This note summarizes the current plans aiming to support Providing affordable housing for the lower income households is among the major challenges even in well-developed countries. The reason behind is that the market mechanisms and market instruments support housing provision for the higher and middle-income households who are able to save for initial investments/down-payment and to repay the loans obtained for building, buying, or renting housing units. Governments around the world provide various forms of subsidies to support housing affordability for the lower segments of the middle-income households and specifically to the low-income households. The specific challenges the less developed countries face include: a) the low income segments are the largest part of the housing market (about 70% in Kigali 2), and b) the governments have limited resources compared to rich countries. The plan of the Rwandan Government to support affordable housing is thus well justified and deserves attention and efforts in structuring suitable institutions and instruments. especially the housing for the lower income segments of the Rwanda urban population. The note exposes a number of critical policy options and issues and argues that policy dialogue among key stakeholders and identification and selection of specific options are essential at the present stage of forming the affordable housing framework. The first section discusses affordability issues that are critical in defining the government’s priorities and in establishing a suitable fund. Second, seven fund options are discussed to feed informed decisions on key policy issues. A short summary of the international experiences with urban development funds.