Housing revolution coming in TT

INTER-AMERICAN Development Bank (IDB) local representative, William Robin-son, predicted that a US$32 million loan from the bank to the Government will launch a housing revolution that will create balanced communities throughout the country. Addressing a news conference at the Ministry of Housing at South Quay, Robinson announced that Government had satisfied all the pre-conditions for the loan which will allow Government to experiment with new approaches and financing mechanisms for housing development. He explained that these mechanisms are designed to “significantly expand the capacity of the housing sector to address the substantial backlog of demand for low-income housing.” “Robinson observed that traditional methods of subsidised government mortgages placed a severe fiscal constraint on Government’s ability to fund new housing developments beyond a certain level of units and this new IDB program will develop mechanisms, “that will leverage additional private sector capital to the housing sector with a special targeting on lower-income homes”. Robinson said: “The programme introduces to TT a new way of empowering low-income persons through the use of family cash grant subsidies and it is estimated that 3,000 greenfield sites (new housing sub-divisions) will be created under this programme. Persons whose annual income is below $28,000 can choose to purchase a starter home costing less than $82,000 and they will receive a subsidy of up to $36,000 with a minimum down payment of $4,000.

They will receive a grant subsidy of up to $24,000 to purchase new housing units costing between $82,000 and $100,000 with a minimum down payment of $5,000. It is anticipated that these dual ceilings for subsidy grants will lead to the development of communities with social and economic balance, with greater social economic balance since culturally, Trinidadians have a tradition of starting with a basic shelter and then through additions and renovations, adding to their homes over time.” The IDB representative said given Government’s target of 115,000 houses by 2005, the programme involves the combined approach of the State, private financial institutions and private contractors working together “to achieve a common good of expanding lower-income housing”. Robinson stated the programme will also give home improvement grants to low-income persons earning an annual salary of $24,000 and seek to regularise some 4,500 squatters throughout the country through the provision of upgraded basic services and enhanced communal facilities to these communities. He said another important feature of the programme was that with a low entry price of approximately $100,000, mortgage payments “could be as low as $700 to $900 even at a commercial lending rate of between nine to12 percent”. Robinson said the programme was based of months of collaboration and research between the IDB and the Housing Ministry under the Government and its UNC predecessor and will be available throughout the country  “on a politically non-partisan basis.”