SECTORAL DEBATE PRESENTATION

Laying the Foundation Providing the Solutions Preparing for the Future.
THE HONOURABLE DR. MORAIS GUY, MP MINISTER WITHOUT PORTFOLIO (HOUSING) MINISTRY OF TRANSPORT, WORKS & HOUSING May 21, 2013 INTRODUCTION Mr. Speaker, almost 120 years to his birth, I pause to reflect on the words, achievements and dreams of a national hero, a patriot and a renowned and respected former leader of this country, The Right Excellent Norman Washington Manley. In his farewell political address Mr. Speaker at the Peoples National Partys Annual General Conference some 44 years ago in 1969, he highlighted the accomplishment of his generation, which was acquiring self-governance for us as a people a fight which has resulted in my generation today occupying the seats of this parliament. Norman Manley also gave a charge and mission to my generation. For him, that mission is reconstructing the social and economic society and life of Jamaica. Mr.

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Speaker, its a mission I take seriously and as such the fulfilment of this mission has informed the direction and policies of the housing portfolio of this Ministry. Over the years Mr. Speaker, as Member of Parliament for St. Mary Central since 2002, and since January of last year, as the Minister with responsibility for Housing, I am constantly reminded of the importance of serving my fellow Jamaicans service that has embedded within it, a genuine commitment to securing the improved welfare and prosperity of the citizenry of this island nation. Mr. Speaker, I want to thank the Prime Minister for the continued confidence reposed in me and I also take the time to express my pleasure in serving in the Ministry of Transport, Works and Housing with two other significant leaders within the political directorate, operating as a hardworking trio of Ministers. I also laud the fervour and daily sacrifices of a meticulous, no nonsense Permanent Secretary in the form of Mrs. Audrey Sewell and other technocrats within the Ministry. Special

acknowledgement as well for the new Acting Chief Technical Director, Mrs. Doreen Prendergast who has exhibited an innate passion and resolve in carrying out her duties. At the Ministerial level, Mr. Speaker, I am grateful for the opportunity to have been exposed to all aspects of the overall Portfolio within the Ministry, In fact Mr. Speaker, we in the Ministry operate as one. Thus for example you will see me taking on issues within the Transportation Sector and Mr. Speaker, a cartoon in one of the

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dailies last year which depicted this Minister in Half Way Tree sloganed " No retreat, No surrender" speaks to that portfolio versatility. Additionally, Mr. Speaker, I want to point to a new paradigm within this Ministry. In decision making, this political directorate ensures that equity reigns in making decisions related to all activities -whether it is roads, titles, infrastructure repairs, Sandy relief houses, whatever. We are leaders for all Jamaicans as Ministers of Government. Thanks also Mr. Speaker to my directors and senior managers within the housing portfolio, and the other areas of the Ministry, who have recognized my impatience with the pace of work in the public sector, and who have come on board to bring a new urgency to the business of government. To my Board Chairmen and members of the Boards, and their staff; of the Housing Agency of Jamaica, the Jamaica Mortgage Bank, the Architects Registration Board and the Rent Assessment Board; agencies which fall directly under my portfolio and indeed all the board Members of Agencies within the Ministry, with whom I have worked I want to commend you for your dedication to the giving of public service and your continued support to me as Minister, and to say to them Mr. Speaker, much more will be required as there is a whole new frontier ahead. Mr. Speaker, it would be remiss of me if I did not recognise the service of outgoing Managing Director of the HAJ Mr. Joseph Shoucair, who has led that organisation through turbulent times and has steered that ship through successive
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administrations. We wish you well in your retirement Joe but recognise that you will only be a phone call away for your institutional knowledge. Of course Mr Speaker, my ministerial duties are made much easier and more tolerable by my own office support staff - my three assistants and my executive secretaries who ensure that all matters are attended to and diligently strive to make sure that nothing falls through the cracks in the Ministry. They too appreciate my sense of service and seek to advance this new culture in governance. Mr. Speaker, as a public servant, I have moreso come to the recognition that Jamaicans constitute a nation of hardworking, resilient and proud people... A people whose resolve has reaped several national successes over the years especially on the cultural front, a people who have spearheaded international social revolutions and a people who have contributed to the evolving dynamics of global ingenuity and innovation Notwithstanding the larger, collective accolades the country has attracted Mr. Speaker, they are also a people who continue to face challenges in attaining that which fosters improved family relations, that which maketh a home, that which is a symbol of prosperity Mr. Speaker, that is, affordable housing. We hear the plight for housing solutions highlighted in the news media, we see the substandard housing conditions which are evident when passing through some of our inner city and rural communities, and Mr. Speaker, we as Members of this

