November 24th, 2024
Dear Editor,
Homeownership is slipping further out of reach for hardworking Bahamians. The dream of a place to call your own—once a cornerstone of our middle class—is considered a fantasy for too many. On Monday, November 18, there was a media report highlighting an estimated need for 12,000 low-cost houses alone.
For many, home ownership has laid the foundation for building wealth and net worth, providing security in later years, and something substantial to pass on as inheritance.
We must move past lamenting the current situation and implement bold solutions.
As a country, we have done it before. Starting with the then-UBP government in the 1960s and rapidly expanding under the Pindling and Ingraham administrations, we have seen the power of committed public policy. This led to hundreds, if not thousands, of homes being built every year, allowing scores of Bahamians to finally move into their own homes and fully leverage the social and economic benefits that come with home ownership.
Unfortunately, we have been unable to sustain that pace of government-supported residential construction within the last 15 years over successive administrations. This must change and change soon.
We must be bold again.
First, we must accept that increased construction costs now demand the development of housing solutions that match the earning levels of different demographics. Not everyone will be able to afford a $300,000 home. We need safe, secure, and stylish housing solutions that more working Bahamians can afford.
Following the lead of some of our regional peers, we should create a competition among Bahamian architects, engineers, and urban planners to design attractive housing and neighborhood solutions. These designs should meet environmental standards, be climate smart, have energy efficiency, optimize space use, and foster shared neighborhood environments that enhance community welfare. Substantial cash awards should be provided for models that meet these objectives.
Second, we must mobilize a portion of the hundreds of millions of dollars in private capital to work alongside public initiatives in making the substantial investments necessary in housing. The government must leverage its inventory of land and underutilized public buildings and place qualifying parcels into a public-private real estate investment trust (REIT-PPP). This REIT-PPP would accept Bahamian investor funds and be managed independently with quarterly reporting and annual audits. It would fund the development of thousands of housing units, including repurposed public buildings and houses acquired from repossession. The REIT-PPP must remain independent, with decisions made by a board of directors composed primarily of private investors. Housing qualifications must never be subject to partisan consideration, ensuring that access to housing is determined solely by need and merit.
Third, we must address the legal and bureaucratic hurdles that hinder private housing and homeownership. We need to review and update enabling legislation, engaging stakeholders such as financial institutions that provide mortgages. Our laws must encourage, not impede, homeownership. We must also ensure that all lenders operate with transparency – clearly outlining fees, interest, and other costs – and allow customers the fair opportunity to change lenders. Approval processes for building projects should be outsourced where possible, expediting developments, and enabling government technocrats to focus on more complex structural projects.
What we cannot do as a country is continue with the status quo. Our task is immense, but so is the opportunity. Let us unleash our talents and all the resources available to us to create a new revolution in housing. Doing so will jump-start our economy and once again allow Bahamians a clear path for upward mobility and wealth generation.
Sincerely,
Hon Michael C. Pintard M.P.
Leader, Free National Movement