Former Bermuda Housing Corporation (BHC) general manager Ed Cowen has called on Government to issue a bond to boost building of rental units.

He says selling affordable housing will not address Bermuda's needs for those who cannot raise the deposit.

Mr. Cowen said there were 300 to 400 people registered on the waiting list but actual numbers needing housing were many more because there could be several people in the family.

"There is this myth that we need to build affordable housing," he said. "Even at $150 per square foot and assuming a 1,200 square foot house we are talking about $180,000 without land cost, roads and other infrastructure."

He said the likelihood of any of the households on the list being able to come up with a down payment of say $9,000 or five percent is remote.

"They need to be subsidised one way or another. Either a rental assistance programme or reduce rental rates on BHC owned houses.

"What BHC needs to do is bite the bullet, go to the market with a bond issue, and build at least 150 two and three-bed units, in clusters like the 30 at Fenton's Drive, to keep its own portfolio."

The programme needed to be in conjunction with the private sector rental and the vacant and derelict programmes, said Mr. Cowen, who was BHC general manager until 1999.

Previously he has claimed he was forced out by the new Progressive Labour Party Government who then appointed Raymonde Dill who was subsequently sacked.

Mr. Cowen suggested selling off some of the existing houses dotted around the Island that had been vested to BHC and weren't really suitable for apartments.

As an example he cited Sandhurst in St. George's which had been split up but had maintenance problems.

"I would imagine there are around 50 houses you could sell off. It would be better to get rid of these houses and build more modern property like the condominiums at Fenton's Drive.

"In addition they should sell vacant land which is not being utilised. In brief the whole BHC portfolio needs to be adjusted to keep up with the changing times."

Plans for nearly 200 homes to be built at Marginal Wharf, St. David's have been submitted to planners.

About 100 will be sold to lower income Bermudians starting at $199,000, while the rest of the homes will be sold at market prices, starting at $599,000.

However Mr. Cowen said the proposed 99-year leases were outmoded and outdated.

"Can you imagine Government going into Prospect, Cedar Park or Top Square in the year 2070, when their leases expire, and saying they are going to take over the houses because they own the land?"

He said when he was General Manager a bill had been passed converting leasehold property into freehold because BHC was forking out around $120 per month per property on monthly repairs.

Yesterday BHC General Manager Vance Campbell was off the island, Housing Minister Ashfield DeVent did not return a call and new BHC spokesman Col. David Burch could not be reached for comment.