Chile announces mega-reform for housing, securing 465 billion pesos for reconstruction

Chilean Housing Minister Iván Poduje has unveiled a "mega-reform" for housing and urban policy, marking a significant step in the government's commitment to reconstruction. Speaking in Penco, Biobío Region, Poduje announced the "National Reconstruction" project, which finally secures 465 billion pesos (approximately $500 million USD) for rebuilding efforts.

"We will finally have the 465 billion pesos. Until now, we have had to use regular funds, and now we can finally step on the accelerator," Poduje stated, emphasizing the increased capacity to address the needs of affected families. The minister highlighted the strengthening of the ministry's reconstruction unit, citing processes in Valparaíso, Biobío-Ñuble, Atacama-Coquimbo, and La Araucanía, areas recently impacted by severe weather events.

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There is a reconstruction, a commitment from President Kast and myself, we have come every 15 days (to Penco) since the Administration began and we consider that the commitment to families had to be confirmed with this act where, in addition, we talked about projects for all of Chile. So we are happy and wanted to give that signal.

Looking ahead, the government plans to introduce a new law in the second half of the year to tackle bureaucratic hurdles in reconstruction. Additionally, the "Housing and Neighborhood Improvement Program" (DS 27) will open its 2026 call, allocating funds for the regeneration of condominiums, public spaces, and thermal conditioning of homes. In the Biobío region, specifically addressing the aftermath of the January 2026 wildfires, 84% of affected families have already received subsidies, demonstrating a focused effort on immediate relief and long-term recovery.

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We will finally have the 465 billion pesos. Until now, we have had to use regular funds, and now we can finally step on the accelerator.