The Bermuda Housing Corporation is in the early stages of a plan to build an apartment block in the City of Hamilton, according to former Housing Minister David Burch, the quango's Deputy Chairman.

Lt. Col. Burch said that the plan is now in Housing Minister Ashfield DeVent's hands and needed Cabinet approval.

In a comprehensive report to the media on the BHC's efforts to provide affordable housing for Bermudians, Lt. Col. Burch also reported that the Corporation was now in an advanced stage of negotiations to purchase a lot in the city to replace the single room housing which would be lost to the closure of the Canadian Hotel.

And he reported good news on the performance of the quango's mortgage portfolio, the development of a Tenant's Code of Conduct and updated the public on efforts to end illegal activities on BHC property and the pending renovation of units at Anchorage Road in St. George's.

Lt. Col. Burch began his press conference by apparently addressing last week's reports that board chairman Charlton Dill was being offered BHC work, contrary to the Housing Act.

"Let me begin by saying that the events of last week surrounding certain actions of the Board are regrettable," he said.

"The 11 dedicated volunteers who sit around this table as members of the Board of the Bermuda Housing Corporation need never be reminded to obey the laws of Bermuda ? we do it automatically."

He reassured the country that the BHC's Board members were "painfully aware of the challenges faced by the Corporation in the past and are meticulous in our deliberations and decisions to ensure that similar criticisms by the general public, the Auditor General or the media are not attributed to us.

"I would therefore implore you all not to minimise our contribution. The fact that we do this for $25 per meeting must demonstrate to any intelligent person our commitment to solving perhaps the most significant problem facing our country today."

Housing Minister Ashfield DeVent explained later that the Charlton Dill story had been reported before the Board had made a decision and that Lt. Col. Burch was simply explaining that the Board would not break the law.

Lt. Col. Burch went on to report that the BHC had 64 people on its urgent list, 20 of whom were looking for one bedroom units, 28 were in the market for two bedroom units and 16 were looking for three bedroom units.

Another 230 people were on the quango's housing list ? close to half of them (110) need two bedrooms, while 44 were in need of three bedroom units and 76 needed one bedroom units.

He called on private sector landlords to participate in the Corporation's rental guarantee programme where the BHC acts as tenant and returns the properties in the condition in which it was received.

"May I also state that we are increasing the frequency by which we inspect rental properties and respond to landlord complaints," he said.

The BHC has also increased the rents paid to private sector landlords. Studio apartments will now fetch $900, a $100 increase, while one bedrooms will get $1,100, up from $900, if rented to the Corporation.

Rents paid for two and three bedrooms have been increased to $1,600 and $2,000 ? up from $1,450 and $1,650 respectively.

The BHC's mortgage portfolio of 700 is valued at $17.2 million, of which 60 are in arrears to the tune of $77,663, and only six of those, representing $14,759, are more than three months in arrears, he continued.

"These figures represent significant improvement overall and represent less than one percent delinquency," Lt. Col. Burch said.

But he admitted that rental arrears were still a problem for the Corporation.

"There are presently 325 of our 593 clients in varying stages of arrears totalling some $1,056,497," he said.

"More than half of this figure is attributed to tenants who are five months or more in arrears. These figures represent some longstanding arrears and we are launching a full assessment of them to establish how or if they can be significantly reduced."

To cut costs, BHC has started to use radio phones instead of cell phones, and service calls are down to an average of 95 a week, he said.

Lt. Col. Burch also reported that final selection of a Finance Manager will be made soon after candidate interviews next week.

Nas Jetha, an official of the Works and Engineering Ministry, has been acting in the position.

"The Corporation has received increasing complaints of negative and illegal behaviour at several of our properties," he continued.

"Efforts to get sustained assistance from the Police have not always been successful."

But he warned that the Corporation will not rest in its efforts to put an end to the illegal activities.

"In some instances relatives of tenants are the culprits and we would like to put them on notice that this sort of behaviour will not be tolerated and parents must assume responsibility for their children.

"The Corporation will pursue every legal means available to prevent illegal activity being conducted on Corporation property."