AUDIO: PROPERTY TAX FACTS Interview on Sky 99.5 FM

sky995fmAfra Raymond was interviewed on Tuesday 28th March 2017 on SKY 99.5 FM on the impending Property Tax by Jessie-May Ventour, Eddison Carr and Dr Wayne Haywood. There is a lot of misleading and uninformed talk on the Property Tax at the moment, so this is intended as a corrective…

Programme Date: 28 March 2017

Programme length: 00:41:04

Property Matters – HDC Acts

Three laws being broken

  1. HDC Act (no 24 of 2005) – At sections 18,19 and 20 require HDC and the Housing Minister to publish audited accounts within 6 months of the end of every financial year.
  2. Integrity in Public Life Act – At S.24 (3) prohibits Public Officials (which would include the HDC Board) from ‘…undertaking any project or activity involving the use of public funds in disregard of the Financial Orders or other Regulations applicable to such funds…’
  3. Securities Industry Act 1995 and the Securities Industry Bye-Laws 1997 – These require HDC, as an issuer of bonds, to publish its audited accounts annually for the information of bondholders.

hdclogo

The HDC has never published its audited accounts since it was established in October 2005 to replace the National Housing Authority (NHA). The previous article highlighted the HDC’s missing accounts and made the point that their failure or refusal to publish those audits was in breach of at least three laws (see sidebar).

On 3rd January 2017, I made a Freedom of Information request for details of NHA and HDC transactions in Public Money in the period 2003-2016, during the life of the current (2002) