An Impact Report for Q2 2023

New Story supporters,

Thank you for helping us make meaningful progress in the first half of 2023. Your constant support allows us to build a talented team that can bring smart solutions to the problem of global homelessness.

As our Impact Team in Mexico City gets stronger, so does our focus. As you know, we only built homes when I co-founded New Story. Now, we’ve evolved our strategy to impact the housing market — while obsessively focusing on sustainable solutions that scale.

You’re helping us build a more inclusive housing market for low-income families in Latin America.

A success in the past quarter is a collaborative intervention with the Etzatlán Municipal Government in Mexico. The project allows low-income, unbanked families to buy plots of land over time, providing them with a property title that can be used for collateral to access housing and financing products.

Here’s the impact so far:

• More than 500 low-income families have paid fully for land and own a land title
• Land ownership payments have only a 3% default
• There is a 3:1 demand for new families wanting to purchase their land lot
• We’re nearly complete with three model homes that will showcase affordable housing options for families who want to buy their home. In Q3, families will start purchasing their homes through a mortgage partner we’ve brought into the project.

Another highlight of the past quarter was a trip I took to our Mexico City office with the executive team and directors on the New Story team. With a problem as big as homelessness, it’s important we continuously learn how we can best support each other. So we listened to each departments’ priorities and discussed ways to better collaborate. We also gained insight and inspiration from Craig Russell, a Walt Disney executive and New Story Builder.

“Many people are trying to solve the housing crisis but not many are trying to outsmart it.” — Craig Russell

In the second half of the year, we’re continuing to build smart solutions to the problem of global homelessness. Some of these solutions revolve around improving construction practices, making land ownership more accessible, and using tech to create an alternative credit scoring system for unbanked families. Every solution has one goal: to make adequate housing more possible for low-income families.

I’m excited to see how several solutions work together to create a more inclusive housing market for underserved communities. And I’m thankful to partner with you in building a world where every family can own their dream home.

Thanks,

BOARD UPDATE

Welcome José (Pepe) Shabot, our newest board member!

Born and raised in Mexico City, Pepe is committed to building a more inclusive market in his home country. Pepe is the founder and CEO of ION, a financing company for home and real estate developers. In the past 12 years, ION has worked with more than 500 developers, primarily financing construction bridge loans and mortgages. Before ION, he founded Quiero Casa, where his team of nearly 500 employees led the end-to-end process of developing affordable apartment buildings.

Pepe also brings experience in the nonprofit sector, starting an NGO that helps construction workers become financially literate. His work and character have shaped an excellent reputation across Mexico, even contributing to the Housing Minister asking him to lead a training program for home improvements after the 2017 earthquake.

As a board member, Pepe will:

• Assist in the growth of New Story’s housing partnerships and network
• Advise on housing finance strategy, structuring, and solutions
• Strategically use his network in Mexico to open doors for New Story operations

We’re grateful to have Pepe join us on our journey of impacting vulnerable families with safe housing!

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TEAM UPDATE

Meet Ingrid Desentis Ascorve

Housing and Business Strategy Senior Manager

In Q2, we hired another remarkable leader to help grow our impact strategy of creating market change across Latin America. Ingrid has spent the past 13 years designing and managing products for some of the most prominent financial institutions serving low-income families in Mexico.

What’s an accomplishment you’re proud of?

When I started to manage loan products, I was very young and had no experience in that area of focus (I’m a marketer, so I was doing market research for my first five years). At Compartamos, a microfinance institution, my main responsibility was to relaunch a product that was neglected by the company. I did a great job making changes and managing a successful product.

What are your top 3 focuses for the rest of 2023?

1. Designing easy-to-understand financial products that reach more people’s needs
2. Bringing together the best partners to serve families
3. Learning new ways to give my best to New Story and the low-income market

What’s a way you like to spend your free time outside of work?

I love spending time with my dog, like taking her for walks and exercising. When I want to disconnect from everything, I grab a book (my favorites are thrillers and historical novels). And I enjoy gardening, going out for dinner or a drink, traveling, and spending time with my family and friends.

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IMPACT UPDATE

AI Addressing Global Homelessness

You’ve always helped us bring the best tech to the families who could benefit from it the most. In Q2, our team took a day to explore ways AI can elevate our work and bring better solutions to the problem of global homelessness. Here are a couple of our favorite potential use cases of AI.

Predicting future urban growth

AI can help us predict urban sprawl and future housing demands. The better developers can understand where growth will occur, the better they can purchase land at affordable rates and create cost-effective housing solutions.

Transforming underwriting

Traditional underwriting processes are often limited and exclusionary. Leveraging AI and big data, we can tap into consumer digital footprints for a more effective creditworthiness assessment. The solution fosters inclusivity in home financing and reduces perceived risks.

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FIELD UPDATE

Bringing Housing Solutions to Etzatlán

In Etzatlán, Mexico, 38% of the 20,000-person population lives below the poverty line. There’s a housing need of 25% in the municipality. We’re collaborating on a project that makes housing accessible and affordable for low-income families across Etzatlán.

Partners for the land:

• UR+PA
• Etzatlán Municipal Government

Partners for housing & financing:

• ACREIMEX (financial institution)
• Oscar Dueñas (local constructor)

Majority of vulnerable families in Etzatlán work in the informal sector and lack proof of income. They can’t access a loan, land, or house through traditional housing solutions.

Our project allows families to buy plots of land over time, providing them with a property title that can be used for collateral to access housing and financing products.

The impact so far:

• More than 500 low-income families have paid fully for land and own a land title
• Land ownership payments have only a 3% default
• There is a 3:1 demand for new families wanting to purchase their land lot
• We’re nearly complete with three model homes that will showcase affordable housing options for families who want to buy their home. In Q3, families will start purchasing their homes through a mortgage partner we’ve brought into the project.

The project is unlocking housing and financing models for low-income families in Etzatlán. With the help of partners, we’re providing credit options and housing models that that are affordable for families living below the poverty line.

We’re expecting to unlock affordable land for nearly 4,000 low-income people. The property title will serve as an alternate way to access credit opportunities and housing options.

This project is proving there’s an opportunity for a profitable and fair market with lower income families. Our hope is for the project to be replicable for other low-income communities across the Mexican state of Jalisco so more families can secure the housing they want.

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Ways to get involved

Help us grow our team‍‍

We’re hiring, and you can help! In Q3, we’re aiming to grow our fundraising team across the U.S. and our impact team in Mexico City. If you believe someone in your network would make for a great fit, please share with them our careers page.

Join our team on a trip to El Salvador

• Sept. 7-10, 2023
• Sept. 14-17, 2023

Vision Trips are the best way to experience our work and your support in action. You’ll join our team in El Salvador to see how safe housing changes lives. You’ll also get a behind-the-scenes look at our solutions — all while enjoying great food and connecting with other impact-driven leaders.

Email jennifer@newstoryhomes.org if you’d like to learn more about joining a vision trip.