SHELTER UPGRADING AND HOUSING PROGRAM

investors. Loans will be used to provide new or improved housing to low-income families in Israel. The Ministry of Construction and Housing (MOCH) will implement the project. Amidar, a public housing company, will rehabilitate 9,000 existing units at an average cost of under $2,000 per unit. These efforts will involve increasing unit size, reconditioning vacant units, repairs, renovating building exteriors, and improving infrastructural works and gardening in courtyards. Amidar will follow the guidelines established by the Distressed Neighborhood Program; initiating physical improvements and encouraging community self-help. Mortgage assistance will be provided to development areas and to young couples, new immigrants, large families, and minorities. Eligibility and amounts will be determined by the MOCH"s point system based on income, family size, military service and location. In addition, units must be worth under $28,000. Any mortgage financing residue due to inflation will be diverted to rental rehabilitation. Under current estimates, 800 families will be assisted. Units will consist of three-to-four story walkups having up to four apartments at each level. Each unit will include up to five rooms, a kitchen, two porches, and a bathroom with shower and tub. In the project, various funding innovations will be instituted. Beneficiaries will have to pay their principle and interest payments in indexed currency, which will be adjusted monthly to the cost of living. Also, the use of private risk capital will be encouraged to expedite construction, improve the allocation of new buildings, and reduce the GOISR"s financial commitment. The GOISR, with technical assistance from A.I.D."s Office of Housing (OH), will make housing policy recommendations, which will be evaluated by a Joint OH/GOISR Housing Review. The OH will also support curriculum development to train 150 housing managers at the University of Tel Aviv in addition to providing training to Amidar members in local management.