El Salvador is set to strengthen its affordable housing initiatives through the 2026 national budget, with strong backing from international partners such as KfW and AICS San Salvador. Minister of Housing Michelle Sol presented the plans before the Legislative Assembly’s Finance and Budget Committee, emphasizing the government’s focus on improving living conditions for vulnerable families.
“Our 2026 budget amounts to $13.6 million. Notably, 61% of the funds will go to housing projects, and an additional $200 million is available through FSV and FONAVIPO for housing loans,” said Minister Sol. “We are committed to social investment that also boosts the national economy.”
One of the main programs, the AMSS-MIVI-KFW Housing Improvement Project, seeks to upgrade roofs, floors, walls, and windows in various communities across the metropolitan area. The first phase will benefit residents of Kiwanis, La Naval, and La Chara, while the 2026 phase will expand to Casitas de El Coro, San Martín, Nueva Esperanza, and La Campanera—directly supporting 679 families.
Another key initiative is the Mutual Aid Housing Cooperatives Project in downtown San Salvador. This effort, funded with $12.9 million from AICS San Salvador and $6.1 million from the Salvadoran government, will provide 352 apartments for families in need. In its second phase, 83 families are expected to benefit.
The Ministry also continues advancing the La Bretaña Project in San Martín, where five stages of construction will provide a total of 224 housing units for families living in vulnerable conditions. With 85% of the fourth stage completed, the fifth will be financed under the 2026 budget.
Through these initiatives, El Salvador aims not only to improve housing access but also to drive inclusive economic growth through social investment and international collaboration.