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November 27, 2025

Social Housing in Nicaragua – Revolution, counterrevolution and neoliberalism Part Two (1979-1990)

By Sofia Clark D’Escoto

[Sofia Clark D’Escoto is a Nicaraguan political researcher and analyst, currently at the Miguel d’Escoto Brockmann Center in Managua. She was Deputy Chief of Staff for her uncle, Fr. Miguel d’Escoto, when he presided over the 63rd session of the United Nations General Assembly.  She also served in several UN and OAS field missions, as well as ten years in the Nicaraguan Foreign Service during the 1980s.] 

This is the second in a series of articles on social housing policy in Nicaragua from the 1972 earthquake to the present. To read the first part, click here. In Part II we examine the role of MINVAH and various housing initiatives from July 1979-1990 when housing was recognized as a fundamental, freestanding human right. These programs, implemented during wartime, offer important insights for future housing policies in Nicaragua.

The end of a dynasty and beginning of a Revolution

In 1979, the Junta de Gobierno de Reconstrucción Nacional (JGRN) inherited a bankrupt country devastated by earthquake, war and a century of neglect. Despite massive post-earthquake reconstruction assistance, 60% of Managua’s neighborhoods had no electricity, running water or sewage facilities.

The new government faced formidable challenges: a burgeoning urban population, a capital city largely in ruins, and a semi-paralyzed industrial sector. Arial bombings by the National Guard, especially during the final phase of the war of liberation, exacerbated an already critical situation. Not only Managua, but the cities of Leon, Chinandega, Masaya, Estelí, Matagalpa and Rivas all suffered serious damages to homes and infrastructure. The new government moved quickly.

In August 1979, less than a month after the triumph, the revolutionary Junta created the Ministry of Housing and Human Settlements (MINVAH), the successor to the former Housing Bank under the Somoza government. BAVINIC’s role had been limited to providing financing services for housing construction through mortgage loans and limited technical assistance.

MINVAH, in contrast, was a full-fledged ministry whose functions included design, research, financing, construction, and the vital task of urban planning. It became the main government agency for housing construction, albeit not the only one. (The Ministry of Agriculture, the Nicaraguan Institute of Agrarian Reform (INRA) and the Ministry of Construction all had housing programs for rural workers in agricultural or mining communities.)

A central part of its mission was the repair and construction of new housing for nearly half of Nicaragua’s population. We will encapsulate key features, solutions and achievements, as well as deficiencies and challenges MINVAH faced in the 1980s.

Only a few weeks after the Sandinistas took power, the government prohibited the sale of deeds on unimproved land. Shortly after, in October, a law, the Ley de Repartos Intervenidos dealing with illegal subdivisions built by developers, expropriated the land of 420 existing vulnerable neighborhoods—125 in Managua alone—with some 84,000 homes and transferred ownership to MINVAH. The law was to protect the poor who were charged exorbitant sums for small plots in barrios lacking water, sewage, or paved streets. Rents were paid directly to MINVAH to be reinvested in urgently needed services and infrastructure. Residents would become property owners.

In January 1980, the Rent Act reduced rents throughout Managua by 50 to 60%, benefiting an estimated 72,000 families.

In March, Nicaragua acceded to the International Covenant on Economic, Social and Cultural Rights (ICESCR) which recognizes the right to housing. All State parties to the covenant, regardless of their level of economic development, are obliged to meet the minimum core content of the right to housing including: legal security of tenure; availability of materials, basic services and infrastructure; affordability; habitability; accessibility; location and cultural adequacy. Under the ICESCR, States have a legal obligation to undertake short and medium-term measures to ensure the “continuous improvement of living conditions.” Nicaragua worked deliberately to comply with each of these core components.

The initial housing programs implemented in 1980-1982 centered on conventional construction of cement-based homes.

