Building Homes for the Families and by the Families, 2012

Echale a Tu Casa

Comision Nacional de Vivienda
Sociedad Hipotecaria Federal
Confederación Nacional Campesina

In 2012, Echale a tu Casa committed to support 8,000 low-income rural families in Mexico through their innovative housing program. The program will target sugar cane workers and be implemented in four steps: training in design and construction, provision of financial services, provision of staff and machinery for construction, and the delivery of housing impact investments. The beneficiary families will have final design of their home, but the majority of homes will include green block soil walls; concrete roofs; a bathroom equipped with a shower, washbasin, and toilet; rain harvest and purification devices; a biodigester; a kitchen with gas or wood-saving stove and kitchen sink; a living room; and an external patio with a sink. Echale expects to reach 2,000 families a year with this program.
Estimated Total Value: $80,000,000
Commitment Duration: 4 years
Geographic Region: Latin America & Caribbean
Countries: Mexico
APPROACH:

Echale commits to supporting 8,000 low-income rural families in Mexico over the next four years with a housing program that takes the four steps outlined here.

The first step will be providing to all community beneficiaries three necessary workshops, including: a two-day session with the entire community where beneficiaries are taught to work around house construction as a common goal; a one-day housing co-design session where women and men draw houses according to their traditions and customs; and a one-day session to create the community housing committee where responsibilities are assigned to achieve social inclusion. Each week all of the program progress and outputs are discussed with the committee.

Mexico has 25 million peasants, and half of them live in shacks. They are unable to access credit. Families build their homes incrementally as their time and savings permit, a housing process that is marked by poor planning, high waste, high costs, and long completion times (10-15 years). The result is homes that are costlier to build, and as they cannot afford to hire professional contractors, the construction is often of poor quality, creating unsafe and hazardous living conditions for the families. Echale a tu Casa is a proven assisted self-building program that has delivered over 30,000 homes and 150,000 home improvements. Echale’s goal is to provide through a social impact franchise the social organization, financial education, technical training, and replica required to build affordable homes for their families, thereby creating jobs, economic spill over, and community development.

Echale is seeking funding partners to increase this commitment target population. The funding guarantee is provided by peasants’ crops as well as a social guarantee fund by Echale. Financial partnership has to be $1 million or more in order to provide an appropriated ROI. The default rate of this practice is 0.84 percent annually. Echale is also looking for media support to get the societies aware about the dramatic living conditions of the underserved housing population.