Paraguay's 'Che Róga Pora 3.0' Program Updated to Expand Housing Access

Paraguay's Financial Development Agency (AFD) has introduced adjustments to the "Che Róga Pora 3.0" housing program, aiming to broaden housing opportunities for middle and lower-middle-income families. In partnership with the Ministry of Urbanism, Housing, and Habitat (MUVH), the initiative seeks to bridge the gap between the substantial need for housing solutions and the current market's capacity to provide and finance them.

Fernando Lugo, AFD's general manager, highlighted the program's dual focus: financing families seeking to purchase homes and supporting the developers constructing them. "Che Róga Pora 3.0," launched in May, not only increased financing amounts and expanded the eligible income range for beneficiaries but also introduced greater flexibility within the Real Estate Development Financing Program (PRODESI) through second-tier banking.

"Facilitating access to credit to buy a home is fundamental, but it is also necessary that there are sufficient housing projects available to meet that demand," Lugo stated. This reflects a recognition that simply making credit available is insufficient if the supply of suitable and affordable housing does not increase.

Data from Paraguay's National Statistics Institute (INE), based on the 2022 National Census, underscores the urgency of the situation. The total housing deficit affects 1,117,212 units. Of these, 108,678 are for new construction (quantitative deficit), while a much larger 1,008,534 units require improvements, expansions, or renovations (qualitative deficit). The "Che Róga Pora 3.0" program is designed to address both aspects of this deficit.

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Facilitating access to credit to buy a home is fundamental, but it is also necessary that there are sufficient housing projects available to meet that demand.