Minister promises no overspend on affordable housing
Spending on the first phase of an affordable housing project will not run over budget, the Minister of Housing and Municipalities has insisted.
Zane DeSilva gave the House of Assembly an update yesterday on the $64 million development, adding that the price, which equates to $762,000 per unit, is “key in hand” and covers the complete cost.
The minister revealed that a contract had been signed with Coastal Precast Systems on Thursday for the building of 84 units at Tommy Fox Road in St David’s, and Albert Row and Victoria Place in Sandys.
Work is set to begin in August.
Opposition MP Michael Fahy asked whether there had been a request for proposal at the bidding stage.
Mr DeSilva said there had not, adding: “We know how RFPs work. If we had went to one on this particular matter, we would be here next year, and we still wouldn’t have built a home.”
Mr Fahy queried if the $64 million figure covered everything from the transport of materials to the final touches.
Mr DeSilva confirmed it did and said: “The cost of construction using traditional building in this country right now is anywhere between $700 to $1,000-plus per square foot.
“This price is key in hand. All mechanical, all electrical, foundations, footings, landscaping. This is key in hand, cut the ribbon and everyone moves in.”
Asked if he was sure there would be no cost overruns, the minister replied: “Absolutely, yes.”
Michael Fahy, the Shadow Minister of Economy, Labour and Housing, questioned why no RFP had been issued for the Government’s $64 million affordable-housing project.
He said figures given by Zane DeSilva, the Minister of Housing and Municipalities, amounted to almost $763,000 per home.
Mr Fahy said Mr DeSilva had “doubled down” in the House of Assembly with his assurance that there would be no overruns.
He added: “We will watch this space carefully and hold the minister to account on this statement. We all know the kind of cost overruns that have happened with capital projects.”
He said addressing the island’s housing shortage had to be “open to the sunshine of public scrutiny”.
“Why was the contract apparently sole sourced? What other entities made proposals? What local contractors will be hired for all the extras?”
Mr Fahy highlighted that the affordable housing plan was released on May 5, with contracts signed six weeks later and the ground due to be broken in mid-August.
“It has the appearance that contracts were in process long before the consultation process began.
“Our job as Opposition is to ask questions and hold ministers accountable. The minister gave an undertaking to bring to the House of Assembly the full process followed in respect of the selection of Coastal Precast Systems.
“We look forward to seeing this.”
It marks the beginning after the Government’s announcement of plans to construct 229 units in 18 months.
Opposition MP Robert King had earlier said the One Bermuda Alliance was in “full support” of additional housing.
Quizzing the housing minister, he asked whether a crime prevention assessment had been completed during the planning process.
Mr King said: “What we do know is that affordable housing development projects are high-risk areas for adverse childhood experiences and crime.”
Mr DeSilva told Mr King that many environmental studies had been carried out, but called the question over the likelihood of crime “insulting to every Bermudian in this country”.
Mr King asked next if draft legislation was being considered to “ensure these neighbourhoods are protected from antisocial behaviour”.
Mr DeSilva said: “I pause, because does that really dignify a response?
“What, do you want to build a fence around it? Come on.”
Additionally, Mr DeSilva confirmed eligibility requirements for housing, saying all who sign up will meet with the Bermuda Housing Corporation and undergo means testing.
He added that people in need of homes would “get them”.
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