One of the early and most exemplary housing projects undertaken by MINVAH in Managua was the “Batahola Housing Complex”, a 2,200-unit project built in late 1980 on the site of a 1979 massacre by the National Guard. Constructed in the so-called “mini-skirt” style, the 46 sq. meter homes built on 80 sq. meter lots, consisted of cement walls reaching about four feet high, with the rest of the structure made from wood. The roofs were simple zinc, and the standard house had no drop ceiling. The project was funded by an US$8 million loan from the World Bank.

But, the homes had amenities such as glass windows, and decorative and protective iron grillwork the costs of which proved unsustainable for future MINVAH programs. Finance Minister William Hiper pointed out that the 1980 National Literacy Crusade, which benefited almost two million Nicaraguans, was less costly than providing 2,000 families with a house!

The formal “self-building” schemes gave way to the program of a “building materials bank” aimed at families that already had a plot of land or who lived in a house in urgent need of repair. People could purchase loose building materials or complete kits for a standard house at controlled prices.

The demand for shelter continued to rise, particularly by those left homeless because of the war. MINVAH offered a more modest solution: “Plan Techo” (a roof-only plan). An estimated 12,269 basic modules and 5,655 roof-only units were distributed between 1980 and 1986. An additional 3,419 units were provided directly by the Agriculture Ministry or other institutions.

Yet these housing schemes were insufficient for the main cities of Nicaragua. A complementary ad hoc response was introduced in 1982 to rehouse victims of the flooding around Lake Managua. Alternative sites in so-called “Progressive Urbanizations” provided flood victims land with basic infrastructure (communal water taps, electricity, public transport) and the materials to build new homes.

Under the Expropriation Act of 1981, vacant urban land was subject to expropriation if deemed needed for public interest development, including housing. Through the Finance Ministry a compensation fund and protocol were established. But the lack of an appropriate legal framework barred MINVAH from providing new residents with a deed to the land; instead, it issued “documents of adjudication”. In the ‘80s, progressive urbanizations became the single most significant contribution among the “physical elements” of Nicaragua’s housing policy.

As squatter settlements increased after 1984, the “progressive urbanization program” was expanded to benefit settlers on geologically hazardous sites. Alternative plots of land were offered free of charge, making it possible to reach populations with the greatest need. These alternative sites had access to bus lines within the city and periphery, allowing men and women to keep their full or part-time jobs. The program also fostered neighborhood representation and participation.

That same year MINVAH reached an agreement with the CDS neighborhood groups to create local committees responsible for the distribution of lots and building materials for housing projects. These Regional Committees had representatives from MINVAH, the regional government, the FSLN, trade unions and the neighborhood CDS.

A legal milestone was reached in 1987 when the Council of State approved the new Political Constitution of Nicaragua. Article 64 gave constitutional status to the right of Nicaraguans to adequate housing and stipulated that the State had a duty to promote the realization of this right. (Today this fundamental human right is protected under Article 58 of the February 2025 Constitution.)

At the time, no other Central American constitution, and very few Latin American constitutions, had enshrined the right to housing as a right for all its citizens.

Another key housing program implemented in rural areas during the 80’s was that of settlements. MINVAH built approximately 300 settlements, with some 18,000 homes. Some on the Atlantic Coast and in the central areas arose from the relocation of rural populations during the height of the Contra war.  The settlement program was closely linked to the agrarian reform program.

Political vs. Legal priorities

MINVAH dedicated much of 1982 and 1983 preparing a “Regulatory Housing Bill”. The goal was to establish a legal framework reflecting the new revolutionary values and make it possible for all Nicaraguans to own a home. The law would turn properties over to people by expropriating rental property and vacant urban property and establish compensation for these expropriations.

The draft legislation sparked heated debate within the Council of State. The right-wing opposition made so many objections that a decision was made to take the bill directly to the people. MINVAH spent much of 1983 visiting neighborhoods, towns and cities around the country. But as the US proxy war intensified, the political climate in Nicaragua became increasingly polarized. In October 1983 the decision was made to withdraw the bill “indefinitely”. This decision, while politically expedient, deprived the revolution of a key legal framework.

