Public Rental Board applauds Government Support

Kalabu estate housing project to be completed next month

Public Rental Board Acting General Manager Patrick Veu had confimed that the housing project at Kalabu estate will be completed next month.

There are a total of 36 flats constructed under the Government’s grant of $2.24 million.

He said apart from the 36 applicants, 72 applicants are on waiting list.

Mr Veu presented the 2015 annual report to the Parliamentary Standing Committee on Social Affairs on Wednesday and he commended the Government’s financial support on the projects and developments. Since 2003, the Government has been providing rental subsidy of $1 million to Public Rental Board.

Approximately $89,489.00 was distributed as social cost for 2015, he says.

Mr Veu highlighted the Public Rental Board‘s total rental arrears in December 2015. It stood at $110,526.79.

The active tenants’ arrears totaled $86,918.98 while the vacated tenants’ arrears were $ 23,607.81.

There are aims to decrease the arrears.

Moving forward, Mr Veu said that they continue the construction of new flats and at the moment there are around 1024 waitlist applicants. Mr Veu said that one of the major constraints of rental unit is the availability of funds. But he thanked the Government for its support on Capital expenditure grants and subsidy.

Below are some of the questions posed by SODELPA member Sainiana Radrodro and the response by the Public Rental Board Acting General Manager Patrick Veu. . Is the rental arrears trend for the past years increasing or decreasing?

Response: “We continue to maintain the arrears.”

Mr Veu said the arrears is at an average stage and they would like to reduce it further.

“But then we are serving the members of the public.”

He added that the only way they can reduce arrears is for the tenant to directly deduct the rent and arrears from the source.

“That is the only way we can reduce arrears.”

He said they need to be generous and assist the needs of the people.

The mandate for the rental board is to look after the housing needs of the low income earners, for the Raiwai rental units, what is the occupancy rate? Are those really your targeted clients?

Response: “The occupancy rate is 100 per cent.”

Mr Veu said they are charging $99 a week and $111 respectively for the Raiwai flats.

“Why the rent is slightly high is because we are fully serving the debt through the Government to the Bank of China. That is a loan that we have taken through the Government and we are servicing this loan so the rent is little high.”

For the Raiwai tenants’ criteria, Public Rental Board looks at those that are slightly above their threshold of $16,500 to $25,000 maximum.

What’s the loan repayment, how are you servicing your loan?

We are servicing the loan through the rent income. That is plus interest, says Mr Veu.

He said it’s a fixed interest rate and 20 years repayment duration.

There were concerns raised about the safety and suitability of the land at Kalabu estate. The possible risks in terms of stability of the building. The land is on a hill.

Response: We have mentioned that the works will be completed next month.

For the stability of the site, we have constructed retaining walls to stabilise the rear phase.

Would that affect the willingness of tenants to move in there in regards to their safety?

If you visit the site now, there is a huge difference. The work has given a very good outlook. We understand the difficult site, it is because we do not have the land for construction.