The “Solidarios” project is an effort to provide microcredit to improve housing and living standards of lower-income families. These families are unable to obtain credit from the private sector because those working in the family do not do so within the “formal” economy and thus are categorized as a risky investment. However, microcredits decreases credit risk to the private sector by only lending to groups of families, not individuals, so these families work together to make the monthly payments. This form of credit is compatible with the financial capabilities of the families, and consequently, they are able to benefit greatly from the short-term loans and comparatively low interest rates.

Where is the project located?

Stage One:From December 1995 until 2001 the project developed in seven districts within Greater Buenos Aires (GBA): Moreno, José C. Paz, San Miguel, Merlo, Malvinas Argentinas, Gral. Rodríguez, Pilar.

Stage Two:The primary focus of our work is in the district of Moreno, GBA, where we are working with 11 neighborhoods that are home to more than 9,000 families: Mayor del Pino, San Alberto, Don Sancho, San Norberto, Irigoin, El milenio José C. Paz, Namúncura, Don Máximo, Anderson, Leandro N. Alem, Santa Brigidá y San Atilio

· Achievements:

We have provided more than 8,000 families in the northeast part of GBA with the credit needed to make improvements to the infrastructure of their homes.
Within a five-year period, we improved the conditions of 73,330 m2 worth of housing space within this area of GBA.
The $1,500,000 that was loaned was successfully recovered and the total capital that was use was $12,000,000 between 1995 and 2000.
In this case, the improvement of homes also works as an event to mobilize and unite the community. A “mobilizing event” facilitates the organization of the neighborhood. It is an event capable of attracting the resources of various players on the side of supply (the government and private sector), as well as to promote the organization of demand (the neighbors).

· Objectives:

To strengthen the cohesion between families through solidarity guarantee in order to be able to improve their standards of living.

· Desired Results:

We believe that in five years time, the people will be able to receive financing of up to $5,000. This amount, along with savings and the other resources that are generated as a result of this sort of financing will reduce the average time of construction per house in this sector of the population from 20 years, down to 5.

· Future Plans:

Involve the neighbors themselves in the management, promotion and offer of the loans and to increase the availability of the credit.