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The urgency of the analyzed issue is due to the priority of state issues of providing the population with affordable and comfortable housing. The purpose of research is to develop the main provisions of the development mechanism of financial resources of the housing mortgage lending and to develop practical recommendations for its implementation. The leading approach to research this issue is a systematic approach, which used such scientific methods as analysis and synthesis, economic and mathematical and statistical methods, logic, and dialectic methods. Key findings of research are to develop the functional model of the development mechanism of financial resources of the housing mortgage lending; to clarify the understanding of mortgage and housing mortgage lending. The article also shows the scheme of public-private partnerships in order to enhance the formation of financial resources for the construction of affordable housing for the population. The contents of the article may be used in the practice of commercial banks in attracting financial resources and regional authorities in order to improve the housing supply. © 2016 Savinova et al.