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Honourable House, see the less then desirable dwellings that many of our own constituents sadly call their place of abode. This Government led by the Most Honourable Prime Minister is fully seized of the need to urgently address the housing shortfalls in this country; a major contributor being affordability. The Ministry of Transport, Works and Housing is tasked with remedying this concern and as such, I would like to highlight the work of the Ministry, as we carry out the thrust to not just construct houses, but to build homes for Jamaican families. We are of the view that people are not to merely buy homes but to buy into neighbourhoods as we engender a holistic approach to development. We intend to facilitate the growth of communities; not just individuals operating as units within the community. Mr. Speaker, as I speak, the foundation is being laid to systematically address our housing concerns. This as the Ministry remains committed to operational, fiscal and strategic adjustments geared towards improving our service and output; and to make home ownership a reality for thousands more Jamaicans. This will be brought about through the re-energised and revamped focus on several priority areas for the Ministry. Chief among these areas Mr. Speaker is the attainment of low income housing for Jamaicans. This is crucial if we are to provide keys for all Jamaicans the vendors, the farmers, the domestic workers, the hotel workers, the shopkeeper Mr. Speaker, it is the resolve of this Administration that

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low income earners must also have their claim to decent shelter as we move to advance the welfare of our citizens. This drive Mr. Speaker, will be coupled with an even more robust titling programme this year. A title is a simple piece of paper, but one which embodies in it, ownership of a piece of this rock. Furthermore, its a document that will unlock economic benefits, not only for its holder, but for the nation as a whole, and its a piece of paper which can engender further advancements on the socio-economic ladder for the owner. Crucial as well Mr. Speaker is the matter of urban renewal. Much of the infrastructure in several communities in and around our urban centres has fallen into disrepair; many houses have been abandoned and lands are not being adequately used for their optimum housing potential. It is with this in mind that we will endeavour to bring renewed life to some of these areas through a vigorous housing programme geared at shedding some of these areas of their longstanding urban blight. Residents in these areas will once again realise an increased sense of pride in their communities. Mr. Speaker, the Ministry in playing its part in fulfilling the well-articulated Vision 2030 goals especially, goal #4 which seeks to achieve as one of its outcomes sustainable urban and rural development, is keeping steadfast with the drive to house more Jamaicans. In furtherance of attaining global living standard goals for our people, this Government is forging ahead to also meet the target set out in Millennium Development Goal #7 which stipulates achieving significant improvement

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in the lives of those residing in squatter settlements (slum dwellings) by 2020. We will endeavour to do this Mr. Speaker even despite a challenging economic environment and the widely held view that we came to government facing several fiscal hurdles... Let me now highlight the course that we have been on since taking office and to outline the moves afoot to make home ownership an expectation and not just a dream for Jamaicans. CURRENT HOUSING SOLUTIONS Mr. Speaker, undoubtedly, we have come under criticism with regard to our commitment to facilitating programmes for affordable housing. However, all over the country, we see lands being prepared for building, foundations being dug, walls going up, roofs being added to structures and families settling into their new homes. Mr. Speaker, the numbers speak for themselves. Right across the length and breadth of the island, thousands of housing solutions have been and are being prepared as we speak. These include private, state driven and Public/Private Partnership initiatives spanning the development of serviced lots, town houses, detached houses, apartment buildings, housing schemes and emergency housing. Mr. Speaker, thats thousands of families of men, women and children for whom, a dream has been realised. Under this Government Mr. Speaker, we are housing

Jamaicans

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NHT SCHEMES With over 23 billion dollars for capital expenditure on the part of the National Housing Trust, there will be significantly more solutions this year. Three housing schemes have already been delivered since the start of this calendar year. 258 solutions in Perth (Phase 1) Manchester 918 solutions in Longville Park (Phase 3), Clarendon 140 serviced lots for low income earners in Creighton Hall, St. Thomas

Mr. Speaker, we are housing Jamaicans...

