3,000 Affordable Homes for Aruba
Collaboration: Mandatum (Non Profit Organization) and UNASdg (Intergovernmental Body)
1. Introduction: Crisis and Opportunity
The Aruba Paradox
Aruba, known worldwide for its turquoise waters and vibrant tourism industry, faces a silent but devastating paradox: while its economy grows driven by tourism and foreign investment, thousands of local residents struggle to access decent housing.
Price Increase
In the last decade, rental and property prices in key areas such as Oranjestad, Palm Beach or San Nicolás have increased by up to 40%, driven by real estate speculation and the demand for second homes by non-residents.
Impact on Local Families
Excessive Financial Burden
This increase has left many families in a critical situation, dedicating more than 50% of their monthly income to rent payments, well above the 30% threshold recommended by international organizations to ensure economic stability.
Vicious Cycle
The consequence is a vicious cycle: the high cost of housing limits family savings, reduces the capacity to invest in education or health, and in extreme cases, forces Arubans to live in overcrowded conditions, sharing small spaces with multiple family members or moving to peripheral areas with limited access to basic services.
Aggravating Factors
Geographic Limitations
Aruba's unique geography—an island of just 180 km²—exacerbates the problem. The limited availability of land, combined with strict zoning regulations and the prioritization of tourist or luxury projects, has restricted urban expansion and made habitable land more expensive.
Widespread Impact
This affects not only low-income families, but also young professionals, essential workers (such as nurses, teachers, or service sector employees) and retirees with fixed pensions, who see the possibility of having a safe and affordable home becoming increasingly distant.
Threat to Sustainable Development
Social Cohesion
Preservation of community identity
Affordable Housing
3,000 affordable modular homes
Sustainable Development
Foundation for equitable growth
The crisis is, at its core, a threat to the social cohesion and sustainable development of the island: without affordable housing, Aruba risks losing its local workforce, increasing inequalities, and weakening the community fabric that sustains its identity.
Faced with this scenario, the Building Futures project emerges as a tangible and scalable response. Its objective is clear: to build 3,000 modular homes designed to be affordable, sustainable, and adaptable to the real needs of the population.
Housing Typologies
60 sq.m. Units
1 bedroom for individuals or couples
80 sq.m. Units
2 bedrooms for small families
Modular Design
A system that allows combining adjacent units to create larger spaces (e.g., 140 sq.m. with 3 bedrooms), responding to demographic changes without requiring costly moves.
Beyond Housing
Controlled Rents
Linked to local average incomes and protected from speculation
Green Spaces
Community spaces for recreation and well-being
Public Transportation
Efficient access to the transportation network
Community Services
Daycares, health centers and more
But this project is not limited to building walls and roofs. Its comprehensive approach includes green spaces, access to efficient public transportation and community services (such as daycares or health centers), replicating a model of inclusive urban development that prioritizes quality of life over mere profit.
Environmental Sustainability
Sustainable Materials
60% of materials with international low-impact standards
Solar Energy
Integrated renewable energy systems
Water Management
Rainwater harvesting for sustainable use
Reduced Footprint
Low-carbon footprint cement
Sustainability is another fundamental pillar: at least 60% of the materials used will meet international low-environmental impact standards, from low-carbon footprint cement to solar energy systems and rainwater harvesting.
The viability of this initiative lies in the strategic alliance between Mandatum, a non-profit organization with a 100% AVO (All Volunteer Organization) team with decades of experience in social projects, and UNASdg, an intergovernmental body specialized in sustainable urban development.
Strategic Alliance
Mandatum
Non-profit organization, NGO and CBO.
- Deep knowledge of local needs
- Efficient construction technologies
- Co-creation with the community
UNASdg
Intergovernmental agency specialized in sustainable urban development.
- Access to competitive financing
- Commitment to transparency
- Global project management standards
Together, these institutions combine the best of both worlds: Mandatum brings its deep knowledge in managing local needs and its commitment to transparency, ensuring that solutions are co-created with the community.
UNASdg, in turn, provides access to competitive financing, financial transparency, and global quality standards.
Proven Experience
Cost Reduction
In projects
Less Time
Reduction in construction times
In essence, Building Futures is not just a construction plan; it is a historic opportunity to rebalance the growth of Aruba. It represents a model where investment in housing becomes an engine of social equity, economic stability, and environmental resilience.
Collective Commitment
Government
Facilitating information and expediting permits for project development
Mandatum and UNASdg
Investing with a vision of social impact and sustainable return
Citizens
Actively participating in the design and development of the project
To achieve this, it requires the commitment of all stakeholders: the government, facilitating information and expediting permits; Mandatun and UNASdg, investing with a vision of social impact; and the citizens, actively participating in the design and development of the project.
The housing crisis in Aruba is complex, but the solutions - like this one - are within reach.
Competitive Costs and Transparency
One of the pillars of the project is its cost model, designed to break the paradigm that "affordable housing means low quality".
With a construction cost of $2,500 per m² — compared to the $3,000–$4,600 that predominate in the local market — the project offers a savings of 20% to 50% per unit, without compromising quality standards. This differential is achieved through innovative strategies:
- Economies of scale: The bulk purchase of materials directly from manufacturers (from cement to finishes) reduces intermediaries and costs.
- Applied technology: Use of industrialized construction systems, such as prefabricated panels and standardized modules, which reduce waste and accelerate timelines.
- Trained local workforce: Training programs for Aruban workers in modern techniques, avoiding dependence on foreign specialists.
Cost Comparison
Sustainability as a Strategic Advantage
International Certifications
60% of the materials used will meet international sustainability certifications, an added value that reduces long-term operating costs for residents and aligns the project with the UN Sustainable Development Goals (SDGs).
Low Carbon Cement
Reduces emissions by 30% compared to traditional mixes.
Efficient Energy Systems
Solar panels for common areas and low-consumption water heaters.
Thermal Insulation
Minimizes the use of air conditioning, crucial in Aruba's tropical climate.
Social Impact: More than Just Numbers
3,000 Families Benefited
Freed from housing precariousness
Reduction in Rental Expenses
From 50% to 30% of their income
Increased Productivity
By living near work centers
Better Mental Health
Decrease in stress due to overcrowding
The 3,000 homes are not just a cold statistic: they represent 3,000 families freed from housing precariousness, with multiplier effects on the economy and collective well-being. According to projections based on ECLAC studies, access to affordable housing will allow the beneficiaries to:
- Reduce rental expenses from 50% to 30% of their income, freeing up resources for education, health or entrepreneurship.
- Improve their work productivity by living near key economic areas (70% of the units will be less than 2 km from key economic zones).
- Decrease the stress associated with overcrowding, linked to mental health issues and academic performance in children.
Job Creation
Temporary Jobs
During the construction phase
Permanent Positions
In administration and services
In addition, during the construction phase, more than 1,200 local temporary jobs will be generated (workers, technicians, supervisors), with a training program certified by Mandatun. Once the project is completed, 200 permanent positions will be created in administration, maintenance, and community services.
Pressure Reduction in the Market
The housing deficit in Aruba has distorted rental and property prices, especially in tourist areas. By injecting 3,000 units into the market with controlled rents, the project will achieve:
- Stabilize prices: A study by the Inter-American Development Bank (IDB) estimates that for every 1,000 affordable housing units introduced, rents in surrounding areas decrease between 5% and 8%.
- Prevent forced displacement: Families will be able to remain in their communities, preserving social support networks.
Conclusion: A Model with Solid Foundations
Financial Efficiency
Low costs and resource optimization
Innovation
Modular and sustainable design
Equity
Measurable and verifiable social impact
Replicability
Model adaptable to other Caribbean islands
These data are not theoretical; they reflect real experiences and conservative projections.
The project combines financial efficiency (low costs), innovation (modular and sustainable design) and equity (measurable social impact), positioning itself as a replicable solution not only for Aruba, but for other Caribbean islands with similar challenges.
Each figure is backed by methodologies validated by Mandatum, assuring investors and authorities that this is not an experiment, but a model ready for implementation.
4. Project Details: Innovation, Financing, and Strategic Execution
The "Building Futures" project revolutionizes the traditional concept of social housing by taking a smart modular design approach, where each space has been conceived to evolve along with the needs of its inhabitants.
Intelligent Modular Design
Base Units
The base units - 60 sq m (1 bedroom) and 80 sq m (2 bedrooms) - incorporate a system of movable walls and pre-installed connections that allow combining two or more adjacent modules, transforming them into larger dwellings (up to 140 sq m with 3 bedrooms).
This flexibility responds to real-life scenarios: a young couple starting a family, elderly adults requiring caregivers, or even entrepreneurs needing spaces for home offices.
Space Optimization
Multifunctional Solutions
Every square meter has been optimized through multifunctional solutions: integrated kitchens with vertical storage, transformable built-in furniture (tables that convert into desks), and spacious balconies that function as extensions of the living area.
Universal Design
The project exceeds accessibility standards by dedicating 10% of the units (300 homes) to universal designs, with wider doors (0.90m), support bars in bathrooms, and non-slip floors, ensuring inclusion for people with reduced mobility or the elderly.
4.2 Financial Model: Transparency and Economic Sustainability
With a total budget of $600 million, the project sets a precedent in efficient resource management. The financial structure is divided into two main components:
- Construction ($525 million - 87.5% of total): The cost of $2,500/m² includes not only the building, but also sustainable technologies (solar panels, rainwater harvesting systems) and common spaces (parks, daycares). This amount represents a 30% savings compared to similar projects in the region, achieved through:
- Centralized procurement of materials from certified suppliers
- Use of specialized machinery for modular construction
- Local training to reduce dependence on foreign labor
- Land Acquisition ($75 million - 12.5% of total): The strategic selection of locations prioritizes:
- Connection to existing public transportation routes
- Proximity to schools, healthcare centers, and commercial areas
- Soils unsuitable for tourism development (avoiding competition for space)
4.3 Timeline: Phased Implementation with a Focus on Results
Phase 1 - Year 1: Project Foundations
- Quarters 1: Legal acquisition of land and geotechnical studies
- Quarters 2-3: Obtaining permits and licenses (with support from the local government to expedite procedures)
- In parallel: Participatory workshops with future residents for design adjustments
Phase 2: First Wave of Transformation
Homes
In 4 urban clusters
Direct Jobs
With training programs
Phase 2 - Year 1 second semester: First Wave of Transformation
- Construction of the first 1,500 homes in 4 urban clusters
- Implementation of basic infrastructure (electrical networks, drinking water)
- Creation of 800 direct jobs with technical training programs
Phase 3: Community Consolidation
1,500 Remaining Homes
Completing the total project
Green Areas
15m² per resident
Social Facilities
Community centers and services
Phased Delivery
With social support
Phase 3 - Years 2: Community Consolidation
- Construction of the remaining 1,500 homes
- Development of green areas (15m² per resident) and social facilities
- Phased delivery with social support to ensure community appropriation
Performance Indicators
Quarterly Metrics
Continuous progress tracking
Time Buffers
15% additional for contingencies
Iterative Adjustments
Improvements based on learnings
Each phase includes quarterly performance indicators, from physical progress percentage to local job creation metrics. The schedule incorporates time buffers (15% additional) for weather or logistical contingencies, ensuring realistic timelines even in complex scenarios.
This phased approach allows for iterative adjustments based on early learnings, ensuring that the last constructed units incorporate improvements identified during the process. The strategy not only builds housing, but sustainable social fabric.
5. Governance and Allocation: An Equitable and Transparent Model
Transparency
Clear and auditable processes
Equity
Fair allocation criteria
Robust Governance
Control and oversight system
The success of the Building Futures project not only depends on its construction, but also on a robust governance system that ensures the homes reach those who need them the most, avoiding speculation and ensuring long-term benefits for the community.
To achieve this, an allocation model with clear criteria and control mechanisms that prioritize equity and social sustainability has been designed.
Eligibility Criteria: Focusing on the Most Vulnerable
Independent Allocation Committee
Access to housing will be regulated by an Independent Allocation Committee, led by Mandatum, which will invite representatives from the local government and community leaders to participate.
Prioritization of Key Groups
Essential workers (nurses, teachers, basic services personnel) with stable contracts.
Young professionals (between 25 and 35 years old) with formal employment but without access to mortgage loans.
Older adults with limited pensions living in overcrowded conditions.
Proven Residency
At least 5 years of continuous residency in Aruba, to prevent external investors from taking advantage of the program.
Weighted Scoring System
A weighted scoring system will evaluate each application, considering factors such as:
- Number of economic dependents.
- Current housing situation (overcrowding, poor infrastructure).
- Contribution to the community (volunteering, jobs generated).
Anti-Speculation Mechanisms: Protecting Permanent Access
Long-Term Rental Contracts
Minimum 5 years renewable with prices indexed to the average of local wages and maximum increases of 5% per year
Prohibition of Commercial Subletting
Clauses that allow random audits and fines equivalent to 200% of the annual rent in case of infringement
Clear Rights and Responsibilities
Minor improvements allowed but no structural remodeling without authorization
To prevent homes from becoming resale or commercial rental commodities, strict measures will be implemented:
- Long-term rental contracts (minimum 5 years renewable):
- Prices will be indexed annually to the average of local wages, not the real estate market.
- Maximum increases of 5% per year, even if wages rise more, protecting residents from sudden fluctuations.
- Absolute prohibition of commercial subletting:
- Contracts will include clauses that allow random audits to verify that the registered resident is the actual occupant.
- Fines equivalent to 200% of the annual rent + loss of housing rights in case of infringement.
Clear Rights and Responsibilities
Resident Rights
- Perform minor improvements (painting, gardening)
- Priority renewal of contracts
- Participation in community decisions
- Access to common spaces and services
Responsibilities
- Do not make structural renovations without authorization
- Maintain the residential use of the unit
- Participate in community assemblies
- Respect coexistence rules
3. Clear rights and responsibilities:
- Residents may perform minor improvements (painting, gardening) but not structural renovations without authorization.
- The reassignment of vacant units will follow a public process, avoiding favoritism.
Transparency and Community Participation
Audited Digital Platform
All information on allocations, criteria, and contracts will be available on an audited digital platform where citizens can verify the progress of applications.
Quarterly Assemblies
Residents will participate in quarterly assemblies to evaluate the system's operation and propose improvements.
Reporting System
Mechanism to anonymously report possible irregularities, ensuring the integrity of the program.
This model not only ensures that the 3,000 homes fulfill their initial social purpose, but also sets a precedent for future housing policies in Aruba, demonstrating that it is possible to combine equity, transparency, and financial sustainability.
7. Call to Action
To the Government
Provide information and expedite permits
To the UNASdg
Provide technical and financial assistance
To the Community
Participation in co-design workshops
Next Steps
Signing of preliminary agreements between the government, the UNASdg, and Mandatum
Next steps: Signing of preliminary agreements between the government, the UNASdg, and Mandatum
Building Futures: