Question marks have been raised over the future of an affordable housing project in St. David?s following the collapse of Bermuda Homes for People (BHP) this week.

And even if the project, Harbourside Village, does go ahead, the final cost could far exceed original estimates.

Last summer BHP, a non-profit organisation, announced plans to build 196 homes on a 15 acre site overlooking St. George?s Harbour. Half the homes would be sold at market value in order to pay for the other 98 which would be sold for $199,000 to lucky lottery winners.

But on Thursday BHP announced that it was folding because of financial and other problems.

And yesterday project builder Bermuda Land Development Company (BLDC), which also owns the site, confirmed it was uncertain it would continue with the development.

Following the collapse of BHP, Government announced it still wanted BLDC to lead the way in the construction of Harbourside Village. But yesterday BLDC said the project?s future was now undecided.

?At this point of time I am not sure if it is in BLDC?s hands to develop that parcel of land,? BLDC Project Manager Kieno Jacobs said.

?I don?t know when it will exactly start. Partnerships still need to be worked out.?

The $80 million project is now under review by BLDC?s vice presidents and Executive Board. It is understood the company is holding talks with its bankers and advisors to see how best to move forward with the project.

However, Government could legally force BLDC to start building work ? at a potentially at a higher cost.

Works and Engineering and Housing Minister Ashfield Devent last night refused to be drawn on whether BLDC would stick to the scope of Harbourside Village as envisioned by BHP.

?Clearly, the Government has already endorsed the original concept as presented by Bermuda Homes for People,? Mr. DeVent said. ?With the formal exit of BHP, however, BLDC will obviously continue to conduct their due diligence, as one is bound to do on a project of such magnitude. As such it would be irresponsible and premature to answer such questions at this stage. It is worth repeating that arrangements for BLDC to take the lead on this project are in advanced stages.?

Mr. Jacobs also declined to comment on whether the number of homes or their prices would change.

?It?s a massive project,? he said. ?Right now it is under review.?

Mr. DeVent said the lottery winners were being contacted by the Bermuda Housing Corporation (BHC).

?Their position has not been adversely impacted by the withdrawal of BHP from the project,? he said.

Lottery winner Tyrone Simons said last night he was still confident he would get his low-cost home.

?I got a call from BHC today saying my status had not changed,? Mr. Simons said. ?I am happy to hear that.?

Winner Joanne Wellman said she was not really bothered about the uncertainty currently surrounding the project but had not yet been called by BHC.

?If it is meant to be it will be,? she said.