Most contemporary most housing policies for informal settlements continue to give priority to the more recently-established settlements, and neglect to give adequate consideration to the housing policy needs in the older consolidated areas and inner-ring neighborhoods described here. However, as emphasized above, many of these neighborhoods have outdated and crumbling infrastructure (Fig. 7), high population densities, and experience a gamut of social pathologies such as insecurity, crime, overcrowding, youth gangs, widespread delinquency and drug abuse. While these latter policy challenges are on the radar screens of municipal and city officials (usually as “hot spot problem zones”), there is little in the academic and policy literature to provide orientation and guidance about the social and household organization of these neighborhoods, and even less awareness of the nature of housing deterioration and dwelling rehab needs that confront home owners and other residents. Drawing upon the findings of the LAHN comparative research project, the final part of this paper seeks to develop a conversation about this new generation of policy challenges that face planners and housing policy makers in cities throughout the developing world, especially where informal settlements and self-building form a significant part of the existing housing stock. While the focus of this paper has been that of lower-income owners and housing rehab in consolidated innerburbs, these same locations are also the areas where significant formal and informal rental housing opportunities are to be found. Yet strangely perhaps, policy-making has been largely silent about how to expand and revitalize the rental housing market, and only recently have we begun to observe a quickening of advocacy about the importance of promoting rental housing as a key element in densification and more efficient urban land use strategies in Latin America (Gilbert 2004, 2012; Coulomb, 2010; Blanco/IDB 2014). Although not considered here, rental housing expansion and improving rental housing conditions through the rehab of existing tenements and apartments will also form an important part of the advocacy coalition about housing rehab policy approaches.