Several parts of Tamilnadu especially the coastal parts received heavy rains during the months of October, November and December 1977 through the North East Monsoon. Hundreds of villages floated. Thousands of poor people lost their huts and all their household things and came to the streets. During this period the EZE came forward to provide low cost houses and thus sanctioned funds for 600 houses. The government allotted lands for house construction. The LWF/CDS of Geneva sponsored a project to construct 200 houses for the Tannery labourers in the Ambur and Vaniyambadi areas where they had lost their houses in the flash floods of the Palar River in November, 1978. The construction of the houses was completed in 1983.

The LWF agreed to give financial support for the implementation of this programme with the co-financing of the bank through our various Rural Centres like the Short Term Crop programme. This programme was also co-financed by Nationalized Bank, on the understanding that loans to the extent of 100% will be issued to those recommended by this Council. The loan repayments were also reutilized to issue more loans to the deserving.
The various purposes for which loans were issued under this programme included, Sheep rearing, Dairying, Brick making, Lime Kiln, Soap Making, Mat Weaving, Tailoring, Coir Making, Retail Trade, Purchase of pedal operated implements, bullocks, agricultural implements, sugarcane crusher, and land reclamation.

Keeranur is a small village in the Perambalur District located on the Chennai-Trichy Main road. Most of the people were landless labourers living in a very poor condition. Along with the CSI Trichy-Tanjore Diocese, special efforts were made to obtain lands freely from the government of Tamilnadu for constructing houses. Sixty five families were selected. 40 houses were constructed through the housing programme with the funds provided by the EZE, Germany. The UMCOR (United Methodist Committee on Relief), New Delhi helped to construct the remaining 25 houses. Thus 65 families were rehabilitated.