THE Central Housing and Planning Authority (CH&PA) is exploring a number of options as it seeks to find alternative solutions for citizens with very low incomes, Chief Executive Officer (CEO) Lelon Saul said.

During a recent press conference, Saul disclosed that the CH&PA has held discussions with the Guyana Manufacturing and Services Association (GM&SA) on a number of options.
One such option is the construction of starter homes (20×16) with hard wood. The CH&PA CEO said for applicants with very low affordability, the wooden starter homes would be ideal.

“We will be able to deliver a housing unit for approximately $1.7M but what is important here is quality control,” he posited. However, he underscored the importance of securing quality timber for such an initiative – treated lumber with very low moisture content.
The CH&PA CEO believes that together the housing authority, private developers and financial institutions can make a significant difference in the lives of citizens who have very low incomes.

“But of course the financial institutions are concerned about security and whatever they give. If they are going to put their money into a housing unit, they would want to finance something that they know would last a very long time, and that is why it is important that we use quality timber that can last a long time, maybe 40 years or 50 years,” Saul explained.

As a result, a joint technical working group was established and tasked with examining the challenges that the CH&PA faces.
Currently, a position paper that addresses the challenges facing the housing programme, is before Cabinet. It includes solutions that target low and middle- income households, including young professionals.
Additionally, it explores public-private partnerships towards community solutions; access to more affordable financing including graduated interest rates; and shared ownership/phased equity.

Even as the Cabinet analyses the position paper, the CH&PA CEO said he is pleased with government’s decision to make housing even more affordable, especially for low and middle-income earners.

Finance Minister Winston Jordan, in presenting to the nation the 2018 National Budget pegged at $267.1B, said in an effort to support the housing sector and encourage the building of low-cost houses, government has proposed to exempt from VAT, complete housing units costing up to $6.5 million, that are built by, or on behalf of CH&PA or any other approved entity. This measure will take effect in 2018.

Saul told reporters that the tax exemption will benefit the “small man”. He explained that currently a housing unit set at $5M, the buyer would be required to pay 14 per cent VAT.
“I can tell you previously, people would have complained about the 14 per cent that they had to pay on the housing units, and I am elated for them because you could see more people owning their home and even though it might appear to be insignificant, it is not. It means a lot to the ordinary man,” Saul said.

Also in 2018, CH&PA will invest US$10M to build 250 core houses as it seeks to meet the needs of the poor and working class.
Core houses will be constructed in the housing schemes that span Ogle on the East Coast of Demerara to Golden Grove on the East Bank of Demerara in Region Four (Demerara-Mahaica), and La Partfaite Harmonie in Region Three (Essequibo Islands-West Demerara). From that lot, 100 families from the Sophia-Cummings Lodge community are in line to receive core houses.

“Each of these units cost approximately $4M, and those houses basically will be given free to deserving residents. Of course, they will be criteria that must be met,” Saul posited.
It was made clear, however, that though these core houses are intended for the poor and working class, they will not be given to squatters.

“Those who are squatting in Sophia would not benefit from core houses… here we are speaking about people who are living on regularised lots, and those people who have legitimate house lots but they are living in shacks. Those are the people who would benefit from the intervention,” the CEO further explained.