Categorized | National News

Housing Boom Projected

Minister of the Environment and Housing Kenred Dorsett announced in the House of Assembly last week that the government will enter a joint venture partnership for the construction of hundreds of new homes.

The new homes will be constructed in the proposed Carmichael Village, which will be a brand new community.

Dorsett, who made the announcement during his contribution to the 2015/2016 budget debate, added that the government will also engage a public-private partnership for the completion of over 60 homes in Adastra Gardens Subdivision.

The government is also working to finalize arrangements for the development of 20 lots in Claridge Estates and 20 lots in Stanley Acres, Dorsett said.

The minister responsible for housing also noted that many Bahamians have enquired about the occupancy of the homes in Strachan’s Hill and others throughout New Providence.

“While left up to me, all of these homes would have been occupied a long time ago. It does not work that way. Some have been occupied and others have not. Persons who have applied for government homes through the Department of Housing must qualify for a mortgage with an approved lender,” Dorsett explained.

He further explained that while most people can pay the down payment for a home, many of them for various reasons are being rejected by approved lenders including the Bahamas Mortgage Corporation.

“Ninety percent of the persons assigned homes who were being processed by RBC Finco were rejected,” Dorsett added.

“One example of this is a young lady who applied for a home whose parents were willing to guarantee the loan. However, because of the age of the parents, the young woman was not able to qualify on her own.”

Therefore, it is evident, according to Dorsett, that the government must find a way to assist those persons who can pay the down payment and the monthly sum through salary deduction, but cannot obtain mortgages.

“I have promised the Bahamian people that I will stick to best practices and ensure that mortgages are in place before persons are allowed to occupy these homes built by the public purse,” Dorsett said.
He noted that the BMC assists low and middle income Bahamians to obtain home ownership and BMC’ s board of directors recently approved the issuance of $100 million in bonds, which will further elevate BMC’s role in the government’s home programme.

“This facility will enable the government to advance housing projects on land vested in the minister of housing that does not have infrastructure, but more importantly, the issuance of the bonds will be advanced in a manner that will not compromise the corporation’s financial position,” Dorsett explained.

He added that once the government is able to secure funding from the bond placement, it is their hope to use a portion of the funds to advance the pilot rent-to-own programme in New Providence and the Family Islands.

Written by Jones Bahamas

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