1. Addressing Knotty Issues in Housing Delivery: AFFORDABILITY
Beatrice is MFF’s first female mason
Addressing Knotty Issues in Housing Delivery: AFFORDABILITY 1
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Introduction
Sam Odia, CEO, Millard Fuller Foundation
Nigerian affiliate of Fuller Center for Housing Inc. GA, USA –
Founded by Millard Fuller, (founder, HFHI).
MFF seeks to provide on a sustainable basis, affordable housing for all people in need by promoting collaborative and innovative partnerships with individuals & organizations.
International partners: Fuller Center for Housing Inc., Selavip International & Reall UK.
Local partners: GIZ, TrustBond Mortgage Bank, Federal Mortgage Bank of Nigeria (FMBN) & Family Homes Funds.
“MFF seeks collaborative and innovative partnerships…” 2
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The Fuller Center in Nigeria
BUILDING HOUSES. CHANGING LIVES. 3
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The Fuller Center in Nigeria
BUILDING HOUSES. CHANGING LIVES.
A happy family at the Fuller site
Social housing constructed by The Millard Fuller Foundation
has brought changed lives to many families.
Houses built through a mortgage bank arrangement
The Fuller Housing Estate, Luvu showing blocks of 4 units 4
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FULLER PARTNERSHIPS:
REALL UK
400-unit Grand Luvu Housing Estate, Luvu-Madaki, Masaka
400-unit Grand Luvu Housing Estate, Luvu-Madaki, Masaka 6
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7. Defining Affordable Housing
Source: Based on KPMG Mortgage Industry Overview (2015) and AfDB. 7
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Definition of Affordability:
The state of being cheap enough for people to be able to buy
(Cambridge Business English Dictionary) 8
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Defining Affordable Housing
Affordability is perhaps the knottiest of issues in AFFORDABLE Housing!
Affordable Housing needs to be ‘affordable’ to the largest number of people. 9
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Defining Affordable Housing
Can we justifiably say that housing that is only affordable to the top 5% or 10% is affordable? 10
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Defining Affordable Housing
We need to determine what the acceptable percentage of the population should be.
We have been dancing around an acceptable definition for years. 11
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Our Definition of Affordable Housing
‘Affordable housing’ is a term used to describe dwelling units whose total housing costs are deemed "affordable" to those that have a ‘median’ income.
The median income is the income level that divides the society into 2 equal parts.
In other words, ‘Affordable Housing’ should be affordable to at least 50% of the population! 12
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Affordability is determined by:
Financial capacity of the market to off-take (income levels)
Cost of the homes
The 2 variables must interplay for us to find an acceptable level; either incomes increase or costs go down. In our environment, it is easier to lower costs than to arbitarily increase income levels. 13
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Cost of Homes:
BUILDING (materials, labour, direct site supervision & overheads)
INFRASTRUCTURE (internal roads, drains, power, water supply etc.)
LAND (including registration & transfer charges)
OVERHEADS (admin. & other organizational costs)
COMPLIANCE Costs (planning approval, registration fees, taxes etc.) 14
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Building Costs:
Building costs determined by:
Size of buildings (area & height)
Quality of construction & finishes
Complexity of design (e.g. no. of corners) 15
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MFF Building Costs Analysis: 16
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Conclusion 1
How can we overcome the challenges in housing affordability & harness the opportunities on the demand size?
Think outside the box,
Seek creative financing solutions for the BOP,
Volume is key; this is a numbers game,
Sheer consistent, doggedness always wins the day!
Mr & Mrs Dogara 18
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Thank You!
Tel: 19
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