Neftaly: Scaling Backyard Partnerships to Address Housing Shortages in Informal Settlements

Introduction

Urban housing shortages continue to challenge cities across the developing world, particularly in rapidly growing informal settlements. Millions of low-income residents are left without access to safe, affordable, and dignified shelter. At the same time, backyard dwellings—small units built behind or adjacent to existing homes—have quietly emerged as a critical but underutilized housing solution.

At Neftaly, we believe that by scaling backyard partnerships, cities can unlock an effective, community-driven model to rapidly expand affordable housing—without displacing residents or overburdening public resources.

The Need for Scalable Housing Solutions

Informal settlements face:

• Severe overcrowding and housing insecurity
• Growing urban migration and youth populations
• Limited availability of well-located land for new development
• Gaps in infrastructure, sanitation, and basic services

In this context, scaling up backyard dwellings—in a safe, regulated, and inclusive way—presents an opportunity to meet housing needs while preserving social ties and minimizing urban sprawl.

What Are Backyard Partnerships?

Backyard Partnerships are cooperative arrangements between:

• Landowners (formal or informal)
• Tenants living in backyard units
• Local governments, utilities, and housing authorities
• Community organizations and NGOs

These partnerships aim to:

• Improve the safety, legality, and quality of backyard housing
• Expand rental options for low-income residents
• Facilitate access to services, infrastructure, and financing
• Promote community-based upgrading without displacement

Strategies for Scaling Backyard Partnerships

✅ 1. Policy Recognition and Integration

• Include backyard housing in municipal housing strategies and land use plans
• Simplify regulations to support incremental formalization of backyard units
• Create incentive frameworks for landlords to upgrade and legalize structures

✅ 2. Community Capacity and Technical Support

• Train landowners and informal builders in safe, code-compliant construction
• Provide standard design templates for affordable, modular backyard units
• Build community groups to manage shared facilities and advocate for services

✅ 3. Infrastructure and Service Extension

• Coordinate with utility providers to extend water, electricity, sanitation, and waste services
• Pilot decentralized or shared infrastructure solutions in dense areas
• Use community-led mapping to identify service gaps and needs

✅ 4. Finance and Micro-Investment

• Facilitate access to microloans, subsidies, or grants for upgrading backyard housing
• Support low-income landlords and tenants in accessing housing finance mechanisms
• Partner with financial institutions to design inclusive, risk-aware lending models

✅ 5. Monitoring, Regulation, and Safeguards

• Establish clear guidelines for minimum safety and occupancy standards
• Promote model rental agreements to protect both landlords and tenants
• Use digital tools to monitor growth and ensure compliance over time

Neftaly’s Role in Scaling Backyard Solutions

Neftaly collaborates with municipalities, NGOs, and communities to:

• Develop scalable implementation models tailored to local contexts
• Pilot and evaluate inclusive backyard upgrading programs
• Provide training, toolkits, and legal support for stakeholders
• Support community mapping, data collection, and planning processes
• Facilitate multi-stakeholder partnerships for funding and governance

Benefits of Scaling Backyard Partnerships

• Rapid expansion of affordable rental housing near economic opportunities
• Efficient use of existing urban land and infrastructure
• Improved livelihoods for backyard landlords
• Greater security and dignity for tenants
• Reduced pressure on public housing programs and informal sprawl
• Enhanced urban resilience and community cohesion

Conclusion

Backyard dwellings are not just a survival response—they are a scalable, adaptable, and people-centered solution to urban housing shortages. By investing in safe, inclusive, and regulated backyard partnerships, cities can meet urgent housing needs while empowering communities.

At Neftaly, we are committed to helping local governments, communities, and partners scale backyard solutions that work—for people and for cities.