The Brazilian government will invest 350 billion reais (US$152 billion) to build homes for families with a monthly income up to 2,075 reais (US$902), the Chamber of Construction Industry (CBIC) said on Wednesday.

The money will be invested over 15 years. The government will build 300,000 houses this year.

The plan was decided at a meeting with representatives from the construction sector, Finance Minister Guido Mantega, Development Bank president Luciano Coutinho and Central Bank president Henrique Meirelles.

The president of Cbic, Paulo Safady Simao, said Brazil needs such a program in order to cater to families with a monthly income equal to five times the minimum wage.

The stimulus measures to the construction sector, with resources from both government and private funds, will focus on subsidies for builders, consumer tax reduction, and regulating the bureaucracy involved in house purchases, Simao said.

He said the government would announce other measures to help the construction sector in the next few days.

Simao also said the government's Growth Acceleration Program (PAC) will undergo a review, funds will be transferred to projects more achievable.

"There will be a reorganization of priorities," he said.

(Xinhua News Agency January 9, 2009)