Mr. Speaker, I am pleased to have been able to table earlier today the audited financial statements of the Bermuda Housing Trust. The audit was successfully completed by the Office of the Auditor General before the end of the last calendar year 2023 and within nine months of the close of the most recent financial year for the Trust, March 31st, 2023.
Honourable members should note that it is yet another clean and unqualified audit for the Housing Trust conducted by the Auditor General.
Mr. Speaker, Members may remember that this Trust, established by statute nearly 60 years ago, in 1965, was created to provide affordable rental accommodation for seniors. It now consists of five properties spread throughout the island, Haydon Trust, Dr. Cann Park, Elizabeth Hills, Purvis Park and Ferguson Park at Southside, St. David’s - providing homes for approximately 200 seniors.
Mr. Speaker, the financial statements show that the Trust appears to be in a healthy financial position. While on paper that might appear to be so, the trustees would not want myself as the Minister responsible to be misled and, by extension, members of this House or the general public.
There is much work still to be done, and the trustees have asked that I share with you what it is that they are facing as they seek to fulfil their mission of providing affordable rental accommodation for our seniors.
Mr. Speaker, the first challenge is the demographic the Trust looks to serve. As members are aware, the numbers of people over 65 years is growing and as our seniors live longer and lead healthier lives they very much prize affordable rental accommodation, that is within their budget, but provides them as well with a quality of life that allows them to live independently i.e. without dependency on or being a burden to their families. Frankly, it is probably what we all want for our parents and ourselves as we grow older.
Mr. Speaker, based on current trends, the Bermuda Housing Trust anticipates that that demand will not diminish. Further members will be aware from recent reports on
Bermuda’s ageing population that it is estimated that by 2026 seniors 65 years and older will represent one quarter of our population.
The Housing Trust maintains a constant waiting list of 100 applicants for homes – and bear in mind that the Trust does not entertain applications until people reach the age of 65 years.
Mr. Speaker, the second challenge for the Trust is prioritizing accommodation where it can for those in urgent need on the waiting list – which is no easy task. But even more challenging is keeping up with maintenance of its current stock while at the same time maintaining its long-standing policy of not raising the rent on any of its sitting tenants. To date, their tenants have been able to rely on the fact that their rent will remain the same throughout their tenancy, whatever the length.
Mr. Speaker, the Bermuda Housing Trust would like to maintain that policy for the benefit of our seniors who, in almost all cases, need that kind of support.
That said, the trustees oversee what is an ageing stock of homes which place greater and greater demands on maintenance and maintenance costs. Meanwhile maintenance costs are increasing, and contractors are not always easy to secure for what is, in some cases, major work. Work must also be scheduled around what their tenant seniors can accommodate. Some of that outstanding work also remains as a holdover from what could not be tackled when COVID struck, and precautions had to be taken to protect the vulnerability of seniors.
Mr. Speaker, the Trust is determined to tackle this outstanding work, and get routine maintenance back on track, but it is going to take time and money.
The commitment is there and to make the Trust more effective in meeting the needs of its clients, the Trust now has a permanent full-time staff of two. Until this year, it had tried to function with just one – as remarkable as that might sound! The Trust now has an Executive Director, Chandra Arandjelovic and an Office Administrator Ms. Sharon Smith.
The Trust has also engaged a part-time property maintenance manager under a contract of services, Mr. Ross Roberts, and as well Ms. Judy Knight continues to assist part-time two days a week, principally looking in on tenants and on the condition of their premises.
Mr. Speaker, Members will appreciate the strain that this places on the Trust budget. But the former way of trying to function well was no longer possible.
A further change was necessitated when the Trust found that it had to change its office location. A new central office was essential and after an extensive search the Trust was able to locate new premises in Washington Mall Lane just off Church Street and just down from the Hamilton City bus terminal. The new rent represented an increase but was secured at a reasonable rent and with much needed additional office space.
Mr. Speaker, one other additional expense that remains a continuing burden on the finances of the Trust is the outstanding loan that was taken out to construct Dr. Cann Park in Southampton. As members can see from the financial statements, that loan was for $12.5 million. Those statements also show that the Trust has successfully been paying down on the loan to where it now stands at just under $3 million. The trustees would like you to know that is no easy task when it holds the line on rents at Dr. Cann Park but the cost of maintenance at the property alone climbs – and that is because the infrastructure there is part prefab, four blocks three stories high with wooden steps. In the coming financial year, the Trust is having to tackle two major projects which together will cost more than
$250,000.00 – and this on top of regularly scheduled maintenance and anything else that might unexpectedly arise.
Mr. Speaker, Dr. Cann Park consists of 100 one-bedroom units and no rent is greater than
$1,000.00 a month. With its commitment to the bank (HSBC) to pay off the loan, monthly, members will appreciate the challenge trustees are facing when it comes to funding major and routine maintenance.
The Bermuda Housing Trust does not receive any funding from the Government of Bermuda, but the Ministry of Public Works and the Bermuda Housing Corporation have been able to provide in kind support from time to time. Architectural, engineering and project management support has been provided on a regular basis.
The trustees’ work on behalf of the Housing Trust for a welcome and much needed cause: affordable homes for our seniors.
Mr. Speaker, I would like to publicly acknowledge and thank the trustees of the Bermuda Housing Trust for their tireless work and commitment to this important work over many years.
Thank you to the Hon. John Barritt, Chairman; Deputy Chair Mrs. Rochelle Simons; Mr. Anthony Mouchette; Mr. Daniel Robinson; Mr. Juan Smith; Ms. Thelma Hart; Mr. Marco Bortelli; and Mr. Alexander Abbott. All of whom, I am pleased to report, will be joined this current calendar year by new member, former Head of the Public Service, Dr. Derrick Binns.
Thank you, Mr. Speaker.