NHT to cut rates again - PM calls for further review of interim charges

Chairman of the board of the National Housing Trust (NHT), Kingsley Thomas (left), appears to be exploring recommendations outlined by Prime Minister P. J. Patterson during the Trust's 25th anniversary awards function at the Hilton Kingston Hotel on Saturday night. - Rudolph Brown

PRIME MINISTER P.J. Patterson has asked the board of the National Housing Trust (NHT) to review further and reduce some of its existing interest rates to enable more Jamaicans to build their own homes.

The target was to provide "a minimum of 7,000 housing solutions to qualified contributors each year and to provide mortgage products which are affordable to those persons in the lower income group," Mr. Patterson said.

Against that background, he said that in addition to the recent decision to reduce interest on interim financing on scheme development by the NHT from 12 per cent to 8 per cent, he was instructing the board "to further and immediately examine reducing the interest on other interim financing from the existing 20 per cent."

Mr. Patterson, speaking at the NHT's 25th anniversary banquet at the Hilton Kingston Hotel, New Kingston on Saturday night, added that the rates should be decreased so that "all potential homeowners of all income categories will benefit from lower housing prices arising from lower interim charges".

The Prime Minister also announced that 5,000 housing solutions (basic infrastructure but not a complete house) for workers in the sugar industry would be provided over the next five years. However, he suggested there be a review and a reduction in the selling prices to reduce the cost of the units.

He said that although the land was being given at no cost, he has learnt that the houses would still not be affordable for some workers. "If it requires additional support from the NHT let me know and I will approve it immediately," the Prime Minister said.

Last month when NHT chairman, Kingsley Thomas announced the cut in the interest rate for interim financing for some developments, from 12 to 8 per cent, he said it was hoped that this would spur new investments in housing schemes.

The move, he said, was in keeping with the commitment of the Trust to provide affordable housing to its contributors.

Under the terms of its interim financing programme, the NHT puts up a portion of the money for housing developments undertaken by private contractors.

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