REISA commits to establish an affordable and green friendly housing market in Brazil, through the investment of a minimum of ,000 to develop a partnership with local governments (client) to build an estimate of 5,000 low cost housing units.
REISA will assess the need of affordable housing, and determine site location, designs and environmental requirements, and the availability of local resources, such as labor, energy, manufacturers and other vendors. Once the scope of work is determined REISA will engineer 'right fit' affordable and eco-conscious housing solutions to be built, using recyclable and eco-friendly building materials that can be integrated with renewable and efficient energy. With the needs assessed, REISA will establish relationships with local vendors and can localize materials manufacturing as needed. REISA's onsite superintendents will provide training and oversight to the local labor force construction teams which will be trained using REISA's proprietary, safer and simpler construction assembly versus ordinary materials and methods. A team of 6-8 people can build a 1,000 sq. ft. home in approximately 14 minutes, using REISA's light gauge steel framing; only needing a drill without the need for sawing, scaffolding or heavy equipment and the steel comes precut from the REISA's factory. Using REISA's technology, construction knowledge and oversight, a finished home, can be ready in approximately 10 days depending on the design requirements, and can be also adapted for any other issues, such as water concerns. REISA provides in-country project management, keeping its clients updated as to the progress and schedule. Contracts for REISA'S affordable homes will be established with local and national governments or affordable housing developers and contractors with existing government contracts who are looking for a fulfillment solution.
If REISA is successful in opening such a market and can recoup the initial investment, it will contribute5% of net profits toward building low income houses.
To date, REISA has already embarked in the development of its strategy to implement the affordable housing solution in Brazil, as well as marketing materials to present and explain it. REISA has also begun the process of reaching out to local governments (clients) that could be potential partners in the construction of the housing market. The process of identifying resources available in the area has also been advanced in the search of manufacturers on site, production and warehouse capabilities, potential suppliers, and material requirements.
As part of this commitment, REISA will follow the subsequent phases:
Phase 1: Contracting and working with local governments to develop the scope of work, construction designs, site selection and preparation and availability of workforce.
Phase 2: Ramp up of manufacturing production and purchasing. Where feasible, REISA will establish localized manufacturing for prevailing materials.
Phase 3: REISA superintendents will provide training and oversight to local construction teams consisting of six to eight people per team.
Phase 4: Construction begins utilizing trained local labor force in accordance with agreed contract, scope of work and design. The client is consistently updated regarding construction progress via REISA's on site project management.
There is a lack of affordable housing in Latin America and the Caribbean, and families have insufficient income to acquire available units. According to the Brazilian Census in the year 2000, there is a deficit of 6.6 million housing units in the country, which means that an approximate of 20 million people are homeless or live in favelas, shared clandestine rooms, hovels or under bridges and viaducts, or are squatters, in some of the country's largest cities. And according the Inter-American Development Bank (IDB) Housing Study, more than half of the families in 41 of the biggest cities in Latin America cannot afford to buy a proper formal dwelling through their own means. For example according to the report Room for Development of the IDB, in the city of Sao Paulo, Brazil 62% of families cannot afford to buy a home, and of the 124 million families living in the Latin America and Caribbean region's cities, five million rely on another family for shelter, three million live in house that are beyond repair, and the remaining 31 million live in houses that lack either title, water, sewerage, adequate flooring, or sufficient space.
Among the benefits of investing in affordable housing the following can be listed: (1) increased housing availability to alleviate immediate supply shortage; (2) use of local labor to build homes; (3) increased employment of local manufacturers for building materials and establishment of new suppliers; and (4) greater supply of low cost housing bringing down and stabilizing prices. These different benefits can also be added to the potential benefits that are associated with home ownership such as stability and collateral for families.