BRAZIL

BACKGROUND & OBJECTIVES

The annual low-income housing market in Brazil is an estimated US$ 10 billion, with a quantitative deficit of 7 million houses and a qualitative deficit of over 10 million houses. As 75% of families in Brazil construct their home through an incremental process, home improvement is at the very heart of Brazil’s housing market. Yet the reality is that only about a third of low-income families who need to improve or expand their home are able to do so. Housing for All (HFA) Brazil harnesses the strengths of the private sector and the citizen sector in order to provide access to credit, technical assistance and other related services to enable low-income families to build their home and reach a better standard of living. Starting 2014, HFA Brazil will impact more than half a million people per year.

CORE ACTIVITIES

HFA Brazil has partnered with Banco do Nordeste—CrediAmigo, the largest microfinance program in Brazil with over 600,000 clients, CEARAH Periferia, a leading housing organization working at the community level, and ABCP, the association of major cement manufacturers in Brazil, to create Reforma Mais. Launched in early 2010, Reforma Mais is providing low-income families with integrated home improvement solutions that include access to housing micro credit and technical assistance. Reforma Mais is currently in operation in the city of Fortaleza and plans to expand nationally and engage new partners.

HFA Brazil and ABCP also have enabled the development of a national platform, named Clube da Reforma. The group convenes the leading actors from the business and citizen sectors to collectively identify and eliminate key barriers in the low-income home improvement market with innovative solutions. Over 30 major players have joined Ashoka and ABCP for the official launch of Clube da Reforma in June 2010.

Housing Model:Home Improvement

Director: Jacques Rajotte

Program Launch: September 2007

Number of Partners: - Citizen Sector: 16 - Business Sector: 16

HOUSING FOR ALL

fec.ashoka.org

BRAZIL

MARLENE LIVES IN A SLUM IN ONE OF THE POOREST REGIONS OF BRAZIL. She is an entrepreneur, and her dream is to build a better life for her family. She started small, selling shoes door-to-door. With the little she earned, she opened a small shop in her living room. Soon however, the space was no longer sufficient enough to cater to her growing clientele. She wanted to expand, but she did not have the money or the know-how, until the day she learned about Reforma Mais. With a $2,000 loan and technical assistance, she has been able to

scale her small business as well as build the kitchen of her dreams.

“It is exactly how I dreamed it.” – Marlene Saraiva, client of Reforma Mais

IMPACT16 citizen sector organizations and 16 businesses have joined as partners

500 families impacted in 2010, during Phase I of Reforma Mais demonstration phase

100,000 families will(have)be impacted per year starting in 2014

USD$200 millions in housing loans for home improvement will be generated per year starting in 2014

BUSINESS SECTOR

Builders & Technical Assistance

• Associacao Brasileirade Cimento Portland

Finance Providers

• Ministerio das Cidades

CITIZEN SECTOR

Aggregators & Complementary Services

• Cearah Periferia

• Reforma Mais

STATE OWNED

• Banco do Nordeste

• Instituto Federal de Educacao, Ciencia e Tecnologia do Ceara

The expertise of the Bank and of CrediAmigo is credit and business orientation. We are not experts in housing. CEARAH Periferia, an organization that is in the community, knows how to mobilize people, often better than a financial institution, and it supports us in this process”.

Marcelo Teixeira, Banco do Nordeste - CrediAmigo

Hybrid Value Chain (HVC) is a new operating framework for transforming markets by leveraging the strengths of business and social actors. HVC spread across the economic spectrum and represent a systemic change in the way business and citizen sector interact.

OUR MAIN PARTNERS IN THE HOUSING FOR ALL HYBRId VALUE CHAIN