Analyzing of Methods of Financing for Renewal Projects of Deteriorated Urban Textures (Case Study: Hamzehabad Neighborhood / Tehran)

Lack of required investments is one of the most important factors leading to increasing texture deterioration and renewal plans failure. This research evaluates different financing methods to renew deteriorated texture. Hamzehabad Neighborhood in district 20 of municipality of Tehran, in which revitalization and renewal plan is prepared, has been selected as the case study. Here, financing is a problem to execute the project. Regarding financing methods weaknesses and strengths, we should determine the effective selection criteria. In this research we evaluate 6 financing methods in order to renew this neighborhood. Participation, administrative convenience and efficiency are the three criteria according to which financing methods are evaluated. Freidman Test and Internal Rate of Return (IRR) have been applied to prioritize the methods on the basis of each index. Data are analyzed using SPSS and CAMFAR software. Results show that Hamzehabad inhabitant’s participation rate has been rather good. Joint venture method has the highest priority among financial resources methods. Bank loans, project shareholder, metric sale and participation bonds are placed, respectively, in the lower priorities. According to the urban manager’s view, the simplest method from execution point of view is metric sale and participation bonds and the others are in the lower priorities. It seems that here, Joint venture method with the highest IRR is the best financing method. Metric sale, BOT, civil participation, bank loans and project shareholder are placed in the lower rankings