Quality: 4 - País

Haiti Home Ownership And Mortgage Expansion (Home) Program

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Haiti Home Ownership And Mortgage Expansion (Home) Program

Mismatches Financing Vulnerable groups
Policies and regulations National policies Global frameworks Public-private initiatives
Financing Financial actors Discriminaciones Financieras Mortgage systems Supply subsidies Demand subsidies Progressive financing

Main objectives of the project

In contrast to a straightforward housing subsidy, a rewards system necessitates meeting predefined quality, efficiency, and accountability criteria before funding is allocated, both on the supply and demand sides. Linking financial incentives to particular outcomes ensures that capacity building aligns with a shift in behaviors and operational methods. This is the model HOME has implemented in Haiti. In a extreme situation of housing crisis, this system has been applied to either supply and demand sites of the market. The goal: to provide affordable houses to a middle and low class.

Date

  • 2015: Implementation

Stakeholders

  • USAID
  • Haitian government
  • Habitat for Humanity International (HFHI)
  • Affordable Housing Institute (AHI) of Haiti
  • IDB Invest

Location

Continent: North America
Country/Region: Haiti

Description

Haiti faces a significant housing deficit, estimated at 500,000 units, which accounts for nearly 25% of the nation's total housing stock for a population of 10 million. This disparity underscores the inaccessibility of formal housing for the majority of Haitians, especially considering the average house price in Port-au-Prince is USD 250,000, while the average annual wage remains below USD 800. Moreover, access to home financing is severely limited, with only about 400 mortgages available countrywide. The formal real estate market in Haiti has predominantly catered to high-income housing, leaving the middle class underserved, as developers and financial institutions perceive them as high-risk.

In response to this pressing need, the US Agency for International Development-funded HOME program has been initiated as a three-year endeavor aimed at capacity building within Haiti's private sector. Its primary objective is to facilitate the financing and construction of affordable housing and infrastructure. HOME operates on both the supply and demand sides of the housing economic value chain, collaborating with Haitian companies to incentivize affordable housing projects.

On the supply side, HOME partners with real estate developers and landowners to support affordable and market-driven housing initiatives. By employing pay-for-performance mechanisms, HOME encourages developers to target low-income households, minimize risks, expedite construction, and lower home prices. Additionally, to ensure adherence to high environmental standards, HOME has partnered with the International Finance Corporation (IFC) to enable developers to obtain EDGE certification. These partnerships offer incentives to offset the additional investment required for ecological building standards, thus preventing price escalation for buyers.

Concurrently, on the demand side, HOME collaborates with financial institutions to address barriers to housing access in Haiti. The program advocates for larger banks to expand their mortgage portfolios and extend services to lower income segments. It also supports smaller institutions through technical assistance to enhance credit underwriting procedures, sales force training, and monitoring, thereby facilitating portfolio growth. Financial institutions are incentivized through pay-for-performance structures to expand their portfolios while maintaining low portfolio at risk (PAR) levels and increasing participation of households headed by women.

Haiti HOME has begun to invigorate the real estate market and empower local stakeholders to continue building and financing affordable homes beyond the program's duration. The program has already trained three local developers to target the lower-middle class, with three construction sites underway and two already receiving preliminary EDGE Green Building certification. Real estate developers have mobilized over USD 10 million of their own capital, a significant investment for the Haitian sector. HOME persists in collaborating with these developers to design larger projects to meet the needs of the Haitian population.

In terms of the demand side, HOME works with banks and credit cooperatives to enhance access to home financing, particularly for informal homes, having already mobilized over USD 6 million in mortgages and other home loans, benefiting more than 700 families.

Central to HOME's success is its program model, which focuses on incentivizing existing actors through a pay-for-performance approach on both the supply and demand sides of the housing market. Rather than imposing predetermined solutions or relying on traditional direct financing models, HOME rewards specific outcomes for financial institutions and developers through its HOME Facility fund. This approach encourages contractors to innovate in risk mitigation, organizational efficiency, and human resource development to foster affordable housing solutions in Haiti.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

The Empty Homes Initiative, Ireland

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The Empty Homes Initiative, Ireland

Mismatches Vacant housing
Policies and regulations National policies Local policies
Financing Financial actors Public funding Supply subsidies Demand subsidies
Promotion and production Participatory processes

Main objectives of the project

Amid Ireland's housing crisis, Peter McVerry Trust's Empty Homes Initiative stands as a beacon of hope. By repurposing vacant properties for social housing, they address homelessness and housing shortages. Backed by advocacy efforts and financial support from the charity and government, initiatives like Repair and Leasing and Buy and Renew make significant strides in revitalizing communities. Their impact resonates through policy changes and increased public engagement, cementing their role as a key stakeholder in Ireland's social housing policy landscape.

