ISRAEL - HOUSING INVESTMENT GUARANTY

investors against default on housing loans made to the Government of Israel (GOISR). GOISR will use loan funds to provide mortgage assistance to families below the median income needing shelter. The Ministry of Housing (MOH) will implement the project with short-term assistance from A.I.D."s Office of Housing (SER/H). MOH will extend a total of 3,700 mortgage loans to specific sectors of Israeli society desperately needing housing assistance. Loans will be provided on the basis of need, with the lowest income group with the largest families receiving highest priority. Project beneficiaries will receive this mortgage assistance on a one-time basis and will have 20 years to repay the loan, which will feature variable monthly payments and variable interest rates. MOH will provide 1,000 loans, each averaging 72,000 Israel pounds (IP), to eligible young couples married after 10/1/70. Similarly, MOH will provide 500 loans, averaging 82,000 IP"s, to new immigrants; 500 loans, averaging 100,000 IP"s, to families in rural areas; and, for families currently living with three or more people per room, 1,000 loans at an average of 80,000 IP"s. MOH will extend 500 loans, averaging 60,000 IP"s, to Arab and Druze minorities (who may also apply for loans under other parts of the project). Past GOISR experience has shown that most Arabs prefer to build for themselves, with GOISR assistance mainly as loan guarantees for independent construction. MOH will also extend 200 loans at an average of 100,000 IP"s to families settling in development areas. The type of housing financed under this project will consist of 3-4 story walk-ups, with 2-4 apartments on each level. The units will have 3.5-5 rooms, including a kitchen and a bathroom with a shower and tub. The units also will have cement tile floors, plastered and painted exterior walls, maintenance-free rough gravel and encrusted concrete hallways, and an open balcony.