HOUSING BOOST
Holness doles out slew of new benefits through NHT
PRIME MINISTER Andrew Holness has rolled out new and revised housing benefits to National Housing Trust (NHT) contributors and beneficiaries.
Effective July 1, 2024, the National Housing Trust will make changes to its Home Improvement Loan policy to allow all contributors to access home-improvement loans of up to $3.5 million after 10 years.
Under the current arrangement, only public-sector workers can access the home-improvement loan 10 years after receiving the initial mortgage.
In his contribution to the 2024-2025 Budget Debate in the House of Representatives yesterday, the prime minister also told his parliamentary colleagues that NHT contributors would soon be able to access a new loan product, dubbed the Smart Energy Home-Improvement Loan.
Beginning July 1, 2024, Holness said NHT contributors would be able to access this loan to outfit their houses with any combination of solar panels and batteries, solar water heaters, solar insulation, and other renewable energy technology to include windmills, hydropower, and biomass.
Loans can also be obtained for rainwater harvesting and storage to include water tanks and pumps.
NEW HOME CONSTRUCTION
At the same time, the prime minister said that for the 2024-2025 financial year, the NHT is projecting to start construction of 15,009 housing solutions with more than 96 percent geared at lower-middle income to low-income contributors.
The housing solutions, according to Holness, include 4,309 two-bedroom solutions, priced at an average below $13 million. Another 7,600 one-bedroom units are priced at an average below $10 million and 3,100 serviced lots are priced below $4 million.
In addition, some public-sector pensioners will benefit from the NHT’s expanded home grants to fund the installation of solar panel systems on their houses.
Holness explained that beneficiaries would be selected randomly across the various parishes after satisfying specific criteria.
For public-sector pensioners to benefit from the grant, they would have had to be earning less than $30,000 per week at the time of retirement and must be a homeowner, not necessarily of an NHT-constructed house.
The age requirement for beneficiaries is 60 years and over, and their houses must not have the systems already installed.
Preference will be given to pensioners who live in areas with irregular electricity supply. This grant will enable them to reduce their
utility bills and reduce environmental impact.
Holness also announced a $15-billion project to enhance communities with limited infrastructure over the next three years.
Under t he NHT’s Revised First Step Housing Programme, the prime minister said the housing entity will develop onebedroom apartment complexes, particularly within or near urban centres, as starter homes.
He said the apartments will be made available to contributors by way of sale agreements with an optional buy-back clause.
The buy-back clause will give mortgagors the option to sell their properties back to the NHT after a determined time.
NHT REPURCHASE
Under the arrangement, the NHT may repurchase units for sale to its contributors.
Holness pointed out that the mortgagors who sell their units to the NHT will be allowed to access a new benefit from the Trust towards acquiring a new home.
The prime minister said units that are currently under construction at Vineyard Town and Howard Avenue i n St Andrew will be sold under this programme.
He said an additional 303 units at Barracks Road in Montego Bay, St Jame's are also earmarked and will be targeted at workers in the tourism, business process outsourcing, and security sectors.
The head of government said policy changes are also coming to benefit young adults.
He said the NHT will reserve up to 10 per cent of the housing solutions in the current housing plan for contributors under 35 years.
Holness indicated that over the next five years, this will result in approximately 4,300 housing solutions being available at 100 per cent financing up to $15 million, subject to affordability levels.
The prime minister also said that the Tourism Enhancement Fund will partner with the New Social Housing Programme to provide $500 million to fund housing for tourism workers who live in substandard conditions.
The NHT will partner with the Ministry of Local Government and Community Development to construct 14 homeless shelters on government lands across the island.