Georgetown: Government has announced its plans to reintroduce the Mortgage Banks in Guyana, to assist the poorest Guyanese in securing their own home.
Mortgage Banks are state-licensed banking entities which provide mortgage loans directly to consumers .
They originate a loan and place it on a pre-established warehouse line of credit until the loan can be sold to an investor.
Minister within the Ministry of Communities, Keith Scott, made the disclosure, while he delivered his speech at the budget debate in the National Assembly on Monday. His delivery, though often drowned by the Opposition, the People’s Progressive Party/Civic (PPP/C), revealed Government’s plans for the housing sector, and its immediate benefits to the poor.
He said mortgages are important assets, however, in Guyana, the process can be very complicated. It should be reviewed and simple as is done overseas.
“In this budget, Mr Speaker, $1.9 billion has been allocated to the housing sector…. The new year we will unveil our new functions. $1.6 billion has been allocated to continue infrastructural work including roads, drains, structures and housing areas,” Scott told the House.
Scott said the banking sector has been very supportive of the Ministry’s effort to build houses for the nation, and encouraged them to support Government’s manifesto pledge of producing innovative financing for housing, including the development of mortgages, and mortgage interest support for low and middle income homes.
Moving on in his presentation, Scott spoke to Government’s plans for squatter regularisation.
“We will embark on a serious squatting mechanisation initiative and every effort would be made to clear squatters in the East and West Ruimveldt areas. Squatters will have opportunities, through an increase in options. No longer will they be having exploitation from the housing sector. No longer will communities be set up without adequate and essential support amenities to support easy living,” the Junior Minister said to loud thumping from Government’s side.
He informed that Government has a five-year plan for the housing sector, and hoped to produce, by the end of its tenure in 2020, safe housing for citizens in need. He said all state sponsored housing communities will be provided with the basic infrastructure and the housing project for the five-year period will focus on the allocation of lots.
“We shall ensure that all State-sponsored housing developments have the requisite recreational and sport facilities in addition to the basic infrastructural service such as electricity, telephone, roads and water supply. Construction of all kinds of houses will be accessible to all. We will cater for all levels, even if persons cannot afford a house, we will provide the house to suit the person’s pocket,” Scott promised.
Land settlement and land divestment will be pursued, Scott informed, noting that while the previous Administration had embarked on one of the one-stop shop housing initiatives, immediately prior to the General and Regional Elections, nothing much has been accomplished.
“Two years from now, we will have new schemes which will have proper lights, schools and all infrastructure…. We shall create opportunities to help them to play a better role in society.”
He said as Government continues along, its work will be evidence-based. It will include the assistance of Habitat for Humanity and Food For The Poor, and other such community-based organisations.
He said by 2020, some 4000 houses will be delivered.
Hinterland Housing Pilot Project
Scott had earlier told Guyana Times that the Hinterland Housing Pilot Project will soon be expanded as US$3.1 million has been obtained by the Central Housing and Planning Authority (CHPA) to ensure the construction of 200 homes in the hinterland.
The project was a component under the Government of Guyana and Inter-American Development Bank (IDB) Second Low Income Settlement Programme.
Scott stated that the project profile was currently being finalised for approval by the IDB.
The housing project for the hinterland commenced under the People’s Progressive Party/Civic (PPP/C) Administration in 2009.
It is aimed at providing housing for vulnerable hinterland households through a community partnership approach, involving novel participatory approaches to project design and the actual provision of affordable housing.
The successes of the Hinterland Housing Project include: reduced overcrowding in hinterland homes, improved access to safe drinking water for hinterland households, and improved sanitary conditions for hinterland families.
It also included the increased social cohesion with participating communities.
“There is also the employment of over 100 persons in participatory communities, reduction in labour intensive work on women, overall improvement in improved housing conditions of hinterland households and, mutual learning between the implementing agency and beneficiary communities,” Minister Scott has said.
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