Save and Build Program Makes Houses Affordable

In order to make housing a tool for holistic development, Habitat for Humanity International-Nepal adopts the "save and Build' methodology to promote the habit of saving amongst families under the poverty line who desire to build new houses.

Habitat neither gives away nor subsidizes houses. Rather, through collaborative partnering, Habitat enables home ownership by providing access to affordable micro-credit, using its bulk purchasing power to acquire materials and assisting with technical expertise.

Groups of 12 low-income families are formed and organized and leaders are selected within each group - often women who manage and monitor members' savings, deciding which families are houses in what order, and how they will provide for the "sweat equity". Each group cooperatively generates cash income, sets aside savings, and contribute labour and materials. Each member of the group saves according to their financial ability and continues to save until all the members build all of their houses.

When a group saves for one house, which typically takes 6 months, Habitat and local partners will match the raised amount with money for two more houses. The first three houses are constructed and the savings continues by all the members until all 12 have their homes built, typically taking about 24 months.

"Save and Build" methodology is used in 14 countries in Asia Pacific, enabling the program to be community-owned and controlled to make it a sustainable program. It is used as a stand-alone housing micro finance project when it is not partnering with the existing micro finance institutions.

"Save and Build" is one means of reaching families in need through flexible mortgage structures and construction processes. It is ideal for families reliant on seasonal work who otherwise would not meet conventional income criteria.