Foreign Housing Guaranty Program
Goals Are Not Achieved and Financial Condition Is Poor Gao ID: T-NSIAD-95-181 June 28, 1995Since 1961, the Agency for International Development's Housing Guaranty Program has guarantied more than $2.7 billion in loans in 44 countries for home construction, mortgages, home improvements, urban infrastructure, and other shelter projects. A fundamental program goal is to increase housing for low-income families in developing countries by motivating local institutions to provide investment capital and other resources. However, Congress should consider terminating the program because it has failed to spur private-sector investment in low-income housing in developing countries, its benefits often go to higher-income persons, and its loan defaults may ultimately cost the U.S. government as much as $1 billion. Moreover, program assistance has gone increasingly to creditworthy developing nations that have ready access to international financing.