NNP boss not happy with distribution of Chinese low-income houses

Over 2000 low-income houses, valued at over 117 million dollars are now up for grabs in Corinth, Beausejour, St. Patrick, and on the sister isle of Carriacou.

The 2 bedroom units have a market value of over $200, 000.00, and a price tag of $73, 000.00, while the 1-bedroom units, which are valued at over $100, 000.00 are being sold for $55, 000.00.

Leader of the Opposition, Dr. Keith Mitchell, a key figure in the original negotiations with the Chinese government for the houses, has voiced strong concerns over the manner in which the 14-month old Congress government is distributing the houses.

Speaking to reporters Tuesday at a press conference in St George’s, Dr. Mitchell said the original purpose of the housing project was to assist the poor and vulnerable and was targeting “people who would not normally qualify to (get a loan) from a bank.”

He criticised the approach being taken by the Housing Authority of Grenada (HAG) in distributing the units, contending that the new criteria puts the poor and vulnerable people who should be getting the houses, “with minimum amount of investment” at a disadvantage.

“It was a gift, a grant; we did not invest any serious money… the Chinese government agreed to the arrangement, and agreed to (building) 2000 houses…,” he said.

“I don’t understand how you can expect a poor person to find $55, 000.00…” contended Dr. Mitchell, who noted that “in most cases these people are not working (employed), so where are they getting the resources” to make the monthly payments.

The Chinese-built low income housing project was among the assistance negotiated by Dr. Mitchell’s former NNP government after Hurricane Ivan wreaked havoc in the country in 2004.

Dr. Mitchell expressed the view that the Congress government of Prime Minister Dickon Mitchell should not be sending applicants to financial institutions because “most of them would not qualify based on the resources that they do not have.”

“In fact, what you would find is that a lot of people who would not normally qualify would be the people benefiting from those houses and those who we negotiated from the Chinese for would be the ones generally speaking… that may not qualify,” he said.

The Opposition leader emphasised the importance of sticking to the initial agreement to ensure that those in dire need receive the housing assistance they were promised.

“The houses should be given to the people who need it the most,” Dr. Mitchell declared as he called for the government to adhere to the terms and conditions of the original agreement.

Chairman of the Housing Authority of Grenada (HAG) Hugh Thomas announced the start of distribution of the houses at a media briefing in St. George’s on Monday.

Thomas said that under the new criteria applicants will now be required to pay for the units upfront through “cash” or a “loan.”

“We are asking people to do one of two things. If you have the full amount, you can come to the Housing Authority and buy (a Chinese low income house) straight from the housing authority. If you don’t then you would need a loan from any of the financial institutions,” he told reporters.

Additionally, applicants who fail to obtain a loan or funding for the units will automatically forfeit the apartment which will be offered to someone else who applied.

The Housing Authority is looking at ways to recover $4.9 million in outstanding arrears, $2.2 million, which is owed by occupants under phase one of the Chinese low-income housing project, comprising 353 units which were gifted to Grenada in August 2012.