Providing housing for low-income earners: The Millard Fuller Foundation example

One of the challenges the governments are facing presently across the country has been how to make affordable housing available to Nigerians.

Many Nigerians are willing to own houses but low income and inability to access housing funds through housing mortgage institutions have remained major challenges.

For instance, a recent study by a top international consulting company stated that most Nigerians workers are earning less than N500, 000 per annum or N40, 000 per month.

The report also says about 80 per cent of Nigerians cannot afford a house that is more than N1 million naira.

In the light of this challenge, the masses continue to suffer humiliation in the hands of some landlords who tend to exploit and embarrass them at will should there be any delay in paying rents.

In addressing part of the challenges faced by the masses on housing, Millard Fuller Foundation (MFF), a faith based organisation, offers to facilitate the delivery of affordable mass housing to Nigerians at cheaper rate.

The foundation says it is set to bridge the funding cost of residential mortgages and promote the availability and affordability of good housing to Nigerians by providing mortgages and longer terms funds in the mortgage market.

Mr Sam Odia, the Chief Executive Officer of the foundation, recently inaugurated a campaign called “My Fuller My House’’ in Abuja to solve housing crisis by targeting low income earners.

MFF also receives assistance from its partners which include the German Cooperation Agency (GIZ), which rendered technical support and the Fuller Centre for Housing, which has granted 500, 000 dollars to the programme in the last nine years since.

It also receives assistance from Reall UK and Selavip International which supported in developing 36 housing units at its maiden site in Abuja on a non-profit basis.

According to Odia, with the assistance of local and foreign partners, the foundation has currently developed 400 units GrandLuvu project situated at Masaka, Nasarawa State, near Abuja, selling at N1, 650, 000 to low income earners.

He noted that long term mortgages after the initial 50 per cent equity deposit by the buyer would be provided by Federal Mortgage Bank of Nigeria (FMBN) through its low income informal sector window.

“GrandLuvu project is only first in massive pipelines of similarly exciting housing estates which will cover the country. We already have 200 units underway with 92 ready for immediate sale,’’ he said.

Odia described the intervention as a programme that would promote and advance equitable housing in Nigeria.

He said it was a calculated venture that would also provide realistic opportunities for low income earners to own a modern house.

“In line with our mission, MFF continues to seek partnership with individuals, organisations and government at all levels.

“With government willing to foot the infrastructure bill, the cost of our buildings can come down as low as N1 million per unit.

“This will fall in line with the expectation of the ruling party manifesto to provide a million homes a year at a unit cost of N1 million.

“Our maiden project delivered a modest 108 units over eight years with the house prices rising from N240, 000 to N360, 000 and eventually to N960, 000.

“Our first studio apartment homes cost N240, 000 at the time, immediate occupation after the down deposit of N60, 000, the remaining N180, 000 paid over the years at the rate of N6, 250 monthly. Many ran away from the scheme thinking it was a fraud.

“This was our first challenge until brave applicants paid and moved into the homes then it dawned on the public that it was real,’’ he said.

Odia said the second challenge facing the foundation was how to ensure a steady flow of housing at increasing scale using a donor-based funding model.

Mr Solomon Yero, Chairman Board of Directors of MFF, said that the vision of the foundation included seeing a world where everyone would have access to adequate shelter.

He said the MFF had been working to provide for the needy through a collaborative and innovative partnership with individuals and concerned organisations.

Yero promised that the organisation would strive to ensure that every Nigerian, irrespective of sex, tribe or religion, got a better deal.

He noted that the FMBN and TrustBond Mortgage Bank, in collaboration with MFF, are also developing a tri-partite agreement to deliver low income homes.

He explained that in the agreement, a substantial number of low income homes would be delivered under the Affordable Housing for Economic Empowerment and Development scheme.

Odia explained that the scheme would promote economic empowerment through employment opportunities emanating from the mass delivery of houses and the promotion of economic opportunities across the housing value chain.

Mr Shehu Usman, Assistant General Manager and Group Leader, Special Products Group, FMBN, explained that a component of the scheme — Rent to Own– was meant for Nigerians who could not afford housing mortgages.

“The FMBN will partner with housing developers; houses will be built and allocated to individuals who cannot afford equity.

“They will move into the house as tenants without a necessity to pay equity from the beginning and make installment payment with the purpose of owing the house at the end of the payment.

“The cost of the house will be spread over the number of years which the tenant will pay to own the house,’’ he said.

A home owner with the foundation, Mrs Esther Oyewole, a teacher, said the foundation intervened and brought succour to her during a difficult time as a result of lack of house.

She shared her experience as a tenant who was always attacked and evicted by her landlord until a friend introduced her to the MFF affordable houses in Masaka which made her a house owner.

“My landlord gave us seven days to pack. I didn’t know that it would bring a blessing to my family.

“The first studio apartment was sold for N360, 000, so we paid N60, 000 as the initial payment, and then the MFF gave us key as owner of the house immediately.

“We pay N6, 250 monthly to pay up in four years. There is constant light and water in the estate which has a serene atmosphere,’’ she said.

Commending the foundation, she, therefore, pleaded with the governments to assist non-governmental organisations by giving them encouragement in terms of making the environment beneficial so that they can do more in the area of housing and reduce the number of homeless people.