The lottery for the 98 affordable homes at Southside will still be held next month ? despite uncertainty surrounding the project.

Building which was originally due to start in January has been stalled for months because business tenants at the site had nowhere to move.

And there was a further blow when Bermuda Homes for People, the non-profit organisation behind the plan, were declared insolvent.

Government then said landowners the Bermuda Land Development Company would take it over but talks have stalled.

Bermuda Housing Corporation vetted applications for the 98 affordable homes which are priced at $199,000.

BHC general manager Vance Campbell told the lottery would still take place on June 3 and there were 140 applications which had been accepted.

He said: ?Letters are going out advising these individuals.?

But he could not provide details on the management of the project which is being funded by the sale of 98 market-price homes.

Last week it was revealed project manager Brian Rowlinson had left Bermuda Homes for People while Cliff Schorer, who had the original concept, resigned as project executive in March.