958_sectoral debate presentation

7/30/2019 958_sectoral Debate Presentation

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SECTORAL DEBA TE PRESENTAT I ON

La y i ng t he F oun d a t i on P r ov id i ng t h e So l u t i ons P r ep a r ing f o r t h e F u t u r e.

THE HONOURABLE DR. MORAIS GUY, MP

MINISTER WITHOUT PORTFOLIO (HOUSING)

MINISTRY OF TRANSPORT, WORKS & HOUSING

May 21, 2013

INTRODUCTION

Mr. Speaker, almost 120 years to his birth, I pause to reflect on the words,

achievements and dreams of a national hero, a patriot and a renowned and

respected former leader of this country, The Right Excellent Norman Washington

Manley. In his farewell political address Mr. Speaker at the Peoples National Partys

Annual General Conference some 44 years ago in 1969, he highlighted the

accomplishment of his generation, which was acquiring self-governance for us as a

people a fight which has resulted in my generation today occupying the seats of

this parliament.

Norman Manley also gave a charge and mission to my generation. For him, that

mission is reconstructing the social and economic society and life of J amaica. Mr.


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Speaker, its a mission I take seriously and as such the fulfilment of this mission has

informed the direction and policies of the housing portfolio of this Ministry.

Over the years Mr. Speaker, as Member of Parliament for St. Mary Central since

2002, and since J anuary of last year, as the Minister with responsibility for Housing, I

am constantly reminded of the importance of serving my fellow J amaicans service

that has embedded within it, a genuine commitment to securing the improved welfare

and prosperity of the citizenry of this island nation.

Mr. Speaker, I want to thank the Prime Minister for the continued confidence reposed

in me and I also take the time to express my pleasure in serving in the Ministry of

Transport, Works and Housing with two other significant leaders within the political

directorate, operating as a hardworking trio of Ministers. I also laud the fervour and

daily sacrifices of a meticulous, no nonsense Permanent Secretary in the form of

Mrs. Audrey Sewell and other technocrats within the Ministry. Special

acknowledgement as well for the new Acting Chief Technical Director, Mrs. Doreen

Prendergast who has exhibited an innate passion and resolve in carrying out her

duties.

At the Ministerial level, Mr. Speaker, I am grateful for the opportunity to have been

exposed to all aspects of the overall Portfolio within the Ministry, In fact Mr. Speaker,

we in the Ministry operate as one. Thus for example you will see me taking on

issues within the Transportation Sector and Mr. Speaker, a cartoon in one of the


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dailies last year which depicted this Minister in Half Way Tree sloganed " No retreat,

No surrender" speaks to that portfolio versatility.

Additionally, Mr. Speaker, I want to point to a new paradigm within this Ministry. In

decision making, this political directorate ensures that equity reigns in making

decisions related to all activities -whether it is roads, titles, infrastructure repairs,

Sandy relief houses, whatever. We are leaders for all J amaicans as Ministers of

Government.

Thanks also Mr. Speaker to my directors and senior managers within the housing

portfolio, and the other areas of the Ministry, who have recognized my impatience

with the pace of work in the public sector, and who have come on board to bring a

new urgency to the business of government.

To my Board Chairmen and members of the Boards, and their staff; of the Housing

Agency of J amaica, the J amaica Mortgage Bank, the Architects Registration Board

and the Rent Assessment Board; agencies which fall directly under my portfolio -

and indeed all the board Members of Agencies within the Ministry, with whom I have

worked I want to commend you for your dedication to the giving of public service

and your continued support to me as Minister, and to say to them Mr. Speaker, much

more will be required as there is a whole new frontier ahead.

Mr. Speaker, it would be remiss of me if I did not recognise the service of outgoing

Managing Director of the HAJ Mr. J oseph Shoucair, who has led that organisation

through turbulent times and has steered that ship through successive


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administrations. We wish you well in your retirement J oe but recognise that you will

only be a phone call away for your institutional knowledge.

Of course Mr Speaker, my ministerial duties are made much easier and more

tolerable by my own office support staff - my three assistants and my executive

secretaries who ensure that all matters are attended to and diligently strive to make

sure that nothing falls through the cracks in the Ministry. They too appreciate my

sense of service and seek to advance this new culture in governance.

Mr. Speaker, as a public servant, I have moreso come to the recognition that

J amaicans constitute a nation of hardworking, resilient and proud people... A people

whose resolve has reaped several national successes over the years especially on

the cultural front, a people who have spearheaded international social revolutions

and a people who have contributed to the evolving dynamics of global ingenuity and

innovation

Notwithstanding the larger, collective accolades the country has attracted Mr.

