FACILITATED BY:

Government of Republic of KoreaEmbassy of Republic of Korea in TehranKorean Contractors Association in Iran

Financing Local Infrastructure:

Housing Finance

Juan Luis ArangoUrban Economy and Finance Branch

UN-Habitat

How UN-Habitat, can support Iran’s Housing Finance

- Create financial schemes that reduce subsidies, are feasible (payable) for the beneficiaries

and attractive for the private sector

- Create a list of requirements (data, financial frameworks, legal frameworks, etc.) that make

a housing finance project feasible

- Provide advice to central and local governments for an efficient spending of their budget on

housing finance and related subsidies

- Support the design of investment schemes to pay for local infrastructure

- Links all of the above with Urban SDGs

- Design integral housing finance initiatives

José Carlos MariáteguiGeographical Location

José Carlos MariáteguiGeographical Location

José Carlos MariáteguiSlum and Informal Settlement

José Carlos MariáteguiProject Guidelines

Subsidy Minimization

Involve Private Sector

Adequate, Safe and Affordable Housing

José Carlos MariáteguiBaseline and Investments

$ 12,350 PEN($ 3,732 USD)

$ 11,355 PEN($ 3,431 USD)

$ 5,539 PEN($ 1,674 USD)

José Carlos MariáteguiScenarios

José Carlos MariáteguiSolutions

Incremental Housing

Strengthen the Demand

Private Sector Incentives

Housing FinanceCase Studies

NURCHA – South Africa

FGCMPI- Algeria

Maziko Houses Scheme- Malawi

IranLessons Learned to be applied

Household SurveysNGO Support

3D mappingPrivate Sector Involvement

Support Effective & Sustainable Municipal Finance

The Continuum of Municipal Finance

at least 1-2 years

Time

Sources of Finance

Expand Revenues

Land Value Sharing

Managing Public Assess

Issue Bonds -Achieve Credit

Rating

at least 2-4 years

at least 3-5 years

Incremental

Incremental

Year 1 Year 2 Year 3 Year 4+

DomesticEndogenous

International Markets International

Investment Mechanism

Government of Republic of KoreaEmbassy of Republic of Korea in Tehran

THANK YOU FOR YOUR ATTENTION

Financing Local Infrastructure:

Housing Finance

Juan Luis Arango juan-luis.arango@unhabitat.org

Urban Economy and Finance Branch