Friday, February 22, 2008A Piece of the Rock

StaffAffordable Housing solutions in the BVI

With land prices in the BVI skyrocketing and the cost of building materials and construction at an all time high, is it time for the government of the BVI and private developers for that matter to take a serious look at housing developments, that will allow young BVIslanders, low income earners and or first time home owners the opportunity to purchase a home at an affordable price? While this challenge has been taken on by two private developers on a small scale, there has not been a concerted effort to sell the idea on a broader scale, or to include persons who already own land but need assistance with construction. In order to ensure further economic development and a continued increase in the standard of living for all BVIslanders, the issue of affordable housing should be aggressively pursued in short order. And, it will take a collaborative effort on the part of both government and the private developer, possibly through an incentive program to boost the supply of affordable housing. What a great investment opportunity for a BVIslander who already owns a reasonable chunk of land.

About 35 years ago, as the cost of real estate began to increase beyond the means of the average Bahamian, the government of the day began purchasing huge blocks of land for the purpose of developing so called affordable housing. Well planned communities were constructed, inclusive of schools, parks and clinics. The only difference, between an upscale community and the affordable housing developments, was that in the latter the houses were considerably smaller, on less land and the finishes were not on the high end. The government also negotiated lower down payments and more favourable repayment schemes for buyers, who otherwise would not have been able to afford to purchase a home. The communities were equally well planned in terms of infrastructure and other community resources.
Subsequently, a number of private investors have pursued such developments, as the demand for affordable housing fast outpaced government’s ability to supply the needs of the expanding population. Today, there are numerous such projects, scattered around the Bahamas, some more successful than others, depending primarily on size, as it appears, the smaller the development, the more successful the venture, particularly as it relates to social issues.

As a number of other Caribbean leaders have come to the realization, that home ownership positively impacts the social development of these countries, a number of measures have been taken for government acquisition of land for the construction of affordable housing. Leaders of St. Kitts, Nevis, St. Thomas, VI, and Dominica have all embarked on affordable housing initiatives, in order to ensure that low income earners can participate in the overall socio-economic development plan of their respective countries. The homes are built by government or private developers and financed through local banks at rates not exceeding 35% of the household’s annual income. Homes are also distributed on a lease to own basis.

Developed countries the world over have realized the importance of housing initiatives. In the US, such programmes fall under the Department of Housing and Urban Development (HUD) and in the UK, it is The Housing Corporation. Without a doubt, it is time for the BVI to take a serious look at affordable housing communities, to be managed by an established housing authority. The social and economic sustainability of the country depends on it.

Oyster Publications Inc, PO box 3369, Road Town Tortola, British Virgin Islands, VG1110