5) Description of housing product/service offering: SistHab has made a thorough research on housing issues mostly in Latin America and Paraguay and suggests a new system, based in the analysis of the marginalization, dependency, youth policies, selling prices, construction costs and delivery, housing co-ops, and motivation to avoid past mistakes. A revision is needed. I also reviewed the educational system, the many aspects of youths, labour, businesses, companies, building supplies, architectural projects, building systems, location, land, technology, the population needs. Why affordable and even social? Where do people in need live? The economic posibilities, the minimum capital and as a result or solution strategic alliances with a housing consortium that would consolidate the minimum start up capital, between a Coop with Money that would allow economic independence and a building company with urban architectonic technology and construction workers in need of a home and other unskilled labour force. This would capitalize the remuneration for the services provided but without converting in profit for services rendered or return on investment. Commercializing the product at its cost, but without adding the utilities of the investment. This will not make the investment unprofitable not only regarding the commercial profit but also the economic and political profit. This will bring safe homes with the added bonus of ongoing jobs and the satisfaction of the truly caring and social help. An affordable housing system for the homeless of the cities in the city.

6) Description of innovation: I am aware that even though the recessive economic cycles cause social problems and degrade the well being of the population in the country, they provide possibilities for business development, which represent an alternative to re- route at least a part of the local economy improving the general well being. This business idea offers a totally innovative product since it comes from a company perspective, a real state-coop, for the development of homes.

7) Benefits to clients: This business idea is applicable to: 1- Commercial or family real state developments 2- Co-op real state developments 3- Real state consortium 3 – Affordable housing real state The idea is to form a co-op consortium and then depending on the demand take it to the next level. As a housing co-op we have the advantage of the co-op law. Any of these models have the objective of building housing facilities, urban blocks according to law 1183/85 of the Paraguayan Civil Code and article 2128.This would inspire optimism in a skeptic society. This project would be innovative from the construction point of view, offering a small but a complete housing, with two bedrooms and complying with quality hygiene, security, esthetics, and comfort at the urban level but accessible to the low-income families. The idea is that the family starts paying for the property when they move in and then pays the mortgage that would be less than the rent. A very modest initiative for an ambitious end.

8) Key operational partnerships: Even though the housing problem is not among the priorities of objectives, not even for the UN. The lack of affordable housing will increase. SistHab has developed a comprehensive proposal that would require working in an orderly and participative way, improving the well-being of the homeless, and sharing reasonable profits. This proposal aims at increasing housing initiatives through strategic alliances that would provide housing in the metropolitan areas, for those who wish to live in the city.

9) Financial model: I believe SistHab is feasible to be put into practice with a return of investment of 9%

          • Costs as percentage of income: 9%

          • Financing: SistHab has to be financed by a minimum initial capital for a block of 24 urban houses. This capital would come from national savings and remittances from Paraguayans living abroad.

10) Effectiveness

          • Project outcomes: This proposal is a revision of other projects that took place in the past. It is inspire in the Brazilian housing co-ops that in 1984 built 3,726,620 housing units, which unfortunately lost momentum due to the economic crisis.

          • Number of clients in past year: The lack of political interest in this type of projects plus the fear to the unknown has made impossible in this country the emergence of a strategic alliance that would obtain the minimal capital that would allow this initiative.

          • Percentage of clients that are poor or marginalized: 35%

          • Potential demand: Potential Clients 1- 30% of co-op members that already had a home but wish to invest in a profitable business 2- The remaining 70% of the co-op members that don’t have a home. 3- 65% of the population mostly youth with no real possibility to access urban housing 4- 40% of the national population that lives bellow the poverty line. 5- Jobless people

11) Scaling up strategy

          • Stage of the initiative: Mature stage.

          • Expansion plan: Yearly production and return + accumulated capital Production - % of utility – accumulated capital Investment – 1 module 8.835% USD 146,180.70 Year 1 - 7 module 61.84% USD 215,681.04 Year 2 – 2 module month 212.03% USD 498,646.21 Year 3 – 4 module month 424.06% USD 1,063, 376.53

12) Origin of the initiative: In 1974, after taking the second architectural course I thought about affordable housing, but I hadn’t realize that it was an economic problem. Then I started researching the different initiatives mainly in Latin America trying to improve the results by seeking to offer good houses at a lower price. Evidently the lack of interest and the willingness to make disproportionate profits or fear for the unknown made impossible to obtain help.

Contact Information:
Carlos  Benegas
Proyectista Arquitectónico y Constructor de Obras Civiles
n/a
(n/a)
Lieutenant 1º Desiderio Villalón Nº 3998 corner Farías Captain Sanchez. Republican District - Asuncio'n
Paraguay
Tel: 595 981-488231 and 595 981-810260
Email: cbenegas@telesurf.com.py