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Environment and Urbanization
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Innovative financing for low-income housing improvement: lessons from programmes in Central America

Alfredo Stein

HDM, Lund University, PO Box 118, 22100 Lund, Swedenalfredo.stein{at}hdm.lth.se

Luis Castillo

Salvadoran Integral Assistance Foundation (FUSAI); El Salvadorluis.castillo{at}fusai.org.sv

This paper discusses what has been learnt from housing and local development programmes in Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua supported and funded by the Swedish International Development Cooperation Agency (Sida) during the last 15 years. It identifies common financial mechanisms that have proven to be effective and affordable by the urban poor in their search for better housing. It also discusses the different policies and interventions by national and sub-national governments and the "non-market incentives" that were required to make low-income housing programmes feasible and affordable, and what these imply for the financial and institutional sustainability of such programmes. It ends with recommendations for other international donors and national institutions that are seeking to design new financial services for housing for low-income groups.

Environment and Urbanization, Vol. 17, No. 1, 47-66 (2005)
DOI: 10.1177/095624780501700117
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