Speaker, they are also a people who continue to face challenges in attaining that

which fosters improved family relations, that which maketh a home, that which is a

symbol of prosperity Mr. Speaker, that is, affordable housing.

We hear the plight for housing solutions highlighted in the news media, we see the

substandard housing conditions which are evident when passing through some of

our inner city and rural communities, and Mr. Speaker, we as Members of this


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Honourable House, see the less then desirable dwellings that many of our own

constituents sadly call their place of abode.

This Government led by the Most Honourable Prime Minister is fully seized of the

need to urgently address the housing shortfalls in this country; a major contributor

being affordability. The Ministry of Transport, Works and Housing is tasked with

remedying this concern and as such, I would like to highlight the work of the Ministry,

as we carry out the thrust to not just construct houses, but to build homes for

J amaican families. We are of the view that people are not to merely buy homes but

to buy into neighbourhoods as we engender a holistic approach to development.

We intend to facilitate the growth of communities; not just individuals operating as

units within the community.

Mr. Speaker, as I speak, the foundation is being laid to systematically address our

housing concerns. This as the Ministry remains committed to operational, fiscal and

strategic adjustments geared towards improving our service and output; and to make

home ownership a reality for thousands more J amaicans.

This will be brought about through the re-energised and revamped focus on several

priority areas for the Ministry. Chief among these areas Mr. Speaker is the

attainment oflow income housing for J amaicans. This is crucial if we are to providekeys for all J amaicans the vendors, the farmers, the domestic workers, the hotel

workers, the shopkeeper Mr. Speaker, it is the resolve of this Administration that


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low income earners must also have their claim to decent shelter as we move to

advance the welfare of our citizens.

This drive Mr. Speaker, will be coupled with an even more robust titling programmethis year. A title is a simple piece of paper, but one which embodies in it, ownership

of a piece of this rock. Furthermore, its a document that will unlock economic

benefits, not only for its holder, but for the nation as a whole, and its a piece of

paper which can engender further advancements on the socio-economic ladder for

the owner.

Crucial as well Mr. Speaker is the matter ofurban renewal. Much of the infrastructurein several communities in and around our urban centres has fallen into disrepair;

many houses have been abandoned and lands are not being adequately used for

their optimum housing potential. It is with this in mind that we will endeavour to bring

renewed life to some of these areas through a vigorous housing programme geared

at shedding some of these areas of their longstanding urban blight. Residents in

these areas will once again realise an increased sense of pride in their communities.

Mr. Speaker, the Ministry in playing its part in fulfilling the well-articulated Vision

2030 goals especially, goal #4 which seeks to achieve as one of its outcomes

sustainable urban and rural development, is keeping steadfast with the drive to

house more J amaicans. In furtherance of attaining global living standard goals for

our people, this Government is forging ahead to also meet the target set out in

Millennium Development Goal #7 which stipulates achieving significant improvement


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in the lives of those residing in squatter settlements (slum dwellings)by 2020. We

will endeavour to do this Mr. Speaker even despite a challenging economic

environment and the widely held view that we came to government facing several

fiscal hurdles...

Let me now highlight the course that we have been on since taking office and to

outline the moves afoot to make home ownership an expectation and not just a

dream for J amaicans.

CURRENT HOUSING SOLUTIONS

Mr. Speaker, undoubtedly, we have come under criticism with regard to our

commitment to facilitating programmes for affordable housing. However, all over the

country, we see lands being prepared for building, foundations being dug, walls

going up, roofs being added to structures and families settling into their new homes.

Mr. Speaker, the numbers speak for themselves. Right across the length and

breadth of the island, thousands of housing solutions have been and are being

prepared as we speak. These include private, state driven and Public/Private

Partnership initiatives spanning the development of serviced lots, town houses,

detached houses, apartment buildings, housing schemes and emergency housing.

Mr. Speaker, thats thousands of families of men, women and children for whom, a

dream has been realised. Under this Government Mr. Speaker, we are housing

J amaicans


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NHT SCHEMES

With over 23 billion dollars for capital expenditure on the part of the National Housing

Trust, there will be significantly more solutions this year. Three housing schemes

have already been delivered since the start of this calendar year.

258 solutions in Perth (Phase 1) Manchester

918 solutions in Longville Park (Phase 3), Clarendon

140 serviced lots for low income earners in Creighton Hall, St. Thomas

Mr. Speaker, we are housing Jamaicans...

