At a Dominican Association of Housing Builders and Developers business luncheon, Pensions Superintendent Francisco A. Torres outlined how pension savings could finance both residential construction and home purchases while preserving the security and returns of retirement assets. The model is intended to benefit pension system members through investment returns and wider access to housing finance, building on pension fund investment in projects covering more than 13,000 homes. Real estate development investment funds managed by investment fund management companies would assess projects, select developers, supervise construction and structure exits. Pension fund administrators would provide capital and share project risk without acting as developers. Separate credit funds could offer fixed rate home financing for terms of 10, 15, 20 or 25 years, with default risk protections. The Superintendency is also considering rent-to-own arrangements for families unable to meet the down payment required for a traditional mortgage.
Dominican Republic’s Pensions Superintendency outlines pension fund model for housing development and long-term mortgages
Pensions Superintendent Francisco A. Torres outlined a model for using pension savings to finance housing construction and fixed rate mortgages of up to 25 years. Professionally managed development and credit funds would preserve pension fund administrators’ investment role, while rent-to-own arrangements could help families unable to provide a traditional mortgage down payment.