Responding to a consultation paper issued by Edwina Hart AM, national assembly finance secretary, the CIH says PFI in housing should be firmly on the agenda in Wales as an option alongside stock transfer.
Currently Wales has a£1.2bn repair backlog which will continue to rise if alternatives are not considered.
PFI schemes offer alternatives for local authorities when making decisions about their stock whereby they continue to own the property but finance will be available to upgrade tenants' homes.
Louise Barnden, director of CIH Wales, said: 'Given the fundamental importance of good quality housing to a socially inclusive Wales there is a need to develop other options for increasing investment in social housing alongside stock transfer and the national assembly should encourage pilot PFI projects.
'There needs to be scope for councils and tenants to choose their local approach. Some will be happy to pursue stock transfer options while others may wish, and should be encouraged to, look at other choices such as the PFI or even a combination of them both.'