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Environment and Urbanization
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The role of housing finance in addressing the needs of the urban poor: lessons from Central America

Alfredo Stein

Development and Management Department (HDM), Lund University, Sweden, Alfredo.Stein{at}manchester.ac.uk

Irene Vance

Urban Development Planning at the University of Manchester, UK, ivance55{at}gmail.com

This paper analyzes three forms of low-income housing finance implemented in Central America: up-front and targeted state subsidies for mortgage finance to access new housing; small, repeated loans for incremental housing improvements; and co-financing methods for the introduction of infrastructure and basic services. It shows that technical assistance for self-help construction, when combined with sound inclusive financial methods, can open new opportunities to make land, shelter and services affordable to different urban poor sub-groups.

Key Words: Central America • co-financing • housing subsidies • microfinance • mortgaged loans

Environment and Urbanization, Vol. 20, No. 1, 13-30 (2008)
DOI: 10.1177/0956247808089146
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