Letter of the Day | NHT must return to its original mission

THE EDITOR, Madam:

The National Housing Trust (NHT) was created to provide affordable housing, not to subsidise banks or fund government projects. Yet today, contributors – whose payments are mandatory – are being pushed into high-interest bank loans while the NHT’s own capacity shrinks due to reckless fiscal policies. This must change.

1. The NHT Act mandates that contributions be used for housing development and mortgages (Sections 4 & 12). However, the NHT’s External Financing Mortgage Programme forces many to borrow from private banks at 9-11 per cent interest, despite already paying into the NHT for decades. This is unjust: if contributions are compulsory, the system should prioritise direct access to housing, not bank profits.

2. Since 2013, $11.4 billion per year has been taken from the NHT to build police stations, fire departments, and other non-housing projects. This breaches the NHT’s legal mandate and starves the Trust of resources it needs to build homes. Why must teachers, nurses, and civil servants struggle with bank loans while their NHT funds finance post offices?

3. Jamaica has thousands of acres of unused government land – held by the Land Commissioner, the Housing Agency of Jamaica, and other bodies. Instead of relying on private developers (who inflate prices), the NHT should:

- Acquire this land at low cost (or through gov’t transfers).

- Use its own contractors to cut out middlemen.

- Prioritise low-cost, high-density housing** for workers.

The NHT built 4,000 plus units annually in the 2000s – today, it struggles to deliver 1,600. This decline isn’t accidental; it’s the result of misused funds and misplaced priorities.

4. A two-bedroom apartment for $35 million is an insult when the average Jamaican earns $5.2 million yearly. The NHT’s loan limits (e.g., $9m for individuals) haven’t kept pace with inflation – what cost $7.5m in 2004 now requires $11.3m. Meanwhile, banks reject low-income applicants, leaving many trapped in unaffordable rentals.

5. The solution lies in legislative reform and direct action. The following needs to be done:

✔ An end to NHT fund diversions – amend the NHT Act to bar spending on non-housing projects.

✔ A land audit on NHT-led construction – use idle government land for mass affordable housing.

✔ Income-based pricing – NHT units should cost no more than three times a buyer’s annual salary.

The NHT must return to its original mission: housing for the people, not profits for banks.

YANNICK NESTA PESSOA

Community Advocate