LOS PINOS PROJECT

Evaluation covers the period 5/77 to 2/80 and is based on the records of participating Savings and Loan (S&L) institutions, USAID and RHO/PSA files, the 1976 census, and interviews with project personnel. This Housing Guarantee Loan (HG) was intended to finance 1,100 units as the first stage in constructing a $20 million housing complex of 3,000 units. As of 1/78, however, only 608 of the planned 1,100 units had been built, with the range of unit prices rising from the planned $2,800-$7,800 to $12,800-$18,700. Another 243 units were financed privately. Project deficiencies were due to rapidly rising construction costs; an awkward consortium construction process; building material shortages; a 1972 currency devaluation and an unrealistically low planned unit price; and complex S&L titling procedures. The participating S&L"s were strengthened by a pre-sale condition requiring buyers to establish a savings account equal to 20% of the unit"s cost. As a result, the S&L"s savings reserves increased 7.5% from 1973 to 1977. The HG loan had a dramatic impact on these figures. Employment directly due to the project constituted 1.6% (1975) to 5% (1978) of the city"s total construction workforce. The project also increased employment in related industries. The project unexpectedly served as a training ground for Bolivian financial specialists, architects and engineers. In addition, smaller, lesser known construction firms were successfully utilized. New condominium legislation and more flexible building and land codes were promulgated. A total of 951 families (4,280 people) benefited from HG and counterpart financing. Another 316 units for 1,422 people are planned. Substantial new capital is needed, however, if the project is to be replicated to relieve the continuing housing shortage. All funds have been disbursed. The Caja Central de Ahorro y Prestamo (CACEN) must replace $2.1 million in ineligible mortgages with eligible mortgages by 3/31/80. USAID will certify the latter.