High Quality Affordable Housing in Nicaragua

In 1972, a massive earthquake devastated Managua, Nicaragua, leveling the central business and residential district. Since then, the country has lived through revolution, economic recession and, only recently, a more peaceful and prosperous period. The capital city is still recovering with overcrowded neighborhoods of ramshackle plastic and tin houses, whereas in the countryside access to basic services such as potable water, construction materials and financing is severely limited.

In 2005, Karla Garcia and Oscar Solorzano were newly wed and living with in-laws, three families under one roof. Unable to afford the high rent in the capital city, they attended a meeting of families who shared their dream of owning a home. The meeting was organized by SosteNica’s Nicaraguan partner, the Center for Promotion of Local Development (CEPRODEL), a Nicaraguan non-profit that is a national leader in the development of social housing.

CEPRODEL presented the concept of housing cooperatives, offering a group loan to all the families involved and requiring them to provide sweat equity— helping build the houses themselves and managing the community cooperatively. Commercial banks were not interested in lending to the families, who earned less than $400 per month, but CEPRODEL created an affordable cooperative financial plan.

Karla and Oscar, along with 29 other families, decided to take the leap. Coop members pay $60 per month–$57 towards their mortgage, with a $3 reserve. To rent a comparable home near Managua would cost $200 per month; most of the families would never have the security of owning their home. Beyond financial benefits, members of the housing cooperative build strong community relationships when building their homes.

Home, Sweet Home

Karla and Oscar’s housing cooperative in Managua was one of CEPRODEL’s first ventures into providing organizational support and financing for housing cooperatives. Seven years later, it is an oasis of 30 colorful houses, blossoming gardens and children playing happily in the middle of a capital city still struggling with crime and poverty. The houses, constructed cooperatively by the families who occupy them, surround a green area with a community garden, a small sports field and a community hall. The residents, many of whom met for the first time at the initial meeting, have become a solid community of friends and neighbors.

Addressing A Dire Need

Nicaragua’s population continues to grow at a rate of 1.7%; approximately 22,000 young families need housing each year. While land prices doubled between 2005 and 2011, average income has only increased marginally, so homeownership is increasingly difficult for the average Nicaraguan to obtain. Only 6% of families in the market for a house qualify for individual mortgages, but 47% earn enough income to participate in a cooperative financing model. Currently, there are more than 160 housing cooperatives in the initial organizing stage and only limited financing available.

Creating Sustainable Communities

SosteNica and CEPRODEL are now driving this proven model of affordable quality housing further toward social, financial and environmental sustainability by incorporating features approved by the LEED (Leadership in Energy and Environmental Design) Green Building Rating System, such as solar panels, rain water capture, high-efficiency cook stoves, composting toilets, compressed earth blocks and edible landscaping. To begin this effort, SosteNica has committed to raising $360,000 in new investment. Please join us in this effort. For readers looking to invest in alignment with your beliefs, we are offering an opportunity that is more than just socially responsible—one that actively generates community and improved lives. We believe that this movement is not only a solution to a severe housing shortage in Nicaragua; it is the best solution. Karla and Oscar concur.

To inquire about investment rates and details, please write to info@sostenica.org or call 610-399-5228. For more information, visit our website www.sostenica.org.