INNER CITY HOUSING PROGRAMME

But it isnt just about housing solutions in new schemes Mr. Speaker, those in our

inner city communities deserve decent housing as well. Such residents are also part

of our social and economic fabric and their needs should correspondingly be

considered as we tread the path to growth and progress.

Late last month, the Most Honourable Prime Minister, in her budget debate

contribution announced the full resumption of the Inner City Housing Programme for

J anuary 2014. Mr. Speaker, last year I mentioned in my presentation that the NHT

had restarted the development of partially built apartment dwellings that were halted

after we left office in 2007. Special reference was made of the Programme in

Majesty Gardens in the Corporate Area. Well, as we continue to fulfil our

commitment to better and more affordable shelter solutions, as a Government, let


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me take this opportunity to announce that the project in Majesty Gardens has now

been completed at a cost of160 million dollars with 48 families set to get the keys to

their new homes in short order Mr. Speaker, we are housing Jamaicans

HOUSING SOLUTIONS DELIVERED 2012/2013 - HAJ

Mr. Speaker, the provision of housing solutions does not stop with the work of the

NHT. The Housing Agency of J amaica (HAJ ), the premier housing arm of the

MTWH, has been integral in lifting the standard of living for many J amaicans. The

entity is charged with, among other things, providing reasonably priced housing

solutions and, regularising and upgrading select informal settlements through social

intervention and infrastructural development. In fulfilling its mandate, over the

previous fiscal year, the HAJ completed 2,086 housing solutions distributed over

several projects. Among them:

The Hills of Boscobel in St. Mary (196 solutions)

Belle Air, Phases 1 and 2 in St. Ann (860 solutions)

Mt. Edgecombe Phase 4 in St. Ann (325 solutions)

The Hague Relocation in Trelawny (180 solutions)

Completion of the projects at Belle Air brings to closure that Operation PRIDE project

that had remained incomplete for years in St. Ann. The project at Hague, on the

other hand accommodated persons relocated from within the town of Falmouth

where the land was needed for facilities associated with the new cruise ship pier.


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The project is managed by the Urban Development Corporation with financing

provided by the Petro Caribe Fund. Mr. Speaker, we are housing J amaicans

PROJ ECTS FOR FISCAL YEAR 2013/2014, HAJ

With those now completed and delivered Mr. Speaker, more solutions are on the

way. This as the construction of a number of such solutions, to be implemented by

the HAJ , is slated to commence. These include:

Whitehall Phase 3, Westmoreland Cabinet recently approved the award of a

contract by HAJ in the sum of $390 million to construct 173 studio units.

Bernard Lodge, St. Catherine Cabinet this month approved, by way of a

public/private partnership the execution of a contract for the HAJ to construct

604 one-bedroom units and 980 studio units, with associated infrastructure,

on approximately 119.4 hectares (295 acres) of land. This project was

concieved by the former Minister and finally, we are seeing ground breaking

soon. Let me interject here, Mr. Speaker; this administration has no difficulty

continuing good projects which transcend different administrations and this is

one such. The project will be built in six (6) clusters. Provision will be made

for commercial and recreational facilities, office space, educational facilities,

a police post and a post office. It is anticipated that the each studio unit will

be available at a cost of $4 million and $4.9 million for each one bedroom

unit. We are building not just houses but communities. Point to note Mr.

Speaker is that over 80 % of this development has attracted interest by


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potential purchasers and of that, 30% has been interests from public sector

workers and young professionals. As a Government we have committed to

retain that allocation for Public Sector Workers.

Cabinet has further given approvals for requests by the HAJ to enter into

public/private partnership agreements for the delivery of 778 housing

solutions in Grange Pen, St. J ames and 176 solutions in Hopewell, Hanover

both which will be developed mainly for tourism sector workers. Another such

PPP project in Colbeck, St. Catherine should see the development of

approximately 200 starter/studio units targeted mainly at service workers and

professionals in the Spanish Town to Old Harbour area.

An MOU for Shooters Hill in Portmore St. Catherine for another 600 solutions

will be presented to Cabinet shortly.

Not to be overlooked is the role that investors, both local and foreign, can play in the

housing sector. In-keeping with this thrust, this Government continues to pursue all

avenues to bring private capital into the housing market. As such, the Bernard Lodge

Project which is the largest to be undertaken by HAJ , will be financed and

constructed by a foreign investor - Malphrus International. The capital outlay will be

approximately $5.6 billion to be expended over three years.

