to renovating derelict properties in an effort to create affordable housing.

Outgoing Corporation chairman Larry Burchall was speaking at a press conference yesterday where he outlined his visions for the future direction of the BHC.

Mr. Burchall said: "We have been having many discussions and bring to the Housing Corporation a perspective different from that in the past.'' He said: "The biggest difference in 1998 was that after six months there was a fundamental difference in the fundamental philosophy of the previous administration who concentrated on assets and dollars, and the care of those assets, and the management of that money.'' And he said that the focus of his thrust now was to focus on people and to deliver a product based on what the BHC had promised.

Given the availability of current vacant and derelict housing stock and given the actual shortage of remaining open space and the need to preserve it, the BHC has decided to cease building new houses on new lots, and to go over to the recycling of unused and currently unuseable existing housing stock.

This can be forced under current legislation but Mr. Burchall said that they would always like to work with the full and willing cooperation of property owners.

Mr. Burchall said before 1998 there was a lack of affordable housing, and the situation had not changed today.

He also said there was no shortage of housing in Bermuda, just a shortage of affordable housing.

Home renovations At the year end, the BHC rental portfolio comprised 395 units, up from 323 units at the previous year end, providing housing for 1,400 Bermudians.

Mr. Burchall reiterated that the BHC would stop building on new ground and put much more focus on the recycling of derelict houses in response to the increasing cost of land, as well as the desire for sustainable development.

Mr. Burchall said part of the housing problem in Bermuda was the "grandsizing'' of properties that changed them from starter homes to three bedroom homes that were no longer affordable for lower income families.

The BHC has identified more than 1,000 vacant houses around the Island, but was focusing on about 150 that they had identified as possible units for renovation.

Mr. Burchall said areas such as St. Monica's Mission had lots of houses that were not being used and would be ideal for lower income families due to the proximity to town.

Mr. Burchall said the homes recycling initiative would mean about two houses a month would be renovated, and at such a rate, there is a six year supply of houses which can be renovated.

Mr. Burchall said the average cost of purchasing land and building from scratch is about $240,000, whereas renovating derelict homes would likely cost less than $100,000.