INNER CITY HOUSING PROGRAMME But it isnt just about housing solutions in new schemes Mr. Speaker, those in our inner city communities deserve decent housing as well. Such residents are also part of our social and economic fabric and their needs should correspondingly be considered as we tread the path to growth and progress. Late last month, the Most Honourable Prime Minister, in her budget debate contribution announced the full resumption of the Inner City Housing Programme for January 2014. Mr. Speaker, last year I mentioned in my presentation that the NHT had restarted the development of partially built apartment dwellings that were halted after we left office in 2007. Special reference was made of the Programme in

Majesty Gardens in the Corporate Area. Well, as we continue to fulfil our commitment to better and more affordable shelter solutions, as a Government, let

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me take this opportunity to announce that the project in Majesty Gardens has now been completed at a cost of 160 million dollars with 48 families set to get the keys to their new homes in short order Mr. Speaker, we are housing Jamaicans HOUSING SOLUTIONS DELIVERED 2012/2013 - HAJ Mr. Speaker, the provision of housing solutions does not stop with the work of the NHT. The Housing Agency of Jamaica (HAJ), the premier housing arm of the MTWH, has been integral in lifting the standard of living for many Jamaicans. The entity is charged with, among other things, providing reasonably priced housing solutions and, regularising and upgrading select informal settlements through social intervention and infrastructural development. In fulfilling its mandate, over the previous fiscal year, the HAJ completed 2,086 housing solutions distributed over several projects. Among them: The Hills of Boscobel in St. Mary (196 solutions) Belle Air, Phases 1 and 2 in St. Ann (860 solutions) Mt. Edgecombe Phase 4 in St. Ann (325 solutions) The Hague Relocation in Trelawny (180 solutions) Completion of the projects at Belle Air brings to closure that Operation PRIDE project that had remained incomplete for years in St. Ann. The project at Hague, on the other hand accommodated persons relocated from within the town of Falmouth where the land was needed for facilities associated with the new cruise ship pier.

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The project is managed by the Urban Development Corporation with financing provided by the Petro Caribe Fund. Mr. Speaker, we are housing Jamaicans PROJECTS FOR FISCAL YEAR 2013/2014, HAJ With those now completed and delivered Mr. Speaker, more solutions are on the way. This as the construction of a number of such solutions, to be implemented by the HAJ, is slated to commence. These include: Whitehall Phase 3, Westmoreland Cabinet recently approved the award of a contract by HAJ in the sum of $390 million to construct 173 studio units. Bernard Lodge, St. Catherine Cabinet this month approved, by way of a public/private partnership the execution of a contract for the HAJ to construct 604 one-bedroom units and 980 studio units, with associated infrastructure, on approximately 119.4 hectares (295 acres) of land. This project was

concieved by the former Minister and finally, we are seeing ground breaking soon. Let me interject here, Mr. Speaker; this administration has no difficulty continuing good projects which transcend different administrations and this is one such. The project will be built in six (6) clusters. Provision will be made for commercial and recreational facilities, office space, educational facilities, a police post and a post office. It is anticipated that the each studio unit will be available at a cost of $4 million and $4.9 million for each one bedroom unit. We are building not just houses but communities. Point to note Mr. Speaker is that over 80 % of this development has attracted interest by

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potential purchasers and of that, 30% has been interests from public sector workers and young professionals. As a Government we have committed to retain that allocation for Public Sector Workers. Cabinet has further given approvals for requests by the HAJ to enter into public/private partnership agreements for the delivery of 778 housing solutions in Grange Pen, St. James and 176 solutions in Hopewell, Hanover both which will be developed mainly for tourism sector workers. Another such PPP project in Colbeck, St. Catherine should see the development of approximately 200 starter/studio units targeted mainly at service workers and professionals in the Spanish Town to Old Harbour area. An MOU for Shooters Hill in Portmore St. Catherine for another 600 solutions will be presented to Cabinet shortly. Not to be overlooked is the role that investors, both local and foreign, can play in the housing sector. In-keeping with this thrust, this Government continues to pursue all avenues to bring private capital into the housing market. As such, the Bernard Lodge Project which is the largest to be undertaken by HAJ, will be financed and constructed by a foreign investor - Malphrus International. The capital outlay will be approximately $5.6 billion to be expended over three years. Construction works will also be advanced at Belle Air 3 in St. Ann. A contract for similar works at Luana Gardens in St. Elizabeth will be signed later within this fiscal year. When completed, these two projects will conclude the Jamaica Economical

