The success of Habitat for Humanity’s groundbreaking MicroBuild Fund, which has helped millions of low-income families around the world build or improve their homes, is the result of years of careful planning and the ability to attract like-minded and committed partners, according to a new case study out of New York University.

A case study of investment in housing

“Launching the MicroBuild Fund” follows the fund from the initial idea of creating an investment vehicle for housing aimed at low-income families to its rollout in 2012. The case study braids together the legal, business and policy issues that informed getting the fund off the ground and is the work of NYU’s Grunin Center for Law and Social Entrepreneurship and Wagner Graduate School of Public Service.

“This MicroBuild Fund case study is an invaluable and novel tool for the field to learn more about this innovative financial product and how it is providing safe, decent and durable homes to millions,” says Patrick Kelley, vice president of Habitat’s Terwilliger Center for Innovation in Shelter, which houses the fund.

A critical need for affordable housing worldwide

The case study also underscores the urgent and growing demand for safe and affordable housing, pointing out that by 2025, at least 1.6 billion people worldwide will be living in substandard housing or will be so financially stretched by housing costs that they will be forced to forgo other basic needs such as food, health care and schooling for their children. Habitat’s MicroBuild Fund seeks to address that demand by lending to financial institutions, which, in turn, provide small loans to low-income families to build safe, decent and durable homes. This type of lending supports an incremental building approach and helps families clear hurdles like lack of access to credit or land titles.

Since its launch, the fund has dispersed $132.5 million to 54 institutions in 31 countries. This has allowed those institutions to collectively grow their portfolios to $1.08 billion and help provide access to better housing for more than 2.1 million people. “The MicroBuild Fund has enabled financial institutions across the globe to provide new housing financial products and services and is having a ripple effect on the market as others adopt the model,” says Kelley.

Continuing analysis of MicroBuild’s impact

Additional case studies are planned with the goal of providing insights on how the MicroBuild Fund has had to adapt and change over the years to respond to market opportunities and challenges. Omidyar Network, a philanthropic investment firm and investor in the MicroBuild Fund, is supporting the case study work.

“Improving housing market systems that enable families to achieve affordable shelter is critical to realizing our vision of a world where everyone has a decent place to live,” says Mike Carscaddon, Habitat for Humanity International’s executive vice president of administration, chief financial officer and chair of the MicroBuild Fund board of directors.

Bumak and his family are among those who now have a decent home because of the MicroBuild Fund. For years, Bumak and his wife, Saearng, sent their young children to live with grandparents because the couple could only afford to rent a tiny room in a dangerous area of Phnom Penh, Cambodia. The couple saved whatever they could from their jobs selling ice cream and working in a garment factory, and eventually they were able to buy a plot of land and start building a house where they could all live together. The MicroBuild Fund made it possible for Bumak and Saearng to borrow small loans that helped them tile the floors, plaster the walls and install a metal roof. “We were so happy to move into this house,” Bumak says. “We were able to bring our family back together.”

A Habitat house is transforming the lives of Sonia’s family.

They, in turn, are helping to transform their neighborhood. Sonia, her husband and three boys live in the Washington neighborhood in Long Beach, California. It is among 10 U.S. communities where residents are working with Habitat and other partners to pinpoint ways to improve the quality of life of residents.

The Robert Wood Johnson Foundation — along with General Motors, H&R Block, Lowe’s and Wells Fargo — are financially supporting the work. Affordable housing is a part of the path forward.

Sonia is grateful for the opportunity to purchase a Habitat home in the Washington neighborhood. “I stand in my kitchen, or sometimes in the backyard, and just say, ‘This is what I wanted for my kids.’” A place where her boys can be creative. A yard where they have been free to romp and laugh. “Here you can run, scream, play, jump — and the neighbors don’t complain,” Sonia says.

She also wants everyone’s children to be able to ride their bikes and walk to school and air out at the skateboard park in a neighborhood that is lovely and safe.

That’s where other community partners come in, including the local police, the parks and rec department and the middle school that sits in the heart of the neighborhood. “Right now, my neighborhood is nice,” Sonia says. “I know if everyone gets involved, it can be even more beautiful.”

Altide and her daughter are among the many families who lost their homes when Hurricane Matthew roared through southwest Haiti in October 2016. Today, they are among the many families who have put their lives back together because of the work of Habitat Haiti.

