Carpathian Homes: Rebuilding Ukraine-House Construction
Dachas, also called tiny homes, in Uzhhorod, Ukraine
OVERVIEW
The CAP Tiny Homes project was the dream of the Rroma Project Group of the Transform Uzhhorod Alliance to provide job skill training for Rroma young people. It since has expanded to include any underprivileged young person. They will receive training in building homes for six months receiving a competitive salary.
In October of 2020, Carpathian Homes was founded via seed capital from the Visible Fund in response alongside our Catalyst, Doug Landro, in pursuit of empowering young Rroma men to learn a trade and fill a niche in the local marketplace in Uzhhorod, Ukraine.
FROM RELIEF TO REBUILD
Originally intended as affordable mountain retreats in the Carpathian Mountains, homes in a new project called Veliky Lazy are being repurposed as permanent housing for Ukrainians. This neighborhood of 18 homes, developed by Carpathian Homes, aims to provide immediate, efficient shelter, especially for women and children, while also serving as a model for a new construction approach. Partnering with Indiana's Borkholder Building & Supply, the project features post-frame, all-wood construction instead of the typical concrete blocks used in Ukraine. This method is cost-effective, fast to build, environmentally friendly, and uses locally available materials, which could greatly expedite rebuilding. However, challenges include a shortage of working-age men, lack of expertise in this construction method, limited lumber supplies, and regions still unprepared for rebuilding.
STUD Framed Homes
Carpathian Homes is addressing key rebuilding challenges in Ukraine by acquiring a lumber and truss manufacturing facility from local partner Dima Golub. The plan involves expanding this operation into three regions: Apostolove, Uzhhorod, and Kharkiv. These facilities will produce and assemble framing materials, tackling the dual issues of lumber supply and framing expertise. The new initiative, STUD Framed Homes, will operate independently but support Carpathian Homes' broader mission. This approach aims to establish a replicable model for efficient, scalable construction, with any earnings used to fund long-term rental housing.
The funding model for this project involves a $1.5 million investment, structured as a recoverable grant through revenue-based or asset-based financing. This investment will cover the facility expansions and complete the Veliky Lazy community. Financial projections suggest that this model could generate significant returns, potentially increasing the enterprise value tenfold over ten years. By addressing immediate humanitarian needs and transitioning to long-term development, Carpathian Homes plans to build over 1,800 homes for more than 5,000 people, with the potential for even greater impact through international replication.
INVESTMENT SUMMARY: Venture stage investment
This Investment is structured as a Recoverable Grant following a revenue-based financing model which will recycle the full investment via revenue-share by the year 2030.
Tranche 1 (October 2020) funds a model tiny home
Tranche 2 (early 2021) funds start-up costs
Tranche 3 (mid-year 2021) funds operations to build the first 6 homes
Key Metrics for Growth and Impact:
Further forge partnerships and mission in a community-wide alliance
Reinforce the core belief that local transformation should be led by local leaders and funded (as much as possible) by locally-generated revenue
26+ Jobs supported = Income/Livelihood for 40+ people
Uzhhorod is the administrative center of Zakarpattia with a population of 120,000 people. The city was founded over a thousand years ago and is rich in culture and history. It rests in the southwest corner of Ukraine where Slovakia, Hungary, Romania and Poland all come together. It is a university town with over 20,000 students making up 15% of the city's population. Thousands of these students come from Buddhist, Hindu, and Muslim parts of the world to attend its medical university. Although over 75% of the population in Uzhhorod are ethnic Ukrainians, other large ethnic groups include Russian (10%), Hungarian (7%), Slovakian (2%) and Rroma (1.5%). Most of the Rroma live within five squalid camps within the city and experience extreme discrimination. A recent influx of internally displaced people from Eastern Ukraine as a result of the 2014 Russian invasion has created some challenges as well. The Ukrainian government has also chosen the region for its pilot program to eradicate the need for orphanages with programs to reunite children with family and promote adoptions and foster care.
Want to hear more about our community in Uzhhorod? Check out our Visible Podcast