The Minister of Housing and Municipalities said a “tangible step” was made to address housing challenges facing the island as work commenced on a development project at the former Albert Row site in Sandys.

Zane DeSilva, who is also the Deputy Premier, said the scheme on Malabar Road is part of the first phase of the Government’s affordable housing programme, which is centred on the delivery of 194 residential units across four sites.

The project, which was granted planning approval in July, includes the construction of two three-storey residential buildings, each of which would contain 12 two-bedroom units, as well as the creation of a new playground, parking and landscaping.

Funding has been secured from the Bermuda Commercial Bank, supported by a government guarantee, at a total cost of $17 million.

At a groundbreaking ceremony today, Mr DeSilva said the project, which is being delivered by Coastal Precast Systems of Virginia, United States, was carefully designed to create a modern, attractive sustainable residential community.

He said the company will use a precast system that supports the acceleration of project delivery, improves quality control and provides “greater certainty” around the project’s timeline.

Local contractors and service providers will play a pivotal role in the project, the minister said, which will be overseen by the Bermuda Land Management Corporation, working in tandem with the Bermuda Housing Corporation.

The units will be rented at a monthly cost of $2,400 to tenants for the first three years, with a $100 increase planned for the following three years, Mr DeSilva added.

The project will be undertaken in partnership with the community, he said, adding that communication with area residents will be continuous throughout its duration.

He said the groundbreaking event was important since expanding the supply of affordable homes is “essential” to Bermuda’s long-term social and economics success.

Mr DeSilva said: “This is more than the start of a construction project, it is a tangible step forward in addressing one of the more pressing challenges facing our communities, affordable housing.

“Across Bermuda the shortage of attainable housing continues to affect households at every stage of life.

“For many residents, securing accommodation that is reasonably priced, well maintained and appropriate for their circumstances has become increasingly difficult.

“Access to housing underpins financial security, supports workforce participation, strengthens communities and improves quality of life.”

Speaking on the impact of the project, Mr DeSilva said the Government aims to build as many homes as possible as quickly as it can.

“The minute these are finished, they will be filled,” he said, adding that the BLMC and the BHC will determine how applicants will be prioritised for the project.

He said the BHC’s waiting list has over 600 families and added: “So, we cannot build these homes fast enough.

“We have an urgent list, we have a critical list and we have a list for people just wanting cheaper homes and those decisions will be made accordingly.”