Construction works will also be advanced at Belle Air 3 in St. Ann. A contract for

similar works at Luana Gardens in St. Elizabeth will be signed later within this fiscal

year. When completed, these two projects will conclude the J amaica Economical


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Housing Programme financed by the Chinese EX-IM Bank. Mr. Speaker, we are

housing J amaicans

MINISTRYS ACHIEVEMENTS

Infill Programme

The 2012/13 fiscal year, Mr. Speaker, was a productive one for the Ministry, during

which, a host of ambitious endeavours were undertaken and achieved. Several

programmes which were pursued throughout the year, including those in their

planning stages, will result in transformed communities and endow beneficiaries with

a renewed hope for even better to come.

Among the initiatives reaping success thus far is the Ministrys Infill Programme. This

involves the development of residual plots of land within existing housing schemes to

provide housing solutions.

Three projects under this programme have already been completed.

Collectively, they comprise approximately 6.2 hectares (15.3 acres) of land to

provide 63 serviced lots at a cost of $37.8 million. The sites are located in:

o Manningsville, near J unction, St. Elizabeth

o Hague, Trelawny

o Llandilo Phase 3, Westmoreland

Over this fiscal year Mr. Speaker, we plan to expand the infill programme as it

continues to change lives. This expansion will see over 17.8 hectares (44 acres) of


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land being used to provide 70 housing solutions and commercial lots. More

specifically Mr. Speaker, the Ministry will embark on two projects, which are

expected to deliver 34 serviced lots at a cost of $46.4 million. These sites are located

in:

Fairy Hill, Portland

Chippenham, St. Ann

A further 5 projects will also be undertaken by the Ministry at a projected cost of$83million two (2) of which will provide 19 housing solutions and three (3) to provide 17commercial lots . These will be located in:

Gazeland, near J unctions St. Elizabeth

Llandilo, Westmoreland

Old Braeton, St. Catherine

During this financial year, the Ministry will be assessing the implementation of two

other projects under our Infill Programme. This will take place in Lee Park near

Frome in Westmoreland and Albion Heights St. J ames, with the aim of providing a

further 69 serviced lots and 7 housing units. Mr. Speaker, this Administration is

housing J amaicans

Housing Solutions Marketed during 2012/13

Mr. Speaker, during the 2012/13 fiscal year it must be noted that the Ministry placed

several greenfield solutions on the market for divestment. Among them:


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Fair Mountain, in Malvern St. Elizabeth

Vanzie Lands, Trelawny (Commercial)

Albion Mews Phase 1, St. J ames

McKessey Lands, St Catherine

174 requests for divestment were approved throughout the year with a combined

affixed value of approximately $88 million. 225 sale agreements were prepared with

100 fully settled accounts becoming eligible to receive their titles. The Marketing

Department of the Ministry has no intention of letting up this year and will be pushing

to market an ambitious 1,218 solutions valued at almost $861 million. Mr. Speaker,

we are housing J amaicans

Urban Renewal P rogramme

Under the Ministrys Urban Renewal Programme, steps are being taken to redevelop

Government tenements which have fallen into a state of decrepitude. The aim is to

improve and generate low income housing remedies and the provision of security of

tenure. Work has begun in Albion Tenements in St. J ames, where 30 units at a cost

of $63 million have been built in Phase 1. The project is now in Phase 2 where

another 18 units are being constructed at a cost of $47 million.

In keeping with our commitment of the building of communities and not just houses,

Mr. Speaker, the Ministry has also undertaken significant infrastructure related

developments in some existing schemes. Among them:


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The completion of major emergency works inclusive of 3 foot bridges and

gabion works in Glendevon, St. J ames at a cost of $74 million.

Corrective drainage works at a cost of $5.5 million in Charlemont, St.

Catherine

Maintenance work on the sewage system in the Kennedy Grove Housing

Scheme in Clarendon. And further Mr. Speaker, the Ministry is set to begin

definitive corrective work on the said sewage system.

And though nota housing scheme, let me use this opportunity to point out that

once approval is received from the Portmore Municipality, the Ministry of

Housing should this year complete the construction of an administrative

building using the post and panel building system at a cost of $2.2 million at

the Portmore Community College.

Additionally, now that the IMF Agreement is in place, the Ministry will continue its

discussion through the Planning Institute of J amaica to obtain some bilateral funding

through the Caribbean Development Bank to facilitate the construction of much

needed housing solutions in some of our inner-city communities.

