MPs hear breakdown of home repair incentive programme
A refurbishment programme to get unused housing back on the market has drawn healthy interest from the private sector, the House of Assembly heard.
Zane DeSilva, the Deputy Premier and Minister of Housing and Municipalities, told MPs that the Bermuda Housing Corporation’s private sector refurbishment programme, launched in April, had seen 56 landlords register interest, with 35 assessed and the remainder being vetted.
Mr DeSilva added that out of the 35 properties assessed, 13 were withdrawn because of “extensive repairs being required”, while two were turnkey properties that got moved directly into the programme.
Thirteen more are awaiting the completion of legal and ownership documentation, while another four units are under legal review and three have contracts for construction to start work in early January.
A new round of advertising is to start on Tuesday to raise the programme’s profile.
Zane DeSilva, the housing minister, denounced a headline last week in The Royal Gazette covering the announcement on November 27 of an affordable housing project at Battery Road in St David’s.
Mr DeSilva protested that a “misleading” headline, referring to a separate project, had implied that the Battery Road residences were modular homes, which they are not.
He told the House of Assembly: “Battery Road is being constructed using traditional Bermuda building methods.”
He said modular housing was only being used in “a highly targeted manner, to address urgent and transitional housing needs”.
He added: “These units are designed for short-term rentals, generally between six and 18 months, while Bermudians in crisis transition towards permanent housing solutions.”
Mr DeSilva told MPs that phase two of the Battery Road development would deliver a 9,400sq ft residential building with six studios, four two-bedroom apartments and two one-bedroom units, scheduled for completion in August.
Mr DeSilva told the House that the island had private rental units sitting empty because the bill for rendering them habitable was “out of reach for many homeowners”.
He added: “The refurbishment programme bridges that gap by offering up to $125,000 in interest-free funding to refurbish units for occupancy, allowing these homes to be restored and added to Bermuda’s affordable rental inventory.”
He said the units could add “urgently needed housing options for families on the BHC waiting list”.
Mr DeSilva explained that under the terms of the programme, the BHC will oversee refurbishment to ensure units meet standards.
Eligible landlords get interest-free funding, provided the property has no existing mortgage.
Repayment is made from rental income over a five-year period.
Once loans are repaid, the BHC will continue to manage the unit for an additional two years, bringing the total management period to seven years.
Landlords can benefit throughout that term from a guaranteed rental income, even when the unit is vacant.
The BHC will cover wear and tear on the accommodation and conduct routine inspections at one month, six months and annually.
Rental rates must remain within the BHC’s affordable ranges, between $1,200 for a studio and $2,600 for a three-bedroom unit.
Property owners remain responsible for taxes, major maintenance and landscaping.
Mr DeSilva said the assessed units comprised 12 one-bedroom properties, 12 two-bedroom, four three-bedroom and a single four-bedroom property.
He said the bedroom configurations of the remaining six units were a work in progress.
Mr DeSilva said that the first refurbished units were expected to be ready by the second quarter of 2026 if legal procedures kept on schedule.
In the interim, he called on “any homeowner with an unoccupied or deteriorated unit to contact BHC”.
Applications must be completed on the BHC website at www.bhc.bm. Details are available by e-mailing info@bhc.bm or calling 295-8623.
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