The Chilean "Tripartite" Approach: Loans, Family Savings and State Subsidies
Housing Finance International, March 2001.
Download Document| Date Published | 2001 |
| Version | |
| Primary Author | Claudio Pardo |
| Other Authors | |
| Theme | |
| Country | Chile |
Abstract
Chile has been a pioneer in setting up principles and mechanisms that guide housing policy for LMI households. The ideal direct, demand-driven housing subsidy strategy includes the following components: a progressive direct grant subsidy targeted to lower-income groups; a mechanism for the selection of beneficiaries based on need -- the CAS survey in Chile -- and on accumulated contractual household savings; a supply of new dwellings, generally built and financed by private contractors, that are sensitive to home buyers' demands; and the state's subsidiary role in financial needs, such as providing mortgages for the poorest households and/or contracting basic housing construction when this is not spontaneously supplied by the market.