Proposed Financial Model for affordable Housing

Name of Scheme: NEDian's Social Housing

Urgent Donations required: PKR 12,500,000.- (U$120,000-) for a land of 3.5 Acres in Karachi & a part
of development.

Zakat Funds required: PKR 15,000,000

Total number of Houses of 400 sqft in LSG technology: 92

Category of Pricing and Sale:

Category LMIF : 75% houses for lower middle income (LMI) families paying rent now and earning PKR
20-25,000.- per month, aged 25-50 years, and credible to a lending institution. wife and head of family
own no property. They shall pay a down payment of PKR 50,000 at the time of registration and shall be
provided a loan from micro-finance institution.

Category BPLF: Below Poverty Level Families shall get a share of 25% of the houses. They shall be
charged only the utilities and maintenance charges but no rent or installment if the houses were built
with Zakat Funds and the donors or the trustees of NED-SET nominated them.

Land area 3.2acres Total # of houses: 92 as per attached layout

Expenses Estimate: Land: PKR 10,000,000.- Development Cost: 12,000,000- Houses cost 60,000,000-

LMIF Houses 69 units

Activity From T0 Income Target Estimated Balance Estimated Balance
Source Amount Actual Expenses
PKR Income
Fund Raising 1/5/17 31/12/17 USA/Canada/ 27,500,000
Pak -
1/5/17 31/5/17 Fund raising
5,000,000 5,000,000
Find land 1/6/17 15/6/17
and pay 2,000,000 3,000,000
advance

Fund Raising 1/6/17 30/6/17 Fund raising 7,500,000

by Eid ul Fitr 10,500,000

Pay Balance 1/7/17 15/7/17 7,800,000 2,700,000

for land
Advert. 1/6/17 31/7/17 For LMI 69
register house 50,000 2,650,000
Registration 1/8/17 31/8/17 Registration 3,450,000 2,500,000 5,150,000
of residents fee
69x50,000

Development Works on the Land

Activity From T0 Income Target Actual Balance Estimated Balance
Source Amount Income expenses
PKR
Grading , 15/7/17 30/7/17 50,000.- 5,150,000
survey, de-
marcation
Water and 30/7/17 30/8/17 2,490.000 2,660,000
sewerage
tanks/ lines
Fund Raising 1/7/17 30/8/17 USA/UK/Pak 2,500,000 5,160,000
Roads 1/9/17 31/10/17 3,168,000 1,992,000
Loans 1/8/17 31/10/17
processing
Concreting 1/9/17 30/9/17 500,000 1,492,000
of slabs
/plinth for
69 houses
First 1/10/17 15/10/17 Lenders 19,320,000 20,812,000
installment 2.8 lacsx 69
from lender
40% of 7 lacs
Over head 15/10/17 31/12/17 2,375,000. 18,437,000
tanks water
well &
pumps

Street Lights 1/10/17 15/12/17 2,500,000 15,937,000

,Park, play
ground,
shoulders
Order 69 30/10/17 15/11/17 69 houses 13,455,000 2,482,000
houses from x195,000,
fabricator
@30% of
6.5lacs
Structure for 15/12/17 31/12/17 2,482,000
18 houses
and erection
of 18 houses
completed.
 Activity From T0 Income Target Actual Balance EstimatedExp Balance
Source Amount PKR Income enses
2nd payment 1/1/18 15/1/18 Lender 60% 7,500,000 9,982,000
By lenders for of 18
18 houses houses
x4.2 lacs
Remaining 15/1/18 30/1/18 1,200,000 8,782,000
development
works
2nd payment 15/1/18 30/1/18 60% of 6.5 7,020,000 1,762,000
to fabricator lacs x18
for 18 houses
Completion 1/1/18 15/1/18
of 18 more
houses
3rd payment 15/1/18 31/1/18 Lender 60% 7,500,000 9,262,000
by lender for of 7 lacs of
18 houses 18 houses
x4.2 lacs
3rd payment 1/2/18 28/2/18 60% of 6.5 7,020,000 2,242,000,
to fabricator lacs x18
for 18 houses
Give 1/3/18 30/3/18
Possession to
36 families
Completion 15/1/18 31/1/18
of 18 more
houses
4th payment 1/2/18 15/2/18 Lender 60% 7,500,000 9,742,000
from lenders of 7 lacs of
for 18 houses 18 houses
x4.2 lacs
4th payment 60% of 6.5 7,020,000 2,727,000
for Fabricator lacs x18
for 18 houses
Completion 1/2/18 15/2/18
of last 15
houses
5th Payment 15/2/18 28/2/18 Lender 60% 6,300,000 9,027,000
from Lender of 7 lacs x
for 15 houses 15 houses
5th payment 1/3/18 15/3/18 60% of 6.5 5,850,000 3,177,000
to fabricator lacs x 15
for 15 houses
 Activity From T0 Income Actual Balance Estimated Balance
Target Income Expenses

