Step by Step Program “Strategic alliances for Adequate Housing”
- Citizen participation
- Corporate social responsibility
- Financial services and markets
- Housing
- Poverty alleviation
- Microfinance
- Public policy
Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.
NANCY
SANCHEZ ROMERO
Centro de Investigaciones CIUDAD
(593 2) 500 322 // 2225 198 // 2227 091
Calle Arturo Meneses N2457 y Av. La Gasca
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More than 5 years
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Operating for more than 5 years
The families' housing situation and their quality of life have always been a constant concern for the CIUDAD Research center, evidenced by reports and academic productions on the subject. In 1996, within the framework of a Course on Design and Evaluation of Social Project directed by Professor Ernesto Cohen, Silvana Ruiz submitted an initial project that provided the criteria for designing the Step by Step project that started as a bi-national Ecuadorian and Peruvian initiative submitted by DESCO (Peru)-CIUDAD(Ecuador)-KATE(Germany) and IEPALA(Spain) to the European Union applying for financing. The idea was to turn the accumulated academic thoughts into a practical answer to meet the adequate housing requirement of the most disadvantaged people from a perspective of joint responsibility of the whole society to social problems, by focusing the attention on the what was considered the bottle neck: financing addressed to families who in general do not have access to loans.
When the European Union support finished, CIUDAD committed to continue with the rotating fund (constituted within the project's framework) and the implemented credit system, thus strengthening the supplementing actions of training and articulation of actors, key elements to move from a pilot experience to an impact on the public policy.
1,001 - 10,000
1001‐10,000
The expansion of the scale of actions implies the need of funds that at present are not guaranteed.
The performance of the current funding amount allocated to loans does not cover the costs of the whole program, taking into account both the credit lines’ operation cost as well as the cost of the supplementing training and actors’ articulation activities.
The program is looking for low cost financing sources in order to increase the credit fund and/or the non reimbursable contributions for training and actors’ articulation activities.
The planned goal in the upcoming three years is:
-Make the access to housing possible to 800 new families
-provide 300 families with training on communitarian cohabitation
-Support the strengthening of the Social Contract for Housing and actions resulting in political incidence to enact a law that guarantees the right to an adequate, house and habitat in line with Constitution’s provisions.
When the European Union support finished, CIUDAD committed to continue and increase the rotating fund and the implemented credit system, thus strengthening the supplementing actions of training and articulation of actors, key elements to move from a pilot experience to impact a state policy. CIUDAD’s decision was to implement a supplementing financing strategy by means of projects submitted to many sources.
Non government organizations
ACSUD las Segovias (Spain) supports the formulation of project to b e submitted to autonomous governments in Spain
Regional government
Funding was received to cover operation and funding costs, within the framework of projects submitted to the generalitat Valenciana, the Provincial Council of Valencia and the city of Valencia, Spain.
Clients
The loans granted to families bear an interest stipulated in accordance with the Central Bank of Ecuador, and this interest is similar to the one charged by financial entities associated to the program, in order to avoid disagreement between the families who are granted the mortgage loan and the families who are granted the mortgage loan by the associated entities. The amounts received as interest cover part of the operational costs.
Other
In 2008, IDB approved the support (2008-2011) to Step by Step through a line of non reimbursable technical assistance that covers part of the operational costs and training and actors’ strengthening activities and low cost funding to 10 years.
Negotiations to sell the portfolio are moving forward, this would enable fresh funding to meet the credit demand. Conditions are being assessed. The intention is to enter into collaboration agreements with two financial institutions in the following two years
CIUDAD- PASO A PASO aims at being formally incorporated to the National Program on Popular Finance, Entrepreneurship and Solidarity Economy which we allow to increase the funding chances and/or strategic alliances.
Participation and support to the Social Contract for Housing is maintained.
Financing, Technical assistance, Citizen/community participation, Public policy.
1) It helps low income families to have access to a government allowance that otherwise would not be able to obtain a quality house, considering their income.
2) It smooth the progress of supplementing financing through microloans to complete the savings and the mortgage loan amounts, in a direct manner or through the associated financial entities; addressed to families who in general do not have access to loans. More than half the families had never been granted a loan in official entities.
3) It has provided support to space in the civil society who is watchful and contributes with the housing policy issue.
Ecoarquitectos has deliver 800 house and is building 500 more at present; and delivers quality products at competitive prices compared with the local market. (See appendix.)
• Taller 3 Constructora has started working on 3 housing programs that imply 123 housing units.
Microfinance Entities:
• Cooperativa Construcción Comercio y Producción is a financial entity governed by the Superintendency of Banking and Insurance of Ecuador, SBS has granted 255 mortgage loans to families who initiated the access to housing process through Ciudad-Step by Step.
•Cooperativa Fond Vida, is not governed by SBS but it is affiliated to MIES, the Ministry of social and economic inclusion which has granted 28 mortgage loans.
Collaboration agreements
Other (please specify).