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Housing Programme financed by the Chinese EX-IM Bank. Mr. Speaker, we are

housing Jamaicans
MINISTRYS ACHIEVEMENTS

Infill Programme
The 2012/13 fiscal year, Mr. Speaker, was a productive one for the Ministry, during which, a host of ambitious endeavours were undertaken and achieved. Several programmes which were pursued throughout the year, including those in their planning stages, will result in transformed communities and endow beneficiaries with a renewed hope for even better to come. Among the initiatives reaping success thus far is the Ministrys Infill Programme. This involves the development of residual plots of land within existing housing schemes to provide housing solutions. Three projects under this programme have already been completed. Collectively, they comprise approximately 6.2 hectares (15.3 acres) of land to provide 63 serviced lots at a cost of $37.8 million. The sites are located in: o Manningsville, near Junction, St. Elizabeth o Hague, Trelawny o Llandilo Phase 3, Westmoreland Over this fiscal year Mr. Speaker, we plan to expand the infill programme as it continues to change lives. This expansion will see over 17.8 hectares (44 acres) of

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land being used to provide 70 housing solutions and commercial lots. More specifically Mr. Speaker, the Ministry will embark on two projects, which are expected to deliver 34 serviced lots at a cost of $46.4 million. These sites are located in: Fairy Hill, Portland Chippenham, St. Ann A further 5 projects will also be undertaken by the Ministry at a projected cost of $83 million two (2) of which will provide 19 housing solutions and three (3) to provide 17 commercial lots . These will be located in: Gazeland, near Junctions St. Elizabeth Llandilo, Westmoreland Old Braeton, St. Catherine During this financial year, the Ministry will be assessing the implementation of two other projects under our Infill Programme. This will take place in Lee Park near Frome in Westmoreland and Albion Heights St. James, with the aim of providing a further 69 serviced lots and 7 housing units. Mr. Speaker, this Administration is

housing Jamaicans Housing Solutions Marketed during 2012/13

Mr. Speaker, during the 2012/13 fiscal year it must be noted that the Ministry placed several greenfield solutions on the market for divestment. Among them:

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 Fair Mountain, in Malvern St. Elizabeth Vanzie Lands, Trelawny (Commercial) Albion Mews Phase 1, St. James McKessey Lands, St Catherine 174 requests for divestment were approved throughout the year with a combined affixed value of approximately $88 million. 225 sale agreements were prepared with 100 fully settled accounts becoming eligible to receive their titles. The Marketing Department of the Ministry has no intention of letting up this year and will be pushing to market an ambitious 1,218 solutions valued at almost $861 million. Mr. Speaker,

we are housing Jamaicans Urban Renewal Programme

Under the Ministrys Urban Renewal Programme, steps are being taken to redevelop Government tenements which have fallen into a state of decrepitude. The aim is to improve and generate low income housing remedies and the provision of security of tenure. Work has begun in Albion Tenements in St. James, where 30 units at a cost of $63 million have been built in Phase 1. The project is now in Phase 2 where another 18 units are being constructed at a cost of $47 million. In keeping with our commitment of the building of communities and not just houses, Mr. Speaker, the Ministry has also undertaken significant infrastructure related developments in some existing schemes. Among them:

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 The completion of major emergency works inclusive of 3 foot bridges and gabion works in Glendevon, St. James at a cost of $74 million. Corrective drainage works at a cost of $5.5 million in Charlemont, St. Catherine Maintenance work on the sewage system in the Kennedy Grove Housing Scheme in Clarendon. And further Mr. Speaker, the Ministry is set to begin definitive corrective work on the said sewage system. And though not a housing scheme, let me use this opportunity to point out that once approval is received from the Portmore Municipality, the Ministry of Housing should this year complete the construction of an administrative building using the post and panel building system at a cost of $2.2 million at the Portmore Community College.

Additionally, now that the IMF Agreement is in place, the Ministry will continue its discussion through the Planning Institute of Jamaica to obtain some bilateral funding through the Caribbean Development Bank to facilitate the construction of much needed housing solutions in some of our inner-city communities.

Mr. Speaker, this Administration is facilitating decent housing for Jamaicans Joint Venture Programme
Mr. Speaker, several incomplete housing projects which came about as a result of flawed joint ventures between the Housing Ministry and private developers remain

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the responsibility of the Ministry, even decades after their establishment. We cannot continue to maintain these on our books and so steps are being taken to treat with this. Consequently, since last year we have been undertaking the evaluation of unfinished projects under our Joint Venture Programme in order to conclude outstanding infrastructure works and hand over such facilities to local authorities and other applicable state agencies. These include: Bushy Park in North West St. Catherine Iterborale, St. Mary Industry Pen, St. Mary At the conclusion of these joint venture programmes, a further 74 serviced lots will become available for potential home owners.

