…Bulkan says gov’t to reassess role in housing development

GOVERNMENT will be taking greater steps into the background, to enable the full elevation of the housing sector and to ease the financial strain being placed on the state. This was the indication of Communities Minister Ronald Bulkan in his address at the grand opening of the much-anticipated “Housing Solutions 2017 and Beyond” exposition, being held at Perseverance on the East Bank of Demerara for the next three days.
Before a massive gathering that included First Vice-President and Prime Minster Moses Nagamootoo, Minister with housing responsibility Valerie Adams-Patterson, other government ministers, Central Housing and Planning Authority (CH&PA) top officials, the diplomatic corps, special invited guests and citizens, Bulkan related the state’s inability to efficiently construct homes and provide them within a timely manner. The minister acknowledged the unabated challenge of housing the nation regardless of the movement in the population. He said that the last government started to develop 38 housing schemes consuming some 4200 acres of land and approximately $13B for development. Of 20,000 houselots that were given out in the 38 schemes, only 4000 homes were built, while, at the same time it is estimated that a further $16B is required to complete the infrastructure in those areas.
Even if that amount of money is spent, it is not guaranteed that construction of houses could start, Bulkan said. The last government’s 1000 homes project started in 2013. On May 19 2014, construction started on the first 50 batch of homes, but by May 2015, when the A Partnership for National Unity + Alliance For Change (APNU+AFC) government took office, citizens could not immediately occupy any of the 50 houses. “This immediately informed us that the approach was wrong, that the state is not there to be an efficient builder of homes, on paper it may have appeared to represent an option to deliver a cheaper unit, but the practice informs us differently,” Bulkan stated.
He continued that the role of the state should be as a “…facilitator and to create an enabling environment and to allow the private sector in an open and competitive process to produce the goods, in this case houses.” Bulkan charged that the government has learnt that it is too expensive or unaffordable for the state to provide one houselot per person and thus recognises the need for higher density-modelled homes to be pursued. Another lesson learnt is that, “a robust, open and transparent…,”process is needed for the total involvement of the private sector.
Bulkan insisted that it is just too expensive for government alone to buy land, develop it, put in the infrastructure such as water, electricity etc. and then build properties for different calibres of home-owners. The minister thus reminded that some 758 units of 530 duplexes and 228 town houses will be built under this government, to maximize land use and increase affordability, while building cohesive communities in 10 locations across six regions.
It was Minister Patterson’s undertaking therefore that once she held the post of Minister responsible for Housing, that she would aim to hold a housing expo in every new housing scheme. Patterson who birthed the housing expo initiative in a surprise announcement said that the housing ministry had lowered the land cost for the properties displayed at the Perseverance model village. The low-income earner would now pay $300,000 instead of the initial $500,000, while moderate and middle income earners pay $500,000 and $700,000 respectively.
The minister noted that potential home-owners can contact their contractor of choice to build the home they want from the model village. Single- unit homes were built by private contractors. They are allowed to price the properties. Minister Patterson has expressed concern however that contractors will be responsible for keeping the homes built in the particular categories within the set price ranges. “God forbid that these homes do not meet the people they were intended to,” the minister contended. She praised the hard work of her staff, partnering agencies and sectors for making the housing expo a success.
CH&PA CEO Lelon Saul told the gathering that on display are single units and duplexes, showcasing construction techniques and building various houses. CH&PA has six duplexes and two single units about 600 to 800 sq. ft. Private contractors have a total of 18 buildings ranging from low to middle income. Saul said that, “As an independent nation we can ill afford not to adequately house our citizens.” He said the current housing need is 8001 new and renovated units per annum over the next eight years. Prime Minister Nagamootoo commended the organisers of the housing event for reminding Guyana that the dream is not lost; “…that it is still possible to house all our people.” He said the government is working to not only give houselots, but also to ensure that homes are developed on them soon after.