In housing, the IDB supports policies and programs aimed at improving the quality of life of low-income families by both mobilizing private and public resources to expand the supply of new affordable houses and by improving infrastructure, services and housing quality in informal settlements. The Bank seeks to help develop efficient and sustainable mechanisms for housing finance, improve public sector efficiency in allocating housing subsidies, and encourage housing finance institutions to serve low-income customers.

The IDB is also supporting the attainment of the Millennium Development Goal of reducing the number of households living in slums. Neighborhood upgrading programs target poor informal settlements with integrated investments that include basic sanitation services, street and drainage systems, parks and recreation areas, and social services delivery, including activities directed to vulnerable groups and for violence prevention.

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