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An improvement trust is a legal entity that holds funds for the improvement of a building or geographic area, often used for urban redevelopment and improving living conditions. They can acquire new real estate and improve infrastructure, housing, and public health. Historical examples include the Bombay City Improvement Trust and the Singapore Improvement Trust, both established to address overcrowding and sanitation issues.
An improvement trust is an entity set up for the purpose of holding designated funds for the improvement of a particular building facility or an entire geographic area. While such trusts are typically intended to acquire or rehabilitate real estate, these entities are also useful for redesigning entire communities, including urban roads and infrastructure. An improvement trust is formed in accordance with all applicable laws in the area where the trust funds will apply.
Similar to real estate investment trusts, an improvement trust can be used for the acquisition of new real estate. This type of trust differs, however, in that it is further designated to generally improve the overall living conditions of the residents of a given area. Such improvements include the creation or repair of highways, the renovation or construction of new residential housing, and other improvements intended to protect the health and well-being of local residents.
While these types of trusts can, in theory, be designated for any dwelling or geographic area, most are for urban improvement. Historically, such trusts have been used to redevelop overpopulated areas in an effort to prevent overcrowding of residential space. Improvement trusts in particular have been very helpful in tackling the spread of communicable diseases, which are often the result of overcrowded and substandard living conditions.
Two historical examples of how such trusts work can be found in the Bombay City Improvement Trust and the Singapore Improvement Trust. Each of these trusts were set up due to serious health risks caused by overcrowding of communal living spaces. In each of these areas, sanitation issues have posed a real threat to residents. The creation of these trusts, however, helped reduce these threats and created more desirable living conditions for the local inhabitants.
Formed in the late 1800s, the Bombay City Improvement Trust was established in response to the bubonic plague, which not only killed thousands of residents of Mumbai, India, but also posed a serious threat to the local economy due to the sudden and intense loss of local resources. workers. The improvement trust was established to create better public housing, which addressed the problem of more workers crammed into small housing and, therefore, contributing to the spread of the plague. Similarly, the Singapore Improvement Trust, which was formed in 1936, has sought to address the problems of overcrowded slum housing by building new back-to-back ventilated housing structures with a lane running at the rear of the houses to separate housing. and to improve the amount of open space available to residents.
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