NHT builds fewer houses
The National Housing Trust (NHT) experienced a decline of 9.7 per cent or roughly 253 homes in the number of housing solutions completed during its financial year 2014/2015 compared to the previous year.
But despite the slippage, former chairman of the Trust Easton Douglas noted in the government-owned entity’s annual report tabled in Parliament last week that targets set for the area of housing completions were actually exceeded by 10 per cent.
It indicates that the NHT had a target of completing about 2107 housing solutions for the year.
“The NHT completed a total of 2,342 solutions during the review period; a reduction of 9.7 per cent compared to last year,” the report stated in a review of its operations.
“Build-on-own land, construction loan and home improvement loan accounted for 52 per cent (1,222) of this total, with interim finance projects contributing 28 per cent of the total. NHT projects under which scheme solutions were completed accounted for 15 per cent while the First Step Housing programme accounted for the remainder of overall completions,” it continued.
Over the years, the Trust has been partnering with real estate developers in an attempt to increase the number of housing solution available to contributors. Other initiatives include the increase of loan ceiling for first-time borrowers by $1 million to $5.5 million. The interest rate has also been lowered by one per cent.
In its outlook for the 2016/17 financial year, NHT stated that it will commence work on schemes at Eltham Farm, Industry Cove, Sevens, Vineyard Town, Wickie Wackie, Granville, Longville Park, Marysfield and Hellshire in an attempt to complete another 2,000 solutions. At the same time, it hopes to fund 9,000 housing solutions over the next two years.
Chairman of the NHT Carlton Davis during a
Jamaica Observer Monday Exchange last month disclosed that the institution is currently exploring avenues of getting private institutions to finance more low income homes. He added that one such way would involve the the Trust ensuring the risk of properties.
NHT closed the year with assets of $221 billion which climbed 7.1 per cent or roughly $15 billion more than the comparative period of 2013/14. It accumulated profit of $121 billion.
Mortgages provided by the institution continue to improve year over year, posting a 3.5 per cent increase to 174,768 for the year under review. Beneficiaries also improved 3.3 per cent to 186,248.
According to the Jamaica Public Bodies document of Approved Estimates of Revenue and Expenditure, NHT plans on spending $22.3 billion on housing activities by March 2016. Additionally, it seeks to automate several manual processes to improve the turnaround times in several areas of operation.
The planned level of capital expenditure will result in disbursement of loans of approximately $18 billion under different programmes, including Build-on-own Land, open market, construction, joint mortgage finance and house lot loans.
“The NHT is aware of the challenges that its contributors face during this period of national adjustment and commits itself to improving access to housing,” the annual report stated. “The Trust will partner with other agencies of the Government of Jamaica shortly to deliver more low income units nationally. The Trust is also reviewing various policies which will improve access to housing, as well as those which will increase our contribution to the country’s growth agenda.”