URBAN I

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The First Urban Development Project will help reorient future housing development in Malawi toward a market-based system. It will achieve this by: (a) introducing a new intermediate standard of housing development between the existing high-cost permanent housing and traditional structures; and (b) expanding greatly the use of private mortgage funds to provide financing for such housing. The project will further aim to achieve the government's objective by: (c) restructuring the Malawi Housing Corporation to play a more active role in market-oriented housing development; and (d) helping the Government find long-term solutions to the pervasive problem of housing subsidies. The project will also provide financing for Malawi's low-cost traditional housing area program, and technical assistance to assist in removing legal and technical bottlenecks to low-cost housing development.