Hanouch, MichelKetley, RichardKramer, JessicaWiese, Christo2013-03-212013-03-212009-06https://hdl.handle.net/10986/12827The objective of the First Initiative Project in Uganda is to expand the access of households to housing finance, especially modest and lower income households, by introducing new and innovative housing loan products, by introducing innovative loan products combined with affordable housing designs. The project has delivered two studies to the Bank of Uganda: i) a study addressing the financial and banking sector context for housing finance, liquidity and liquidity management, and the resultant potential for use of retail funds for mortgage lending; and ii) a feasibility study for housing finance pilots targeted at modest and lower income households, seeking to introduce innovative loan products combined with lower cost house design in a planned urban setting. This paper, business and sustainability plan for affordable housing finance pilot projects, provides supporting technical detail for the feasibility study for design of pilot projects for modest and lower income households, including the need for more liquidity for lenders involved in lending to lower income households. Two types of pilot projects have been developed: one for starter homes for modest income households and one for an incrementally built home for low-modest income households. The recommended loan products include a down-market or, mini-mortgage, for the starter home and microfinance for housing for the lower income group. The paper: (i) outlines technical details regarding house design and loan product specifications; (ii) recommends the technical assistance and regulatory changes deemed necessary to implement successful pilot; and (iii) provides a brief commentary on actions that would assist such pilots reach sustainability and scale.en-USCC BY 3.0 IGOACCOUNTINGAFFORDABILITYAFFORDABLE HOUSINGAFFORDABLE HOUSING FINANCEAFFORDABLE HOUSING LOANASSET MANAGERSASSET RATIOBALANCE SHEETBALANCE SHEETSBANK ACCOUNTBANK LOANBANK REGULATIONBANKING CRISISBANKING SECTORBANKING SYSTEMBINDING CONSTRAINTBOND ISSUANCEBONDSBORROWERBORROWINGBRANCH NETWORKSCAPITAL BASECAPITAL MARKETSCENTRAL BANKCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKSCOMMODITY PRICESCONTINGENCY PLANNINGCORE DEPOSITCORE DEPOSIT BASECORE DEPOSITSCREDIT ENHANCEMENTCREDIT GUARANTEESCREDIT LINESCREDIT RATINGSCREDIT RISKDEBT CRISISDEBT OBLIGATIONSDEBT SECURITIESDEBTSDEFAULT RISKDEFAULT RISKSDEFAULT SITUATIONDEFAULTSDEMAND FOR BONDSDEMAND FOR FUNDSDEPOSITDEPOSIT INSURANCEDEPOSIT LIABILITIESDEPOSIT TAKING INSTITUTIONSDEPOSITORDEPOSITORSDEPOSITSDERIVATIVESDEVELOPING COUNTRIESDEVELOPMENT FINANCEDEVELOPMENT FINANCE COMPANYDONOR FUNDSDURABLEEMERGING ECONOMIESEMERGING MARKETSEXPORT GROWTHEXTERNAL FUNDINGFINANCIAL CRISESFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL SAVINGSFINANCIAL SERVICESFINANCIAL SUPPORTFINANCIAL SYSTEMFIXED INCOMEFIXED INCOME INVESTMENTSFOREIGN CURRENCYFOREIGN CURRENCY LOANSFORM OF COLLATERALFUNDING SOURCEFUTURE LOANGOVERNMENT BONDGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT PAPERGOVERNMENT SECURITIESGROSS DOMESTIC PRODUCTHOME IMPROVEMENTHOME IMPROVEMENT LOANSHOME LOANSHOUSEHOLD INCOMEHOUSEHOLDSHOUSING FINANCEHOUSING LOANIMPLICIT GOVERNMENT GUARANTEEINCOME GROUPINCOME GROUPSINCOME LEVELSINCOME TAXINFLATIONINFLATION RATEINFLATION RATESINNOVATIVE LOANINSTITUTIONAL FUNDSINSTITUTIONAL INVESTORINSTITUTIONAL INVESTORSINSTITUTIONAL LENDERSINSURANCE COMPANIESINSURANCE INDUSTRYINTEREST RATEINTEREST RATESINTERNATIONAL BANKSINVESTINGINVESTMENT CLIMATEINVESTMENT OPPORTUNITIESINVESTMENT PORTFOLIOSLEASE AGREEMENTSLEGAL FRAMEWORKLEGAL RIGHTSLENDERLENDING EXPOSURELIABILITYLIFE INSURANCELIFE INSURANCE COMPANIESLINES OF CREDITLIQUIDITYLIQUIDITY CONSTRAINTSLIQUIDITY MANAGEMENTLIQUIDITY RISKLOANLOAN AGREEMENTLOAN PERIODLOAN PRODUCTSLOAN SIZELOCAL BANKSLOCAL MARKETLONG TERM ASSETSLONG-TERM FUNDINGMACROECONOMIC CONDITIONSMACROECONOMIC STABILITYMACROECONOMIC VARIABLESMARKET CONDITIONSMARKET LENDINGMARKET PLAYERSMATURITIESMATURITYMATURITY STRUCTURESMFIMFISMICRO FINANCEMICRO FINANCE INDUSTRYMICROFINANCEMICROFINANCE INSTITUTIONMONETARY FUNDMONETARY STABILITYMORAL HAZARDMORTGAGEMORTGAGE FINANCEMORTGAGE LENDERSMORTGAGE LENDINGMORTGAGE LOANMORTGAGE LOANSMORTGAGE MARKETMORTGAGE MARKETSMORTGAGE PRODUCTSMORTGAGESNATIONAL BANKNATIONAL TREASURYNOMINAL INTEREST RATESNON-PERFORMING LOANNON-PERFORMING LOANSNPLOUTSTANDING DEBTPARTIAL GUARANTEESPENSIONPENSION FUNDPENSION FUND REFORMPENSION FUNDSPENSION REFORMPERSONAL LOANSPORTFOLIOPORTFOLIO OF MORTGAGESPORTFOLIOSPRICE STABILITYPRIMARY MARKETPRIVATE BANKSREAL ESTATE INVESTMENTREAL INTERESTREAL INTEREST RATEREAL INTEREST RATESREGISTRY SYSTEMREGULATORY FRAMEWORKREGULATORY STRUCTUREREPAYMENTREPAYMENTSRESERVERESERVE BANKRETURNRETURNSRISK MANAGEMENTRISK OF DEFAULTSAFETY NETSAVINGS ACCOUNTSAVINGS DEPOSITSSAVINGS PRODUCTSSAVINGS RATESSECONDARY MARKETSECURITY MARKETSHAREHOLDERSSOCIAL SECURITYSOURCES OF INCOMESTATE BANKSTATE GUARANTEET-BILLT-BILL RATET-BONDTECHNICAL ASSISTANCETERM DEPOSITSTREASURIESTREASURYTREASURY BILLTREASURY BILL RATETREASURY BILL RATESTREASURY BILLSTREASURY BONDTREASURY BONDSUNDERDEVELOPED CAPITAL MARKETUNDERLYING ASSETSUNDERLYING MORTGAGESYIELD CURVEWorld Bank10.1596/12827