Date

  • 2015: Implementation

Stakeholders

  • Peter McVerry Trust

Location

City: Dublin
Country/Region: Dublin, Ireland

Description

Ireland grapples with a housing crisis fueled by soaring demand and stagnant construction rates, despite a vast number of vacant properties scattered across urban and rural areas. The situation has led to over 10,000 people facing homelessness while over 182,000 residential units remain unoccupied. In response, Peter McVerry Trust, a prominent non-profit housing association, initiated the Empty Homes Initiative in 2015 to tackle this paradoxical predicament.

The initiative, spanning 14 counties and conducted in collaboration with local authorities, aims to repurpose vacant properties for social housing, particularly targeting areas with acute housing shortages. Through a blend of advocacy and action, Peter McVerry Trust engages in public outreach, media campaigns, and policy lobbying to raise awareness and prompt solutions. Financially supported by the charity and the Department of Housing, Planning, and Local Government, the initiative utilizes schemes like the Repair and Leasing Scheme (an interest-free loan of up to €40,000 to bring the vacant property back into use for social housing) and the Buy and Renew Scheme (funding to purchase the empty property and bring it back into use) to revitalize empty properties for social housing purposes. In their website, one can find all the projects they have done.

The advocacy efforts of Peter McVerry Trust have yielded notable policy changes, including the inclusion of an Empty Homes Pillar in Ireland’s Housing and Homeless Strategy, the implementation of vacant homes reuse strategies, and the appointment of dedicated officers in local authorities. Additionally, the initiative has spurred discussions on measures like an empty homes tax and increased utilization of Compulsory Purchase Orders. Public awareness and engagement have also surged, reflecting a concerted effort to address Ireland's housing crisis at multiple levels.

The Peter McVerry Trust serves as a prime illustration of a stakeholder deeply involved in shaping social housing policy. Not only does it actively advocate for change, but it also takes tangible steps to address housing issues on a national scale.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

The Whole Housing Approach, UK

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The Whole Housing Approach, UK

Mismatches Cultural suitability Vulnerable groups Gender
Policies and regulations National policies Local policies

Main objectives of the project

The Whole Housing Approach (WHA) is a comprehensive strategy designed to address the housing and safety requirements of individuals affected by domestic abuse within a local community. It integrates various housing tenure types and support initiatives essential for aiding victims/survivors in maintaining or obtaining secure housing. The overarching aim of WHA is to enhance the accessibility of safe and stable housing across all housing tenure categories, including social, private rented, and private ownership. It encompasses facilitating transitions from refuge services and temporary accommodations to more permanent housing solutions. Furthermore, WHA strives to provide a diverse array of housing options and tailored initiatives for individuals impacted by domestic abuse, empowering them with the choice to either relocate or remain in their current living arrangements.

Date

  • 2018: Implementation

Stakeholders

  • Domestic Abuse Housing Alliance (DAHA)
  • Standing Together Against Domestic Violence (STADV)

Location

Continent: Europe
Country/Region: London, United Kingdom

Description

In the UK, the Femicide Census, a collaboration between Karen Ingala Smith and Women’s Aid, has revealed that 75% of women killed by current or former partners in 2016 were murdered in their own homes. Victims of domestic abuse reside in various types of housing, and a significant number of them, along with their children, become homeless each year in efforts to seek safety. Consequently, there is a pressing need for affordable and secure housing solutions.

Standing Together Against Domestic Violence (STADV), a London-based domestic abuse service, has been instrumental in pioneering the Coordinated Community Response approach in the UK. Alongside housing associations Gentoo and Peabody, STADV co-founded the Domestic Abuse Housing Alliance (DAHA) in 2014, a nationwide initiative aimed at enhancing the housing sector's response to domestic abuse. Furthermore, STADV is a key partner in implementing the 'Whole Housing Approach' project, launched in 2018, which involves multiple agencies, domestic abuse services, housing providers, and local authorities across three pilot sites in England.

