Government Announces Major Concessions On Home-ownership

Contact: John Emmanuel

Thursday, September 14, 2000 - The Ministry of Planning, Housing, Development, and the Environment on Thursday, September 14, 2000 unveiled a comprehensive package of assistance, aimed at giving St. Lucians greater opportunities at owning their homes.

The package of assistance will benefit low cost, middle and upper income households and involves a multiplicity of approaches. Housing Minister, Honourable Dr. Walter Francois, says the plan offers specific programmes that will foster private sector partnerships with government. The Housing and Urban Development Corporation (HUDC) currently being transformed into the National Housing Corporation will play a critical role in the process.

The assistance package, according to Dr. Francois, stems from the realization of several factors, among them, the lack of affordable financing, exorbitant costs associated with home ownership and the massive bureaucracy involved.

"These incentives that we are providing are to help cushion some of the problems and frustrations persons may encounter. For example, the Cabinet Conclusion of January 2000 has granted concessions applicable to low income houses being constructed in accordance to low income designs. What will persons receive? They will get 100% waiver of import duty and consumption tax on the quantities and types of building materials that they will be utilizing and let me say that a low income house is one costing less than ninety thousand dollars," Dr. Francois said.

Other concessions will include exemption from stamp duties on mortgages and transfers of titles to benefit low-income households. The package of assistance will also provide special concessions to housing developers.

Said Dr. Francois, "If you want to be a private housing developer, you can approach government for tremendous concessions. What do I mean by a private housing developer? Someone who will build a house that will not cost over $200,000. Someone who will be building at least five houses in a sub-division, and then that persons will take no more than two years in the first instance in constructing these homes. This person will receive a waiver of consumption tax on the materials that will be utilized and more importantly, we will waive the corporate tax the person will be paying on the profits on these activities."

Minister Francois says government views itself as a facilitator and enabler of development and recognizes that the solution to the island’s housing issue is one that embraces a collaborative effort between the private and public sectors.

The 100% waiver of import duties and consumption tax for low cost housing encompasses 50 sheets of plywood, 5,000 board feet of lumber, 700 (12"x12") vinyl tiles, 40 sheets of galvanize, 10 windows, 5 flush doors, 30 gallons of paint, 80 lengths of steel for concrete buildings and 36 lengths for timber buildings.

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