THE PATH TOWARDS

DIVERSE PROGRAMMING
Presentation to EMEA office, March 5, 2020
 LEARNING ABOUT…

 Innovation
as key strategic orientation:
Microfinance, energy efficiency, facility
management, construction, legalization…
 Challenges of creating functional partnerships
 Pros and cons of working with
institutional donors
 Establishing licensed legal entities as
model to increase
sustainability and impact
Session with EMEA office: Habitat Macedonia
 PORTFOLIO 2005-2010

Construction

Home Roma Financing Energy

Improv. Housing Water New Efficient
Fund Fund Supply Builds Advocacy Homes
(micro (micro & Sanit. Veles
loans) loans) Capacity dev.
Since Since 2008 Since Volunteer eng. Since
July July to Sep. June
2005 2007 2010 2008 2009
Community dev.

Session with EMEA office: Habitat Macedonia

 PORTFOLIO 2010-2015

Construction

Financing Housing
EU Former Improv. Legaliz.
funded Kosovo Energy of for
projects refugees Efficien. Informal Advocacy people
for and Homes with
Roma migrants Capacity dev. disabil.

2011 2012 2011 2012

Volunteer eng. Since
to to to To Sep.
2016 2016 2015 2015 Community dev. 2012

Session with EMEA office: Habitat Macedonia

 TRANSITION 2015-2018

NBV HIF RHF EEH SP/ADV

NB RL HSS MFP RBMC HFC RABA PHAP VM

PLOB 1 PLOB 2 PLOB 3

Housing Market Housing & Social
Community Development
Development Development
NB RL HSS MFP RBMC HFC RABA PHAP VM

NB: New builds MFP: Microfinance partnerships RABA: Register of apartment

RL: Retail lending (HIF & RHF) buildings and apartments
HSS: Housing support services RBMC: Residential buildings PHAP: Poverty housing alleviation
management company platform
HFC: Housing finance company VM: Volunteer mobilization

Session with EMEA office: Habitat Macedonia

 PORTFOLIO 2016-2019

HFH MK LLC – SPV transformed in construction LLC Society

RBMC – Residential buildings management LLC
HFC – Housing finance LLC (postponed for 2020)

Sector

Community
IL MEDF

RL MFI Moznosti HFHM LLC IL DIGH

RL MFI Horizonti JF

MS RBMC

C PUC/SC IL

RL HFC IL MEDF

CM V HSS REERF IS IL A R/T AR V

HFH Macedonia NGO

D
CM – construction management IL – institutional lending A – advocacy AR – awareness raising V – volunteers MS – management services
RL – retail lending HSS – housing support services R/T – research/training JF – joint fund IS – institutional support

Session with EMEA office: Habitat Macedonia

 MICROFINANCE
Housing microfinance
introduced to ECA in 2005:
Capital mobilization through creating
joint revolving funds
in partnerships with two MFIs.

3599 clients served,

As of Dec. 2019,
10.67M US$ disbursed,
with zero days and zero US$ in arrears
in 15 years.
Session with EMEA office: Habitat Macedonia
 PARTNERSHIP MODEL

Approved partner families/clients

CONSTRUCTION JOINT FUND FINANCIAL

ADVICE & LOAN APPROVAL MONITORING &
MONITORING Joint Credit Committee REPAYMENT

MFI
NEED ASSESSMENT
FUNDS CONTRIBUTION
PRODUCT DEVELOPMENT
CREDITWORTHINESS ANALYSIS
WHOLESALE LOAN
TRAINING
TECHNICAL SUPPORT Housing loan applications

Session with EMEA office: Habitat Macedonia

 NEW BUILDS & GV
The traditional New Builds program includes
5 completed multi-family
apartment buildings,
with the 6-th being under construction.

1727 international volunteers

hosted so far, organized in
122 GV teams,
with overall evaluation score of over 96%
Session with EMEA office: Habitat Macedonia
 NEW BUILDS & GV

Session with EMEA office: Habitat Macedonia

 NEW BUILDS & GV

Session with EMEA office: Habitat Macedonia

 INSTITUTIONAL DONORS
14 big projects 10 years
in the past
were supported by USAID, various EU
instruments, UNHCR and Open
Society Institute.
Designated grants and awards that require
strict compliance and reporting,
in return for guaranteed funding.
Substantial involvement and key
personnel approval should be expected.
Challenge with the project cycle.
Session with EMEA office: Habitat Macedonia
 ENERGY EFFICIENCY

Session with EMEA office: Habitat Macedonia

 BEFORE & AFTER

Session with EMEA office: Habitat Macedonia

 REE WORK RESULTS
Since 2009, with initial USAID support, EE
reconstructions carried out on more than
60 apartment buildings,
with over 1900 apartments,
resulting in overall annual energy savings of
7910 MWh
and annual reductions of
CO2 emissions of

3670 t.
Session with EMEA office: Habitat Macedonia
 LEGALIZATION
During the period 2011 to 2015 there were
1200 micro loans approved to
the most vulnerable families
in 13 municipalities for the purpose of
legalization of their homes in the
informal Roma settlements.