Mr. Speaker, this Administration is facilitating decent housing for J amaicans

J oint Venture P rogramme

Mr. Speaker, several incomplete housing projects which came about as a result of

flawed joint ventures between the Housing Ministry and private developers remain


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the responsibility of the Ministry, even decades after their establishment. We cannot

continue to maintain these on our books and so steps are being taken to treat with

this. Consequently, since last year we have been undertaking the evaluation of

unfinished projects under our J oint Venture Programme in order to conclude

outstanding infrastructure works and hand over such facilities to local authorities and

other applicable state agencies. These include:

Bushy Park in North West St. Catherine

Iterborale, St. Mary

Industry Pen, St. Mary

At the conclusion of these joint venture programmes, a further 74 serviced lots will

become available for potential home owners.

Titling Programme

Mr. Speaker, having highlighted the aforementioned initiatives which entail, among

other things, the Government facilitating the acquisition of land and the construction

of houses, we are also cognisant that there is another major variable in the debate

on land possession. Mr. Speaker, I speak of the Ministrys drive to put titles in the

hands of J amaicans, many of whom have occupied lands for years without the

requisite documentation. That simple piece of paper Mr. Speaker engenders the

unlocking of a slew of financial possibilities for its recipients that would yield both

local and national economic benefits. Its a point that cannot be re-iterated too often

Mr. Speaker For the first time in their lives, many J amaicans are now able to use


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these titles to secure loans to start a business, expand on the premises or to pay for

their childrens tertiary studies. All this will have a ripple effect in spurring economic

growth and development and raising the standard of living for our people.

Since our Administration took office last year Mr. Speaker, the core Ministry has

issued over 360 titles covering all parishes. Over the same period, more than 1,216

titles have been splintered. Currently, the Ministry is pushing to have another 1016

titles transferred and efforts are being made to contact beneficiaries to complete the

process. These titles are for lots in Trench Town Phases 3, 4A, 4B and 7; Seaview

Gardens Phase 2 and Ebony Park, Clarendon.

For its part, the Housing Agency of J amaica, up to March of this year, has

transferred over a 1000 titles. However, I have instructed the Agency that during this

fiscal year, it should stridently accelerate the programme with the objective of

transferring 5000 of the remainder of approximately 9,000 titles to Operation PRIDE

beneficiaries. Some areas to receive focus include:

Bedward Gardens and St. Benedicts East Rural St. Andrew

Gravel Heights EasternSt. Catherine

Spanish Villa / Woodland Central St. Catherine

Norwood North West St. J ames

Retirement I & II West Central St. J ames

Whitehouse Eastern Westmoreland

Boscobel Brownfield Western St. Mary


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Galloway Central Westmoreland

Lower Works South West St. Elizabeth

Vaughnsfield Southern St. J ames

Dunbeholden Southern St. Catherine

As it relates to the other 4000, land ownership, land acquisition and surveying

challenges when resolved will see these being issued over the medium term.

J ubilee 50 for 50 Housing InitiativeMr. Speaker, last August, we marked fifty years of political independence as a

nation. As these celebrations continue, the Housing Ministry is playing its part in

commemorating this milestone in our countrys history. In so doing, in 2012, the

Ministry launched its J ubilee Housing Initiative. The programme, following certain

criteria, would see 50 customers of the Ministry from across the island having their

outstanding mortgage balances written off and their Certificates of Title presented to

them at a special ceremony.

I can now say 50 J amaicans will soon be mortgage free as suitable beneficiaries

have now been identified and plans for the ceremony are now being arranged. Mr.

Speaker, it must be noted that the potential beneficiaries have been drawn from all

parishes wherever there are active housing schemes being operated by the Ministry.


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Squatter Management

Mr. Speaker, I wish to signal that squatter management is and will remain a priority

area of focus for the Ministry, as informal settlements continue to emerge on the

landscape of this country. Currently, Mr. Speaker, it is estimated that there are over

700 residential squatter settlements islandwide with more than 100,000 households

with an average of 4 to 5 persons per household. I should mention that the

spontaneous development of informal housing results generally in poor building

construction practices as well; leading to environmental degradation and major

damage and losses during natural disaster. This is a situation Mr. Speaker which is

impatient of debate and must be urgently addressed.

The Ministry has sought to address increased evidence of informal housing by

bolstering our Squatter Management Unit which through the support of various other

state agencies monitors and co-ordinates responses on the ground. Mr. Speaker, the

Unit thus far, for the most part, has been focused primarily on policy drafting. To

date, a National Squatter Management Policy Concept Paper has been developed

with input from relevant agencies as well as from civil society. Additionally, the Unit

has just moved to obtain approval for the outsourcing of a comprehensive analytical

research to inform squatter management policy measures. Subsequent to the

completion of this research, further consultancy will be sought to develop the policy

and an implementation plan.


