Housing Project (LIL)

closed

The Housing Project will introduce households, housing associations, and financial institutions to what, for Latvia, will be new financial mechanisms for housing finance. The project's objective is to determinw whether qualified households, housing associations, and financial institutions will use the new financial mechanisms to finance high return investments that currently are not funded by private lenders. There are four project components. The first component finances guarantees to be provided to the private financial institutions for housing loans secured by mortgages either for capital investments in the housing unit (home improvement loans) or for purchase of new housing. The second component provides guarantees to financial institutions that will issue reverse mortgage loans to the elderly for home improvements. The third component provides guarantees to the commercial banks that will grant loans to homeowners associations for specific investment projects for capital improvement of buildings' common areas. the fourth component refers to the institutional strengthening aspects of the continuing development of the technical unit (TU) to discharge its role as a financial services provider. It also includes both the monitoring and evaluation services that the TU will undertake as part of the learning process.