With winds exceeding 145 miles per hour, Hurricane Matthew leveled houses and ripped off the corrugated metal roofs of those still standing. After an immediate response that provided shelter kits to those affected, Habitat Haiti has partnered with families like Altide’s in rural areas to build 300 new homes and repair more than 1,500 others. The new houses are equipped with water collection tanks, which can safely store up to 250 gallons of rainwater — critical in rural communities with no water supply where families rely entirely on rainwater for drinking, bathing, cleaning and growing their food.

Through partnerships with other organizations, Habitat Haiti also has educated more than 5,000 households on safe construction techniques and trained more than 600 new builders. Because many homes in Haiti are built with concrete blocks, often of poor quality, Habitat Haiti is training masons to build stronger, more durable houses by incorporating techniques such as reinforcing walls with wood beams.

In the days after the storm, Altide salvaged sheet metal to make a small shelter where her house once stood in Corail.

“We were always uncomfortable,” she says. Then she partnered with Habitat to build a new home using disaster-resistant construction techniques, including the installation of hurricane clips and strengthened walls to help withstand future storms.

She takes great comfort, she says, knowing that her new brightly colored house was built to withstand future storms. “Even during storms and heavy rains, the house is sturdy, and water doesn’t get through,” Altide says. “I’m very proud of this new house.”

Over the years, homeowners and volunteers across the globe have shared life-changing moments on Habitat for Humanity build sites.

We’ve witnessed families and volunteers swap smiles and stories, connect across cultures and languages and make both memories and an impact while working together to build homes and hope.

Entertain and inspire the kids in your life while showing support for Habitat for Humanity’s mission to make housing affordable with these family-friendly activities.

Habitat for Humanity coloring sheets

Break out the crayons or markers and follow the journey of our coloring book star, Hugh Manatee, as he builds affordable homes with his animal friends. 

Habitat works together with families, local communities, volunteers and partners from around the world so that more people are able to live in affordable and safe homes.

Use Hugh’s journey to talk to your kids about what it would be like to help someone build something so important!

Paper houses

Start a discussion with your kids about home and what home means to them. While you do, have your kids create their own paper houses.

But don’t stop there — after completing your house, share it! Take a picture, post it to social media, and tag an elected official and @habitatvoices on X to let everyone know how important housing is to you.

Habitat’s advocacy efforts focus on policy reform to remove systemic barriers preventing low-income and historically underserved families from accessing adequate, affordable shelter. Add you and your child’s voice through this activity!

Community walking bingo

Habitat and our volunteers and homeowners work hard to strengthen communities worldwide. We want to help you identify strengths in your own community!

Once you have a row complete, post a picture on social media and share your thoughts about the importance of housing and of keeping communities strong!

Throughout the COVID-19 pandemic, Habitat for Humanity has prioritized the health and safety of the people in the communities we serve, as well as those staff, volunteers and partners who carry out our mission.

Our guidance to the members of our federated network throughout this pandemic has been consistent with public health recommendations and government directives to help flatten the curve. In the U.S., the federal government has now delegated decision-making regarding reopenings to state and local authorities, and we have provided guidance to local Habitat organizations about how they should consider restarting their operations.

We are eager for Habitat to fully resume our operations, not least because of the enormous housing need we face. The shortage of safe, decent and affordable housing was already at crisis levels prior to the pandemic. In the U.S., more than 18 million families were already paying half or more of their income on housing. Now, with tens of millions of people filing for unemployment, the situation is far worse. The COVID-19 pandemic is not only a public health crisis — it is a housing crisis.

Decisions to resume operations at Habitat affiliates will vary greatly based on the status of the pandemic in the communities we serve, directives from state and local governments, and the capacity of the affiliates to modify their operations in a way that prioritizes safety. We expect that full resumption of operations will be a phased approach that will take place over a period of months, not days or weeks.

Habitat for Humanity International has developed detailed guidance to assist its offices and affiliated entities in their decisions and plans for resumption of operations and programs, including construction activity, Habitat ReStore operations and offices. Throughout this process, we are asking for a posture of maximum flexibility to adapt to changing circumstances in communities and within local operations.

If you have questions about Habitat’s work in your community, please contact your local affiliate.