Article 5 of Law no. 247, dated August 7, 2000 stipulated the abolishment of the Ministry of Housing and the cooperatives established in 1973 as well as the independent housing fund. The Directorate General of Cooperatives was affiliated with the Ministry of Agriculture and the Ministry of Housing and the independent fund with the Public Housing Institute, which was to fall under the custody of the Minister of Social Affairs.

 

 

The Public Housing Institute came to being pursuant to Law no. 539 issued in 1996, i.e. prior to the ministry’s abolishment. The Institute is run by a board of directors chaired by a full-time president who is also the Director General and consisting of four part-timers appointed pursuant to a decree issued in the Cabinet for a four-year term that may be renewed or extended.

 

The functions of the Public Housing Institute are established by the law as follows:

   - Conducting housing studies and surveys for all Lebanese regions.

   - Constructing residences either directly or indirectly (by second parties) according to a program approved by the Cabinet.

   - Encouraging housing-related savings and credit 

    -Offering both long-term and medium-term housing loans

 

The financial resources of the Public Housing Institute are defined as follows: 

    The sums allocated in the general budget or in the construction and development program

    Revenues from the taxes and fees assigned for the Institute

    Loans 

 

A law issued later authorized banks to take part in providing housing loans under the cooperation protocols signed with the Public Housing Institute, provided that such loans are exempted from the required reserves set by the Banque du Liban. This has enabled the Institute to provide tens of thousands of loans.

 

Law no. 525 issued in 2003 furthered the role of the Public Housing Institute by granting it ownership over the plots of land belonging to the dissolved National Authority for Reconstruction. The Institute then gave the occupants the right to pay for the plots they wished to possess so as to boost its financial revenues.

 

In 2013, the loans granted by the Public Housing Institute in cooperation with the twenty-nine banks partaking in the home loan program totaled 5701, combined worth roughly LBP 1050 billion. Since its operational activity began in September 1999 until the end of 2013, the Institute has granted 59,415 loans worth in total LBP 6457 billion, noting that the maximum loan amount is set currently at LBP 270 million, up from LBP 120 million in the past.

 

The Public Housing Institute succeeded in solving part of Lebanon’s housing dilemma and may be able to provide more loans if sufficient funds are available at the Lebanese banks. The experience of the Public Housing Institute has lead many to reaffirm that partnership between public and private sectors is the best way of addressing many problems and providing basic public services.