The provision of adequate and affordable housing is a global challenge. In Latin America, several countries have favored the implementation of a Direct Housing Subsidies (DHS) policy. The DHS policy has encouraged the involvement of private developers in housing provision, increasing housing construction and helping countries to reduce housing shortages. However, in the last decades, several issues related to the design and construction quality of affordable housing developments built with DHS have been revealed. The inadequate location and excessive size of developments, in addition to the disconnect between the housing units’ design vs. resident needs, have affected the quality of life of subsidy beneficiaries.