Municipal finance for housing: local government approaches to financing housing in cities

Abstract

Housing policy is usually seen as the domain of national governments, and in many countries local authorities have relinquished direct engagement in the promotion of adequate housing. High costs associated with related policies and programmes are often cited as justification for minimal involvement, leading to fewer community-level interventions on affordable formal housing. This article presents financial approaches for local government leaders and decision-makers to consider in furthering affordable access to adequate housing for their citizens. The article argues that when local governments engage on housing with innovation and financial pragmatism, the housing needs of the urban poor and vulnerable can be better served. KeywordsMunicipal finance, local government, affordable housing, fiscal policy, cities, capacity-building