The objective of this program is to enhance housing options for families impacted by domestic abuse through a holistic housing approach. By recognizing that families have varying degrees of need, the program aims to eliminate the necessity for them to become homeless in order to escape abuse. Across ten local authority areas in England, the project collaborates with specialist domestic abuse services, housing providers, private landlords, and financial institutions. Victims receive tailored support to enhance safety in their homes, and if necessary, facilitate relocation without forfeiting their social tenancy. The program also allocates funds to enhance safety, stability, and prevent homelessness. Tailored training programs have been developed to enhance the skills and knowledge of housing providers and landlords in identifying domestic abuse and offering appropriate support.

A significant challenge encountered was the need to align the diverse stakeholders required to maximize impact across existing organizational and systemic barriers. Typically, homelessness, housing, and domestic abuse services operate independently, leading to fragmented responses. To address this, a partnership comprising over 25 organizations across three regions was established. This involved assembling a dedicated team capable of articulating how organizations can collaborate effectively to identify and prevent domestic abuse at an early stage.

The program is financially supported by the Ministry of Housing and the Local Government Domestic Abuse Fund 2018-2020, having been awarded £1.45 million over an 18-month period.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Neighborhood Upgrading Program (NUP), Trinidad and Tobago

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Neighborhood Upgrading Program (NUP), Trinidad and Tobago

Mismatches Financing Segregation
Policies and regulations National policies Governance Public-private initiatives
Financing Public funding Indirect opportunities Sustainable development financing
Promotion and production Favelas/Slums

Main objectives of the project

The Neighborhood Upgrading Program (NUP) in Trinidad and Tobago targets enhancing living standards and housing conditions for low and middle-income households residing in squatter settlements. Comprising three key components, the program emphasizes regularization and enhancement of squatter settlements, provision of housing grants, and strengthening institutional capacities within the Ministry of Housing and Urban Development. With criteria ensuring fair distribution and ongoing evaluation, the NUP, supported by the Inter-American Development Bank (IDB), emerges as a successful initiative addressing dire housing needs and promoting social and environmental considerations.

Date

  • 2017: Implementation

Stakeholders

  • Trinidad and Tobago’s Ministry of Housing and Urban Development
  • IDB

Location

Continent: South America
Country/Region: San Fernando

Description

Trinidad and Tobago faces a housing deficit exceeding 100,000 units, compounded by significant squatting on state land, affecting up to 19% of the population. In response, successive governments have initiated various programs aimed at formalizing informal settlements and providing occupants with secure tenure. To address the ongoing housing needs, two partnership programs with the private sector have been launched. These involve collaborations with medium and large contractors under the Housing Development Corporation (HDC), as well as the Infill Lots program, which engages small contractors to build on vacant lots within HDC-owned developments. One of the main programs, though, is the Neighborhood Upgrading Program (NUP).

The primary objective of the NUP is to enhance the living standards and housing conditions of low and middle-income households residing in squatter settlements. This is achieved through a multifaceted approach that includes infrastructure upgrades, provision of home improvement grants, and facilitation of incremental housing construction or purchase. Additionally, the program aims to foster the creation of equitable, healthy, and sustainable communities throughout Trinidad and Tobago.

The NUP comprises three key components. Firstly, it involves the regularization and enhancement of squatter settlements, focusing on infrastructure improvements and regularization of land tenure for occupants. This aspect is overseen by the Land Settlement Agency (LSA), which operates under the authority of the State Lands (Regularization of Tenure) Act of 1998 and is tasked with legalizing illegal occupation at 254 designated sites across the country. Secondly, the program offers housing grants administered by the PMCU, which provides financial assistance to eligible low-income individuals for various housing-related purposes such as home improvements, construction, or purchases. Lastly, the NUP includes efforts to strengthen sectoral and institutional capacities within the Ministry of Housing and Urban Development and its affiliated agencies. This involves activities such as acquiring necessary hardware and software, automating program reports, and engaging in regional and international forums to exchange best practices in housing and urban development.

To qualify for grants, applicants must meet specific criteria including income limits, citizenship, property ownership or permission, and no prior benefit from housing grants. The program offers financial assistance for home construction or purchase, with varying amounts based on income levels and regional property values. Beneficiaries are selected through a random process and undergo verification interviews to ensure accuracy.

Though formal evaluation is ongoing, the IDB deems the NUP successful, having reached numerous families in dire housing need, often living in poverty. The program emphasizes social and environmental considerations and has demonstrated reasonable unit costs compared to similar initiatives. Replication of the program across Trinidad and Tobago is viable given established procedures and capacity. The Land Settlement Agency oversees squatter settlement regularization, while the Ministry has developed internal capabilities to administer housing subsidies independently.

Financing remains a challenge for project expansion, but the IDB expresses continued willingness to support such initiatives, having already provided three consecutive loans for housing and related projects in the country.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Solidarités Nouvelles pour le Logement (SNL) strategies to provide affordable housing (France)

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Solidarités Nouvelles pour le Logement (SNL) strategies to provide affordable housing (France)

Mismatches Segregation Vulnerable groups
Policies and regulations National policies Local policies Regulation Global frameworks Governance Public-private initiatives Participatory processes
Financing Financial actors Cultural actors Public-private collaboration
Promotion and production Public-private partnerships Private promotion Progressive housing

Main objectives of the project

SNL's housing initiatives exhibit a diverse range of strategies, from prioritizing access to properties by transforming them into affordable housing in small towns, to securing long-term housing solutions in urban areas like Paris through partnerships with private investors and legal frameworks, and employing specific lease mechanisms for sustainable refurbishment efforts.

Date

  • 1988: Implementation

Stakeholders

  • SNL

Location

Continent: Europe
Country/Region: France

Description

The French government estimates a need for 500,000 new housing units to address housing demands adequately, yet only around 350,000 units are constructed annually. Despite municipalities being obligated to provide social housing, this obligation is not consistently met, resulting in a shortage of affordable homes. Additionally, some properties remain vacant due to owners being dissuaded from renting them out because of taxation concerns.

Solidarités Nouvelles pour le Logement (SNL) addresses these challenges by providing temporary housing to vulnerable households and supporting them until they can secure permanent accommodation. In 2018, SNL housed 2,894 individuals, including 1,285 children, many of whom were previously homeless or living in inadequate conditions. SNL operates through SNL-Prologues, a real estate social enterprise that acquires, renovates, and manages properties for housing vulnerable families. SNL-Prologues, as a social economy cooperative, has opened its capital to social savings funds and private investors and is exempt from certain taxes due to its social mission.

One of SNL's strategies involves collaborating with local authorities to acquire properties rented with low-comfort features, converting them into decent and affordable housing.
For instance, in a small town where affordable housing was scarce, SNL successfully lobbied the local government to grant them the right of first refusal for a property unlawfully rented by slumlords. By persuading the municipality to address the needs of the households affected, SNL gained priority access to acquire the property. This allowed SNL to transform it into decent and highly affordable housing for five families, preventing it from being acquired by another investor. In Paris, SNL utilizes legal frameworks to partner with private investors, securing housing for vulnerable households through innovative financial arrangements and subsidies. Under this arrangement, private investors grant SNL-Prologues the usufruct right, enabling SNL-Prologues to rent the property for a specified period. Through financing of €150,000, sourced from subsidies provided by local authorities and NGOs, SNL is poised to accommodate vulnerable households in six affordable dwellings for a duration of 20 years. Additionally, in Paris, SNL utilized a specific lease mechanism known as "bail à réhabilitation" (renovation lease) to temporarily assume ownership of a 110 m2 apartment in the city center. Through extensive refurbishment efforts, SNL reduced the property's energy consumption by 35% and subdivided it into two smaller apartments suitable for two formerly homeless families. The property owner benefits from tax incentives associated with renting under this status, and upon the lease's expiration in 18 years, they will regain possession of a refurbished property.

SNL's efforts result in significant social impact, with 97% of individuals transitioning to permanent housing after an average stay of three years in SNL-provided accommodation. The average annual cost per dwelling, including acquisition and renovation, is €3,660, with funding sourced from rent payments (32%), public subsidies (50%), and private philanthropy (16%). Notably, the cost of housing a family in a hotel room is significantly higher at €6,240 per year, underscoring the cost-effectiveness of SNL's approach.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Social Rental Agencies in Belgium

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Social Rental Agencies in Belgium

Mismatches Vulnerable groups Vacant housing
Policies and regulations National policies Local policies
Financing
Ownership and tenure Rental and temporary tenure

Main objectives of the project

Social rental intermediation, although initially seeming paradoxical, offers a solution to the pressing need for affordable housing by incentivizing private landlords to make their properties accessible to vulnerable populations. This approach, with deep roots in Belgium and gaining traction across Europe, establishes a link between private landlords and marginalized individuals, facilitated by public or nonprofit intermediaries. These intermediaries provide incentives to landlords, such as rent guarantees and maintenance support, while assuming financial risks. Despite being primarily funded by public resources, social rental agencies have become attractive investments due to tax benefits and steady income streams. In Belgium, successful implementation has led to significant growth in housing units managed by Social Rental Agencies, particularly in Brussels where government incentives drive investment.

