ACCESS TO HOUSING FINANCE

INNOVATIVE STRATEGIES FOR SUSTAINABLE HOUSING SOLUTION. (ISSHS)

Country: Tanzania

Sources: Habitat for Humanity Tanzania.

Closing date: Two weeks from advertisement date.

Region of implementation: Dar es salaam City.

INTRODUCATION

Habitat for Humanity International (HFHI) is an international non-profit organization dedicated to eliminating substandard housing and homelessness worldwide and to making adequate, affordable shelter a matter of conscience and action. Since its founding in 1976, Habitat for Humanity has helped more than 22 million people meet their affordable housing needs and obtain a safer place to live in, along with the strength, stability, and independence to build better lives, in more than 70 countries. In fiscal year 2018, Habitat for Humanity helped more than 8.7 million people worldwide improve their living conditions through new home construction, rehabilitation, incremental improvements, repairs, or improved market access to affordable housing. An additional 2.2 million people have potentially gained access to improved housing conditions as a result of our advocacy efforts, and the training in construction and financial management we provide. HFHI works through a broad network of national organizations and other strategic partners, such as corporations, financial service providers, individuals, non-governmental organizations, foundations, local governments, as well as private and third sector actors.

HFHI is anchored on a fundamental vision of a world where everyone has a decent place to live. This vision has been the driving force in all HFHI’s actions and activities that have seen more than 29 million people around the world support building or improving the place they call home.

PROJECT BACKGROUND

The study conducted by HFHI and TMRC on the Hosing Microfinance (HMF) Report 2023, indicated that on the demand side, issues with affordability, credit risk, cultural stigma regarding borrowing, and unreliability of housing works contractors could negatively affect the prospects of HMF. Amongst financial institutions on the supply side, low levels of awareness about HMF (particularly regarding how it differs from “traditional” housing finance products like mortgages), low levels of technical capacity, and lack of long-term affordable funding could hamper the expansion of HMF. The creation of a specialized HMF fund for Tanzania, a program of awareness-raising financial education activities, and technical capacity building could help to overcome these challenges.

HFHT is committed to supporting communities in achieving adequate and affordable housing. A critical component of this effort is promoting financial inclusion, ensuring families can access financial services, that enable them to build, improve, and be able to secure sustainable houses.

The project aims to reach 200 individuals: 150 from Savings and loaning groups and 50 trained local masons in construction skills, to support young people and single-headed households to increase access to affordable housing solutions including housing loans.

Habitat for Humanity Tanzania is looking for a partner organization or financial institution/micro financial institution to manage the available funding from HFHT and participate in contributing/mobilizing more resources/funding to support the housing microloans, among the partner families/target group for them to do housing incremental, repair, renovation, and purchasing of land among the partner families for housing construction

OBJECTIVE

1. The recruited partner will collaborate with HFHT to support the target group with access to housing loans, promoting access to revolving funds for housing incremental, repair, new construction, or land purchase among the most vulnerable families in the Chanika community in Tanzania.
2. Expanding access to financial services such as savings, credit, and insurance for unsaved communities.
3. Provide financial literacy training to equip families with essential knowledge and skills for managing funds, saving, credit, and loaning.
4. Strengthening community-based financial solutions like VICOBA/VSLA (saving and credit cooperatives or self-help groups)
5. Support households in using financial services to improve housing and livelihoods.

SCOPE OF WORK.

1. Conduct a Need assessment to identify financial barriers to this specific community.
2. Facilitate the formulation/strengthening of the 10 to 15 VSLA /VICOBA groups within the target community
3. Identify and work with Financial Institutions to provide customized housing loan product to fit into the target group.
4. Develop and deliver financial literacy training tailored to local needs.
5. Facilitate access to microfinance institutions, community-saving groups, or cooperatives.
6. Offer advisory services to partner families enrolled into this program to ensure they repair/renovate houses, construct incrementally and or purchase land for a new house
7. Track progress, challenges, and impact through regular reports and stakeholder meetings

COMMUNITY ENGAGEMENT

1. HFHT in collaboration with local authorities of the respective communities together with the key implementing partner will facilitate the identification and registration of the qualified partner families and community members to be supported with financial inclusion access.

2. The Engaged partner in support of the HFHT team, will coordinate and facilitate the inception meetings with the involvement of different stakeholders including the government actors, community initiatives groups representatives, and volunteers, before the start of the project.

3. Facilitate the development of each group plan before they receive loans

4. In collaboration with the community development officers (CDOs) in the respective community, facilitate the registration of each VICOBA group to qualify for revolving loan access.

5. The key implementing partner will work closely with existing local structures, LGA, street leaders, partner’s families, and CDO to foster the project ownership spirit and sustainability.

