Affordable Housing Debate Heats Up

Opposition Members of the Legislative Assembly
Edna Moyle of North Side, and Alden McLaughlin of
George Town, have staunchly debated the progress
of the Cayman Affordable Housing Initiative. They are
pictured here at the Windsor Park site

Dr the Hon Frank McField

Thursday, May 27, 2004

Members of the opposition People’s Progressive Movement vigorously debated the Government’s Affordable Housing Initiative last week in the Legislative Assembly, while Minister responsible for Housing, Dr the Hon Frank McField just as forcefully defended the project.

Opposition Members Edna Moyle, the Member from North Side, and Alden McLaughlin, the Second Elected Member from George Town, both staunchly criticised the housing scheme’s progress and cost.

Mrs Moyle brought up the fact that in February 2002, Dr McField had said in the House that 200 houses would be on the market within a year. “We are now in the year 2004, May, and we still only have 63 houses complete,” she said.

Mr McLaughlin also brought up the point that the project was supposed to be completed by February 2003, and that he didn’t know if the Government was therefore in breech of contract. “What we do know is that at this moment, not one single house has yet been delivered,” he said. “So who is truly benefiting from this exercise?”

During his statement to the House, Dr McField said that the government had embarked on the undertaking in August 2002. “It has been a massive undertaking and an educational experience for the Ministry to be involved with such a far-reaching initiative,” he said.

Dr McField gave updates on the progress on the sites were the affordable homes are being built, he noted that the 30 houses at the Windsor Park site, and another 69 at the West Bay location, are all nearing practical completion, and that utility installation was well under way.

He said the estimated latest date for occupation at the West Bay site was 30 June 2004, and for the West Bay site 15 July 2004.

The Eastern Avenue site was less complete, Dr McField said, but estimated that it would still be ready for occupation by 30 July 2004.

Dr McField said that the land acquisition for the final 68 homes was still being negotiated and that he was hopeful a 22-acre site off Fairbanks Road could be secured. He noted that Planning Approval could be obtained and filling operations completed within eight weeks, and that the estimated latest date for occupation would be 30 November.

Cost and value for money was another issue of the debate. Both Opposition Members noted that the price of the two types of homes had risen significantly. “Are these houses going to be affordable or not,” asked Mr McLaughlin, “affordable in the sense that persons who would not otherwise be able to afford them? That is the question that ought to be answered.”

Dr McField said in his statement that in order for the cost of the homes to be recovered at sale, they would have to be sold for CI$69,500 for the larger units and CI$56,900 for the smaller homes, up from CI$59,500 and CI$48,500 respectively. Ms Moyle suggested that better quality pre-cast cement homes could be built for CI$90,000 and asked why the prices of the houses in Government’s initiative had increased so dramatically.

If it wanted to keep the homes more affordable, Dr McField said the Government should lower the prices by paying a subsidy of CI$5,707 per home. “We are not aware of any examples of affordable houses being developed and maintained in any other jurisdiction without direct Government cash subsidy towards the cost of production and maintenance,” he said. “The Opposition has made a point that these houses, at the prices being offered, are not affordable. I would therefore like to solicit the support of the Opposition for the Government to give a cash subsidy in order to maintain the affordability of these houses in their view.”

Mrs Moyle, however, commenting on the fact that the 2004/05 Budget included an additional $2 million for the advance account for the Affordable Housing Initiative, said that she would not support the allotment. “I am not, as a Legislative Assembly Member going to continually support funds for a project that is going nowhere,” she said.

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