Under this initiative, the state government pays 100% of the cost of housing for families, the maximum salary which amounts to 1,530 reais ($ 870) per month. The value of subsidies is reduced commensurate increase in wages, according to agency Associated Press.

Housing is being built by private construction companies, funded by the federal and municipal budgets.

In February, received 670,000 applications for new housing. It is expected that by the end of this year, will sign contracts to build 1 million housing units.

The second phase of the project will start in 2011. In the event that implementation of the program to continue its current pace, Brazil will be able to get rid of the housing shortage of 7 million homes for 10 years.

Economists argue that the success of the project will contribute to the growth of the Brazilian economy, which gives authorities the means for its implementation, the availability of land plots for development, commitment to continuing the program of the two main contenders for the presidency of the country, which in October will leave Luiz Inacio Lula da Silva.

However, there were a draft and critics, who argue that new housing is allocated too slowly, and in big cities do not have enough land for development.