HFHU builds with families who own or rent substandard houses. Today, Sarah Nalujja (Pictured) is a proud home owner in the HFHU Nakasongola affiliate.

HFHU builds with families who might not ordinarily qualify for conventional loans to become home owners. Clients are selected based on need , ability to repay an interest free loan and a willingness to partner in the Habitat program through local materials contribution to one's own home. Habitat for Humanity Uganda as a Christian organization seeks to demonstrate the love and teachings of Jesus Christ in it's partnership with families served however one NEED NOT BE or become a Christian in order to receive Habitat assistance.

Home construction is strictly done in districts with Habitat affiliates (Community Projects). HFHU is currently building in the districts of Mukono, Luwero, Nakasongola, Masindi and Ibanda . HFHU is however also present in the districts of Palisa, Mbale, Sironko, Bugiri, Iganga, Mayuge, Kamuli, Jinja in the east, Wakiso in central and Hoima, Kasese, Bundibugyo, Bushenyi in the western part of the country.

Client selection criteria:

HFHU's major client selection criterion is NEED broken down to:

•  Families Living in or renting a substandard house.
•  Families that demonstrate ability to repay a Non-Profit loan over a 5 – 10 year period. The monthly income bracket for such families should be between Ug. Shs. 60,000 ($38) and 150,000 ($94)
•  Families willing to partner with HFHU by contributing 100 hours of work on their house (sweat equity) and 100 hours in a neighbours home (mutual help).
•  Families willing to make a 20% local materials down payment for their home as well as dig a pit for their Latrine. Locally available materials include Sand, rocks for floor casting and bricks.

Simple, Decent & Affordable: A Habitat for Humanity Uganda home on a family plot complete with a Ventilated Improved Pit (VIP) Latrine

•  Field staff make announcements through Churches, Mosques, local area councils and the news media about available opportunities. Home Application Forms are sold at a fee of Ug. Shs. 5,000 ($) (to recover administration costs) to interested families after attending Habitat education meetings.
•  Field staff verify information submitted back by conducting physical (on site) visits and interviews to ascertain if applicants meet the selection Criteria.
•  Selected families, upon verification, undergo training covering topics on Habitat for Humanity (HFH) and Habitat for Humanity Uganda (HFHU) policies, Hygiene, Savings & the HFH Revolving Fund. Other topics include HIV/AIDS awareness, succession planning.
•  Selected families are given time to deposit their 20% local material contribution.
•  Once local materials have been deposited and verified by HFHU, actual house construction starts. Home construction lasts 3 – 4 weeks. Materials contributed by HFHU include cement, iron sheets, iron bars, door and window shutters, and professional labour. The HFHU contribution is what constitutes the loan amount. The client contribution is meant to reduce the loan amount.
•  Upon completion of construction, clients sign Home Owner agreements before occupying their new home.

House cost –the loan:

•  HFH home loans range between Ug. Shs. 3,200,000 ($2000) & 4,500,000 ($2,813) depending on house material costs.

•  The house cost is determined by adding all costs incurred during house construction i.e. Construction materials provided by HFHU + Professional labour costs + 10% administration fee. The total amount is divided by the cost of a cement bag at the time of house construction. The value of the loan is repaid in terms of bags of cement.

Example: Materials + professional labour + 10% labour = 3,200,000. Cement market price = 18,500. The client loan is 3,200,000 divided by 18,500 = 173 cement bags. The cement bags are paid back over a period of 5 – 10 years on a monthly basis. Payment in cement bags helps to guard against inflation since HFHU does not charge profit or interest on the house. Payment in this form helps HFHU maintain the revolving with one home ably building another even after 5 – 10 years.