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Address by: Minister of Water and Housing
Hon. Donald
Buchanan
Ladies and Gentlemen, Good Morning.
This seminar sponsored by the Jamaica Mortgage Bank to discuss
‘Key Issues in Planning and Implementing a Successful and
Profitable Housing Development’ is both timely and relevant. In
any society the provision of housing occupies a position of
critical importance. Socially, housing provides the
indispensable basis for rearing a family and economically, it is
a factor in the productivity of the worker.
The provision of adequate and affordable shelter remains a major
challenge for Jamaica at this time. Calculations undertaken by
the Ministry of Water and Housing indicate that 13,260 new
housing units will be required annually between 2001 and 2025 to
satisfy the projected demand for housing. Although this is down
from the estimated 20,000 in 1999, there is still some cause for
concern, as figures from the PIOJ indicate that the average
number of units completed between 2001 and 2003 was only 4,235.
The magnitude of the housing need is therefore of such, that it
will require the united efforts of the Government at different
levels, the private sector and the community.
Over the years a number of approaches have been taken to address
housing needs, each achieving varying levels of success. It is
within this context that this presentation will seek to assess
the extent to which our experiences can inform the development
of an integrated housing policy.
CHALLENGES AND ISSUES IN THE PAST
In the 1970’s the government through the Ministry of Housing,
together with the National Housing Trust and other public sector
agencies provided some 40,000 housing solutions. In addition the
government provided budgetary support to the following public
sector agencies and programmes directly involved in the
provision of houses. These include:
Sites and Services
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National Housing Trust (NHT)
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Sugar Industry Housing Limited (SIHL)
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National Housing Corporation (NHC)
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Jamaica Mortgage Bank
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Caribbean Housing Finance Corporation (CHFC)
Sites and Services
This programme funded jointly by the World Bank (54/46)
initially provide for 6,000 serviced lots and upgrading of two
squatter settlements. It was a creative, self reliant initiative
which provided housing solutions particularly to low income
groups, primarily in urban communities. Priority was given to
female headed households; households with large families and
construction workers.
National Housing Trust (NHT)
Since the inception of the National Housing Trust in 1976 this
organization has made phenomenal contributions to the provision
of affordable housing. One of its most significant achievements
to date has been the development of ‘Greater Portmore’ where the
prices for the solutions were very competitive. The
infrastructure was of the highest quality, and the cost of the
units were extremely competitive, due largely to the fact that
significant infrastructure costs were borne by the government
and import duties on critical inputs were waived. Despite the
significant level of mortgage financing provided by the NHT, it
was still insufficient to meet the total demand.
Sugar Industry Housing Limited (SIHL)
The sugar industry housing programme was intended to focus
exclusively on the largest group of organized workers in the
country. This programme had major implications for rural
development and provided a badly needed subsidy in the form of
public lands under the control of various sugar estates. Its
impact however was severely limited due in part to lack of
development capital. The achievements of the SIHL were
significant in respect of assistance to the sugar workers.
Development finance was secured jointly from NHT loans and
operational surpluses.
Jamaica Mortgage Bank (JMB)
The JMB was established to be a principal mortgage agency,
providing in particular secondary mortgages. It has however had
to veer from its original mandate to undertake housing financing
using very high costs funds to survive.
Caribbean Housing Finance Corporation (CHFC)
This company was established to serve primarily as mortgage
administrators and functioned creditably in that capacity.
National Housing Corporation (NHC)
The NHC, established by the Ministry of Housing was primarily
concerned with middle and lower middle income housing. This
market was not being adequately served by the private sector.
The 1980s saw a dramatic shift in national policy fueled for the
most part by the prevailing economic climate and the development
of a National Shelter Sector Strategy in 1987. As a result of
this policy shift, the government ceased its direct involvement
in the construction of housing units, becoming an 'enabler' and
'facilitator' instead.
The Last Fifteen Years
Over the last fifteen (15) years, the government has sought to
expand this role as an enabler in order to cope with the
increasing demand for housing solutions at every level. It is
over this period that we have seen the establishment of
Operation PRIDE and later the National Housing Development
Corporation (NHDC) which incorporated the functions of Operation
PRIDE; NHC and CHFC. Additionally, the Ministry’s creation of a
Joint Venture programme facilitated an increased role for the
private sector. The Ministry is also involved in an aggressive
program islandwide to divest its rental housing and provide
security of tenure and registered titles for developments
undertaken in the past.
The NHT’s establishment of an Inner City Housing Programme is
also geared to meet some of the challenges of urbanization. It
also funds a Social Housing Programme currently being executed
by the Ministry. This programme will directly improve the
housing conditions of some 14, 000 families.
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