NHT disburses $4b to private developers
Published:Friday | May 10, 2013 | 12:00 AM
The National Housing Trust (NHT) said it has disbursed just under J$4 billion in funding to private developers for units priced under $10 million each at interest rate of five per cent during the financial year 2012-2013.
The Trust also said that during the period, there were no takers for funding priced at three per cent, which category requires that houses be brought to market for $5.5 million and under.
Information provided by the NHT's communication department last Friday revealed that the recipient of the majority of the funds was West Indies Home Contractors (WIHCON) Limited, which was loaned $2.88 billion for houses priced between $6.3 million and $9.9 million.
Zuccherina Development Jamaica was granted a $671-million loan for housing solutions priced between $4.5 million and $8.35 million, and Kemtek Development received $400 million for houses priced at approximately $7.5 million each.
Under the NHT's Interim Finance Programme, developers are provided with funding for up to 100 per cent of construction costs at concessionary interest rates.
"This concession must be reflected in the base selling prices of the housing solutions, which will be subject to changes based on certified escalation from the agreed base date," the NHT said.
In submitting an application, developers must prove their ability to finance at least 25 per cent of the development costs, and establish the viability of their housing develop-ment by providing information to demonstrate marketability, the Trust explained.
"They must also prove that all the infrastructure and housing unit designs have been approved by the relevant statutory agencies and that all permits and licenses have been obtained," the NHT said.
The NHT's construction loan interest rates to developers are three per cent per annum for two-bedroom units of 720 square feet selling for up to $5.5 million, or super studio/one-bedroom units of 400 square feet selling for up to $3 million.
The rate of five per cent per annum is offered on loans for houses with base selling prices equal to or less than the NHT's recommended selling prices. The rate of nine per cent per annum is offered for houses with base selling prices exceeding NHT's recommended selling prices.
The NHT said that in the 2011-2012 financial year it received four loan applications for development projects. All four proposals were approved for the nine per cent interest rate loan.
It said that in the 2012-2013 financial year it received three applications. The NHT said two met the terms for the five per cent interest rate loan, while the other was processed for an eight per cent interest rate loan.