Earl Samuels, NHT managing director. - File

The National Housing Trust (NHT) has introduced a new policy that will allow groups of individuals to combine resources to buy a single parcel of land that is large enough to be subdivided.

The Cluster Housing initiative was introduced in February.

NHT will provide a loan to two or more persons who have identified a suitable piece of land, with a registered title, large enough to be subdivided into not more than nine lots.

"Before approval can be granted for loans under the Cluster Policy," said the housing agency, "all applicants must provide evidence that they have adequate funds to complete the purchase, if the total cost is more than the amount being loaned by the NHT."

No larger than 18

The cluster groups can be no larger than 18 persons.

Individuals may also apply jointly for a house-lot loan, said the NHT, which may be used to fund acquisition and subdivision of the property, installation of infrastructure and the splintering of titles.

Individuals may also access a construction loan to assist with building a house on the lot.

Under this new policy, the agency said, each applicant would be able to get the maximum allowed under the Individual House Lot loan programme - $1.2 million per applicant - subject to affordability.

This means that under the new policy, if six applicants are applying to buy a property, which they will subdivide, the NHT will lend up to $7.2 million to the applicants, or the sum of the individual house lot loans.

The agency said a maximum of 30 per cent of the amount to be borrowed can be used to cover infrastructure costs.

In addition, two applicants may apply to purchase one lot in the same subdivision.

These co-applicants would qualify under the NHT's Individual Benefit Policy and could get as much as $1.9 million to purchase a single lot in the subdivision.

NHT Cluster Policy conditions

The relevant parish council must indicate that it has no objections to the land being divided.

Applicants must meet NHT's usual eligibility and affordability criteria.

Applicants must provide proof of technical expertise to oversee the development.

A cluster-housing agreement must be signed by all purchasers.

Infrastructure costs provided must be done by a certified quantity surveyor.

Cluster groups must have approval from the Real Estate Board for the development.

dionne.rose@gleanerjm.com