Djibouti Affordable Housing Finance Project

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The project will address the most pressing issue regarding affordable housing in Djibouti today which is the lack of affordable commercial housing finance solutions. Affordable housing supply is coming to the market through public developers, but buyers have no access to commercial financing due to the banks’ risk aversion towards low-income groups. The project seeks to transition financial solutions implemented by public developers to the commercial financial system, and will:a. Expand access to affordable housing finance to underserved households through a mortgage partial guarantee mechanism b. Introduce innovative financing solutions for the self-construction of affordable housing targeting low-income households to involve microfinance institutions; and convert existing rent-to-own contracts to low-and-middle-income households into mortgage loansc. Support policy reforms.