Portugal low-cost housing

The newly created National Housing Institute (INH) will implement the project. The project will benefit 17,000 households. One subproject (SP) will finance traditional social housing consisting of one- and two-bedroom apartments for sale to below-median-income beneficiaries. The housing will be developed by municipalities, cooperatives, and/or private developers. Another SP will enable municipalities to make home improvement loans to low-income families. The maximum amount to be lent will be the equivalent of $3,750. A third SP will enable municipalities to acquire and develop housing sites for sale as individual lots and as parcels for low-income housing. As part of this SP, infrastructural and other improvements may be implemented in slum and "clandestine" (illegal) neighborhoods. A fourth SP will finance development of unfinished and core one- or two-bedroom social housing units; larger units may be financed provided that their sale price does not exceed 75% of the maximum GOP price for a two-bedroom traditional unit. The GOP will be required to initiate an increasing proportion of less costly, nontraditional shelter solutions (SP"s 2-4) with each successive funding tranche. Up to 75% of the first tranche of HG funds, but only 50% of the second and 25% of the third, may be used for traditional social housing. INH"s institutional capacity will be developed through the provision of TA to the point where it can assist municipal governments, cooperatives, and private developers in implementing low-cost housing solutions. INH information systems will be developed to enable it to monitor its loan portfolio, manage current lending, and improve planning operations. Workshops and seminars will be provided to INH staff to bolster their capabilities in these areas. TA will also be provided to municipalities and the Ministry for Social Equipment (MES) and MES housing policy studies will be funded.