A proposal to install nine modular units at a site in Sandys represents a “transformative” opportunity to help solve the island’s housing crisis with limited financial means, it was claimed in an appeal to the minister responsible for planning.

In a letter to Diallo Rabain, the Cabinet Office minister, the Bermuda Housing Corporation insisted that the controversial project for Boaz Island came as the organisation was required to “think differently and act decisively”.

The correspondence also revealed that the cost of each fully equipped unit for the proposed pilot was about $55,000.

Keino Furbert-Jacobs, of the BHC, wrote to Mr Rabain on behalf of the Ministry of Housing and Municipalities after the application was rejected because it was in conflict with several policies in the Bermuda Plan 2018.

In the letter, published with planning documents, he said: “While I acknowledge and respect the intent of these policies, I must, with equal measure of responsibility, present this appeal for reconsideration in light of the broader national need, the specific nature of this proposal and the opportunity it presents to responsibly advance housing delivery in Bermuda.”

Mr Furbert-Jacobs wrote that the application was a response to a “real and growing” housing crisis on the island.

He told the minister: “The Bermuda Housing Corporation is tasked not only with maintaining housing stock, but with responding to increasing demand at a time when many Bermudians are experiencing genuine economic hardship.

“The cost of living, coupled with limited access to equitable income opportunities, requires us to think differently and act decisively.

“Traditional construction methods continue to place a significant burden on the public purse.”

Figures provided in the letter suggested that traditional construction methods would result in costs of about $287,200 per unit, excluding appliances, while the proposed capsule units came in at about $55,000 per unit, fully equipped.

Scaling up to account for nine properties, the totals were about $2.58 million and $495,000 respectively.

“This is not a marginal difference, it is transformative,” Mr Furbert-Jacobs wrote.

“It represents the ability to deliver meaningful housing solutions within a constrained fiscal environment.”

The proposal to install capsule homes at Boaz Island as part of a pilot programme drew more than a dozen formal objections.

Planning documents showed the project would include seven “studio one” capsules and two “studio two deluxe” capsules, all of which are the same size and labelled as containing a single bedroom but with different internal layouts.

The application was turned down by the Development Applications Board this month for several reasons including that the units went against the “Bermuda image” and lacked communal space for garbage or adequate outdoor areas.

Zane DeSilva, the Minister of Housing and Municipalities, said the refusal would be appealed, stating: “The benefits of modular housing are significant and cannot be overlooked, particularly given the demand.

“At the same time, all developments must be carefully assessed to ensure they are appropriate for their location and aligned with planning and environmental standards.”

In the appeal letter, dated April 17, Mr Furbert-Jacobs said that while the DAB found the proposal was not in line with Bermuda’s traditional architectural character, the plan also recognises categories such as “special needs housing”.

He wrote: “This proposal aligns directly with these objectives. It is an emergency housing initiative, albeit temporary, intended to support the transition towards more permanent housing solutions.”

Mr Furbert-Jacobs also addressed concerns about private outdoor space, stating that each capsule unit will have “ample private amenity space” and landscaping has been incorporated to enhance privacy and screening.

He said that the BHC had encountered practical challenges with communal waste areas, stating that they had become “points of misuse” by neighbouring properties, resulting in unauthorised dumping and causing unsightly conditions.

He added: “These outcomes are not consistent with the intended visual or functional objectives of the policy.”

Mr Furbert-Jacobs said the proposal is a pilot programme intended to evaluate alternative construction technologies, deliver immediate housing relief and inform future development strategies.

He wrote: “Should the pilot prove successful, there will be an opportunity to refine architectural expression and integrate elements more closely aligned with Bermuda’s traditional character.

“However, without this initial step, evolution cannot occur.”

In a written response last December to questions from Michael Fahy, who was then the Shadow Minister of Housing and Municipalities, the ministry said that the units intended for the pilot were bought from Henan Sinova Construction Co, in Zhengzhou City, China.

The purchase was said to include a combination of one and two-bedroom capsule units and two and three-bedroom container homes.

Figures released by the housing and municipalities ministry stated then that the one-bedroom capsule units cost $24,980, while the two-bedroom capsule units were priced at $25,850.

The container homes carried lower price tags, with the two-bedroom units costing $7,850 while three-bedroom units cost $8,150.

It was also estimated that the shipping costs for the units would be about $9,000 each, but costs would vary based on the size and shipping time.

Mr DeSilva said in February that the units would be on the island within the following six weeks.

The Royal Gazette asked the Government this week for an update on the arrival of the units, as well as for confirmation about the costs of each unit and related shipping fees.

Those questions were unanswered by the time of publication.