Titling Programme
Mr. Speaker, having highlighted the aforementioned initiatives which entail, among other things, the Government facilitating the acquisition of land and the construction of houses, we are also cognisant that there is another major variable in the debate on land possession. Mr. Speaker, I speak of the Ministrys drive to put titles in the hands of Jamaicans, many of whom have occupied lands for years without the requisite documentation. That simple piece of paper Mr. Speaker engenders the unlocking of a slew of financial possibilities for its recipients that would yield both local and national economic benefits. Its a point that cannot be re-iterated too often Mr. Speaker For the first time in their lives, many Jamaicans are now able to use
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these titles to secure loans to start a business, expand on the premises or to pay for their childrens tertiary studies. All this will have a ripple effect in spurring economic growth and development and raising the standard of living for our people. Since our Administration took office last year Mr. Speaker, the core Ministry has issued over 360 titles covering all parishes. Over the same period, more than 1,216 titles have been splintered. Currently, the Ministry is pushing to have another 1016 titles transferred and efforts are being made to contact beneficiaries to complete the process. These titles are for lots in Trench Town Phases 3, 4A, 4B and 7; Seaview Gardens Phase 2 and Ebony Park, Clarendon. For its part, the Housing Agency of Jamaica, up to March of this year, has transferred over a 1000 titles. However, I have instructed the Agency that during this fiscal year, it should stridently accelerate the programme with the objective of transferring 5000 of the remainder of approximately 9,000 titles to Operation PRIDE beneficiaries. Some areas to receive focus include: Bedward Gardens and St. Benedicts East Rural St. Andrew Gravel Heights Eastern St. Catherine Spanish Villa / Woodland Central St. Catherine Norwood North West St. James Retirement I & II West Central St. James Whitehouse Eastern Westmoreland Boscobel Brownfield Western St. Mary

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 Galloway Central Westmoreland Lower Works South West St. Elizabeth Vaughnsfield Southern St. James Dunbeholden Southern St. Catherine As it relates to the other 4000, land ownership, land acquisition and surveying challenges when resolved will see these being issued over the medium term.

Jubilee 50 for 50 Housing Initiative

Mr. Speaker, last August, we marked fifty years of political independence as a nation. As these celebrations continue, the Housing Ministry is playing its part in commemorating this milestone in our countrys history. In so doing, in 2012, the Ministry launched its Jubilee Housing Initiative. The programme, following certain criteria, would see 50 customers of the Ministry from across the island having their outstanding mortgage balances written off and their Certificates of Title presented to them at a special ceremony. I can now say 50 Jamaicans will soon be mortgage free as suitable beneficiaries have now been identified and plans for the ceremony are now being arranged. Mr. Speaker, it must be noted that the potential beneficiaries have been drawn from all parishes wherever there are active housing schemes being operated by the Ministry.

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Squatter Management
Mr. Speaker, I wish to signal that squatter management is and will remain a priority area of focus for the Ministry, as informal settlements continue to emerge on the landscape of this country. Currently, Mr. Speaker, it is estimated that there are over 700 residential squatter settlements islandwide with more than 100,000 households with an average of 4 to 5 persons per household. I should mention that the spontaneous development of informal housing results generally in poor building construction practices as well; leading to environmental degradation and major damage and losses during natural disaster. This is a situation Mr. Speaker which is impatient of debate and must be urgently addressed. The Ministry has sought to address increased evidence of informal housing by bolstering our Squatter Management Unit which through the support of various other state agencies monitors and co-ordinates responses on the ground. Mr. Speaker, the Unit thus far, for the most part, has been focused primarily on policy drafting. To date, a National Squatter Management Policy Concept Paper has been developed with input from relevant agencies as well as from civil society. Additionally, the Unit has just moved to obtain approval for the outsourcing of a comprehensive analytical research to inform squatter management policy measures. Subsequent to the completion of this research, further consultancy will be sought to develop the policy and an implementation plan.

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Nonetheless Mr. Speaker, in the field, it is the observance of the Unit that landowners and managers, particularly those managing state lands, are increasingly making squatter management a priority. Several have been implementing mechanisms to reduce the incidents of illegal occupation of lands. At least one player in the bauxite industry has signalled its intention to establish its own squatter management unit to reduce squatting on their lands. This problem, Mr. Speaker, is one which does not confront Government alone and I venture to say that WE all have a role to play in the reduction of informal housing. As it relates to land tenure and squatting, a new Trespass Act is being developed to bring this legislation, which has been around for some 175 years, into the 21st century. Let me hasten to point out that in the interim Mr. Speaker, the Ministry has sought to deliver regularised housing solutions to some of the residents in these older, more established settlements. Its is planned that this year we will undertake to provide 24 housing solutions at a cost of $7.5 million on some 2 hectares (4.43 acres) of land in Esher, St. Mary Additionally, the Ministry will complete the implementation of infrastructure works to develop existing informal settlements that have been placed under the Local Improvements (Community Amenities) Act (LICA). This year, focus

