RFAs: Housing Loan Opportunities for Reintegration Communities in Colombia

Deadline: 30-Sep-2026

The United Nations Capital Development Fund is inviting eligible Colombian financial institutions to express interest in expanding access to housing loans for persons in reintegration in Tolima, Cauca, and Santander. Through the Hogares de Paz initiative, selected institutions may receive concessional financing or partial credit guarantees; the program does not provide grants or direct housing subsidies.

About the Hogares de Paz Initiative

Hogares de Paz is a development finance initiative created to improve access to affordable housing finance for persons in reintegration in Colombia. The initiative will work through eligible local financial institutions that have established housing-loan portfolios and the capacity to serve customers in: - Tolima. - Cauca. - Santander. Rather than lending directly to individuals, the United Nations Capital Development Fund will support selected financial institutions in expanding suitable housing-finance products for the target population. Purpose of the Initiative Hogares de Paz aims to address the financial barriers that persons in reintegration may face when seeking safe and stable housing.

Its objectives include:

- Expanding access to affordable housing loans. - Encouraging financial institutions to serve persons in reintegration. - Reducing the perceived and actual risks associated with lending to the target population. - Increasing the availability of appropriate housing-finance products. - Strengthening financial inclusion. - Mobilizing additional private capital for development. - Supporting social and economic reintegration. - Promoting sustainable and responsible lending. - Increasing housing opportunities in the three target departments. Who Are Persons in Reintegration? Persons in reintegration are individuals participating in processes that support their transition to civilian, social, and economic life following involvement in armed groups or conflict.

Reintegration may involve:

- Access to education and skills. - Employment and income generation. - Financial inclusion. - Social and community participation. - Psychosocial support. - Access to safe and adequate housing. Stable housing can support long-term reintegration by improving personal security, family wellbeing, economic stability, and community participation. How the Financing Model Works UNCDF will not provide housing grants or subsidies directly to individual beneficiaries. Instead, it will partner with selected financial institutions that can originate and manage housing loans for persons in reintegration. The initiative offers two financial instruments: - Concessional financing. - Partial credit guarantees. Participating institutions will use the selected instrument to expand affordable and responsible housing lending to the target population. Concessional Financing Concessional financing refers to capital provided on terms more favorable than standard market financing.

These terms may include:

- Lower financing costs. - Longer repayment periods. - More flexible financial conditions. - Risk-sharing arrangements. - Terms designed to support affordable end-user lending. The purpose is to help participating financial institutions offer suitable housing loans that may otherwise be difficult to provide under normal market conditions. Applicants should explain how concessional financing would improve the affordability, reach, or accessibility of their housing-loan products.

Partial Credit Guarantees

A partial credit guarantee covers an agreed portion of the credit risk associated with eligible loans. If a borrower defaults, the guarantee may compensate the financial institution for part of the qualifying loss, subject to the final agreement.

This instrument can:

- Reduce the lender’s exposure to credit risk. - Encourage lending to underserved customers. - Support responsible expansion into new market segments. - Increase the institution’s willingness to test inclusive lending models. - Help mobilize additional institutional capital. The guarantee does not eliminate the financial institution’s responsibility to assess borrowers, originate appropriate loans, manage the portfolio, and apply responsible lending standards. What the Initiative Does Not Provide

Hogares de Paz does not provide:

- Grants to financial institutions. - Direct grants to individuals. - Direct housing subsidies. - Free housing. - Debt cancellation. - Financing without an assessment and selection process. Applicants should structure their expressions of interest around concessional finance or partial credit guarantees rather than grant funding. Who Is Eligible? The opportunity is open to eligible Colombian financial institutions with relevant housing-finance capabilities.

Applicants should be able to demonstrate:

- Legal authorization to operate in Colombia. - An established housing-lending portfolio. - Institutional and financial soundness. - Experience originating and managing housing loans. - Appropriate credit-assessment systems. - Portfolio monitoring and risk-management capacity. - An operational presence in one or more target departments. - Capacity to serve persons in reintegration. - Alignment with responsible and inclusive finance principles. - Ability to comply with UNCDF reporting and due-diligence requirements. The official call should be reviewed for the complete definition of eligible financial institutions. Eligible Locations Proposed lending activities must target persons in reintegration in: - Tolima. - Cauca. - Santander. Applicants should demonstrate an existing operational presence or a credible expansion plan in at least one of these departments.

Relevant evidence may include:

- Branches or service offices. - Agents or correspondent networks. - Digital service channels. - Existing clients. - Local partnerships. - Housing-loan portfolios. - Staff and operational infrastructure. - Knowledge of local housing markets. Target Beneficiaries The ultimate beneficiaries are persons