MAURITIUS SHELTER PROGRAM

investors against default on housing loans made to the Government of Mauritius (GOM). HG funds will be used to stimulate increased production of low-income houses. Construction loans will be provided to finance construction of 1,500 low-cost, cyclone-resistant houses as follows: construction loans for 500 serviced plots, 500 core units, and 500 homes for families already owning land. Core units will average 264 sq ft and will be built on 900 sq ft lots; each will be a two room semi-detached house with separate kitchen and bathroom and will be suitable for expansion. Serviced plots will range from 900-1,050 sq ft and self-help home construction loans will average $4,000. The Mauritius Housing Corporation (MHC) will be responsible for loan disbursement and construction inspection and will provide limited self-help technical assistance to loan recipients. To qualify for assistance under the project, applicants must have a below-median monthly income (under $157), own no other residential real estate, and agree to reside at the site financed. Most of the sites chosen will be urban infill areas in or near one of the five major municipalities. Approximately 40 plots are planned per acre, each with individual water and electricity connections. Schools, public transportation, and employment opportunities should all be located near the sites. Additional employment will be generated by means of the project"s emphasis on labor-based construction mode. It is estimated thas 3,425 person-months of skilled labor and 7,200 person-months of unskilled labor will be provided through self-help and small contractors. At the institutional level, a special division will be created within the Ministry of Housing (MHL) to plan, design, implement, and manage comprehensive low-cost shelter programs and policies. USAID will monitor professional staff development within the MHL. Assistance will also be provided to the MHC to develop effective inspection procedures, computerize its bookkeeping, and investigate alternative lending mechanisms (e.g., graduated payment mortgages).