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will provide 33 housing solutions at 16 Jobs Lane in Spanish Town, St. Catherine. Plans are also afoot to later upgrade the infrastructure at Galleon Beach Settlement in St. Elizabeth and at 21 August Town Road, St. Andrew resulting in a total of 294 solutions. Mr. Speaker, thats 294 families who are slated to benefit from this initiative. Cabinet has recently also given approval for the compulsory acquisition of land in Leith Hall in St. Thomas for the regularization of over 2000 households as well as the approval to acquire lots in Hanna Town in an effort to provide titles in the subdivision for longstanding residents. To bolster our drive Mr. Speaker, this fiscal year should see the phased expansion and operationalization of the Squatter Management Unit to have more direct involvement in the prevention of new squatting and the containment of existing settlements. Regional Offices of the Housing Portfolio of the Ministry will be utilized to house officers who will have direct responsibility to monitor Ministry owned lands. In the same vein, these officers will also be collaborating with other custodians of state lands to deal with the issue of squatting.

Participatory Slum Upgrading Programme (PSUP)

The Ministry also continues to explore every available option to address the issues pertaining to informal housing developments. Currently, Jamaica is one of five Caribbean countries involved in the Participatory Slum Upgrading Programme

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(PSUP). Mr Speaker, this is a regional project of the United Nations Human Settlements Programme (UN-Habitat) initiated in collaboration with the African Caribbean and Pacific (ACP) Group of States and the European Community. The Programme is being implemented in Montego Bay, May Pen and Old Harbour/Old Harbour Bay. Phase one of the Programme, which entailed the rapid profiling of the towns/cities has been completed. The Programme now moves into Phase 2, wherein feasibility studies will be undertaken in the priority informal settlements identified during Phase One. This is aimed at addressing sustainable slum upgrading issues such as governance, social and economic development and environmental health.

Socio-economic Surveys
The Ministry as part of its ongoing Programme conducted 4 socioeconomic surveys in the last fiscal year covering 693 persons in 263 communities. These included premises at 51 Mannnings Hill Road St. Andrew, Barrett Town St. James, 54 Lyndhurst Road in Kingston and Port Royal. As a result of these surveys, we will be in a better position to determine, among other things: Divestment of properties owned by the Minister of Housing Relocation and regularization of squatters Transfer of properties to the Minister of Housing, as well as,

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 Housing and financial assistance for persons displaced as a result of manmade and natural disasters. JAMAICA EMERGENCY EMPLOYMENT PROGRAMME

Jamaica Emergency Housing Programme

The JEEP remains up and running it is on the road and moving forward Mr. Speaker, and one year in, major progress continues to be made. In this portfolio, the Jamaica Emergency Employment Programme has fuelled a major push in housing Jamaicans. This is being realised through partnerships between the Housing Ministry, NHT and Food for the Poor to provide 9000 houses for low income earners over a 5 year period. Under the initiative, 1200 wooden and 600 concrete houses are to be constructed annually. The wooden houses are to be attained at no cost to beneficiaries. Mr Speaker, we are housing Jamaicans Nonetheless Mr. Speaker, it is not lost on us that we must be a responsive Government. I speak in reference to the approximately 2,800 Jamaicans who suffered major damage to their homes and the 500 that completely lost their houses as a result of the untimely and devastating passage of Hurricane Sandy in October. Subsequently, the Government took the decision to alter the JEEP Housing programme, in a bid to address the loss of homes for so many Jamaicans. Consequently, 477 wooden units have and are being constructed on an urgent/emergency basis in the parishes which faced the greatest damage St. Mary, St. Thomas and Portland.
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The distribution of the units is in addition to grants disbursed to occupants to effect repairs to their partially damaged homes. As at April 15, 383 units have been constructed for Hurricane Sandy victims 87 in St. Mary, 174 in Portland and 122 in St. Thomas. The full complement of 477 Sandy relief units will be completed by the end of this month (May) and Mr. Speaker, I want to advise the nation that fairness & equity ruled in the identification of beneficiaries and colour didnt factor into this state intervention. Mr. Speaker, this Administration is housing Jamaicans As for the regular programme Mr. Speaker, as at April 15, 234 houses have already been completed in at least 9 parishes. So far, some $280 million has been expended on the 583 combined units built to date. Given the changes to the original configuration of the JEEP Housing Programme, each constituency in Year 1 will be assigned at least 10 units, down from 20. As of May 1, Food for the Poor has re-concentrated its efforts on the completion of the regular units for Year 1 Programme, which are now scheduled for conclusion in September 2013. Thereafter, construction of the second batch of 1200 units will commence at an average of 100 units per month. Mr. Speaker, this Administration is

housing Jamaicans
As it relates to the concrete houses, this partnership is between the

