Low income housing

Evaluation, based on the attached special evaluation (PD-AAH-482), covers the period 2/75-2/80. The projects averted a collapse of the Portuguese construction industry in 1975-76, reduced unemployment, afforded the Government of Portugal (GOP) badly needed foreign exchange during 1976-77, and provided an overall measure of stability to the shelter sector. Under the first project, 3,014 public housing units rather than the 2,600 planned were constructed, and 18 top GOP housing finance officials attended a 2-week U.S. seminar. Under the second project, 3,279 units were built (6% fewer than planned). In sum, 3,178 low-income families received public housing which without A.I.D. funding would not have been built. Nonetheless, there were two significant problems. Construction of housing units was delayed by labor unrest; poor local management; and occasional shortages of cement, bricks, and tile. Second, A.I.D. was unable to convince the GOP of the need for technical assistance in the housing sector outside the specific realm of housing finance. This appeared to be due to three factors -- the GOP"s strong preference for working with European countries; limited, and to a degree inapplicable, U.S. experience in public housing; and inadequate study of the problems facing GOP housing institutions. Project experience also taught that landscaping and construction of utility infrastructure must be as well-planned as the actual construction of the dwellings. A.I.D. concurs with findings and recommendations of the attached special evaluation and has discussed key points with GOP housing officials.