Date

  • 1997: Implementation

Stakeholders

  • Social Rental Agencies

Location

Continent: Europe
Country/Region: Belgium, Brussels

Description

Initially, the notion of utilizing private rental housing for social purposes may appear paradoxical. After all, private housing is owned by individuals or entities expecting a return on their investment, rather than serving as a substitute for social landlords. However, in Belgium, a significant portion (70%) of private landlords are small-scale operators. Moreover, the private rental sector increasingly accommodates modest households, with over a quarter of European households dedicating more than 40% of their income to housing. This underscores the relevance and necessity of addressing social concerns within the private rental market as a matter of public policy. Even with political will to invest in and construct more social housing, several years would be necessary to realize such endeavors.

A solution to this challenge is social rental intermediation, a relatively novel approach in Europe but one with deep roots in Belgium. The concept involves incentivizing private property owners to make portions of their rental stock more affordable and accessible to vulnerable populations. Social rental intermediation establishes a connection between private landlords and individuals typically excluded from the housing market. This intermediary, often a public entity or nonprofit organization funded by public resources, offers incentives to landlords who agree to rent their properties at reasonable rates. In return, landlords benefit from guarantees related to rent payment and property maintenance. Conditions typically include granting the social rental agency discretion in selecting tenants and setting rents below market rates. The Social Rental Agency (SRA) assumes financial risks associated with unpaid rents and property upkeep. This may entail assistance with renovation management and other incentives, such as tax advantages. Beneficiary households can access social support services as needed, typically coordinated by the organization operating the SRA.

In Belgium, SRAs were established in the late 1970s and have since become institutionalized. For example, the SRA Logement pour Tous in Brussels originated as an initiative of a nonprofit organization to assist migrant families facing discrimination in finding affordable housing with the aid of social workers. These agencies have been supported by government sponsorship since housing legislation formalized their role in 1997.

SRAs are primarily funded through public sources, presenting a challenge. However, they have become an attractive investment for property owners, rental agencies, and government entities due to the shifting of financial risks and the assurance of steady income and tax benefits. In Brussels, significant investments, encouraged by fiscal incentives, are being made in constructing rental properties for intermediation purposes. This policy has proven successful in Belgium, with SRAs adding 6,500 units in the past four years alone.

In Brussels, 23 SRAs manage 5,500 housing units, with an annual growth rate of 10%. The success can be attributed to regional government incentives, including tax exemptions and reduced VAT rates on new dwellings. Major corporations are undertaking large-scale projects, often involving the construction of hundreds of units, presenting a significant opportunity for SRAs to rapidly expand their housing inventory. However, the incentives in Brussels typically require the availability of units to rental agencies for only 15 years.

Rental intermediation serves as a valuable short-term solution for rapidly increasing affordable housing stock. It taps into an essential segment of the housing system that may not otherwise be fully utilized and can enhance value through renovation, mobilization of private stock, and combating discrimination. However, it should be viewed as a temporary measure and not a substitute for social housing, which provides a long-term safeguard for affordable housing stock.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Census of homeless people in Belgium

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Census of homeless people in Belgium

Mismatches Vulnerable groups
Policies and regulations Governance Data and monitoring Evaluation and impact

Main objectives of the project

Belgium, in alignment with the Lisbon Declaration of June 2021, is committed to tackling homelessness by 2030, emphasizing the importance of data-driven strategies. The King Baudouin Foundation, along with research teams and local authorities, has developed a standardized methodology for counting homeless individuals, spanning urban and rural areas. Initial findings surpassed expectations, totaling over 16,000 individuals. The data informs annual reports accessible to all, while qualitative interviews aim to deepen understanding and inform effective solutions.

Date

  • 2020: Implementation

Stakeholders

  • King Baudouin Foundation
  • LUCAS KULeuven

Location

Continent: Europe
Country/Region: Belgium, Leuven

Description

In June 2021, Belgium endorsed the Lisbon Declaration, pledging to address homelessness by 2030 through systemic measures. A key aspect highlighted in the Declaration is the necessity for these measures to be grounded in accurate data to effectively guide policymakers.

