This is the first project for the construction of social housing that is financing by the advantageous bank loan. The project of providing the housing solutions includes the construction of new housing units, in both the non-profit housing for rent (public ownership) and sale into personal ownership and tests future standard mechanisms for issuance of mortgage loans to non-profit housing organizations (as stipulated by the Law on Social Housing). 

Project named Provision of housing solutions for low and middle income population through financing social housing construction and support to ongoing development of main instruments of the social housing system in Serbia comprises the construction of about 1.700 housing units in 12 cities and municipalities in the public rental or non‐profit sale model. Programming and financing parts of the project are done at central, and implementation, including beneficiary selection, at local level.

Direct beneficiaries of the credit funds are local governments willing to develop own social housing instruments such are the local housing agencies, strategic and operational documents and their own rental housing stock will be direct beneficiaries. They will delegate project implementation, management of lease and sale contracts, and servicing of the debt to their non‐profit housing organizations. Final Project beneficiaries will be low and middle‐income households experiencing problems in solving housing needs on the market. The ranking parameters and recommended pondering will be applied according to local priorities, specific to each of the two proposed programs (public rental and owner occupation), within the frame set by the Project.

In technical terms, the Project especially supports the promotion of high energy efficiency standards intending to become a showcase for the whole housing sector. Regarding the structure and amenities of housing units, the Project uses new norms for optimal standards in social housing which are defining limits of the State’s support and which are currently drafting. If those are not in place in the due time, new standards will be defined based on existing rules for design of housing buildings and apartments.