ThomasTHE NATIONAL Housing Trust (NHT) announced Thursday an immediate cut in the rate of interest for interim financing for certain housing developments, from 12 to 8 per cent.
"We are hoping sincerely that that 33.33 per cent reduction in the interest rate will not only spur new investments in housing schemes but that it would also be reflected in the final price to the purchaser of the unit," Kingsley Thomas, NHT chairman said.
He was speaking at the official launch of the NHT's 25th anniversary celebrations at a press conference at the Hilton Kingston Hotel. 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.
Meantime, the Trust, under a directive from Prime Minister P.J. Patterson, will be examining ways of lowering the deposit requirements of its beneficiaries. The matter is to be discussed at a board meeting next month.
Mr. Patterson noted at a function in Adelphi, St. James, last week Thursday to hand over the first batch of a total of 84 serviced lots, that some contributors had difficulty finding the cash to bridge the gap between the maximum amount the NHT lends to an individual, and the final cost of the solution which the Trust offers for sale.
Mr. Thomas, while expressing an understanding of the Prime Minister's position, said at the Hilton function it was necessary that the beneficiary had some equity in the unit. When the Board meets next month, a number of options will be examined including allowing the beneficiary to move into the house on a type of lease arrangement while paying the deposit over one year. During that time no addition can be made to the unit.
Another option is to pre-advertise housing developments and pre-select individuals. This, Mr. Thomas explained, would give the beneficiary more time to pay for the unit.