Since 2020, the King Baudouin Foundation has been actively involved in collaboration with research teams from UCLouvain and LUCAS KULeuven, along with over 100 local authorities, in devising a standardized methodology for counting individuals experiencing homelessness in Wallonia and Flanders. The Foundation aims to extend this methodology nationwide to ensure consistent and recurrent counts across Belgium. The Netherlands has also expressed interest in this approach, which was successfully piloted there earlier this year.

The initial census took place in Leuven and subsequently expanded to Limburg, Ghent, Arlon, and Liège. This methodology goes beyond merely tallying individuals sleeping on the streets; it encompasses the entire spectrum of homelessness classifications outlined in ETHOS Light. This broader approach considers individuals residing in institutions, unconventional dwellings, or temporary accommodations with family, friends, or acquaintances. Thus, the census delves deeper than surface-level assessments.

In 2022, efforts were made to extend the census beyond urban centers to encompass rural areas as well. In Flanders, six zones were involved: Boom-Mechelen-Lier, Bruges Arrondissement, Midwest, Middenkust, Kempen Zorgregio, and Waasland. Counts were also conducted in the German-speaking Community, Tournai, and Walloon Brabant. The combined tally from these areas exceeded 16,000 unhoused and homeless individuals, surpassing initial expectations. However, this data now provides a basis for informed action.

The findings are published annually in a comprehensive report accessible to any interested administration or individual citizen. Moreover, the census team is now conducting interviews to gain insights into the pathways to homelessness. This qualitative approach aims to inform the development of innovative solutions.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Observatorio de la Vulnerabilidad Urbana, Spain

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Observatorio de la Vulnerabilidad Urbana, Spain

Mismatches
Policies and regulations National policies Governance Data and monitoring Evaluation and impact

Main objectives of the project

The Spanish Ministry of Housing Development realized that, despite having systematized housing census data, it had not systematized the information to make informed affordable housing and neighborhood improvement policies. For this reason, it has created the Observatory of Urban Vulnerability. The objective of this observatory is to inform through an open data system the information available from the Spanish administrations on residential insecurity, unaffordable housing or urban deprivation.

Date

  • 2015: Implementation

Stakeholders

  • Ministerio de Fomento (Spain)

Location

City: Madrid
Country/Region: Spain

Description

Spanish cities are facing an unprecedented housing crisis. Added to this is an aging housing stock, most of which is owned but whose inhabitants do not have the capacity to rehabilitate the buildings. In this way, Spain sees how the social crisis is added to the housing crisis, giving rise to significant urban vulnerabilities and growing residential insecurities. For this reason, it wanted to promote various programs to help alleviate this situation. The problem was (and is) that there is no systematized, open and worked data on these matters. Hence the Observatory of Urban Vulnerability was born.

The Observatory manages 2 atlases or data visualizations. One is directly related to housing. It is the Atlas of Residential Building in Spain, with information on the characteristics of residential buildings and housing at the census section level of all Spanish municipalities (referring to the Population and Housing Censuses of 2001, 2011 and 2018). The indicators range from income to the state of housing in the last two decades. All of this is delimited in census sections, the smallest delimitation that Spain has, comparable to neighborhoods.

The other atlas is that of Urban Vulnerability. In this case, the Observatory relates the housing situation with the socioeconomic and demographic characteristics of its inhabitants. In this way it can generate an index of urban deprivation for the whole state, detecting which locations will have the most difficulties in the future to live in adequate living conditions.

Apart from the visualization of the data, the observatory reports on them. All the data it generates is open to the public and easy to consult. In fact, the objective is to be used by other administrations and researchers as a reference in the field in the state. From there, to share diagnoses and common actions in urban regeneration. This fact is especially important in Spain, whose competencies in housing are the responsibility of the Autonomous Communities (regions and nations of the State) and not the central government. Thus, the observatory can be a support point for common information and coordination. It is being so for the development of the Urban Agendas.

