LOW INCOME HOUSING PROGRAM

investors. Loans will be used to provide shelters for low-income families and in support of the current GSL housing program. The Ministry of Local Government, Housing, and Construction (MLGHC) will administer the HG loans. The bulk of HG funds (92%) will finance aided self-help (ASH) efforts in the construction of 3,256 regular shelters, 4,884 model village units, and 5,130 units in GSL"s Electoral Housing Program. The remainder will be used to improve slum and shanty units, 3,600 in the program"s first year. Community facilities such as schools and health clinics will be funded by GSL. Support will be provided on an individual site basis. A capacity to institute income-generating employment will be emphasized after the project"s first year. A technical assistance grant will be provided to upgrade GSL"s capacity to develop project planning and central programming, and upgrade skills in site planning, housing design techniques, implementing self-help efforts, and community participation and management. Advisors will assist MLGHC reorganize its shelter policies in line with the national housing goal. Advisors will also assist both the National Housing and Development Authority"s (NHDA) Rural Housing Division and the Urban Development Authority"s Slum and Shanty Upgrading Division. A study for a phased program of increasing cost recovery will also be undertaken. An account will be set up within NHDA"s Financial Division and collections and records of ASH/HG loans will be made on an up-to-date basis to ensure follow-up. The GSL"s National Housing Fund loan administrators will replicate this system. Training will be provided to selected Sri Lankans. Participation by GSL shelter sector personnel in A.I.D."s Annual Housing Shelter Workshop will be encouraged and a 2-week workshop on shelter development will be offered to 15 such personnel. Three Sri Lankans will be given graduate training in the U.S.; others will receive U.S. training in housing finance and related disciplines.