1. 18 th MFC Annual Conference, Prague, 5 November 2015 FINANCING PEOPLE’S DREAMS FOR BETTER HOUSING

2. SESSION OUTLINE -1- Demand for HMF Investment ITA Impact & challenges Innovation *

3. DEMAND FOR HOUSING MF -2- Estimated % of microenterprise loans that go to housing 2.4B in CEE & CA Affordable urban housing market US$214 - $786 B in the period 2010-2020 (world) MFI partners invested 3 times x HFHI loan in housing Limited access to mortgage

4. REASONS AND OPPORTUNITIES FOR ADDING HOUSING MICROFINANCE Retain Loyal clients Grow in response to clients’ demand for housing Portfolio diversification High diversion of other products toward housing -3-

5. MICROBUILD INVESTMENT -4- 13 MFI partnerships in CEE & CA 18M USD MBF investment 70M USD partners’ housing portfolio Over 200M USD disbursed Over 143,000 housing loans disbursed

6. MICROBUILD FUND CONDITIONS Existing housing microfinance portfolio (committed microfinance institutions without a portfolio can become partners for technical assistance). Loan size: US$500,000 to US$5 million Tenor: Three years or longer. Investment process accompanied by customized technical assistance -5-

7. -6- Housing Market assessment Market research Product development Non financial services development Staff capacity building Product testing Evaluation Product positioning Impact study TECHNICAL ASSISTANCE

8. UNDERSTANDING CLIENT’S NEEDS AND BEHAVIOURS Lack of ownership documents for new buildings after 1990s In rural areas 50% self-build, 20% use relatives, 30% use contractors About 90% respondents easily find construction materials. In some regions people prefer to go to a neighboring district to get materials at lower price. Most customers construct and renovate incrementally. Most customers build 3-4 room houses. Recently rural people started to construct kitchen and bathrooms inside the house. -7-

9. INSTITUTIONAL TECHNICAL ASSISTANCE -8- Term: 2011 – 2017; Amount: EUR 480,000 (DIGH) and USD 1.5M (MBF) TA provided by HFH Armenia Market research for HMF and renewable energy loans, and for TA among the target group Housing loan product development and implementation Staff trainings in: Energy Efficiency, Renewable Energy and Construction TA Development of construction/renovation related educational and promotional materials Construction TA to self-building households M&E of the partnership project; Impact study planned

10. I M P A C T -9- CapitalTechnical Assistance/ Knowledge Housing Impact *

11. THEORY OF CHANGE – HOUSING MICROFINANCE -10-

12. -11-

13. KAMURJ CLIENTS’ FEEDBACK Client satisfaction with loan products Client satisfaction with service quality -12-

14. HFHI ITA IMPACT ON MFI Opportunity to test and scale up housing microfinance Develop and offer new housing products/services Attract funding and implement new housing programs: June/2014Pilot Project: solar water heaters project USD 200K (joint fund with HFH Armenia); July/2014Youth Housing program, $ 2M; Dec/2014Scaling up the housing microfinance program, Triple Jump (MicroBuild Fund) - $1.5 M; Jan/2015National Mortgage Company, mortgage loans, $2 M. -13-

15. INNOVATION AND OPPORTUNITIES FOR HMF -14- New Products:  Energy efficiency,  Microinsurance,  Microsavings,  Micromortgage Renewable energy sources New target group New sources of capital/investors

16. -15- HABITAT FOR HUMANITY VISION: A WORLD WHERE EVERYONE HAS A DECENT PLACE TO LIVE For more information: www.habitat.org/cisf