Zane DeSilva, the Minister of Housing and Municipalities, has announced a $64 million loan to the Bermuda Land Management Company to support efforts to bolster housing.

He said the loan from the Bermuda Commercial Bank would help to deliver 84 new homes spread throughout developments at Tommy Fox Road in St David’s, and both Albert Row and Victoria Place in Sandys.

Mr DeSilva said: “With construction anticipated to kick off this August, this project will actively engage our local contractors and service providers to drive site preparation, foundations and interior fit-outs.”

He described a government-guaranteed loan comprising two segments, one with a 6 per cent interest rate and the other at 6.25 per cent.

Mr DeSilva added: “While there are some that talk, we will build. While there are some that chase headlines with negativity, we are chasing results.

“Together, we are building a better, more affordable Bermuda.”

Andy Mielczarek, BCB chairman, said the agreement was about providing opportunities for Bermudians to have a place to call home.

He said: “We are really proud to provide $64 million of financing for this development which will deliver 84 families new homes. It will start to make a meaningful contribution to expanding the supply of affordable housing here in Bermuda.

“Since I have joined BCB a year ago, we have seen significant growth. We’ve doubled our balance sheet. What’s important though is what that allows us to do.

“As a Bermuda-based bank, we are reinvesting our success back in our own island. We are supporting Bermuda families, Bermuda businesses and projects like this which make our community stronger.”

The Government previously announced that it would seek to add 229 new residential units to the island’s inventory within the next 18 months with projects including developments in Sandys, Southampton and St David’s.

Asked about why the Government sought a loan despite the surge in revenue brought by the corporate income tax, Mr DeSilva explained the urgency of addressing the island’s debt.

He said: “We made a commitment to take a significant portion, $605 million, and put it towards our debt in January of next year.

“If you look at the way the tax commission said or guided us, proposed to us to use those funds, we haven’t varied too much off track from their proposals and what they thought.

“Whilst it’s great to have that CIT money, we want to operate as if we don’t have it as far as we are concerned in housing.”

Mr DeSilva thanked the BCB, stating that the agreement took immense teamwork and diligence.

He said that the agreement shows the Government acting on its commitment to deliver affordable homes.

Mr DeSilva acknowledged that the number of people on the Bermuda Housing Corporation’s list had risen from about 350 last July to 548, stating that the increase was caused by people’s interests getting piqued.

He said: “We have a critical list, and urgent list and we have another list of people who just want a cheaper place.

“What has happened with all the announcements and all the fanfare and with the promises that we’ve made that we are going to build 1,000 to 1,500 homes in the next ten years — and I think we can cut that [time period] significantly — but what I think people are doing is they’re getting a little excited about it.

“We have more middle-class families now than ever before that have put their names up for a home, and I think what that says is that there are many families out there that are not struggling as much as others, but they find it very hard to survive and the majority that they are paying from their combined income is going towards rent.”

Mr DeSilva also spoke on the successful planning appeal for the capsule home project on Boaz Island, stating that he wished the project had been approved more quickly.

He said: “I know the state that some of our people are in and these are emergency homes for people that find themselves in a desperate state, so I am glad that the minister saw fit to approve them.

“When we are done, they are going to look really, really nice.”