Petrina Francis, Staff Reporter
Prime Minister P.J. Patterson (right) assists Alva Anderson (left), chairman of the National Housing Trust (NHT), in releasing butterflies at the NHT's 30th anniversary media launch, at Emancipation Park, New Kingston, yesterday. Looking on is NHT General Manager Earl Samuels. Prime Minister Patterson announced during the launch that the NHT will be increasing, in many cases doubling, the benefits available to contributors to the scheme. - JUNIOR DOWIE/STAFF PHOTOGRAPHER
PRIME MINISTER P.J. Patterson yesterday announced yet another increase in benefits to National Housing Trust (NHT) contributors.
Effective April 1 the new benefits will include a doubling of the loan limit for applicants under the scheme, with open market and build-on-own-land housing programmes moving from $1.5 million to $3 million per applicant, and up to $6
million for co-applicants.
Mr. Patterson also announced that the loan limit for service lots and house lots will move from $600,000 to $1 million, and for co-applicants, it will move from $800,000 to $1.6 million.
The Prime Minister made the announcement during the launch of the NHT's 30th anniversary celebration, held at Emancipation Park, New Kingston.
LOAN LIMIT INCREASED
Additionally, Mr. Patterson said the loan limit for home improvement for single applicant will move from $600,000 to $1 million.
This is the second time in less than a year that the NHT benefits have been increased.
Mr. Patterson, who has portfolio responsibility for the NHT, disclosed that the eligibility criteria for NHT borrowers had been revised.
At present, contributors who are in arrears have to pay interests for seven years before they are eligible for a loan, but this will now be reduced to a period of three years.
And some contributors will also be able to get a second loan. "Currently, contributors are entitled to one benefit in their entire lifetime," Mr. Patterson noted. "The board has recommended, and I have accepted, that we now give consideration and implement two new initiatives which will benefit persons who received loans at least 15 years ago," Mr. Patterson said.
The Prime Minister also disclosed that contributors who received service lots from the NHT will now be able to access construction loans immediately, instead of after seven years.
A POSITIVE IMPACT
Reacting to the Prime Minister's announcements, Karl Allison, a partner with Allison Pitter & Co., a real estate agency, told The Gleaner that the increase in benefits will have a positive impact on the real estate market. He noted that the demand for houses will increase, as contributors will definitely take up the offer of a loan from the NHT.
However, Mr. Allison pointed out that the new benefits will not affect the higher end of the market where housing cost is in the range of $10 million and above. He noted that the demand will mostly be for low income houses.
Dr. Horace Chang, Opposition Spokesman on Water and Housing, has welcomed the Prime Minister's announcement.
"It is a welcoming move, because it allows a number of contributors who were unable to benefit to now access loans," Mr. Chang said. He also noted that the new increase is positive news for young professionals who will now find it easier to get their own homes. Mr. Chang added that the increase in benefits will increase the cost of houses, but he does not foresee a drastic rise.
