Urban Institute close-out report : Hungary program in the local government and housing sectors -- activities, impact, and lessons learned

Contract efforts were directed at contributing to USAID strategic objectives (SOs) to improve the performance of private small and medium enterprises (SMEs), increase citizen participation in local decisionmaking, and develop a more competitive and market-responsive private housing finance sector. Achievements in these areas are noted below. UI"s work in the small and medium enterprises (SME) sector focused on strengthening SMEs in the real estate industry, including real estate developers, renovators, private property managers, and condominium owners, as well as potential clients of these businesses. UI worked to improve access to commercial banking services and the availability of financing and to establish systems and practices to increase skills and resolve information gaps. It also facilitated an improved regulatory environment by helping the Ministry of Justice draft a new law governing the management of condominiums. Further, UI supported development of an association of private property managers to create a forum for exchange of information and experience and provide a voice in government decisionmaking. UI"s efforts in local government area focused on increasing the transparency of information and enhancing general governmental management capacity by providing training to municipalities in modernizing their budgetary processes and in fostering an association of municipal finance officers. It also worked to improve municipal financial management capacity in the areas of local tax policy, performance measurement systems, and service delivery contracts. UI also carried out a project, "the Advocate", that worked with all the USAID implementing partners under the local governance SO to improve for a wider audience and disseminate products such as handbooks and videotapes. Further, UI worked in the inter-local cooperation area by facilitating the establishment of a new partnership of local government associations and by helping one association establish a solid waste site. Finally, UI worked to improve the private financial sector by increasing competition among banks, making available a special mortgage instrument designed for Hungarian conditions, and assisting with legislative and policy reform efforts. This work also promoted achievement of the SO to improve fiscal policies and management by helping reduce the burden of housing subsidies on the government budget. Contains numerous lessons learned at both the sectoral and programmatic levels.