THE Housing Agency of Jamaica (HAJ) has accelerated its drive to increase the housing stock in Jamaica with some $19 billion being allocated for 2011/12 to begin construction of 8,676 solutions slated for completion within the next three years.
"We have an accelerated programme to increase the housing stock rapidly and that is what we have commenced doing," explained Joseph Shoucair, managing director of the HAJ.
The major developments will be in St Catherine, Westmoreland, St James and St Ann.
In Whitehall, Westmoreland, the HAJ said it will provide 376 serviced lots and 200 studio units; Green Pond, St James, 45 lots and 290 one- and two-bedroom units; Retirement, St James, 128 lots and 238 studios; and Grange Pen, St James, 400 lots, 500 studios and one- and two-bedroom units.
"...In 2010/2011 we started construction of nearly 6,000 units in one year," Shoucair told reporters and editors at the Observer's weekly Monday Exchange at the newspaper's head office in Kingston yesterday.
According to Shoucair, prior to 2007, the HAJ — formerly known as the National Housing Development Corporation (NHDC) — focused exclusively on Operation Pride developments.
The focus, he said, was shifted, given that many of these projects were not economically feasible.
Since 2007/08, Shoucair said the agency has been aggressively pursuing new housing developments, and was able to make a $200 million profit last year. It is now hoping for an even better performance in the new fiscal year.
He, however, explained that not all of the lands owned by the agency are suited for low-income houses because of the cost involved in development of certain types of infrastructure. As such, the agency has also embarked on some high-end developments, such as the Country Club in Portmore, St Catherine.
The HAJ head, however, noted that the agency has sought to develop as many projects as possible with its available lands, providing studio units for as low as $2.5 million and $3 million.
Shoucair cited examples of the 100 studio units constructed at Portmore Villas in St Catherine and 49 studios at Luana, St Elizabeth.
"We are proud of these because of the prices we were able to sell them for," he said, adding that the Portmore units, which went for $3 million, were oversubscribed by 500 applicants.
Desmond Young, director of the technical services division at the HAJ, said an informal study done prior to the construction of these two schemes showed that a significant number of persons were more interested in starter units or serviced lots.
"When you make the starter unit as small as possible, it means the cost becomes less than the usual two-bedroom and so persons will have more in their pocket to develop further, and what we are seeing is they tend to use those resources better than a developer does," Young explained.
"If they were to find the deposit on mortgage up front to pay for a two-bedroom, that could have eaten up everything in their own reserve, but when it is something $3 million or less and they are not using up all their NHT (National Housing Trust) loan, they have something they can rely on to complete what they want," he added.
Young said the agency seeks to make these housing solutions as affordable as possible, however while the land might be free or cheaper, there is no avoiding the construction cost associated with the units and the infrastructure and this is what determines the final price of the development.
He noted, however, that the agency has a no escalation policy in addition to making its legal fees nominal.
Meanwhile, despite the scores of units the HAJ has constructed in recent years, Shoucair admits that the needs are still great for affordable housing in Jamaica, especially among middle-income earners.
Pointing to an all island housing demand survey done by the NHT in 2007, Shoucair said it was discovered that while the total national demand for housing solutions was 400,000, the effective demand was 100,000.
"That means, of the 400,000 persons who need homes only 100,000 can afford any type of home and that includes a lot," he said.
According to Shoucair, the construction of new housing in Jamaica declined dramatically over the two years following the survey.
"I don't believe the whole country produced 4,000 units last year or the year before," he said.
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