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					Funding for Affordable
      Housing
  Presented to the Counsel on Africa
         September 29, 2006


             Financial Advisor
        Government Backed Housing
                Programs
   Governments around the world are committed
    to providing housing solutions
   Over the last decades the Mexican Government
    has made significant progress
       Annual production goal of 750,000 houses per year
          Mexican Low Cost Housing

INFONAVIT: since 1972 has served as a federal pension
  plan for private sector employees.
         Mexican employers are required to deposit 5% of employees’ gross
          wages into plan.
         Use funds for the issuance of mortgages to the plan’s beneficiaries.
         Loans for houses that range from US$10,000 to US$40,000.
         Funded in excess of 350,000 units in 2005.
OTHER PROGRAMS:
         Receive funding from the Mexican government, the World Bank, and
          through the sale of mortgage-backed securities
         Function in similar manner to the Federal National Mortgage
          Association (FNMA) in the US.
         Lends to specialized housing lenders (banks and SOFOLES) so that
          they may underwrite private mortgages.
            Case Study: PyMM
   PyMM produces low-income housing solution
   Units built to specifications of INFONAVIT
    and other regulatory bodies (states and local
    authorities).
   After significant R&D, sold more than 700 units
    during early stage
   By 2004 PyMM required funding to increase
    production to 3000 units per year
PyMM
PyMM
PyMM
PyMM
PyMM
PyMM
PyMM
    Interlink Capital Strategies/OPIC
          Framework Agreement
   Streamlined approval process for qualified small
    businesses
   Fast turnaround
   OPIC covers some of the cost of the advisory
    fees
    Solution: OPIC-PyMM Partnership
   In 2005 OPIC provided a $10 million loan to
    PyMM
     Expand production of pre-made concrete homes
      from its manufacturing facility in Monterrey,
      Mexico.
     Provided capital for urbanization

   The project is expected to erect between 25,000
    and 30,000 homes over the next ten years.
Questions



  Financial Advisor

				
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