The Bermuda Housing Corporation is preparing to repair its first derelict house in an effort to provide more affordable housing.

BHC housing agent Raymond Russell told that the first house to be repaired is in Queen Street, St. George?s.

Once the houses are repaired, tenants will move in and begin paying off the cost of the repairs in rent. The houses will then be returned to the original owner. Rent prices will be ?in the affordable range of $850?, Mr. Russell said.

?Of the $9,500 it will take to clear the land of the first house I will raise $4,000 as a tribute to the late Sir John Plowman and his family,? explained Mr. Russell.

?Sir John had a passion for senior citizens and the homeless,? Mr. Russell added.

Mr. Russell said property owners he had contacted had been very responsive and willing to give their property for a worthy project. Currently, he has about 160 derelict homes in various states of disrepair that will be fixed up for needy families.

Clearing of the land at the St. George?s property should begin this week.

?By year end, we hope to get the first people in,? Mr. Russell said.

St. George?s Mayor, E. Michael Jones, said he was ?delighted? that his town had been selected for the first house for the project.

?Many of the structures in the town are old and for many reasons have become dilapidated. This particular house has been an eyesore,? Mr. Jones said.

He said that many property owners were not able to clean up their buildings and the scheme will give them a chance to have the house paid for and eventually given back.

The owner of the St. George?s property, Linda Steede, did not wish to comment on the project.