UN-HABITAT approaches under-served populations through Local Finance Facilities, a concept that has been established in pilot projects in four countries (Ghana, Indonesia, Sri Lanka and Tanzania) through the Slum Upgrading Facility Programme.

Each Local Finance Facility uses one-time grant funding to set up operations and capitalise a revolving credit enhancement fund to support slum upgrading projects desired by the community (refurbishment of homes, water and sanitation hook-ups, community toilet facilities and new housing stock).