number of tenants who do not pay their rent on time even though they can afford it.

At the end of October, the Corporation's rental arrears on 319 units was pegged at $430,000, or one and a half times its monthly rental income of $285,000.

The arrears number fluctuates from higher levels in the winter months to lower levels in the summer months when jobs are more plentiful, the Corporation said.

Estates manager Mr. Isaac Froy used the Corporation's 1994 report, which was tabled in the House of Assembly on Friday, to show that rental arrears continued to be a challenge for the Corporation.

He said: "When one understands that our `target group' are those Bermudians who for one reason or another cannot find adequate, affordable housing in the private sector and includes those who need support in one form or another, it is not surprising that arrears remains a challenge.'' "We are, however, both surprised and disappointed at the number of tenants who do not have genuine affordability problems but who have chosen not to give their rent payments the proper priority.

"As a last resort, we have evicted tenants and, as much as we would like to believe otherwise, anticipate such action will from time to time be necessary.'' Yesterday, Corporation general manager Mr. Edwin Cowen said rental arrears had always been a problem for the Corporation.

"There was not enough attention in the past on it,'' he said. "Now we're chasing it down. We're actually getting a bit of a handle on it.'' Mr. Cowen said the arrears total at March 31 was $483,218, about 1.75 times above its monthly rental income of $276,000. The figures were based on 319 Corporation properties and 82 private sector properties.

Mr. Cowen said the arrears total would fluctuate a bit in the next few months, possibly increasing, before declining with the onset of summer.

"By the time we get through the winter and into mid-year it'll come down to about one times above our monthly income level,'' he said.

The Corporation also reported progress in its effort to transfer control of its condominiums to residents. "These condominiums corporations, whose management committees are resident owners, are gradually assuming responsibility for the income and expenses of the respective developments,'' Mr. Cowen said.