Mr. Speaker, I rise to report on one of the most pressing challenges we as a country face - the shortage of affordable housing. In keeping with our pledge to the people of Bermuda, this Government has invested record sums into increasing the Island's housing stock. Next month marks two (2) years since I stood in this Honourable House to announce the Residential Building Programme under the Bermuda Housing Corporation - a $21 million dollar investment over 3 years that will see the refurbishment of 167 older housing units owned by the BHC. $15 million dollars of that commitment has been spent thus far and the remainder will be provided in the final tranche in next years budget.
Mr. Speaker, there has been some confusion surrounding the number of units and the progress we have been making in getting them renovated - so I'll take a moment to clarify. The Bermuda Housing Corporation has a total of 710 units in its stock (this number will increase as we add to the private Sector Rental Programme, build or purchase new units).
Included in this figure though is the 167 units that are to be renovated, 101 occupied and 66 vacant & derelict, that I have announced previously. To date 68 of those units have been completed, 38 occupied and 30 vacant - and yes, the 30 vacant apartments are now being used to house Bermudian families that were in need of affordable housing. Nonetheless, this left 99 units in various stages of progress.
Mr. Speaker, the 68 units completed thus far comprise of 11 studio units,13 one-bedroom units, 7 two-bedroom units, 7 three-bedroom units and 3 four-bedroom units.
Of the 99 units remaining, Mr. Speaker, the next cohort of projects totalling 31 brand new units are underway either under construction or awaiting building permits. They consist of the following:
- Harmony Terrace East, Paget - 12 units
- 18 Battery Road, St. David's - 12 units
- Chelsea Apartments, St. Georges - 5 units
- Middle Town Terrace, Pembroke - 2 units
The remaining 68 units are in various stages of the planning process and will be advanced as the building permits are received.
Mr. Speaker, as I have said before whilst there is more to be done, tangible progress is being made. But this is why units under the Residential Housing Programme are not the only effort to expand the affordable rental options for Bermudians.
Mr. Speaker, Honourable members, will recall the BHC's Private Sector Rental Programme, to which an extra $10 million dollars was provided this financial year. This programme provides for privately owned units to be rented to the Bermuda Housing Corporation - with guaranteed rent and intervention by the Corporation when tenants do not honour their commitment. The rates are less than market rates, but the rent is guaranteed to be paid on
time and the unit returned to its original state at the conclusion of the BHC tenancy.
In October 2023, I indicated that the BHC will expand this programme. In keeping with this commitment to the people of Bermuda Mr. Speaker, two weeks ago on September 12th, the BHC announced a partnership with the Leopard's Club International to transform their vacant three-storey building into 13 affordable housing units.
As many of you know Mr. Speaker, it was January 27th, 2007- some 17 years ago - when that structure caught fire, and it has remained vacant ever since. Therefore, the BHC viewed this as another opportunity to boost our housing stock.
The total cost of this renovation is estimated at four-point eight million dollars [$4.8 million], and the project is expected to take 22 months to complete. The Government will recoup its investment through rental income generated from these new homes over the next several years.
Mr. Speaker, in relation to the Private Sector Rental Programme, the BHC project team continues its efforts in negotiating successful agreements with Homeowners for 21 additional private units.
This programme provides funding for renovation to private sector units that are then placed in the BHC rental stock for a set period to recoup the investment. Agreements are made on an individual basis that includes BHC receiving the entire rental income or a portion of the rental income - the latter resulting in a longer period for the unit to remain in the BHC rental stock.
I would like now to move quickly from rentals to Home Ownership Mr. Speaker for the purpose of reiterating this Government's commitment to ensure that every Bermudian has the opportunity to own a "piece of the rock".
In 2017, The Bermuda Housing Corporation Home Start Programme was launched and remains available to Bermudians who have never owned a home and are looking to obtain first time home ownership. Mr. Speaker, this programme is a partnership between the Bermuda Housing Corporation and Clarien Bank - the details can be found on the BHC's website at www.bhc.bm/homestart.
Mr. Speaker, this programme is proving incredibly popular and as I have said before, we are looking to expand the programme to other financial institutions.
Since its launch, this programme has assisted thirty-four (34) Bermudian families in their quest to become first time homeowners. Previously, I mentioned that four ( 4) families were in the final stages with the financial institution to obtaining their new homes. I am happy to say that this number has now increased to six (6).
Mr. Speaker, this government is singularly committed to providing adequate housing options for all Bermudians and while it appears that progress might be slow, we press on, and I encourage any member of this community who wishes to become involved in this quest, by offering private sector units, to contact either myself or the Bermuda Housing Corporation. I shall continue to provide regular updates on our progress.
Finally, Mr. Speaker, I would like to thank the Bermuda Housing Corporation Board, ably led by MP Chris Famous, management, ably led by Mr. Paul Martin and all staff for the hard work they continue to do to further deliver on the BHC's mandate of providing affordable housing for Bermudians.
Thank you, Mr. Speaker.