Affordable Housing Programme
The Portland Trust is facilitating a private-sector led housing boom through the
Affordable Housing Programme.
Our approach is guided by the following principles:
There is an urgent need for new housing;
There is a severe lack of affordable housing available in the Palestinian Territory;
The scheme will generate large-scale employment in construction and generate
real economic growth;
It will have a positive effect on the local construction-related sectors, such as
manufacturing, trade and finance;
It will attract investment from private investors in both residential property and
commercial real estate, such as retail shops and other small businesses; and
Existing institutions and mechanisms currently in place to support the sector
should be strengthened.
The Affordable Housing Programme aims to develop up to 15,000 housing units by
2013 within new communities spread across the West Bank for a total investment of
$1 billion. Estimates of the cost of construction and analysis of Palestinian income
levels have shown that there is a 15% funding gap to make the units affordable to
our target market of monthly household income between $850 - $1,700.
The Portland Trust is coordinating with the local housing sector to identify and
remove existing impediments to the development of good quality housing; in
sustainable communities; for affordable prices. We have formalised our collaboration
with the developers in an agreed MOU.
Funding of approximately $150 million is required for the infrastructure and public
services of 15,000 units. This funding plays a critical role in the overall financing
package of the housing programme – not only does it make the units affordable but it
also reduces the overall risk carried by the banking sector and lays the ground for
private sector investment. There is a window of opportunity to secure the donor
funding and private sector investment for the programme. This would allow
construction on two sites in 2008.
In close consultation with the local banking sector and the
Palestinian Mortgage and Housing Council, we have developed a proposal for an
affordable mortgage structure in support of the Affordable Housing Programme. Two
commercial structures were designed and presented to the banking sector in Autumn
2007. The banks are now in direct discussions with the property developers on the
provision of affordable mortgage finance for new housing.
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