HCL’s Fifi: Private sector can build low cost homes with subsidy

Anthony Fifi, Managing Director, HCL Group of Companies, believes that the private sector can build government’s proposed low cost homes, efficiently and cheaply. “I still believe that the private sector could build a lot more efficiently and cheaper than government. I see government as being there to provide the subsidies, policies and controls and I see the private sector as being the body to implement those programmes,” he said in a recent interview at HCL’s Trincity offices. His rationale is that the private sector is much more efficient in terms of its ability to implement than government, noting that the unit cost of production will be much less. Over 10,000 families are expected to benefit from an aggressive programme of government assistance for low income earners to build and improve their homes as well as to regulate squatter settlements. Government has already signed a loan agreement with the Inter-American Development Bank (IDB) for the first tranche of an IDB loan aimed at supporting a US $100 million housing programme. HCL is one the largest developers of homes and communities in TT. It also does work for countries like St Lucia, Dominica, Anguilla, Grand Cayman and Florida. Fifi, who has been selected by government to head its 2020 vision housing thrust, said HCL is willing to help construct some low income homes for young people and those who really cannot afford to buy a home at this time, But to do so, Government, he said, must provide the private sector with subsidies.

HCL currently has a number of ongoing projects in East Trinidad. Some of these projects include the Trincity Millennium Vision which includes  Millennium Lakes, Sunrise Park and the Trincity Business Park. In El Dorado, HCL has already completed Golden View and is currently working on La Couroupita. HCL is also expected to start other projects in Santa Rosa, Santa Cruz, Maraval and Diego Martin. Fifi boasts that HCL does not only build houses, but communities. “We build neighbourhoods and try to attach it to some centre, like the Trincity Millennium Vision. He said right now, even though there has always been demand for  homes, it is greater because there are increases in personal disposable income and a drop in interest rates. “These two factors have really opened up a lot more avenues and opportunities for people to buy homes,” However, he noted that there is still a large sector of the population who are unable to access housing, because of its costs. He said this is where the government will try to help through its low cost housing project. Fifi said he did not want to comment on whether the demand for homes in the east is greater than in the west. “Let us just say that there is demand in the east and demand in the west. You really have to look at the population centre and people normally want to live close to work if that is possible, near to facilities such as schools and shopping centres.” He said it is important for developers to ensure that they provide these different facets of the community, noting though that there is healthy demand in both the east and west of Trinidad.

He acknowledged that there is discernible shift from the west to the east for obvious reasons; the west has literally run out of land and, therefore the price of land and properties are very expensive. This, he said. makes it almost impossible for young home-owners to pay for homes in that area. In the Westmoorings area, Fifi said house hunters cannot get anything for under $2 million, adding that one can still get an HCL house within their  developments in the east for somewhere between $350,000 to $600,000.” Fifi said he does not believe in catering to any one market and therefore HCL caters to a wide reach of the population. “I think you need balance in communities. A healthy community needs to be balanced even in economic terms.”
HCL, he said, tries to attract both low and high income earners to its  communities. Fifi said two years ago, an  HCL home cost about $250,000, now its pegged at $350,000. He explained that inflation, the high cost of production, the cost of land and building materials all have a role to play in the escalating costs. For those in the low income bracket - $3,000-$4,000, Fifi said HCL would have to start building homes that cost about $200,000.” Fifi said this is not impossible and could be done with some sort of government subsidies. The only way to build such a house is through govermnment subsidies, he insisted.