In 2004 the government of Morocco embarked on an ambitious program entitled Villes sans Bidonvilles (Cities without Slums) to make home ownership affordable for the urban poor. The government was supported actively by many donors, including the World Bank, the EU, AFD and USAID. This initiative has led to innovations in the field of housing finance and provided globally transferable lessons. Creative ways have been developed for the government to leverage the role of private banks and developers, for example by providing guarantees to banks that lend for housing to lower income people. In parallel, Morocco’s largest microfinance institutions are playing an increasingly important role in housing finance for the poor. This micro REPORT provides a general overview of the programs initiated by both government and donors in the housing finance sector. The study is qualitative rather than quantitative and seeks to present housing finance for low income communities within the overall context of Morocco’s housing policy, programs, and institutions. Morocco has long been considered one of the more progressive countries in its management of urban development and in particular its search for housing solutions that are suitable for the poor. It has implemented a variety of housing policies since its independence in 1956, including sites and services schemes, upgrading of informal settlements, mortgage interest rate subsidies, and capital subsidies of new dwellings. In particular, the impetus provided by its program “Cities Without Slums” (Villes san Bidonvilles, or VSB) has stimulated creative thinking regarding housing finance.  Currently, the annual urban growth rate in Morocco is between 3 and 4 percent (about 120,000 units). Despite the determination of the government to achieve “cities without slums,” housing production rates are inadequate and new informal settlements continue to develop. As in other countries, these settlements are often located in the most hazardous locations and populated by the poorest households. Income information from the National Slum Upgrading Program shows that 16.8 percent of the households living in slums are “destitute” and cannot afford any mortgage payments.