The first phase of a controversial 96-unit affordable housing scheme is well underway.

Premier Ewart Brown and Housing Minister Sen. David Burch said that 38 workers have been toiling away on the Loughlands site in Paget to ensure the housing development is on schedule. Already 21 units are near completion.

When plans for the development were announced last year residents complained it would bring more congestion to the area and felt their needs were overlooked when the Special Development Order was granted.

But this week Dr. Brown said the congestion issue was a misconception and Sen. Burch said studies into the traffic flow of the area had been done.

Dr. Brown said: "This building does not mean 96 new cars because the people who move in here are already living in Bermuda, so many of them already have cars."

Sen. Burch explained that Works and Engineering completed a traffic study and made suggestions about where the entrance would be placed.

And he added: "We have made amazing progress anyone living in this neighbourhood knows how much activity there has been on this site. These buildings are the first phase of the project and they contain six three-bedroom units and 15 two-bedroom units."

Dr. Brown said the Minister and his team should be commended for their hard work and determination in bringing affordable housing to the Island.

He said: "Nearly a year ago the Minister approached me and asked me if I would be interested in rezoning the property from tourism to residence because it was of national importance to have more affordable housing.

"This site is an example of this Government's commitment to housing."

Along with the 96 homes the site will also have a nursery which will be housed in the original building on the Paget property.

The site is also an example of public-private partnerships the politicians pointed out. The Government struck a deal with developed Gilbert Lopes in March 2006 to purchase the condos from him and then sell them at below market price, for approximately $450,000.

With over 500 people on the list for the Loughlands units Sen. Burch said they would be allocated to people on a first-come first-served basis, but that they would only go to first-time buyers.

The second phase is scheduled to begin in January 2008.