Decision Support in Housing Loan Allocation A Case Study.pdf

Decision Support in Housing Loan Allocation: A Case Study Boj an Cestnik 1,2 , Marko Bohanec 2 1 Temida, d.o.o., Grassellij eva 20, SI-1000 Lj ublj ana, Slovenia bojan.cestnik@temida.si 2 Jozef Stefan Institute, Jamova 39, SI-1000 Lj ublj ana, Slovenia marko.bohanec@ijs.si Abstract. A decision support application is described in this paper that is aimed at housing loan allocation for the reconstruction of denationalised buildings in the city of Lj ublj ana, Slovenia. At the end of the year 1999, the Housing Fund of Lj ublj ana issued a float and earmarked 600 M SIT (3 M Euro) for the mentioned purpose. 256 loan applications were gathered requesting 686 M SIT. There were 2 15 complete and approved applications for the total amount of 551 M SIT. From the decision support perspective we developed a qualitative multi-attribute model for ranking applicants according to their priority based on the DEX methodology. This paper focuses on the lessons learned from the described real word case that can be effectively used in future decision support applications. 1 Introduction In the last decade substantial efforts have been devoted to supporting tenders for housing loan applications in Slovenia (Bohanec, Cestnik and Raj kovic, 1996). Considerable experience has been gained since 1992 in particular with supporting management decisions for housing loan allocation together with the Housing Fund of the Republic of Slovenia. In this paper we describe one particular application for the Housing Fund of Lj ublj ana Municipality. This Fund had completed several floats of loans and w