MTWH/JEEP/NHT/FFP. Work is progressing as we continue to make home ownership a reality for our people. In addition to the units, infrastructure and ancillary facilities such as drainage, sewage disposal systems, roadways, pathways and

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water will be put in place. The 600 units are to be sold on the open market by the NHT using their priority index system for the selection of beneficiaries. The primary target group will be contributors to the Trust who are earning minimum wage. Mr. Speaker, while carrying out our mandate, we have also sought to ensure the highest levels of efficiency in the construction process with economics and technological transfer at the heart it. The construction of the wooden dwellings will cost approximately US$6,400 per unit, with the Government contributing half that amount from the Petro Caribe Fund and the Food for the Poor contributing the other 50%. The Petro Caribe Fund has provided $500 million dollars towards this project. Meanwhile, the construction of the concrete units will cost approximately US$9,500 each and is being funded by the NHT. Mr. Speaker, there can be no doubt that we

are housing Jamaicans.

And while housing Jamaicans Mr. Speaker, the Government to which I belong is putting Jamaicans to work. This, as given the overarching mandate of the JEEP to put a dent in the unemployment figures, I can report Mr. Speaker that up last month (April), the employment programme in collaboration with housing related entities such as the HAJ, the NHT, and Food for the Poor, resulted in almost 2,000 Jamaicans gaining employment.

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Zinc Fence Removal Project

Mr. Speaker, earlier I mentioned the pride of the Jamaican people a pride which emanates even in the most humble of communities where living conditions are not entirely aesthetically appealing. In an effort Mr. Speaker to re-ignite and sustain that pride, the JEEP was further mandated to spearhead another project which coincides with plans for urban renewal. I speak of the Zinc Fence Removal Project. Zinc fencing has become a feature of many inner city communities which isnt commensurate with the pride that ought to be afforded to our citizens wherever they live. Consequently Mr. Speaker, we have moved full speed ahead in continuing the push to eliminate this feature, from sections of some communities, particularly those in the corporate area. Thus far, the Government has made available $42 million through the Petro Caribe Fund, under JEEP, for the programme. The general scope of works entails removing the existing zinc fences and replacing them with concrete block walls 1.8 metres high reinforced with steel. Priority has been given to areas where the need is most manifest at this time. Seven fences have been completely replaced along Payne Avenue in South West St. Andrew while work on 16 others along Uganda and Lagos avenues in the constituency have already commenced. Besides homes Mr. Speaker, the programme has been extended to improve the security of students at places of learning. This as $3.5 million was spent to
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extend and strengthen the perimeter wall at the Trench Town Comprehensive High School. This project is near completion. Another institution, the Success Basic School in Central Kingston, is also benefitting from the programme where $2.7 million was allocated for the construction of a concrete block retaining boundary wall. That project as well is near completion. Plans are in order to have the programme extended to Haile Selassie Avenue, 263 Spanish Town Road, Maxfield Avenue and Bedward Gardens. JAMAICA MORTGAGE BANK The Jamaica Mortgage Bank is another agency committed to that mandate of providing affordable housing solutions for Jamaicans. It continues to be a major player in mortgage facilitation and now stands ready to mobilize even more funds for on-lending to developers and other lending institutions. During this fiscal year, the Bank will be sourcing funds to finance its investment programmes. Discussions to realising this end are on-going and are at varying stages of finalization.

Construction Financing Programme

Special note Mr. Speaker, should be made of the Construction Financing Programme where the Jamaica Mortgage Bank will finance up to 80% of the infrastructure and house construction cost to developers. Furthermore Mr. Speaker,

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in certain instances, the Bank will be seeking to fund housing construction projects with unit prices below $15 million at interest rates as low as 10.5% to developers. Mr. Speaker, we all know the positive ripple effect that construction can have on the economy. It is with that in mind I say the Bank and the housing and construction industries are heading in the right direction. I say this while announcing that as at April 2013, the Mortgage Bank has 9 projects in the pipeline with a combined value of $1.2 billion. In terms of future projections, the JMB proposes to finance over 4,000 housing solutions under the construction financing programme over the next 5 years.