Session with EMEA office: Habitat Macedonia

 MIGRANT CRISIS
In late 2015 and early 2016, more than

1 million migrants
were assisted in Habitat Macedonia’s shelter
at the Greek-Macedonian border.

Session with EMEA office: Habitat Macedonia

 TCIS SUPPORT
SELECTION CRITERIA
ADDED VALUE
• Commercial linkages with LIH
• Sustainability
• Willingness to invest in relations with LIH ROLE FOR HABITAT MACEDONIA
of the model
• Financial strength to make investment (% • Habitat Macedonia & its
• Existing
in financial participation) subsidiaries to provide
program
• Ability to compete in end markets support in reaching LIH
portfolio
• Potential to influence other LFs
safeguarded
• Track record & business reputation

SELECTION MONITORING & IMPACT

OF LEAD COACHING INVESTMENT RESULTS AND
FIRMS MEASUREMENT RETURN

LFs INVESTMENT PROPOSAL

SELECTION PROCESS
• % of financial participation ROLE FOR HABITAT MACEDONIA
• Public invitation
• Higher participation to be • Loans & equity investments
• Application
given priority for increasing LFs
• Evaluation
• Option to get loan or equity participation
• Approval
to increase participation

Session with EMEA office: Habitat Macedonia

 ADVOCACY
Range of engagements, from co-authoring
National RP&SE Strategy to providing
key inputs for local governments in creation
of municipal EE policies.
Playing key role in amending the Housing
law, creating Social Housing law and
participating in creation of
Energy Efficiency law.
All activities supported by the
Parliamentary group for supporting
housing, initiated by Habitat Macedonia.
Session with EMEA office: Habitat Macedonia
 EU FUNDING
Severalhousing rights, social
inclusion & urbanization projects
received EU funding (EIDHR and IPA
instruments)
in amount of € 911,000
during the period 2011-2018.
In early 2020 three new projects with
Habitat Macedonia or its subsidiaries being
partners were awarded
€ 366,000 by EU Horizon 2020 program.
Session with EMEA office: Habitat Macedonia
 MULTIPLE ENTITIES

General low income

Roma
NGO
Disabled/orphans org.
CMC MFIs/companies
RBMC Homeowners & HAs
HFC
Public sector
VALUE Donors/supporters
PROPOSITIONS
CUSTOMER SEGMENTS

Session with EMEA office: Habitat Macedonia

 FACILITY MANAGEMENT

Investment based on
business canvas modeling,
organized as separate legal entity (LLC),
licensed by the national
Regulatory Commission for Housing:
128 apartment buildings, with 3120
apartments under management
as of Dec 2019.
Session with EMEA office: Habitat Macedonia
 NEW LICENSINGS
Licensed construction activities already
transferred to a separate construction
company.
Separation of the lending (credit) activities,
including the licensing of the
financial company
planed for later in 2020.
The NGO and the licensed entities
provide services to each other, as well as to
housing market.
Session with EMEA office: Habitat Macedonia
 GOOD GOVERNANCE
Habitat Macedonia has been one of the
rare HFHI NOs with
100% local board members.
After 14 years all founding Board members
were gradually replaced
with new ones.
The actual Board also supervises the
operations of
two subsidiaries/LLCs.
Session with EMEA office: Habitat Macedonia
 TEAM BUILDING
One of the biggest NO offices, in
one of the smallest HFH countries
in EMEA, with minimal staff turnover:
ND and 3 managers are there since the
first year (2005),
DDP is there for 11 years,
another 5 managers were promoted or joined
in the past 9 years.
In 15 years, only 1 manager
left the organization.
Session with EMEA office: Habitat Macedonia
 TRANSITION 2020

ASSEMBLY

GOVERNING BOARD HFC SB CC SB RBMC SB

ND

DDP DDFA HFCM CCM RBCM

PM1 RTF PM2 RDCM FM ODCM

PJM1 PJM2 OHRM 2CS DM

PS PS VC PDRS FS FS AS ICS FS/CS FS FS

P RDC FA
AA

NGO HFC CC RBM

Session with EMEA office: Habitat Macedonia
Thank you.
Session with EMEA countries, March 7, 2019