The World Bank approved a US$100 million loan to increase access to affordable and resilient housing in the country under the Government of the Dominican Republic’s flagship program “Plan Nacional de Vivienda Familia Feliz” (PNVFF) with a focus on low-income households, including those headed by women.
“The World Bank is committed to supporting the Government’s efforts to provide affordable housing and better urban living conditions to eligible households,” said Alexandria Valerio, World Bank Resident Representative for the Dominican Republic. “The objective of the project is to provide financing to help 44,000 households acquire their first home by 2026, guaranteeing access to housing, basic services and the infrastructure that allows them to increase their economic autonomy.”
The Support Project for the National Housing Plan will be led by the Ministry of the Presidency (MINPRE) and will finance activities to close a general gap in access to and ownership of affordable housing in the Dominican Republic. The main component of the project will finance Housing subsidies in advance for eligible households under the PNVFF, led by the MINPRE through the National Housing Fund (FONVIVIENDA).
The Dominican Republic has an estimated housing deficit of 1.4 million units (51 percent of all housing units). 26 percent of this shortfall is due to overcrowded conditions and new annual demand, while 74 percent of the shortfall is due to housing that requires improvement due to poor quality materials or lack of access to basic services. services such as water and sanitation. A large part of Dominicans do not have access to adequate housing and more than a third of the population lives in houses considered structurally vulnerable to climatic events. In addition, it is necessary to close the gender gap in access to affordable housing through better selection of beneficiaries.
The key expected results of the project include: (i) supporting approximately 44,000 low- and moderate-income households in the process of purchasing their first home; and (ii) improve urban living conditions for 19,000 people. The project is also expected to contribute to: (i) protecting families against the effects of climate change through a greater supply of formal, affordable, resilient and green housing; (ii) mobilize private sector financing for affordable housing; and (iii) close the gender gap in access to affordable housing through better beneficiary selection.
The PNVFF aims to benefit approximately 140,800 low-income people and moderate and is expected to provide 20 percent of total subsidies to 8,800 female-headed households, of which the World Bank loan will support to approximately 4,000.
The proposed Project will support to the PNVFF for greater access to formal housing at a lower price for households previously excluded from the market. The variable spread loan has a final maturity of 35 years, including a 5-year grace period, in US dollars.