 2004;Ward, Larson, de Souza & Giusti, 2011). Here is not the place to reopen that debate nor is that the intention: instead, we mention it to indicate that the idea of clean title remains an important element in contemporary policy that seeks to expedite property transfers, whether these occur though the market place or through inheritance and succession e the latter being the focus here.…”

Hernando de Soto on Land Titling: Consensus and Criticism

“…In fact, it seems that the poor prefer to ask for informal loans from friends and family or other informal circles (Fernandes, 2002;Calderon, 2007;Woodruff, 2001;Gilbert, 2002;Durand-Lasserve and Selod, 2007;P&DM, 2007;Ward et al, 2011;Ward, 2012).…”