No one can afford the “affordable” houses the National Housing and Development Trust (NHDT) were building for revealed Rayal Bodden, chairman of the NHDT last Thursday (11). Instead, the NHDT will rent out the properties the government will still build comprising two and three bedroom houses.

Mr. Bodden said because of the cost of land and materials, it is simply not possible to build cheap family homes in Cayman that meet local building standards.

The NHDT has been involved in scandal, Hurricane Ivan devastation and other problems since its beginning in 2002 when Dr. Frank McField was Community Affairs Minister and initiated the project.

A former board member, Edlyn Myles, had to resign after being charged with fraud and a conflict of interest with the companies involved in the construction and repair of the properties with Mr. McField revealed by Cayman Islands Auditor General, Alastair Swarbrick.

The suspension of sales is not permanent but until a new rational policy is put in place leasing of the homes is the only option. There are 700 persons on the NHDT waiting list.

The new homes are now leased to families at a rate of $700 per month for a two bedroom house and $800 for a three — well below market rate for properties of such quality — but government will retain the new properties as assets.

The NHDT issued a statement clarifying its position and this is found in today’s publication, “Statement by National Housing Development Trust.”

A letter to the Editor complaining about the NHDT’s decision is also published.

Minister for Community Affairs, Gender and Housing Hon. Mike Adam stated, “Our Government has been focused on ensuring the NHDT was provided the support it needed to achieve the results we have today.  I commend the Board, the management and staff for their efforts over the past several years towards building a sustainable affordable housing model for communities and residents in need.”

The NHDT statement said:

“The NHDT’s main focus today is to prepare families for home-ownership opportunities to ensure that they have the best possible chance of succeeding at their homeownership dream. By doing this, individuals can also accumulate savings and prepare themselves both professionally and personally.”

Government gave a bond of approx. $29 million to the NHDT in 2003 and the NHDT is continuing to construct homew utilizing the money it has left. Bodden said if the Trust reaches its goal of 200 properties, the income should cover the cost of maintaining the homes and operating costs, which is currently subsidised by government with an annual cash injection of $500,000.

Seven homes are currently being built in West Bay making 36 that has room for another 20; East End has 12 homes (room for 40); Bodden Town 20 homes currently being (site can hold a further 25); George Town, the Windsor Park site is at capacity with 26 new homes but there are still seven old homes at the Eastern Avenue location, six of which are occupied.

The future of the Eastern Avenue site is under discussion, Bodden said and the NHDT is considering a different type of property there. Bodden cited elderly people not yet ready for a retirement home to teenage girls coming out of the care system.