Housing response and Mortgage market Enhancement (HOME) Project

About the project
The Housing Response and Mortgage Market Enhancement (HOME) Project is a World Bank–supported investment designed to address Armenia’s urgent housing needs following the large influx of refugees in 2023, while simultaneously strengthening the country’s housing and mortgage market systems.

The project responds to the dual challenge of immediate housing insecurity for refugees and structural constraints in Armenia’s housing finance market. Refugees face affordability barriers, limited access to mortgage finance, and a shortage of adequate housing options, while the government’s housing support programs place significant fiscal and liquidity pressures on the banking sector.

The Project Development Objective (PDO) is twofold:

• To improve refugees’ access to housing solutions, both temporary and permanent; and
• To enable the deepening of the mortgage market, by strengthening institutions and mobilizing long-term finance.

To achieve this, the project combines cash-based rental support, subsidies for home ownership, institutional and policy reforms in the housing sector, and liquidity support for mortgage refinancing. The approach is demand-driven, uses existing government systems and commercial banks, and emphasizes sustainability, inclusion (including gender considerations), and climate resilience. Overall, the project is expected to benefit about 51,200 refugees, support durable housing solutions for 6,500 households, and mobilize private capital to strengthen Armenia’s housing finance ecosystem.

Component 1: Housing Subsidies and Institutional Development
This component supports refugees’ immediate and long‑term housing needs through cash-based rental assistance and subsidies for home ownership, including down payments and initial mortgage installments. In parallel, it strengthens national housing institutions by supporting policy reforms, development of a national housing strategy, and improvements to digital systems used to manage housing programs, helping Armenia build a more inclusive and resilient housing framework.

Component 2: Housing Finance Market Development
This component strengthens Armenia’s mortgage market by providing liquidity to the National Mortgage Company, enabling commercial banks to offer longer-term mortgages to eligible households. By supporting mortgage refinancing and encouraging local capital market participation, the project helps mobilize private investment and promotes a more sustainable, market-based housing finance system.

Component 3: Project Management, Communications, and Monitoring
This component finances project coordination, monitoring and evaluation, communications, and stakeholder engagement. It ensures effective implementation, transparency, and outreach—particularly to vulnerable groups—while supporting grievance redress mechanisms and public awareness efforts throughout the project’s implementation.