   DELIVERABLE

6. Comprehensive community-based market needs assessment reports.

7. Tailored housing finance products and operational plan

8. Financial Literacy curriculum developed, shared to HFHT for partner groups/families’ education.

9. Comprehensive training sessions to be conducted

10. Monthly, Bi-monthly, and final project reports highlighting outcomes, challenges, and recommendations.

11. Evidence based success stories to be collected and shared to HFHT.

12. Formulate Community Socio-economic support system (network) to support partner families/individuals.

13. Ensure timely completion of the projects (final report to be submitted not later than 15th December 2025).

TIMELINE

Partnership engagement starts in January 2025 with end date 31st December 2025.with the following key milestones

1. JANUARY-FEBRARY: Ensure agreement/partnership signed, inception kick-in meetings with the government and other stakeholders, VICOBA groups identified and registered, and Detailed Planning Resources mobilization is coordinated.
2. MARCH: financial literacy training done and funds disbursement
3. APRIL-JUNE: Livelihood activities (VSLA/VICOBA, Income Generating activities) continue with regular check-in support from partners.
4. JULY -SEPT: Project monitoring, Challenges and Risks Identified and responded/mitigated.
5. OCT: HFHT meeting with partner families to do pre-evaluation of the project based on six-month measurement
6. NOV-DEC –Project completion, handing over of the project to the community through Ward Development Committee with supervision to Community Development Department.

EXPERTISE & QUALIFICATION.

The right fit partner must demonstrate the following:

1. Proven experience in housing finance, microfinance, or financial inclusion.
2. Capacity to operate in target communities, preferably with an established network.
3. Expertise in financial literacy training and community engagement.
4. Strong financial management and reporting system.
5. Promoting inclusivity and gender during the disbursement of funding.
6. Understanding of affordable housing deficit and strategy to apply housing finance to address the deficit will be an added advantage.

ROLES & RESPONSIBILITIES

PARTNER ORGANIZATION.

1. Facilitate access to housing-related financial services, ensuring affordability and inclusiveness

2. Develop and maintain a transparent efficient system for delivering financial services to beneficiaries

3. Set up the revolving funds structure (develop operational guideline policies and procedures for funds use and repayment

4. Define the eligibility and criteria for partner families’ target group to access loans or funding.

5. Facilitate the existence of a financial tracking system among the partner families/target group

6. Develop monitoring tools to track beneficiaries’ livelihood progress /changes/impact in housing conditions upon the acquisition of the revolving funds

7. Maintain accurate records of disbursement, repayment, and overall funds’ performance

8. Develop a clear repayment schedule and collection mechanism to ensure timely repayment

9. Facilitate financial literacy training.

10. Facilitate training on entrepreneurship and skills development- each member to establish Income generating activity, to ensure they can repay the loans.

11. Submit periodic reports to Habitat for Humanity Tanzania detailing funds’ performance, challenges, and success stories.

12. Adhere to Habitat guidelines (Ensure fund management aligns with HFHT mission, principles, and standards.

    HABITAT FOR HUMANITY TANZANIA.

Provide funds to partner organization for the project implementation

HFHT shall coordinate and supervise the project to ensure deliverables are attained.

Champion the community engagement process to ensure the right community and partner families/individuals are selected.

Facilitate the local community and government actors’ mobilization and engagement.

Share all required project implementation tools and organization guidelines including reporting templates, criteria for partners’ families’/beneficiaries’ selection, concert form, safeguarding policy, and safety gear materials.

Develop brand promotion materials and share with partner organization and partner families/individuals as well as community.

Conduct Monitoring and evaluation of the the project (mid-term and final evaluation).

REPORTING AND ACCOUNTABILITY.

Partner organization:

1. Monthly updates, enriched with data/statistics high-quality resolution photos (photos before and after).
2. Quarterly report shared includes activities implemented, outputs and outcomes, lessons learned, and success stories.
3. Final submission of detailed reports, documenting activities, and collection of all achievements, (template will be shared).
4. Provide a final project report, detailing achievements, and lessons learned (report template will be shared and the report should be submitted 15 days later upon the completion of the project.
5. HFHT will conduct regular checks and visits to ensure alignment with the project, goal, and achievement.

How to apply

APPLICATION PROCESS

Interested organizations are invited to submit the following:

1. Technical proposal outlining their approach and methodology
2. Financial proposal including resource contributions to make the project successful.
3. Evidence of relevant experience and qualifications.
4. Work plan and timeline for the project.

Email address to submit your proposal: info@hfhtanzania.or.tz copy mgeorge@hfhtanzania.or.tz