- Through the innovative Alternativa Urbi scheme, self-employed workers save for their down payment while living in their new home - With the drive of CONAVI and SHF, Alternativa Urbi caters profitably to the bottom of the pyramid that lacks housing benefits
MEXICO CITY, Sept. 8 /PRNewswire-FirstCall/ -- Today, the Mexican Center
for Philanthropy will award a recognition to the housing developer Urbi for
their Best Practices in Social Responsibility or CEMEFI, through their
innovative scheme Alternativa Urbi, which allows non-salaried workers -- who
account for 50% of the Mexican population -- to get mortgage-based credit
while promoting a banking culture among the population.
In Mexico, the two deciles of homes with the highest income accumulate 73%
of what is allocated to savings, while the homes in the lowest 5 income
deciles participate with 8.7% of savings only. It is no surprise that only 25%
of the Mexican population has access to financial services, while the number
reaches 91% in the U.S., 60% in Chile and 43% in Brazil. On top of this, The
World Bank estimates that in Mexico City, the additional cost of not using
banking services amounts to 15% of a family's income.
Alternativa Urbi is a mechanism offering a financing option to buy a home
to a large segment of the population that has been left unattended: the
self-employed, particularly those with an income lower than 4 minimum daily
wages. This is the result of the housing industry's focus on the market
segment with an income of 4 to 11 minimum daily wages who work in the formal
economic sector.
Lizette Perla, Urbi's Social Corporate Responsibility Director, noted:
"Urbi's vision is to contribute to building a new middle-class of home owners
in Mexico; therefore, our firm belief that every family -- with no exception -
- that has the ability to make a monthly payment on time should have the
opportunity to buy a home." She added: "Lower income families benefit
particularly from Alternativa Urbi; for example, in cities like Tijuana, a
family can pay up to MX$2,000 pesos a month in rent, and this scheme allows
them to exercise their right to a federal subsidy of up to MX$52,000 pesos,
with a monthly mortgage payment of MX$1,000 pesos, which not only improves
their quality of life, but their purchasing power as well."
Through this mechanism, the worker can purchase a home using their monthly
payment as a means to cover the down payment. This way, clients build a credit
history and demonstrate their financial capabilities by making their payments
on time; and when their monthly installments turn into saving mode in 6
monthly payments (incubation period), it allows this sector of lower-income
workers to automatically qualify for subsidy allocation according to the
operating rules of the "Esta es tu casa" subsidy program sponsored by CONAVI
with the participation of INFONAVIT, SHF and FOVISSSTE.
The Best Practices recognition will be awarded by RSE 2008 in its ninth
edition in seven different categories to another 45 companies in Latin
America, including Cemex, Walmart and Home Depot.
For his part, Jose Carlos Cota, Urbi's Director of Operations Drive and
Financing, noted: "Alternativa Urbi is part of an initiative to expand the
traditional housing market in a profitable way, at the bottom of the pyramid,
and take advantage of the Comision Nacional de Vivienda (CONAVI) and Sociedad
Hipotecaria Federal's (SHF) drive to create financing schemes that will open
the doors to a huge segment of the population that has no access to housing
benefits: hardworking families, like everyone else, whose income doesn't come
from a payroll, like dentists, taxi drivers, hairdressers, plumbers and taco
stand owners, all dignified trades and occupations that don't allow them the
fundamental social right to buy a home of their own."
Cota Arce added: "This recognition is for everyone who is a part of Urbi,
who works enthusiastically every day within the framework of our 2007-2011
Strategic Growth Plan, which within its five objectives establishes the
promotion of initiatives that foster social, economic, and environmental
welfare, not as a philanthropic activity, but as a result of the activities
inherent to our line of business."
And he added: "We are very grateful for this recognition, because it
ratifies our commitment to continue working towards the creation of a new
middle class of home owners who have at their core the set of values that
serve as the real cornerstone of a participative society, this being the
greatest social impact of our contribution as a company."
Urbi Desarrollos Urbanos S.A.B. de C.V. (MSE: URBI) is one of the leaders
in the housing sector in Mexico and the biggest developer in the northern
states, an area with one of the highest growth rates. Additionally, it has a
growing presence in the country's metropolitan areas. In over 26 years of
operations, Urbi has developed over 264,000 homes, and has always conducted
its business with a strong emphasis on financial performance, making it one of
the most profitable companies in the sector. Urbi has a unique and replicable
business model supported by UrbiNet, its state-of-the-art IT platform.
SOURCE Urbi