In May 1988, after statewide cutbacks, MINVAH closed its doors. Its duties were transferred to the regional governments and to the new Ministry of Construction and Transportation. While one door closed, another opened. The Presidency established a National Commission on Urban Housing Legalization.

At stake were the houses of Somocistas that had been confiscated by the revolutionary government or abandoned and that were inhabited by other families. By November 1989, the government had a reading of the magnitude of the problem and a roadmap towards a solution, but their work was suspended when, under the Equipulas II Accords, the general elections were moved up to February 1990.

Safeguarding hard-fought gains of the Revolution

The Sandinistas, like the rest of the world, were stunned by their 1990 electoral defeat. During the ‘80s, an estimated 200,000 rural and urban families in Nicaragua benefitted from Sandinista policies. However, thousands of urban houses and sites assigned to families were never officially registered. The Sandinista failure to complete paperwork is not alone responsible for clouded titles. Somoza, in a last-ditch effort to stay in power, bombed his own cities and in the process destroyed many government offices and records including deeds, tax records, and surveys.

Between the election and the swearing in of president-elect Violeta Chamorro, the government, eager to safeguard the hard-won gains of the Revolution, enacted Laws 85 and 86 to legalize the urban houses and lots provided to new owners but never titled by the Sandinista government. In the ‘90s, neoliberals sought to challenge the legality of these laws on the ground that they violated the “right to property” consecrated in the 1987 Constitution. Yet article 64 gives equal constitutional status to Nicaraguans’ right “to decent, comfortable and safe housing”. Any human rights specialist worth their salt understands that promoting/protecting human rights doesn’t occur in a vacuum. Different actors and sectors are in constant interaction and sometimes at odds with each other. Governments, then, must weigh the competing interests of actors advocating for different rights, and act as arbitrators and defend the common good over individual interests.

Conclusion

The conventional method for measuring the success of housing policy is the absolute number of units built over a given period. Yet the housing output by Nicaragua during the 80’s was not what was impressive. What was remarkable was the composition of the target group. For example, in 1984, roughly 18% of the housing output reached the extremely poor, those earning less than one minimum wage. Another 78% went to the next income bracket of one to three minimum salaries. These populations were traditionally left out of social housing programs in Latin America. In Nicaragua, 90% of all state housing investment directly favored low-income groups.

Amidst war and growing economic problems, Nicaragua was able to come up with some solutions. While modest, they were unprecedented. The solutions prioritized the poorest and most vulnerable. It is remarkable that Nicaragua, the only Central American nation without access to US or multilateral loans, was, nevertheless, at the forefront in offering creative solutions. As one analyst observed, the fact that many Nicaraguans were, during the Sandinista rule, no longer pressured by rent payments or legal trickeries surrounding the ownership of their land, or that they had access to water and electricity services for the first time, constituted a huge step forward.

Nicaragua proved it is possible to significantly improve the lives of the majority even with low monetary investments. When the revolution triumphed in 1979, 50% of the population of Managua did not have access to running water; by the end of the decade, it was 20%. Despite the war, despite the economic crisis and budget cuts, and despite the highest population growth rate in the Americas, 40% of urban families in Nicaragua benefited from one housing scheme or another and more than 60% of rural families received land. It was a good beginning.

To be continued.

References/Recommended Readings

Kaufman, Chuck and Zimmerman, Lisa. “Nicaragua: The Mischief of Senator Helms” https://www.marxists.org/history/etol/newspape/atc/2332.html

Mathéy, Kosta. “An Appraisal of Sandinista Housing Policies “published in Latin American Perspectives, Vol. 17, No. 3, The Sandinista Legacy: The Construction of Democracy (Summer, 1990), pp. 76-99 (24 pages).

Sandoval Rodríguez, Alondra Nathaly. “Raíces y Revolución en Ladrillos: La Trayectoria de la restitución del Derecho a la Vivienda en Nicaragua”, 22° ed. Revista Soberanía: “46/19: Avanzando en Revolución,” July 2025.

