Bermuda Housing Corporation has been given a clean bill of health by Auditor General Larry Dennis for the fourth year in a row.

Presenting BHC's audited financial statements for 2006-07, Housing Minister David Burch yesterday declared the Corporation was in a good position to fulfil its pledge to increase the number of affordable homes on the Island.

Mr. Burch said BHC, which was rocked by scandal in the early part in the century, has now made "significant strides financially" as a result of efforts of Government and the BHC board and staff.

"The year has been one of financial reorganisation to improve financial strength," said the Minister.

"The BHC is well-positioned to deliver on its mandate to provide affordable housing to the people of Bermuda. I, of course, am delighted with this report and wish to record publicly my thanks to the hardest working board in all of Government, the most efficient management and a most outstanding staff of the Bermuda Housing Corporation. Their efforts are greatly appreciated."

Mr. Burch said funds had been spent on capital housing projects at Anchorage Villa, Butterfield Lane, Perimeter Lane, Spice Hill Apartment Purchase and Harbour View Village.

He said an excess of revenues over expenditure for the year was $50.2 million, mainly as the result of Government forgiving a $49.5 million long-term loan.

"This debt forgiveness is recorded as a one-time Government grant on the statement of revenues and expenses," he said. "The forgiveness of this loan has significantly improved the financial strength of the BHC by removing any liquidity issues."