Although it is not exclusively a housing observatory, it has an impact on the capacity of inhabitants to access housing and its characteristics. In this way, it is a vital instrument for their policies.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Cement Block Banking in the Gambia

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Cement Block Banking in the Gambia

Mismatches Financing Vulnerable groups
Financing Financial actors Supply subsidies Sustainable development financing Progressive financing

Main objectives of the project

Gambia's financial market is underdeveloped, offering limited financial products, particularly in the affordable housing mortgage sector. The majority of households face exclusion from mortgage opportunities due to high interest rates and stringent screening requirements, compelling them to undertake self-built housing projects. Recognizing these gaps and acknowledging the potential business and social benefits, Amiscus Horizon (AH) commenced operations in June 2014. AH introduced a pioneering initiative known as "Cement Block Banking" to address the affordability of housing for all Gambians. This innovative "Cement Block Saving Scheme" operates on a "pay-as-you-go" model, allowing clients to save and purchase cement blocks on a monthly basis. These accumulated blocks serve as a form of savings and act as a simple hedge against material price inflation, offering households a gradual means of accumulating building materials while incrementally constructing their homes.

Date

  • 2013: Implementation

Stakeholders

  • Amiscus Horizon (AH)

Location

Continent: Africa
Country/Region: Gambia

Description

The Gambia, with its small land area of 11,000 km² and a population of approximately 1.9 million, stands as one of West Africa's smallest and most stable countries. However, like many African nations, it grapples with a significant shortage of affordable housing, estimated at over 50,000 units. High poverty rates render privately developed housing out of reach for the majority, leading to widespread self-construction of homes. About 52% of these residences are built using semi-permanent materials, highlighting the country's housing challenges. Moreover, the financial market in Gambia remains underdeveloped, with limited offerings, especially in the affordable housing mortgage sector. High interest rates and strict screening criteria further exclude many households from accessing mortgage opportunities.

Recognizing the gaps in Gambia's affordable housing market and the potential business and social benefits, Amiscus Horizon (AH) was registered in November 2013 and commenced operations in June 2014. AH introduced the innovative concept of cement block banking to make housing more affordable for all Gambians. Their "Cement Block Saving Scheme" operates on a "pay-as-you-go" model, allowing clients to gradually accumulate cement blocks through monthly savings. These blocks serve as both savings and a hedge against material price inflation, providing households with a means to construct their homes incrementally.

Initially, AH procured blocks from a factory on a monthly basis, benefiting from bulk order discounts. However, due to high demand, the company transitioned to in-house block production within its first year of operation. This move allowed AH to closely monitor block quality, ensuring adherence to industry standards. Clients are guaranteed a refund if blocks fail to meet required standards. The blocks are stored in AH's secured depots, equipped with 24-hour security.

AH employs a full-time construction engineer to provide technical guidance to clients. While technical advice is currently limited due to resource constraints, AH offers standard housing plans and packages for various home sizes and fences, which have been well-received by customers.

Most of AH's clients are low- to middle-income earners seeking to build new homes or fences around their properties. Only a small percentage have access to home finance at the start of the construction phase. AH's approach involves allowing customers to select their desired block package, complete an application form, and commence monthly contributions. Default rates are relatively low, with AH incentivizing regular payments by offering 8% interest on total blocks banked for a year without defaulting.

Innovative solutions like AH's cement block banking model are crucial for addressing Africa's affordable housing shortage. As housing sector stakeholders increasingly engage with affordability challenges in creative ways, pioneering business models have the potential to make significant strides in resolving the continent's housing shortfall.

Links

Authors:

CSCAE Consejo Superior de los Colegios de Arquitectos de España

Habitat for Humanity Egypte (HFHE)

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Habitat for Humanity Egypte (HFHE)

Mismatches Price Financing Vulnerable groups
Policies and regulations
Financing Financial actors Supply subsidies Sustainable development financing Progressive financing

Main objectives of the project

Since 1989, Habitat for Humanity Egypte (HFHE) has effectively assisted more than 25,000 impoverished households across selected rural and urban areas by offering interest-free loans for essential housing improvements, renovations, and new construction projects. Within Egypt's developing microfinance sector, HFHE stands as the sole provider of micro loans dedicated solely to housing-related endeavors. These short-term loans, averaging EGP 7,000 (US$ 890) each, are repayable over a 24-30 month period in monthly installments, with the first payment due a month after loan receipt. All loans are structured without profit or interest, but include an inflation adjustment to safeguard HFHE's loan capital value and support the operational costs of partnering NGOs.