Santiago, Myrna. “Recovery after Earthquakes: Managua, la ciudad zombie”, 13 Aug 2020. The Metropole – The Official Blog of the Urban History Association. See link: https://themetropole.blog/2020/08/13/recovery-after-earthquakes-managua-la-ciudad-zombie/#

“Vivienda: algunos pequeños grandes pasos”, ENVIO digital, N° 84, June 1988. See link: https://www.revistaenvio.org/articulo/3149

Briefs

By Nan McCurdy

Biogas-Based Power Plant Inaugurated

The Nicaraguan Water and Sewerage Company (ENACAL) inaugurated the country’s first power plant based on biogas produced from wastewater. According to a press release, it is located at the Wastewater Treatment Plant in the city of Managua and has an installed capacity of one megawatt. The modern equipment will contribute greatly to the economic sustainability of the wastewater treatment processed at this plant. The work was financed by the Sandinista government with support from Germany’s KfW. (La Primerisima, 19 November 2025)

Mayangna Teachers Graduate in Bilingual Education

The education authorities in the municipality of Bonanza held a graduation ceremony for 59 young Mayangna people who completed a Higher Technical Degree in Intercultural Bilingual Education without having to leave their homes or their roots. Thanks to the Sandinista government and URACCAN University, education has reached their communities, forever changing the way they dream and study. They are inhabitants of the Alal, Pisbawas, Musawas, Kauhmakwas, Wingpulu, Sabawas, Sakalwas, Ispayulilna, Wasakin, Sikilta, Muskuswas, and Mahalwas territories. (La Primerisima, 21 November 2025)

MTI Inaugurates Section of Coastal Highway

Sixteen beaches in the municipality of Rivas, many of them still untouched, now have a excellent access road, with the first 30 kilometers of the Costanera highway from El Naranjo to Playa Remanso inaugurated by government authorities. The Minister of Transportation and Infrastructure, Óscar Mojica, explained that the completion of these first 30 kilometers is a historic milestone that opens the door to a new era of tourism in the country, with this South Pacific Coastal Highway. “The Costanera highway will pass through 64 of Nicaragua’s best beaches, three departments—Rivas, Diriamba, and Managua. We are continuing to build the first 119 kilometers of the first stage. Today we are inaugurating the first section, but sections 2, 3, and 4 are also progressing,” he said.

The Sandinista government has built 211 new kilometers of paved roads in the department of Rivas, representing more than 145% growth in 18 years. Mojica said that 17 new roads have been paved to the highest quality, including Cárdenas-Colón on the southern coast of Lake Cocibolca, which is essential for the defense of the country and access to the border with Costa Rica. Likewise, the Ochomogo-Las Salinas road, which facilitates access for domestic and foreign tourists; the Tola-Empalme El Coyol road, Guacalito, 10 kilometers long; and the construction and improvement of the Nandaime-Rivas road.

The construction of this project between El Naranjo and El Remanso is part of an international tourist corridor in the southern Pacific region of Nicaragua, which will improve connections with Costa Rica and also bring more tourism. See photos: https://radiolaprimerisima.com/2025/11/19/mti-inaugura-tramo-de-carretera-costanera-en-rivas/ (La Primerisima, 19 November 2025)

Nicaragua Continues with More than 70% Renewable Energy Sources

In terms of power generation, Nicaragua will maintain an energy matrix with more than 70% renewable sources in 2025, which has significantly reduced dependence on oil and lowered generation costs. “This year, the 25-megawatt biomass expansion of the Monterrosa sugar mill came into operation with an investment of US$34 million,” Horacio Guerra, vice president of the National Energy Transmision Enterprise (ENATREL), reported. In addition, several solar projects are progressing at a good pace. “All of this allows us to become increasingly independent from oil and continue to lower the country’s oil bill,” emphasized Guerra, who reiterated that the goal is to continue promoting investments in renewables to achieve a virtually 100% clean and national energy matrix in the coming years. So far this year, 72.13% has come from renewable sources and 27.87% from fossil fuel generation. Of the renewables, solar energy contributed 1.24%; hydroelectric 10.93%; geothermal 11.46%; biomass 10.44%; wind 12.46%; and imported renewable energy 25.57%. Total generation reached 4,782.45 GWh and total demand was 870.94 MW. (Informe Pastran, 20 November 2025)

