Microfinance Focus, Sep 23, 2010: Habitat for Humanity International is establishing the MicroBuild Fund which will provide capital to microfinance institutions for making small loans available that combine with low-income families’ savings for housing improvements.  In addition, Habitat will provide technical assistance to these microfinance institutions in developing their housing product offerings.

At the Clinton Global Initiative, Habitat CEO Jonathan Reckford committed $25 million toward a $100 million housing microfinance fund goal and $10 million for technical assistance. The goal is to raise a total of $100 million for MicroBuild.

“There is a staggering need for basic and decent housing in developing countries where families may only live on a dollar or two a day,” he said.   “By developing the MicroBuild Fund, we will be able to serve even more families by making financing available for housing improvements on affordable terms.”

Habitat’s MicroBuild Fund also will make loans for housing support services such as land purchases, water and sanitation installation, informal settlement upgrades and disaster mitigation.

Technical assistance for the microfinance institutions will be provided by Habitat for Humanity International’s Center for Innovation in Shelter and Finance.  Housing support services, such as house design, land acquisition and titling, and financial literacy will be provided by participating Habitat for Humanity national organizations.

Habitat for Humanity already is working with microfinance institutions in more than 25 countries such as Mexico, Honduras, Columbia, Peru, Bosnia, Macedonia, Nepal, Ukraine, Armenia, Uganda, Kenya, Tanzania, Malawi, India, Mongolia and the Philippines.