NASSAU, BAHAMAS — The mounting need for housing is driving the Ministry of Transport & Housing’s rent-to-own initiative, ‘A place to call Home’, that will launch with its first phase in Springfield, Abaco.
Minister of Transport & Housing, Jobeth Colbey-Davis told Parliament yesterday that the program was crafted to ’empower hardworking Bahamians to achieve homeownership’ and to address the ‘shortage of affordable housing solutions and personal financial challenges that impede many Bahamians.’
She noted that this is one of the initiatives in the Progressive Liberal Party’s Blueprint for Change to, ‘expand the path to homeownership for Bahamians.’ The housing minister said that her team has been working on a ‘viable and sustainable structure’ for the project over the last few months.
“As I speak, Deputy Speaker, the Department of Housing is currently reviewing over 1,200 active applications for housing.
“Each Customer Service Representative at the Department is currently managing over 350 applications. These applications, Deputy Speaker, are from all segments of Bahamian society and include teachers, nurses, police officers, hospitality workers, and bankers to name a few,” she said.
Colbey-Davis added that the rent-to-own program will be launched under the Housing Act to facilitate the department of housing’s ability to lawfully, ‘construct dwelling houses upon land owned by the Government or to be acquired for such purposes; acquire dwelling houses, land or housing projects by way of purchase, lease or otherwise; and to sell, lease, exchange or otherwise dispose of real or personal property acquired pursuant to this Act.
“Over an agreed fixed period, rent will be paid to the Department of Housing,” she said.
“A portion of the rent will go towards a down- payment for the mortgage, property maintenance, and insurance costs.
“A reservation deposit is required to enroll in A Place To Call Home. Successful applicants will be required to attend a homeownership education course through the Department of Housing and agree to financial coaching. In short order, Deputy Speaker, a public invitation will be extended for interested applicants to register.”
Family islands are also earmarked to benefit from this initiative. Colbey-Davis said it is a multi-island project and will assist islanders with affordable housing opportunities and job opportunities through housing contracts.
“The people of San Salvador – where there is major employment with the Club Med Resort – will be hearing about our plans shortly.
“In Bimini and North Eleuthera, where we are seeing strong tourism numbers, Deputy Speaker, A Place To Call Home will be launched. In Cat Island, Exuma, and North Andros, we will offer our Rent-To-Own initiative.
“Bahamians, Deputy Speaker, across our country will have a viable path to homeownership through A Place To Call Home and other housing solutions that the Department of Housing is working on,” she said.
Colbey-Davis displayed blueprints in her presentation of a two-bedroom, one-bathroom model and a three-bedroom, two-bathroom model.
She said that along with financial coaching the Department of Housing will empower Bahamians by helping them get a full understanding of interest costs associated with unsecured loans and gave an example,
“An unsecured loan of $45,000.00 (Forty-Five Thousand dollars) at a repayment term of 10 years and at a rate of 12.00 percent would see interest being paid of over $32,000.00 (Thirty-Two Thousand Dollars). Deputy Speaker, we aim to empower Bahamians”.
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