Historic Coverage in Drinking Water Service

Alina Lagos, ENACAL Executive Vice President, announced that the country has achieved national drinking water coverage of over 95% and over 55% in sanitary sewerage with treatment, historic figures achieved during the Sandinista government’s administration. “In drinking water, we started at less than 60% in 2007 and today we are above 95%. In sanitary sewerage with treatment plants, we are above 55%. In just 18 years, we have advanced almost 30 percentage points, while in the previous 50 years we barely reached 30% or less,” said Lagos. The official highlighted the inclusive nature of the investments: “The focus is not only on large cities such as Managua or León. We are bringing drinking water and sanitary sewerage to municipal capitals and smaller communities. The goal is to fulfill these rights for all Nicaraguan families, regardless of where they live.”

ENACAL is currently implementing nearly 30 drinking water projects and 15 sanitary sewer projects throughout the country, representing the largest investment in the sector in history. Lagos emphasized that the progress is not limited to the number of household connections: “The most important thing is that today families turn on the tap and water comes out 24 hours a day, thanks to the country’s energy stability [for pumping water]. Before, with blackouts lasting 12 to 18 hours, having pipes in the house did not mean having real service.” In addition, all new systems that draw surface water have treatment plants that guarantee the quality of the water that reaches each home. (Informe Pastran and La Primerisima, 25 November 2025)

Exports Exceed US$7.388 Billion in First 10 Months of Year

The Ministry of Development, Industry, and Trade (MIFIC) revealed in its Foreign Trade Indicators report that total exports reached US$7.388 billion between January and October 2025, representing a 15.8% increase compared to the same period in 2024. Meanwhile, imports registered a more moderate increase, totaling US$10.4034 billion, 8.9% more than the previous year. The overall trade balance improved by 5.0%, closing at minus US$3.016 billion, reflecting a reduction in the deficit compared to 2024. According to the document prepared by the MIFIC’s General Directorate of Foreign Trade, based on data from the General Directorate of Customs, export growth was concentrated in the General Regime Exports, with an increase of 27.4% to US$4.523 billion, while Free Trade Zones grew by 1.2% to US$2.86 billion.

Raw gold led sales with US$1.63 billion, a 51.3% jump over 2024, followed by green coffee with US$838.7 million, up 68.4%, and beef with US$780.2 million, up 22.6%. Other key items include automotive harnesses with US$732.4 million and tobacco with US$368.3 million. The agricultural sector accounts for 40.5% of total exports, with US$2.99 billion, up 15.9%. Under the rubric of General Regime Exports, agricultural goods grew by 19.8%. (La Primerisima, 24 November 2025)

Central Bank to Handle Complaints about Illegal Financial Services

The Central Bank has set up a “Complaints Portal” on its institutional website (www.bcn.gob.ni), where citizens can confidentially and securely report individuals or legal entities that offer, promote, or provide financial services without the proper authorization. A press release stated that the financial services regulated by the BCN are: Financial Technology Services for Payments (PSP); Virtual Asset Services (PSAV); Remittance Payment Services (PSPR); and Currency Purchase, Sale, and/or Exchange Services (PSCM). The BCN says that all legal entities providing the aforementioned services must have the corresponding license granted by the BCN. Likewise, individuals authorized to provide Currency Purchase and/or Exchange Services (PSCM), commonly known as “money changers,” as well as Remittance Payment Services (PSPR), are required to visibly display the card issued by the BCN. The “Complaints Portal” is available on the BCN website (www.bcn.gob.ni), accessible from the main menu or directly through the link: https://www.bcn.gob.ni/portal-de-denuncias. Citizens are encouraged to make responsible use of this channel to report individuals or legal entities offering these services without authorization, thereby contributing to the provision of safer and more reliable financial services. (La Primerisima, 22 November 2025)