The Mexico housing and urban poverty reduction program continues to be robust with strong ownership from the Government of Mexico. The number of housing subsidies continues to increase while being better targeted to the poor and (for the first time in Mexico) incentivizing the used housing market. The housing microfinance pilot has made steady progress and the number of microfinance loans is increasing. The number of plots allocated to beneficiaries of the program Habitat for low-income housing also has increased. The Third Affordable Housing and Urban Poverty Reduction Development Policy Loan (HUDPL III) will support a number of the new administration's priorities and initiatives in the housing and construction sector. It consolidates and deepens the reforms undertaken under the first and second loans, HUSAL-I and HUDPL-II, which were approved in April 2004 and November 2005, respectively