Colombia Resilient and Inclusive Housing Project

About the project

The Project supports a shift in the Government of Colombia’s housing policy and investment along four key tracks: (a) Improved targeting to poorer and vulnerable households; more specifically, the proposed project supports the new Casa Digna Vida Digna (CDVD) home improvement program whose beneficiaries are disproportionately poor and employed in the informal sector. (b) A focus on incremental home improvement, as low-income beneficiary households predominantly need to improve the quality of their existing housing stock. (c) Increased efficiency in the deployment of housing subsidies; more specifically, the average per household subsidy value for the CDVD Program is $4,158—67 percent of the value of all ‘up market’ subsidies in place prior to 2018. (d) The introduction of a new and innovative rental subsidy program targeting the highly vulnerable group of migrants from Venezuela. This rental subsidy instrument can serve as a potential model for other countries facing cross-border migration challenges in the region and globally.

Project Development Objective (PDO)

To improve the quality of housing and public space for vulnerable households, including migrants from Venezuela, in selected municipalities.

Project Implementation Status

The Project implementation continues to increase pace, reflecting significant efforts to overcome operational challenges. As of July 2025, the Project showed progress towards achieving the PDO indicators. Specifically, 2,276 urban households have benefited from home improvement subsidies, representing 27.5% of the overall target. Progress under rural improvements and migrant-focused rent subsidies remains limited, with 223 rural households (4.9%) and 344 migrant households (3.34%) reached. The Ministry is taking steps to strengthen rural subsidy implementation and accelerate rental support for migrant households, including recent agreements with 13 municipalities to benefit approx. 2,000 families, and the engagement of real estate agents as implementing partners. As part of this effort, the Ministry is working with around 20 real estate firms to help allocate up to 500 additional subsidies. Procurement processes for neighborhood improvement (MIB) and public space interventions have advanced, with execution expected to pick up in the second half of 2025.
While implementation is advancing, several fiduciary and operational aspects continue to require close attention. The Project is actively working to improve the rhythm of execution and enhance planning processes across components. To support these efforts, the Ministry has reinforced the financial team by hiring two additional consultants and is adopting measures to streamline disbursement flows and strengthen coordination with fiduciary institutions. These actions are expected to help sustain the current pace of implementation and ensure more agile execution in the second half of 2025.
Next steps will focus on maintaining the current pace of execution, resolving fiduciary constraints, and ensuring strategic alignment with Project targets. The Ministry has committed to preparing technical, financial, and operational scenarios to justify a possible Project extension beyond July 2026. The team remains committed to sustaining progress across all components and ensuring the effective use of both loan and grant resources.

Relevant Documents:

• Project Appraisal Document (PAD)
• World Bank Project Information Page