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Nonetheless Mr. Speaker, in the field, it is the observance of the Unit that

landowners and managers, particularly those managing state lands, are increasingly

making squatter management a priority. Several have been implementing

mechanisms to reduce the incidents of illegal occupation of lands. At least one

player in the bauxite industry has signalled its intention to establish its own squatter

management unit to reduce squatting on their lands.

This problem, Mr. Speaker, is one which does not confront Government alone and I

venture to say that WE all have a role to play in the reduction of informal housing.

As it relates to land tenure and squatting, a new Trespass Act is being developed to

bring this legislation, which has been around for some 175 years, into the 21st

century.

Let me hasten to point out that in the interim Mr. Speaker, the Ministry has sought to

deliver regularised housing solutions to some of the residents in these older, more

established settlements.

Its is planned that this year we will undertake to provide 24 housing solutions

at a cost of $7.5 million on some 2 hectares (4.43 acres) of land in Esher, St.

Mary

Additionally, the Ministry will complete the implementation of infrastructure

works to develop existing informal settlements that have been placed under

the Local Improvements (Community Amenities) Act (LICA). This year, focus


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(PSUP). Mr Speaker, this is a regional project of the United Nations Human

Settlements Programme (UN-Habitat) initiated in collaboration with the African

Caribbean and Pacific (ACP) Group of States and the European Community. The

Programme is being implemented in Montego Bay, May Pen and Old Harbour/Old

Harbour Bay. Phase one of the Programme, which entailed the rapid profiling of the

towns/cities has been completed.

The Programme now moves into Phase 2, wherein feasibility studies will be

undertaken in the priority informal settlements identified during Phase One. This is

aimed at addressing sustainable slum upgrading issues such as governance, social

and economic development and environmental health.

Socio-economic Surveys

The Ministry as part of its ongoing Programme conducted 4 socioeconomic surveys

in the last fiscal year covering 693 persons in 263 communities.

These included premises at 51 Mannnings Hill Road St. Andrew, Barrett Town St.

J ames, 54 Lyndhurst Road in Kingston and Port Royal.

As a result of these surveys, we will be in a better position to determine, among

other things:

Divestment of properties owned by the Minister of Housing

Relocation and regularization of squatters

Transfer of properties to the Minister of Housing, as well as,


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Housing and financial assistance for persons displaced as a result of

manmade and natural disasters.

J AMAICA EMERGENCY EMPLOYMENT PROGRAMME

J amaica Emergency Housing Programme

The J EEP remains up and running it is on the road and moving forward Mr. Speaker,

and one year in, major progress continues to be made. In this portfolio, the J amaica

Emergency Employment Programme has fuelled a major push in housing

J amaicans. This is being realised through partnerships between the Housing

Ministry, NHT and Food for the Poor to provide 9000 houses for low income earners

over a 5 year period. Under the initiative, 1200 wooden and 600 concrete houses are

to be constructed annually. The wooden houses are to be attained at no cost to

beneficiaries. Mr Speaker, we are housing J amaicans

Nonetheless Mr. Speaker, it is not lost on us that we must be a responsive

Government. I speak in reference to the approximately 2,800 J amaicans who

suffered major damage to their homes and the 500 that completely lost their houses

as a result of the untimely and devastating passage of Hurricane Sandy in October.

Subsequently, the Government took the decision to alter the J EEP Housing

programme, in a bid to address the loss of homes for so many J amaicans.

Consequently, 477 wooden units have and are being constructed on an

urgent/emergency basis in the parishes which faced the greatest damage St. Mary,

St. Thomas and Portland.


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The distribution of the units is in addition to grants disbursed to occupants to effect

repairs to their partially damaged homes. As at April 15, 383 units have been

constructed for Hurricane Sandy victims 87 in St. Mary, 174 in Portland and 122 in

St. Thomas. The full complement of 477 Sandy relief units will be completed by the

end of this month (May) and Mr. Speaker, I want to advise the nation that fairness &

equity ruled in the identification of beneficiaries and colour didnt factor into this state

intervention. Mr. Speaker, this Administration is housing J amaicans

As for the regular programme Mr. Speaker, as at April 15, 234 houses have already

been completed in at least 9 parishes. So far, some $280 million has been expended

on the 583 combined units built to date. Given the changes to the original

configuration of the J EEP Housing Programme, each constituency in Year 1 will be

assigned at least 10 units, down from 20.

