The fate of a new Bermuda Housing Corporation complex in Warwick is shrouded in mystery as needy tenants are being told the units are not available to rent and will be sold, while area neighbours were told the intention is to rent the units as low cost housing.

The two-bedroom units, located across the street from the the Warwick Shell gas station behind Brenda's Pool, are very near completion and would-be tenants are keen to know when and if they will be available.

BHC has refused to answer questions from The Royal Gazette on the fate of the units and neighbours are now seeking a meeting with Housing Minister Nelson Bascome to find out who will be coming into their area.

But one current BHC tenant who asked the corporation about the units, claims she was told by suspended General Manager Raymonde Dill and other officers the units will be rented only to those who can afford a $20,000 deposit because the intention is to sell them - but not until after an election.

Winnae Wales-Lugo said she had a meeting with Mr. Dill in February.

"I was surprised at how outright he was about certain things. He said he wants to sell the property to relieve himself of the responsibility of maintaining them, but the Minister wants to rent them because this is an election year," she said.

An election could be called any time between now and November 2003.

Ms Wales-Lugo continued: "He went on to say the Minister may allow him to sell next year though. He said, if he does have to rent them, he'd rent only to those who have $20,000 down payment to buy them if, or when, they go on the market."

Ms Wales-Lugo said she feels rentals should be the priority of the BHC, as most of their clientele are seeking rentals and could simply not afford a $20,000 downpayment.

And she said she later had a conversation with Mr. Bascome who said the units would be rented.

But days later in a meeting at BHC after the acting management was appointed, Ms Wales-Lugo said Senior Rentals Officer Judy Thamotheram told her the property would definitely be sold.

"She said the property will be rented for the meantime, but only to those who have a $20,000 down payment to buy them," Ms Wales-Lugo said. "Their rents will be applied to their mortgages."

Ms Wales-Lugo said: "If the Minister has instructed the property to be rented, why are they in the works to be sold? Either the Minister is not being truthful or something is being done against his word. One way or the another, something fishy is going on."

Neighbours around the development said yesterday they want to know what is going on as well.

A number of concerned neighbours told The Royal Gazette that when construction on the project was just getting started, they met with Police and housing officers to discuss their concerns over the complex and were told it would be used as rental units.

"We had concerns, we didn't want any riff-raff coming into the neighbourhood," one neighbour who asked not to be named said. "They told us it would for anyone in need."

The neighbours would prefer that the units be sold, because they feel occupants would then have a more vested interest in keeping up the property.

They have also heard informally it will be a rent-to-own scheme and are trying to secure a meeting with Mr. Bascome for a definitive answer.

When The Royal Gazette attempted to find out the fate of the complex from Mr. Bascome, he referred all questions on the matter to Mr. James.

The Royal Gazette put the following questions to Mr. James by fax this week about the Warwick development:

- Are the units noted available for rent and are there any conditions on their rental?

- How many units are in development and how many are currently occupied?

- Are there any restrictions on who may apply for the units?

- Is it the intention of BHC to sell these units now or in the future? If so, what is the rationale behind the decision to sell?

- Does the BHC have a waiting list for families seeking rentals? If so, how many families are on that list?

- Does the BHC have a similar waiting list for families hoping to buy a home through the corporation? If so, how many families are on that list?

The Royal Gazette received the following reply from Mr. James:

"For the record, the Bermuda Housing Corporation will not be drawn into any discussion, debate or dispute regarding allegations reported to The Royal Gazette by tenants.

"In response to your other queries, the Board of Directors of the Bermuda Housing Corporation is the body charged with the policy and direction of the corporation.

"The (BHC) is mandated to provide rentals to Bermudians within a target market as well as to provide Bermudians who are able to satisfy established financial criteria the opportunity to become first time homeowners.

"Recognise that there is a responsibility of the Board of Directors to balance these two vitally important objectives in the most appropriate means."

A Bermuda Housing Corporation tenant who experienced severe mould problems in her unit has been offered a three-bedroom apartment for her family, Minister Nelson Bascome confirmed yesterday.

Mr. Bascome responded to a letter to the editor in yesterday's newspaper in which tenant Winnae Wales-Lugo said she had never received an offer of a three-bedroom unit from the corporation.

He said his original statement about the apartment offer had been misworded in The Royal Gazette.

"The Minister states that the Acting General Manager of the Bermuda Housing Corporation has confirmed to him that a formal written offer has now been made to Ms Wales-Lugo and (he) continues to encourage persons to contact the Bermuda Housing Corporation directly, rather than the media for resolution of their problems," the statement from Government Information Services said yesterday.

Ms Wales-Lugo told The Royal Gazette she received a hand-delivered letter yesterday with the offer of the apartment which said she could come and view it.