Developers ponder NHT request for low-income housing
Published:Sunday | March 4, 2012 | 12:00 AM
Avia Collinder, Business Writer
Mortgage lender and real-estate financier National Housing Trust (NHT) has reached out to developers for suggestions on how it can entice them into providing low-income housing.
Michael Lake, chairman of the Jamaica Developers' Association (JDA), said the group would be drafting a response.
The outreach follows a Sunday Business report that developers were avoiding taking up cheap three per cent NHT loans for low-income schemes because such projects are not profitable for them.
"We are meeting with our membership early in March on the issue," Lake told Sunday Business on Tuesday.
"I would prefer to offer our position after the meeting," he said.
NHT open to discussion
The NHT, meanwhile, has indicated its openness to discuss with developers new strategies which will promote increased uptake for funding dedicated to building homes costing less than J$5.5 million each.
Traditionally, the trust has been a primary supplier of housing to the low-income market segment. In recent years, however, the agency has chosen to be less active as a developer and has pursued partnerships with private companies.
"The NHT remains open to considering alternative ways to make this a win-win situation for all parties: the developers and our contributors," the trust said in response to questions posed by Sunday Business.
In three years of promotion, the NHT has failed to secure participation in a loan scheme with monies priced at three per cent for the development of lower-cost housing.
But it continues to try a number of strategies to support take-up.
"The NHT will also shortly announce a design competition, the concept of which is to extend a design challenge to produce a housing solution that is safe and affordable to persons in the lowest income brackets," the agency said.
"Although we have had no take-ups to date, we have started the dialogue and have noted increased interest. The ball is now in the court of the developers."
The trust reiterates that its offer of the three per cent interest rate loan to developers was devised to meet the needs of contributors in the lowest income brackets.
"We see this as a key initiative to inspire activity in the low-income housing market and it is one way in which the NHT is being intentional in breaking through any aversion that may exist on the part of developers to participate in this segment of the market," the state housing agency said.