Housing Development Corporation (HDC) homes which became more expensive over the last five years may now become more affordable under the new Government. The promise was made by new Housing Minister Marlene Mc Donald in Parliament on Tuesday during her budget presentation. “We will revisit our mandate to provide affordable homes,” she said.
Charging there was “policy discrimination” in the distribution of houses under the last government, Mc Donald said in 2008, one of the PNM’s criteria for houses was that the monthly combined income of applicants should not exceed $25,000. In February 2014, however, Cabinet agreed to amend the qualifying income to increase it to $45,000.
This implied discrimination against low-income earners, she said. Mc Donald said “many moons ago” the PNM realised there was a need for low-income homes and embarked on a plan to construct subsidised units for the less fortunate.
She said there remained a mad rush for homes by many of the vulnerable who could not afford houses on the open market and gave the assurance that discrimination against low-income earners would not continue.
Comparing the increase in prices of homes under the PNM and the People’s Partnership (PP), she said between 2002 and 2010 the then PNM administration built 26,000 homes at a cost of $6 billion. The cost of construction of one unit was $230,000.
The last government built 4,178 homes at a cost of $5.3 billion and units ranged from $700,000 plus to $1.2 million, Mc Donald said. What caused the big difference in the construction of units? Mc Donald attempted to answer the question.
She said the Oasis housing development built by the PP in Chaguanas at a cost of $1 billion with VAT has 1,159 units. One unit there costs $800,000. In Eden Gardens 458 units were built by three contractors at a cost of over $306 million. One unit costs $750,000.
In Union Hall, San Fernando, 1,182 units were built at a cost of $1.4 billion. One unit there costs $1.1 million, Mc Donald said. She said the HDC approved construction costs while Cabinet approved the acquisition of land.
“Can a state agency bind a Cabinet to these millions and billions of dollars?
“I think this approach is questionable. It’s something I will have to discuss with Cabinet.”
She said the leakage with respect to the construction of homes was “insidious” but added, “I will say no more.”
She promised the PNM would construct homes at a lower cost and gave the undertaking this would be achieved because there would be no bid rigging, overpricing or preferential treatment of contractors.
“We can build at a reasonable cost and sell subsidised houses.” But the construction of new homes did not seem likely in the near future, Mc Donald said. She said the HDC has a $2.6 billion liability and this was something Cabinet and the HDC board would have to deal with before they went forward with construction plans.
She gave the firm assurance, however, that housing projects started under the last PNM government, which remained incomplete under the PP, would be completed by her government. These include Vieux Fort, in her constituency of Port-of-Spain South, Real Spring along the East/West Corridor and the Towers in Edinburgh, Chaguanas.
“I want to give the assurance all these units will be completed under this Government.”
MATCHBOX HOUSES
Former housing minister, Dr Roodal Moonilal, said the prices of the houses went up because the price of land increased. Also, he did not believe in building “matchbox houses,” he said. “We built quality houses.” Moonilal said the PP sought to expand the pool of applicants beyond low-income earners, adding they were not taken out of the system.
“We had houses for low and middle-income earners.”