Recent figures show that 600 Caymanians on Grand Cayman have applied for ownership of low-income homes all of which are working and that number could increase as a result of growing need and a possible increase in the earning allowance criteria.

Providing and managing housing for employed Caymanians, who are still considered to be financially disadvantaged, is shaping up to be a costly project for Government, although how costly is still unclear.

One officer in the field who spoke with Cayman Net News said the country’s need for low-cost housing had increased because Hurricane Ivan had created more financially incapacitated persons, who were “on a financial edge without knowing it.”

Only 77 of the 200 intended housing were built by the Affordable Housing Initiative under the previous Government and the current Administration says it is still trying to assess the extent of the losses as only half of the US$29 million allotted for the whole project was used up.

There are still many unanswered questions surrounding the project which, an ongoing police investigation has yet to uncover.

Officials from the Affordable Housing Initiative are also involved in an expensive mopping- up exercise that includes trying to bring delinquent mortgagors current; applying more stringent measures for bad-paying occupants; maintaining the existing units that some have condemned as being ‘worthless’ and making plans to offer current mortgagors new units, because the ones they are now in have been condemned.

Government expenses for the project are still set to increase as the number of applicants for Affordable Housing units on the Sister Islands increase as well, though up to press time the figure was not available.

There are also issues concerning the currently established income ceiling, which is used as the basis for qualification to receive a low-income housing unit.

This could increase by the time the National Assessment of Living Conditions (NALC) survey is complete by mid 2007.

A new national higher figure for the low-income earning ceiling could mean more Caymanians would fall below the “poverty line’ and become eligible to apply for a unit.

Rationalising this point, one professional explained that in a country like Cayman where costs are high, and it takes more money and resources for persons to meet even basic needs, then poverty lines are higher.

According to Maxine Gibson of the National Housing Development Trust (NHDT), who spoke with Cayman Net News, each applicant must fall within the category of low income.

“At the present time it is a maximum of CI$29,000 per annum, for the single applicant, and CI$42,000 per annum, where there are joint applicants,” she said.

“These amounts will be varied upon the completion of the National Assessment of Living Conditions that is currently being conducted by the Government.”

Ms Gibson added that low-income housing was not free housing because for that, persons would go to the Child and Family Services Department and that to obtain a unit an applicant had to give proof of being employed and financially capable of repaying the monthly mortgage.

Land is still being sought for building the new low-income units for which only Caymanians, or Caymanian Status holders will be eligible, Ms Gibson confirmed.

Commenting on Cayman’s need to attend to subsidized housing on a large scale – primarily because his area of operations is still awaiting some $7 million in promised Aid, Dr Mark Laskin of the National Recovery Fund (NRF) spoke with Net News and said, “I am hopeful that components of the National Assessment of Living Conditions (NALC) report will be an incentive towards improving the housing sector.”

Additionally, the need for low-income housing is also underscored by the profile and family-composition of the applicants.

“The average number of children per household amongst applicants is between three and five children per household – indicating that stability being brought to children’s lives is an important item that will be addressed with the provision of this housing,” said Ms Gibson.

Included in low-income housing considerations is the problem of mortgage arrears.

Shedding some light on this problem Ms Gibson said delinquency rates had been reduced since the last audit revealed that only 35 per cent of mortgages were being collected.

However, she also revealed that there were still some occupants that were not paying and, against whom, strong measures were being put in place.

Moreover the current monthly mortgage payments do not cover all maintenance costs and therefore the Government still has to subsidize the project even when owners are paying.

“Total payment on a two-bedroom is $579, with $94 going towards the Strata and $485 going towards the mortgage or lease,” Ms Gibson explained.

“Total payment on other two-bedroom units is $699, with $105 for the Strata and $594 for the mortgage or lease. These payments being made by the home owner do not cover the cost of maintaining these homes, so the Government is subsidizing this expense.”