Completion
of last 15
houses and
thus and
given 31/3/18 30/4/18 3,177,000
possession to
families the
last 33 houses
Last payment 69x 0.1x 4,485,000 -1,308,000
to Fabricator 6.5 lacs
remaining 15/4/18 30/4/18
10% of 69
houses

The BPILF Houses exclusively on Zakat Funds

Activity From T0 Income Target Actual Balance EstimatedExp Balance
Source Amount PKR Income enses
Donation 1/5/17 30/2/18 USA/UK/Pak 15,000,000 15,000,000 15,000,000
needed US$ 145,000
Order 23 BPLIF 1/5/18
1/7/1815/5/18
15/7/18Zakat Funds 7,400,000
7,475,000 7,600,000
4,545,000
houss collected by
Advance NED-SET
payment 50% of 23x0.05x
6.5 laca each 6.5lacs

Delivery of 23 15/7/18 15/8/18

houses to
BPLF
40 % 1/9/18 15/9/18 Zakat Funds 5,900,000 1,700,000
payment to 23x0.04x6.5
fabricator lacs
Possession to 15/9/18 15/10/18
BPILF
Final 31/7/18 15/8/18 Zakat Funds 1,495,000 205,000
Payment to 23x0.10x6.5
Fabricator
Notes:
1. The above model assumes the booking of houses for LMIF shall be completed at the beginning of the
development works.
2. The preference of development work will be to have the colony functional at the time of first
possession of house.
3. The loan for LMIF will be from HBFC which has a charge of 9.6% which is not interest as it hardly
covers the money's de-valuation and the inflation which erodes it purchasing power. Besides the
owner of the house will benefit from the upward valuation of the property.
4. The houses for the BPIF will be built the last and will provide chance for the donors to nominate the
beneficiary and donate full cost of the house if desired so. In such cases the property shall be
transferred in the beneficiary's name. the houses built with Zakat funds in part price of house the
nomination shall be by the trustees of NED-SET with the merit of deservedness.
5. The amount of donation stipulated in this model is about US$ 120,000 in the first 2 months and
another US $ 145,000 at the end of the completion of the project. However more donation will
facilitate for starting the other gated community and also will facilitate the dwellers getting better
and faster utilities and infrastructure.

Notes:
6. The above model assumes the booking of houses for LMIF and MIF shall be completed at the
beginning of the development works.
7. The preference of development work will be to have the colony functional at the time of first
possesion of house.
8. The loan for LMIF will be from HBFC which has a charge of 9.6% which is not interest as it hardly
covers the money's de-valuation and the inflation which erodes it purchasing power. Besides the
owner of the house will benefit from the upward valuation of the property.
9. The houses for the BPF will be built the last and will provide chance for the donors to nominate the
beneficiary and donate full cost of the house if desired so. In such cases the property shall be
transferred in the beneficiary's name.
10. Tle amount of donation stipulated in this model is about US$ 100,000 in the first 2 months and
another US $ 50,000 at the end of the completion of the project. However more donation will
facilitate for starting the other gated community nd also will facilitate the dweller getting better and
faster utilities and infrastructure.