Ministerial Statement by the Minister of Home Affairs, The Hon. C. Walton D. Brown, Jr., JP, MP:
Mr. Speaker, I rise to report on the status of the creation of a new category of dwelling unit that will have an assessment number, but will be restricted from having a private car registered to the address. This initiative achieves an election commitment by the Progressive Labour Party. Promise Made, Promise Kept!
I would first remind Honourable Members of that particular statement in Speech to the Throne, that is: “To stimulate construction demand and provide homeowners with additional income, the Government will create a new category of dwelling units. These new one bedroom or studio units will have assessment numbers, but will be restricted from having a private car registered at the address. Many homeowners have space to create an additional unit, but are unable to create additional parking spaces. This new type of unit can provide additional income for homeowners with smaller properties who previously were unable to create a rental unit.”
Mr. Speaker, as you are aware, assessment numbers are issued by the Department of Land Valuation upon receiving a Certificate of Completion and Occupancy from the Department of Planning and after inspection by a Land Valuation Officer of the completed works on the site. These assessment numbers are in turn used by the Transport Control Department [TCD] for the purpose of permitting a car license to be attached to the property. Until this initiative began, there was no mechanism available to issue an assessment number to an address that would not automatically confer the ability to register a car against the unit, thereby limiting the creation of dwelling units to those properties that were able to provide the required car parking and manoeuvring spaces on their site.
As a result, this situation imposes limitations on Bermudians to take advantage of the earning potential of their property to create additional dwelling units that would otherwise satisfy all other planning requirements and enable them to supplement their incomes with additional rental income. The creation of a new category of dwelling unit would allow such potential income to be realised.
Mr. Speaker, this new category of dwelling unit has been developed as a result of a collaboration between the Department of Planning, the Department of Land Valuation and TCD to ensure that the coordination required between these Departments allows for the necessary checks and balances to be in place prior to the issuance of an “Apartment (Cycles Only)” Certificate assessment number.
To this end the Department of Planning will update the parking standards policy to allow for a restricted residential unit that will permit a dwelling unit to be created with a minimum of 1 cycle space per dwelling unit. Any Certificate of Completion and Occupancy achieved under this category upon completion of the development will be issued as an “Apartment (Cycles Only)” Certificate.
The issuance of the “Apartment (Cycles Only)” Certificate will be forwarded to the Land Valuation Department. The Land Valuation Department will then generate a new assessment number to these units that will indicate that the units are “Cycles Only”.
In turn, the Land Valuation Department will transmit the assessment numbers to the Office of the Tax Commissioner who then transmits the data to TCD. Additionally, the assessment numbers are posted on Land Valuation’s website in order that the general public including potential tenants, agents, new home buyers etc. are aware that the unit has the “Apartment (Cycles Only)” restriction. Based on this flag, TCD will not allow a car license to be registered against this new category of residential unit.
Mr. Speaker, we have ascertained that no legislative changes are required, however, as the system of communicating assessment numbers between Departments is automated, there are some minor system changes that are required to implement this new category. As soon as these changes have been made, the public will be notified of the start date and the amendments to the planning policy will be published.
Mr. Speaker, this inter-departmental initiative will achieve the Government’s throne speech commitment, providing a new opportunity for home owners, who would otherwise not be able to build additional units because of parking constraints, to maximise their potential for rental income.
Finally, Mr. Speaker, I would like to recognise the efforts of those Departments that have been working to bring this initiative to fruition: Department of Planning, headed by Acting Directors Chris Bulley and Larry Williams; Land Valuation Department headed by Director, Diane Elliot and TCD headed by Director, Jasmin Smith.
Thank you, Mr. Speaker