As part of its endeavour to help build better cities for tomorrow´s world, Lafarge actively addresses today´s needs for decent and sustainable housing for all.
Lafarge´s Indian chapter of the ´Housing Micro Finance Academy´, was launched by Frantois Perrot, Director Affordable Housing, Lafarge, and Friedemann Roy, Global Product Lead Housing Finance-IFC in Mumbai.
Speaking on the occasion, Perrot stated, ¨Micro-finance has to be regarded as a business to be sustainable; while creating positive social impact. Lafarge´s Housing Microfinance model is tailored to local conditions and has been successful in over 10 countries.¨
A world leader in building materials, Lafarge introduced the model in 2014 and plays two critical roles--providing construction technical assistance to the low-income borrowers and connecting them to their network of reliable building materials retailers. Lafarge´s objective is to facilitate access to affordable and sustainable housing for 2 million people by 2020.
The ´Housing Microfinance Academy´ initiative was launched in partnership with International Finance Corporation (IFC), a member of the World Bank Group, and the largest global development institution focused exclusively on the private sector. There are plans to have these academies in more countries in the coming months. On May 12, 2015, the inauguration was followed by a day-long workshop on how players in micro-finance could increase the value for customers by diversifying existing lending activities.
Attended by leading housing, mortgage and financial institutions, the session covered the role and importance of micro-finance for diversifying lending activities; the best practices in housing micro-finance in India and abroad including Bangladesh, Indonesia, Morocco, Nigeria, Philippines, Serbia, Sri Lanka and Zambia, where micro-finance projects for affordable housing are already in place.
Additionally, a case study from Indonesia was showcased and participants discussed the need to evolve new business models where housing finance companies, developers and construction companies could collaborate.
Extract From The Report Of Mckinsey Global Institute On Affordable Housing.....
Defining affordable housing the McKinsey Global Institute (MGI), The definition of ¨affordable housing¨ varies across economies, but generally it includes a financial component (the share of income devoted to housing), a standard for what constitutes minimum socially acceptable housing with a clear idea of what income groups are affected, and at what income level households should be eligible for housing assistance. The definition should accommodate a range of sizes, tenure options (purchase vs. rental), and affordability thresholds that take into account households of different sizes and incomes in the area. In many parts of the world, ¨affordability¨ is defined as housing costs that consume no more than 30 to 40 percent of household income; we use 30 percent for our estimates. A basic socially acceptable standard housing unit is defined by a particular community´s view of what is required for decent living and this varies by city. How much floor space is required in a standard unit reflects consumer choices, market conditions, and regulatory constraints. The definition should also include minimum standards for basic amenities (running water, a toilet) as well as access to essential social services such as schools and health clinics.
Housing Micro finance Academy