18 th mfc annual conference, prague, 5 november 2015 financing people’s dreams for better housing
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18th MFC Annual Conference, Prague, 5 November 2015
FINANCING PEOPLE’S DREAMS FOR BETTER HOUSING
SESSION OUTLINE
-2-
Demand for HMF
Investment
ITA
Impact &
challenges
Innovation
*
DEMAND FOR HOUSING MF
-3-
Estimated % of microenterprise loans that go to housing 2.4B in CEE & CA
Affordable urban housing market US$214 - $786 B in the period 2010-2020 (world)
MFI partners invested 3 times x HFHI loan in housing
Limited access to mortgage
REASONS AND OPPORTUNITIES FOR ADDING HOUSING MICROFINANCE
Retain Loyal clients
Grow in response to clients’ demand for housing
Portfolio diversification
High diversion of other products toward housing
-4-
MICROBUILD INVESTMENT
-5-
13 MFI partnerships in CEE & CA
18M USD MBF investment 70M USD partners’ housing portfolio
Over 200M USD disbursed
Over 143,000 housing loans disbursed
MICROBUILD FUND CONDITIONS
Existing housing microfinance portfolio (committed microfinance
institutions without a portfolio can become partners for technical
assistance).
Loan size: US$500,000 to US$5 million
Tenor: Three years or longer.
Investment process accompanied by customized technical
assistance
-6-
-7-
Housing Market assessment
Market research
Product development
Non financial services development
Staff capacity building
Product testing
Evaluation
Product positioning
Impact study
TECHNICAL ASSISTANCE
UNDERSTANDING CLIENT’S NEEDS AND BEHAVIOURS
Lack of ownership documents for new buildings after 1990s
In rural areas 50% self-build, 20% use relatives, 30% use contractors
About 90% respondents easily find construction materials. In some
regions people prefer to go to a neighboring district to get materials at
lower price.
Most customers construct and renovate incrementally.
Most customers build 3-4 room houses. Recently rural people started
to construct kitchen and bathrooms inside the house. -8-
INSTITUTIONAL TECHNICAL ASSISTANCE
-9-
Term: 2011 – 2017; Amount: EUR 480,000 (DIGH) and USD 1.5M (MBF)
TA provided by HFH Armenia
Market research for HMF and renewable energy loans, and for TA among the target
group
Housing loan product development and implementation
Staff trainings in: Energy Efficiency, Renewable Energy and Construction TA
Development of construction/renovation related educational and promotional
materials
Construction TA to self-building households
M&E of the partnership project; Impact study planned
I M P A C T
-10-
Capital Technical Assistance/ Knowledge
Housing Impact
*
THEORY OF CHANGE – HOUSING MICROFINANCE
-11-
-12-
KAMURJ CLIENTS’ FEEDBACK
Client satisfaction with loan products
Client satisfaction with service quality
-13-
HFHI ITA IMPACT ON MFI
Opportunity to test and scale up housing microfinance
Develop and offer new housing products/services
Attract funding and implement new housing programs:June/2014 Pilot Project: solar water heaters project USD 200K (joint fund with HFH
Armenia);
July/2014 Youth Housing program, $ 2M;
Dec/2014 Scaling up the housing microfinance program, Triple Jump (MicroBuild
Fund) - $1.5 M;
Jan/2015 National Mortgage Company, mortgage loans, $2 M.
-14-
INNOVATION AND OPPORTUNITIES FOR HMF
-15-
New Products: Energy efficiency, Microinsurance, Microsavings, Micromortgage
Renewable energy sourcesNew target groupNew sources of capital/investors
-16-
HABITAT FOR HUMANITY VISION:
A WORLD WHERE EVERYONE HAS A DECENT PLACE TO LIVE For more information: www.habitat.org/cisf
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