As of May 1, Food for the Poor has re-concentrated its efforts on the completion of

the regular units for Year 1 Programme, which are now scheduled for conclusion in

September 2013. Thereafter, construction of the second batch of 1200 units will

commence at an average of 100 units per month. Mr. Speaker, this Administration is

housing J amaicans

As it relates to the concrete houses, this partnership is between the

MTWH/JEEP/NHT/FFP. Work is progressing as we continue to make home

ownership a reality for our people. In addition to the units, infrastructure and ancillary

facilities such as drainage, sewage disposal systems, roadways, pathways and


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water will be put in place. The 600 units are to be sold on the open market by the

NHT using their priority index system for the selection of beneficiaries. The primary

target group will be contributors to the Trust who are earning minimum wage.

Mr. Speaker, while carrying out our mandate, we have also sought to ensure the

highest levels of efficiency in the construction process with economics and

technological transfer at the heart it. The construction of the wooden dwellings will

cost approximately US$6,400 per unit, with the Government contributing half that

amount from the Petro Caribe Fund and the Food for the Poor contributing the other

50%. The Petro Caribe Fund has provided $500 million dollars towards this project.

Meanwhile, the construction of the concrete units will cost approximately US$9,500

each and is being funded by the NHT. Mr. Speaker, there can be no doubt that we

are housing J amaicans.

And while housing J amaicans Mr. Speaker, the Government to which I belong is

putting J amaicans to work. This, as given the overarching mandate of the J EEP to

put a dent in the unemployment figures, I can report Mr. Speaker that up last month

(April), the employment programme in collaboration with housing related entities

such as the HAJ , the NHT, and Food for the Poor, resulted in almost 2,000

J amaicans gaining employment.


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Zinc Fence Removal P roject

Mr. Speaker, earlier I mentioned the pride of the J amaican people a pride which

emanates even in the most humble of communities where living conditions are not

entirely aesthetically appealing. In an effort Mr. Speaker to re-ignite and sustain that

pride, the J EEP was further mandated to spearhead another project which coincides

with plans for urban renewal.

I speak of the Zinc Fence Removal Project. Zinc fencing has become a feature of

many inner city communities which isnt commensurate with the pride that ought to

be afforded to our citizens wherever they live. Consequently Mr. Speaker, we have

moved full speed ahead in continuing the push to eliminate this feature, from

sections of some communities, particularly those in the corporate area.

Thus far, the Government has made available $42 million through the Petro Caribe

Fund, under J EEP, for the programme. The general scope of works entails removing

the existing zinc fences and replacing them with concrete block walls 1.8 metres high

reinforced with steel. Priority has been given to areas where the need is most

manifest at this time.

Seven fences have been completely replaced along Payne Avenue in South

West St. Andrew while work on 16 others along Uganda and Lagos avenues

in the constituency have already commenced.

Besides homes Mr. Speaker, the programme has been extended to improve

the security of students at places of learning. This as $3.5 million was spent to


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extend and strengthen the perimeter wall at the Trench Town Comprehensive

High School. This project is near completion.

Another institution, the Success Basic School in Central Kingston, is also

benefitting from the programme where $2.7 million was allocated for the

construction of a concrete block retaining boundary wall. That project as well

is near completion.

Plans are in order to have the programme extended to Haile Selassie Avenue,

263 Spanish Town Road, Maxfield Avenue and Bedward Gardens.

J AMAICA MORTGAGE BANK

The J amaica Mortgage Bank is another agency committed to that mandate of

providing affordable housing solutions for J amaicans. It continues to be a major

player in mortgage facilitation and now stands ready to mobilize even more funds for

on-lending to developers and other lending institutions.

During this fiscal year, the Bank will be sourcing funds to finance its investment

programmes. Discussions to realising this end are on-going and are at varying

stages of finalization.

Construction F inancing P rogramme

Special note Mr. Speaker, should be made of the Construction Financing

Programme where the J amaica Mortgage Bank will finance up to 80% of the

infrastructure and house construction cost to developers. Furthermore Mr. Speaker,


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in certain instances, the Bank will be seeking to fund housing construction projects

with unit prices below $15 million at interest rates as low as 10.5% to developers.

Mr. Speaker, we all know the positive ripple effect that construction can have on the

economy. It is with that in mind I say the Bank and the housing and construction

industries are heading in the right direction. I say this while announcing that as at

April 2013, the Mortgage Bank has 9 projects in the pipeline with a combined value

of $1.2 billion. In terms of future projections, the J MB proposes to finance over 4,000

housing solutions under the construction financing programme over the next 5 years.

