MUNICIPAL HOUSING DE

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The Municipal and Housing Development Project seeks to (a) strengthen local governments, improve policy making, service delivery, urban investment and resource mobilization; and to (b) expand the economic impact and efficiency of the housing sector. To that end, the project includes municipal management and housing components. The former component entails (i) the creation of a Municipal Credit Fund; (ii) equipment and training of the municipal technical department; (iii) ongoing technical assistance and complementary support to the Traffic Bureau; and (iv) improved collection of municipal taxes. The latter comprises (i) financing of medium-term loans for the land development corporation; and (ii) financing of a long-term loan from the Government to the National Housing Bank (BHS) for housing construction financing. The project is expected to boost the private supply of housing through a more efficient financing system. Homeownership is a powerful motivation for household savings which are, in turn, the main source of domestic savings that can be invested in economic growth.