Summary

Inadequate housing, exacerbated by rapid haphazard urban growth, can profoundly affect the overall development prospects in developing countries. The housing crisis is an important factor in the overall deterioration in the quality of life in these countries.

To reach the lowest income levels and the most people, international donors have sought to reduce housing costs to a minimum. Most U.S. housing assistance abroad has been provided by the Agency for International Development's (AID) Housing Investment Guaranty Program under which the U.S. Government guarantees repayment of principal and interest to U.S. investors for housing loans to borrowers in less developed countries.