Mr. Speaker, we are housing Jamaicans Secondary Mortgage Market

The Bank also has responsibility for the recently resuscitated Secondary Mortgage Market Facility. This facility provides liquidity support to financial intermediaries, particularly credit unions for the creation of mortgages. The Bank in collaboration with those credit unions has provided approximately $320 million to members of these cooperatives. We are in the process of identifying more funds to continue with this vital facility.

Mortgage Indemnity Insurance Scheme

Another core area of the Banks operations is the provision of mortgage indemnity insurance which it administers on behalf of the Government. This insurance scheme was developed with the expressed purpose of providing mortgage default insurance

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for lending institutions. This allows prospective mortgage entities to lend higher proportions of property values, thereby resulting in an expansion of both the mortgage and real estate markets. The Mortgage Indemnity Insurance is marketed to mortgage granting institutions, and a single premium is charged upon the registration of the mortgage. Mr. Speaker, these premiums are then aggregated to form the Mortgage Insurance Fund. The Fund has been operating in a favourable condition, as since its inception, over 23,000 policies have been written with only 44 claims to date. Notwithstanding Mr. Speaker, the Jamaica Mortgage Bank is undertaking several strategies to increase the usage of the Fund. This includes the proposal to amend the Mortgage Insurance Act to have total aggregate per-centum cover, to move from 90% to 97%, and for premium rates to be become more flexible. In that vein Mr. Speaker, I am pleased to announce that Cabinet has given approval for this amendment to the Mortgage Insurance and has given drafting instructions to the Chief Parliamentary Counsel. This move would allow mortgagees to use a higher loan-to-value ratio in their underwriting. What this translates into Mr. Speaker is that instead of the usual 15% home purchasers are now required to deposit in their sale agreements, the move would allow for a minimum deposit of 10% of the value of the property, which would include the cost for transfer tax and stamp duty which is usually paid up-front. However, because 97% of the value of the property can now be insured, purchasers may be

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able, at the end of the transaction, to get a refund of the difference between the amount you had paid up-front as a deposit and what you are getting as a mortgage. This Mr. Speaker will afford many persons, and particularly new entrants to the workforce, new professionals, public sector workers who have stable jobs and have qualified for mortgages, but who do not have that significant savings for the 15% deposit, the opportunity to acquire a house earlier in their working lives. Mr. Speaker,

this Administration is making housing affordable for all

Another strategy is to hold dialogue with a view to establishing a relationship in which mortgage institutions will utilize the Fund instead of the self-insurance practice which many now institute. This Mr. Speaker would result in primary mortgage companies being exposed to significantly reduced risks in mortgage lending and therefore will encourage them to lend more. Mr. Speaker, the Government to which I

am a part, is making home ownership a reality for Jamaicans Conclusion

These are exciting times Mr. Speaker for those considering homeownership at this time Despite those who would forecast doom and gloom in the economy, I can emphatically state that there has never been a better time for the provision of land, houses and titles for our people. As outlined before Mr. Speaker, for this fiscal year much is in the offing:

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 The HAJ will be transferring some 5000 titles and as I speak, the Ministry has almost 500 other titles ready to be delivered, with hundreds more to become available throughout the year. Jamaicans can anticipate the delivery of thousands of housing solutions during this fiscal year o 384 to be directly facilitated by the Housing Ministry o 307 housing solutions to be developed by the NHT in three schemes o A further 608 solutions are being financed through the Trust in at least 5 private developments. o 1085 to be completed by the Housing Agency of Jamaica, with almost 3000 to commence construction. o 1800 of the 9000 houses will be delivered this year as a result of partnership between Ministry, FFP, JEEP and NHT. o Another 1156 could come on board as a result of public/private partnership agreements once negotiations are completed this year. Legislative amendments to the Mortgage Insurance Act are coming as well, as I mentioned before, to make home ownership more accessible.

It is without contradiction Mr. Speaker, that this Government is housing Jamaicans

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Mr. Speaker, the Ministry of Transport, Works and Housing is a crucial participant in the mandate to not just develop and maintain our infrastructure, but to impact lives in a transformative way. We aim to revive the ambitions of our forebears and leaders past, to facilitate our ownership of the land that they fought for some with the ultimate sacrifice. With that realisation Mr. Speaker, within the housing portfolio, we aim to transcend that vision of land and home ownership (regardless of socioeconomic standing) one person at a time, one family at a time, one community at a time this as the Administration, of which I am a part, continues to house the nation in this Jamaica land we love I thank you Mr. Speaker.

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