Turning the sod for a $40 m Housing Development Corporation (HDC) in Moruga yesterday, Housing Minister Randall Mitchell has promised to shift HDC’s focus back to providing affordable rental units to citizens.
He said although the HDC will not discontinue the construction of units for sale, this type of construction has led the ministry away from its original mandate.
Mitchell and Moruga MP Dr Lovell Francis turned the sod for the project, which is expected to provide 77 single-unit houses for the people of Moruga. Construction of this project will be done in two phases—36 units in phase one and 41 units in phase two.
“The majority of citizens seeking affordable housing earn between minimum wage and $6,000 per month and find it very difficult in qualifying for the affordable mortgages or even the affordable rent-to-own programme offered by the T&T Mortgage Finance Company (TTMF) and the HDC,” Mitchell said.
“So in light of our reduced funding, we have to now focused our efforts to satisfy those applicants who are most in need.”
He said because the HDC constructed so many housing units in the $500,000 to $1 million price range, the private sector also suffered.
“The HDC in building so many housing units for sale in the $500,000 to $1 m range had virtually eliminated private sector developers and private sector investment from that space. The private sector could not compete with a state agency pumping billions in the housing market for middle-income earners.”
He said homes in this price range also attracted a different audience than the one the corporation was mandated to assist.
“The HDC has become increasingly attractive to house seekers such as doctors, lawyers and other professionals who would not ordinarily pursue an application to the HDC...To me, this conflicted with our original mandate.”
Mitchell said future projects of units in this price range will be done through private/public partnership and will rely more on private sector investments.
He said the Gomez Trace development is his fourth sod-turning ceremony since assuming office. The HDC has started developments in River Runs Through in Arima, Bon Air South in Arouca, and Mahogany Court in Mt Hope.
