Three hundred families will see their rent slashed to a quarter of their income after the Bermuda Housing Corporation moved to make their monthly bill more manageable.

And the BHC will take an additional ten percent of their earnings and hold it in a special savings account.

Meanwhile another public/private partnership, similar to Loughlands in Paget, is on the cards

Housing Minister, Sen. David Burch, took to the airwaves last night and gave an in-depth update on Government’s housing initiatives. In the broadcast he gave anticipated start and completion dates for many developments that have been in the works for years and unveiled ambitious new plans.

He announced: “The staff of BHC last week began the process of converting every tenant, whose rent is current, to geared to income status. This is a major shift for the Corporation as it means direct assistance to the over 300 families who fall into this category.

“Bermuda lags behind most developing countries in providing housing assistance of this type to its citizens. The concept is to asses the income of families and whatever a quarter of that amount becomes their rent.

“This is direct and immediate assistance to families where they live. A further assessment of the families’ economic status occurs every two years.

“Since the introduction of this concept in April 2007 we have begun further discussions to increase the amount to 35 percent of household income to ensure families can create savings.

Twenty-five percent will remain the rental amount and the addition 10 percent will be placed in a family savings account held by the Corporation.”

He did not elaborate on how the families would be able to access their savings accounts.

Geared to income housing was first introduced at the Butterfield Lane development in December 2006 when Government created eight new units on the Sandys site. Sen. Burch explained that if a family’s financial situation changed an immediate reassessment would occur.

He added that families’ participation in geared to income housing will not be eligible for other financial assistance but said the move would return “dignity” to Bermudians in that they will not have to “bear their soul” to various Government agencies to gain financial assistance.

Another announcement was that after the “overwhelming” response to the Loughlands development more public/private partnerships could be expected. The partnership with Gilbert Lopes began in March 2006 and will see 96 units built in Paget for purchase by first time home owners. The first 21 units will be completed by December. Over 500 people signed up for the development.

Last night Sen. Burch said: “This is the first of several public/private partnerships that is progressing expeditiously and you can expect to see more in the future.

“Discussions with another developer have recently concluded and once we have signed a memorandum of understanding which I anticipate before months end a public announcement will be made at that time.”

The Senator also outlined housing developments currently underway.

* Perimeter Lane: In April 2007 demolition of existing buildings began in Pembroke to make way for 38 units, currently they are building a retaining wall and construction of the houses should begin in September.

*Rockaway Senior Development: The Government gave land to the Bermuda Housing Trust for the construction of 100 affordable housing units for seniors in Southampton, 24 are currently occupied and the rest will be filled by August.

* Harbour View Villag>: Construction is expected to begin in September on 108 units in Southside after a massive diesel underground tank is removed.

*Westcott Road: Ground was broken on the other Southside development in May. The 54 condominium development is a $3.8 public/private contract with Trinity Construction.

<ingdings-Regular">l<$>Ireland Island<$>: 100-unit affordable housing complex for residents at Victoria Road and Albert Road, as well as new tenants. Construction is expected to begin in “the third-quartef 2007”.

*Ewing Street: Construction on the 24-unit commercial and residential building will not being till development on Perimeter Lane is “well underway”.

Will your family’s income be impacted by the new geared to income rental scheme? Contact Ruth O’Kelly-Lynch on 278-0149 or email roklynch[AT]royalgazette.bm.

Three hundred families to see rent slashed