Date

  • 1998: En proceso

Stakeholders

  • Habitat for Humanity

Location

Continent: Africa
Country/Region: Cairo, Egypt

Description

In Northern Africa, addressing the housing sector's challenges, particularly in financing projects for low and medium-income families, remains a significant issue. Despite having homes and support from NGOs, non-profits, or the government, many struggle to secure financial assistance for refurbishment or reconstruction while maintaining their autonomy. This is where Habitat for Humanity Egypt (HFHE) steps in. Habitat for Humanity is an International NGO. Yet, has a great implementation in Egypt. Since 1989, HFHE has effectively aided over 25,000 impoverished households across selected rural and urban communities by providing "no-profit, no-interest" loans for essential housing improvements, renovations, and replacement home construction.

HFHE functions as a national intermediary NGO, abstaining from directly disbursing loans. Instead, it offers loan capital, technical assistance, training, and oversight to partner NGOs and participating community-based organizations (CBOs), which assume direct responsibility for loan management. In FY2015 alone, this decentralized network of independent non-profit entities disbursed 2,393 HFHE loans, totaling EGP 20.2 million ($2.6 million USD) to needy families in 22 rural and provincial urban communities. The process is straightforward: HFHE allocates loan capital exclusively for housing microloans to its NGO partners, who, in turn, supervise local CBOs and loan committees to administer and oversee these loans. HFHE provides training and technical support to partner NGO staff responsible for these loans, as well as to participating CBOs and loan committee members in each community.

HFHE operates autonomously from the financial system. It has never sought loan capital from Egyptian banks and maintains no microfinance relationship with local banks. Egyptian banks typically refrain from extending banking or home improvement loans to HFHE's clientele—poor and low-income households—due to their unregistered homes and lack of property ownership documents. Consequently, Egyptian banks and HFHE are not seen as direct competitors, with HFHE clients eschewing Egyptian banks as alternative lenders. Meanwhile, the annual interest rates on personal loans from Egyptian banks, ranging between 10.5% and 12.5% since 2008, far exceed the 7% annual inflation adjustment applied to HFHE microloans.

The lending approach of HFHE consists of three main strategies: normal lending, wholesale lending, and home improvements for the poorest households. In normal lending, HFHE partners with NGOs for an indefinite period, sharing the risk of bad loans. The loans have no end-date, with an average size of EGP 7000. In wholesale lending, a pilot initiative with CEOSS, loans are disbursed for five years, with the partner NGO bearing all risk. Higher fees are charged, and the repayment period is defined. Both approaches have identical loan terms and conditions. Home improvements for the poorest households are charitable initiatives, targeting those unable to repay loans. The improvements aim to enhance living conditions and are funded through various means, including donations and partner NGO commitments.

The majority of borrowers additionally benefit from complimentary engineering technical services for their intended home improvements. Notably, the expense is not incorporated into the loan amount for repayment; instead, HFHE covers the entire cost of these engineering services from its own budget. Skilled and trained engineering graduates are engaged on a part-time basis to support CBOs and loan applicants in defining construction requirements, creating engineering designs (if necessary), assessing actual costs for planned home renovations and new construction, and inspecting completed projects. These engineering graduates are engaged on an annual basis, with HFHE currently maintaining contracts with four part-time engineering graduates.

HFHE imposes specific criteria for borrower selection, categorized into three areas: the need for adequate shelter, ability to repay the loan, and willingness to partner. Eligible borrowers must be homeowners within the community, with no discrimination based on demographics. To qualify, households must lack adequate shelter, demonstrate low income, and exhibit financial stability. They should also display willingness to contribute to home improvement costs and participate in related activities. The organization gives priority to vulnerable groups like orphaned children, widowed women with dependents, and married couples with dependents.

The loan application process of HFHE involves several steps. First, applicants submit a one-page Loan Request Form to the CBO loan committee, providing personal and project details. Then, the committee reviews the form and contacts an engineer for a home inspection and cost estimate. Together with the applicant, they complete a Loan Request Review Form gathering financial and household information. The committee periodically meets to approve loans, determining sizes based on their discretion. Disbursements occur in two installments, contingent on satisfactory completion of construction work. Repayment typically starts 30 days after the first tranche. Finally, an HFHE engineer inspects completed work for quality assurance. Loan documents are maintained by the partner NGO for audit, while CBOs keep records for active loans. Additionally, the average cost per loan includes engineer fees for initial visits and inspections.

With this simple scheme, HFHE provides finance resources to the communities and the poorest homeowners in Egypte. Thanks to it, and without the burden of the financial system, people can have an affordable and decent housing.

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CSCAE Consejo Superior de los Colegios de Arquitectos de España