By Anthony Harrup / Wall Street Journal
The Mexican government launched a $1.2 billion program to add bedrooms to half a million homes where residents suffer from overcrowding, addressing a source of health problems and domestic violence.
Financing of the program will be a mixture of loans from government-run mortgage lender Infonavit and commercial banks, a government infrastructure program and direct subsidies in the case of people without Infonavit housing benefits, officials said.
Infonavit also expects the program to have the support of Fideicomiso Hipotecario, or Fhipo, Mexico’s only mortgage-focused real-estate investment trust which already invests in mortgages under a number of Infonavit programs.
Fhipo is interested in the program, although has yet to make any final decision or determine how much it might invest, according to Daniel Braatz, Fhipo’s chief financial officer.
The “one more room” program aims to benefit more than two million people mostly in urban areas that suffer from overcrowding.