A billion slum dwellers, with $billion+/day – large market: Slum upgrading cost - $670 billion. Borrow all at 8% for 15 years, pay 21 cents/day! Global capital market size $120 trillion – $18.5K/person, housing finance substantial at 12%. The problem of money and affordability? Not really….Knowledge, leadership, and will to do is... Exuberant, expanding financial markets Lessons from microfinance expansion. Improved economy and governance of countries – will create impetus. Empowered communities. Conditions are never better. Housing Finance - Supply: Access – concern, lessons of microfinance. New Instruments – improve affordability, postpone liabilities – use financial sector muscle to correct. Lease finance – asset-based microfinance, Risk mitigation – credit enhancement, pre-finance facilities for project development, mortgage insurance, foreclosure. Housing Finance - Demand: Community-led process, track record, Cafeteria approaches for slum upgrading. Government support: Non-fiscal, Security of tenure, land availability at the right time and right price, land at cheaper rates, tax concessions. Fiscal: Smart but not blanket subsidies for housing and infrastructure. Graded subsidies in relation to income. Market based supply of affordable housing (for slum upgrading and prevention).