RURAL HOUSING IMPROVEMENT

The project consists of home improvement and institutional upgrading components and will be implemented by the National Housing Institute (INVA) with USAID-funded technical assistance. INVA will create a Policy Coordinating Office to contract PVO"s and other qualified intermediaries to sponsor home improvement loans affordable by the very poor. This Office will monitor PVO activities and select additional PVO"s as the project continues. Initial sublending will be channelled through CARITAS, Save The Children Federation, San Jose Obrero, Coordinating Group for Development Resources, the Federation of Savings and Loan Cooperatives, and Meals for Millions. These PVO"s will work through a local housing committee (patronato) set up and run by target group members. Committees will identify which target group members want home improvements (and when) and will develop cost estimates for these improvements. Committees will also select five individuals from among their peers to accept loan repayment liability (solidarity groups). Target group members who have title to land will be able to apply for loans on their own. Typical improvements will include floors, roofs, and heating and sanitary fixtures. The target group for home improvement lending will be approximately 31,055 rural families living in one- and two-room homes. Three kinds of training will be provided under the project. A consulting firm will develop a curriculum and offer seven courses to INVA and PVO personnel, as well as some beneficiaries, in management and bookkeeping operations. The Professional Formation Institute of Honduras will offer eight courses on construction techniques and local materials production to INVA"s rural housing technicians and 160 INVA project promoters. A videotape course on construction techniques will be made available for use by promoters in training community groups. Amendment of 6/29/84 admits rural businesses and industries to act as loan intermediaries to sponsor home improvement loans and adds a low-cost shelter construction component for selected families. At least 20 intermediaries will participate in the expanded project. It is expected that over 8,000 subloans will be made with the first use of loan funds, and an additional 10,000 families will benefit through loan reflows. (PD-KAB-626)