1. Housing as a Process, Not a Product
Market Development Forum Nepal (MDFN)
November 4-5, 2015
Thank you – MDFN, BEAM
Thank you - For the conversation yesterday – impressed – commitment to serving people and pushing an agenda
Introductions “Primary Thing You Do”, HKHDSKHDS, Donors, Government, Market Actors, Local NGO Implementers, INGO Implementers, Market Facilitators
NOT – analysis of the Haiti Response; Habitat’s Projects, reflection of observations, focus on housing

2. Vision: A world where everyone has a decent place to live.
Founded 1976
70 national organizations around the world

3. Global Level Sector Impact
Center for Innovation in Shelter
and Finance (CISF)
Product development
Housing support services modeling and design
Testing and introduction of housing construction technologies
Planning and implementation of pilot projects
Institutional support & Capacity Building
MicroBuild
Social investment fund
Lends capital to local financial service providers
Expanding opportunities for low-income families to obtain microfinance products to improve their homes
MicroBuild Fund has approved US$45.37 million across 31 institutions in 20 countries (As of June 2015)

4. Haiti Context
Poorest country in the Americas and one of the poorest in the world
77% of the population living below the poverty line (both $1 & $2)
Disparity and inequity of society and income
Vulnerabilities include hurricanes, tropical storms, torrential rains, floods and earthquakes

6. Housing Sector
January 2010 earthquake at 7.0M, primarily an urban disaster
1.5 million people needed emergency shelter.
Death toll 100k – 160k
Nearly 190k houses were damaged
105k were completely destroyed.
80% of house owners either built their house themselves or had them built; 55% urban renters.
Blockages in all stages of housing value chain, especially for low income families, to build back better

7. Haiti Housing Value Chain
Land and Tenure
Essential services (WATSAN, power, etc.)
Financing
Building materials
Design and building skills/services
Construction
Community Development
Regulatory Environment
Regulatory Environment
Government capacity was significantly affected. Today building code enforcement is a challenge.
Land and Tenure
Land tenure remains a roadblock for formal reconstruction by developers, but not self-builders.
Financing
Poverty levels and lack of land tenure significantly restrict finance for housing.
Construction & Housing
Expensive and many vulnerability considerations. Lack of skilled technical assistance for self-builders.

8. Haiti Response & the Housing Market
Product driven solutions / response – led by INGOs
Large private sector firms became material importers for INGOs
Local smaller firms responded to the ‘self-recovery’ demand through informal / MSME markets
Housing as a process, not a product
Large tenders were too big ($) / complex requirements (donors) excluded small medium sized businesses
INGOs in direct competition with the market for major infrastructure
Demand significantly increased the cost of materials; and created competition for limited supply of materials
Product driven solutions
International actors trying to sell their solutions
Lacked a contextual understanding of how housing is built in Haiti
Pre-fabricated whole house solutions, not suitable for urban environment
Expensive materials and imported
Large firm local material private sector became material importers for INGOs
Did not engage / were not asked to engage as a partner and actor of the shelter / housing response
Rare cases they also pre-fabricated materials for NGOs to distribute
Made a lot of money due to the demand
Five years later, as the demand drops, they are now trying to understand their role

9. Nepal Damage/Losses (in billion NPR) USD 3.3b – Housing
Product driven solutions
International actors trying to sell their solutions
Lacked a contextual understanding of how housing is built in Haiti
Pre-fabricated whole house solutions, not suitable for urban environment
Expensive materials and imported
Large firm local material private sector became material importers for INGOs
Did not engage / were not asked to engage as a partner and actor of the shelter / housing response
Rare cases they also pre-fabricated materials for NGOs to distribute
Made a lot of money due to the demand
Five years later, as the demand drops, they are now trying to understand their role

10. Build Back Better / Safer Homeowner Driven Response
Nepal
Build Back Better / Safer
Goal
Private Investment
&
Housing Subsidy
Self Recovery
&
Homeowner Driven Response =
Demand
Role of Market Based Actors? + Vs
Timing and affordability 
Product driven solutions
International actors trying to sell their solutions
Lacked a contextual understanding of how housing is built in Haiti
Pre-fabricated whole house solutions, not suitable for urban environment
Expensive materials and imported
Large firm local material private sector became material importers for INGOs
Did not engage / were not asked to engage as a partner and actor of the shelter / housing response
Rare cases they also pre-fabricated materials for NGOs to distribute
Made a lot of money due to the demand
Five years later, as the demand drops, they are now trying to understand their role $
Role of the
Market Based Facilitators?

11. “Define actors broadly”
Thoughts about Market
“Define actors broadly”
“New dynamic between market Actors and NGOs / Donors”
“Identify specific scope for HVC”
e.g. geography (rural vs urban) / district; target audience; constraint…
“Co-creation process takes time”
“Demonstrate the market size / opportunity”
“Get a success story to demonstrate partnership”

12. Question: What's your role as a market facilitator?
How do we bring the private sector into the response as more than just a material supplier?
How to leverage the homeowner driven approach (demand) with safer construction material and technical support, through the market (supply)? Demonstrate how they add value.
How to safe guard (vulnerable) homeowners from the negative market impacts (e.g. price, material quality, unskilled labor)?
How to build the capacity of MSMEs firms to participate in reconstruction opportunities?

13. Housing as a Process, Not a Product
Mike Meaney, Chief Operating Officer, Haiti

15. “Incentives based upon commercial and sustainable basis”
“research the broad range of technologies used to rebuild”
“Avoid market distortions”
“Avoid over subsidizing”

16. Facilitating Market Based Solutions to Housing Value Chain Constrains
Build and train the assessment team
Value Chain Analysis & Mapping
Identification of market actors
Focus group discussions with identified market actors
Exposure visits with market actors
Understand relations, constraints and potential solutions
Identify example MBS to address value chain constraints
“Invitation for Applications”
Co-creation process
Pilot and evaluate for scale up