FOR TWENTY-EIGHT years, the Ministry of Housing has been fostering joint venture partnerships with private and other categories of developers to help ease the demand for housing.But it was just this year, in May, that the Ministry finalised a policy to incorporate "greater transparency and accountability into the process."
Between 1997 and 2002, the Ministry has entered into 15 joint venture arrangements, but of the over 4,645 solutions that should have come on the market, only six projects comprising a combined 2,696 housing lots and units are listed as finished.
The Ministry's list of joint venture starts and completions over the period indicate that some projects under the programme have been dragging for up to five years, including a five-house project at Dewsbury Avenue in Kingston that has been puttering along for over three years. The incompletes went to construction at separate times between September 1998 and April 2000.
Under the two broad categories of arrangement, Government will put up the land as equity; and private sector facilitation where the land is owned by the private developer.
Under the latter arrangement, Government will take no share of profits realised from the development and therefore will not insist on a joint account nor accept any liability incurred. But the developer has to register with the Real Estate Board, the Ministry's administrative fees will be lower, the developer can use the land as security to obtain financing for the development.
PARTNER
The Ministry says it is willing to partner with commercial entities, non-governmental and community based organisations, and international agencies and companies.
Indicative prices published in the policy document for lots developed under the 'private sector facilitation' arrangement range from $380,000 to $660,000. For housing units, the range is $840,000 and $2.25 million. However, the Ministry says it reserves the right to adjust the prices periodically.
The policy document which was tabled in the house in May, sets out the objectives of the programme as guiding private sector investment towards the housing sector, and ensuring "efficient use of scarce government resources", and to support programmes that address squatting and settlement issues.
Aside from the transparency issue, the document outlines as rationale for a joint venture policy, the housing deficit coupled with the expected demand for houses that seems to be edging towards 20,000 units per annum.
The figures were quoted from a 1999 National Housing Trust study on housing needs. NHT is a state agency and the primary housing provider. The agency reports directly to the Prime Minister, not the housing Ministry.
In further justification for the joint venture programme and policy to guide it, the document said: "Historically, housing starts and completion data show that the government intervention through the involvement of the Ministry of Housing and other public sector agencies in the housing delivery process results in a greater supply of affordable housing."
The document also points out that a serious decline in housing investment from 24 per cent of GDP in 1980 to one per cent in 1985, was reversed after a 'shelter strategy' was developed in 1987 resulting in "significant investment in housing by the informal sector."