Mr. Speaker, we are housing Jamaicans

Secondary Mortgage Market

The Bank also has responsibility for the recently resuscitated Secondary Mortgage

Market Facility. This facility provides liquidity support to financial intermediaries,

particularly credit unions for the creation of mortgages. The Bank in collaboration

with those credit unions has provided approximately $320 million to members of

these cooperatives. We are in the process of identifying more funds to continue with

this vital facility.

Mortgage Indemnity Insurance Scheme

Another core area of the Banks operations is the provision of mortgage indemnity

insurance which it administers on behalf of the Government. This insurance scheme

was developed with the expressed purpose of providing mortgage default insurance


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for lending institutions. This allows prospective mortgage entities to lend higher

proportions of property values, thereby resulting in an expansion of both the

mortgage and real estate markets.

The Mortgage Indemnity Insurance is marketed to mortgage granting institutions,

and a single premium is charged upon the registration of the mortgage. Mr. Speaker,

these premiums are then aggregated to form the Mortgage Insurance Fund. The

Fund has been operating in a favourable condition, as since its inception, over

23,000 policies have been written with only 44 claims to date.

Notwithstanding Mr. Speaker, the J amaica Mortgage Bank is undertaking several

strategies to increase the usage of the Fund. This includes the proposal to amend

the Mortgage Insurance Act to have total aggregate per-centum cover, to move from

90% to 97%, and for premium rates to be become more flexible. In that vein Mr.

Speaker, I am pleased to announce that Cabinet has given approval for this

amendment to the Mortgage Insurance and has given drafting instructions to the

Chief Parliamentary Counsel. This move would allow mortgagees to use a higher

loan-to-value ratio in their underwriting.

What this translates into Mr. Speaker is that instead of the usual 15% home

purchasers are now required to deposit in their sale agreements, the move would

allow for a minimum deposit of 10% of the value of the property, which would include

the cost for transfer tax and stamp duty which is usually paid up-front. However,

because 97% of the value of the property can now be insured, purchasers may be


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able, at the end of the transaction, to get a refund of the difference between the

amount you had paid up-front as a deposit and what you are getting as a mortgage.

This Mr. Speaker will afford many persons, and particularly new entrants to the

workforce, new professionals, public sector workers who have stable jobs and have

qualified for mortgages, but who do not have that significant savings for the 15%

deposit, the opportunity to acquire a house earlier in their working lives. Mr. Speaker,

this Administration is making housing affordable for all

Another strategy is to hold dialogue with a view to establishing a relationship in

which mortgage institutions will utilize the Fund instead of the self-insurance practice

which many now institute. This Mr. Speaker would result in primary mortgage

companies being exposed to significantly reduced risks in mortgage lending and

therefore will encourage them to lend more. Mr. Speaker, the Government to which I

am a part, is making home ownership a reality for J amaicans

Conclusion

These are exciting times Mr. Speaker for those considering homeownership at this

time Despite those who would forecast doom and gloom in the economy, I can

emphatically state that there has never been a better time for the provision of land,

houses and titles for our people. As outlined before Mr. Speaker, for this fiscal year

much is in the offing:


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The HAJ will be transferring some 5000 titles and as I speak, the Ministry has

almost 500 other titles ready to be delivered, with hundreds more to become

available throughout the year.

J amaicans can anticipate the delivery of thousands of housing solutions

during this fiscal year

o 384 to be directly facilitated by the Housing Ministry

o 307 housing solutions to be developed by the NHT in three schemes

o A further 608 solutions are being financed through the Trust in at least5 private developments.

o 1085 to be completed by the Housing Agency of J amaica, with almost3000 to commence construction.

o 1800 of the 9000 houses will be delivered this year as a result ofpartnership between Ministry, FFP, J EEP and NHT.

o Another 1156 could come on board as a result of public/private

partnership agreements once negotiations are completed this year.

Legislative amendments to the Mortgage Insurance Act are coming as well,

as I mentioned before, to make home ownership more accessible.

It is without contradiction Mr. Speaker, that this Government is housing J amaicans


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Mr. Speaker, the Ministry of Transport, Works and Housing is a crucial participant in

the mandate to not just develop and maintain our infrastructure, but to impact lives in

a transformative way. We aim to revive the ambitions of our forebears and leaders

past, to facilitate our ownership of the land that they fought for some with the

ultimate sacrifice. With that realisation Mr. Speaker, within the housing portfolio, we

aim to transcend that vision of land and home ownership (regardless of socio-

economic standing) one person at a time, one family at a time, one community at a

time this as the Administration, of which I am a part, continues to house the nation

in this J amaica land we love

I thank you Mr. Speaker.

958_sectoral debate presentation

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