Editorial
Low Cost HousesCome Home
Gone are the days of the futile developmentof new homes resulting in mass vacancies because no one can affordto occupy them.
No longer will minimum lot sizes createhigh prices for land; prices for which private citizens couldnot qualify at commercial banks.
Current lending rates are set at a levelthat even moderate or middle income Caymanians cannot qualify.
Despite better incomes when comparedto the rest of the Caribbean - and budgeted lifestyles, propertyis far too expensive for the average person. And if you are belowaverage, financially, a less than acceptable living conditionis where you will end up with today's market situation.
Despite widespread reports that the CaymanIslands does not have a homelessness problem, there are many peoplewithout homes who, instead, are forced to pay unreasonable rentsin order for landlords to meet their high mortgage notes set bybanks.
This vicious circle was causing both privatecitizens and property owners financial hardship and the only onesbenefiting were the lending institutions.
Take, for instance, a situation in GeorgeTown. Over the course of several years the Social Services Departmenthas observed the expansion of commercial property developmentencroaching into what was once family residential areas such asRock Hole, Mary Street and Scranton.
Because of this, poor individuals who donot own property but could have added a room on to a family member'shouse, have become displaced.
The truth is 6,244 of the 10,630 Caymaniansin the workforce earn between CI $12,000 and $23,900 per year.
This income makes it difficult, if not impossible,for Caymanians to compete for property or housing at the currentmarket rates.
Add to this the fact that some 7,598 membersof the population are children under the age of 14 and the correlationbetween large numbers of small children and low-income familiescreates a domino effect on society.
Based on information from the Departmentof Social Services, the majority of youths who become involvedin delinquent behaviour have come from poor or overcrowded housingsituations.
Commendably, the government has now steppedforward in an endeavor to ensure that equal opportunity housingis available to everyone.
The Hon. Frank McField, Minister of CommunityDevelopment, Women's Affairs, Youth and Sports signed a contracton Friday, August 23 that confirms the construction of some 200houses for lower and low-income families.
This initiative will go a long way towardssatisfying this country's housing needs.
The basics of the initiative are clear.The Government will be acting as the developers and donating theland they have in an attempt to reduce the final cost. Financingwill be provided through the Government's own Cayman Islands DevelopmentBank, that has already been approved by the Caribbean DevelopmentBank which provided $5 million in funds for this endeavor.
Former endeavors have helped but not resolvedthe issue for very low-income individuals.
For instance, even though the GovernmentGuaranteed Home Mortgage Scheme is currently in operation, thereis an urgent need for a supply of affordable housing for verylow and low-income groups.
Similarly, there have been modificationsmade to the Development and Planning Regulations to reduce theminimum lot size to 4800 square feet for the development of affordablehousing.
However, even this adjustment provides lotsizes that are too expensive for those in dire straits. Alttoughthere were also other contractors who have offered similar fundingproposals, their financial repayment rates were too high. At $500a month, the Government's initiative is the best by far, to date.Unlike other initiatives related to affordable housing, the Governmentwill focus on such cases as those of extreme indigence.
And as a bonus to those in need, the Habitatfor Humanity will also offer an affordable housing initiativethat will focus on circumstances in which potential home owners,who have an income can make payments on an interest free loan.
Those who have started to build a home buthave been unable to finish it because of the high costs, and thosewhose homes need extensive repairs, may also be eligible for Habitat'sassistance.
With a promise of handing over some of thesehomes in another few months, one can say that Christmas, besideslooking better, has come early for some deserving families.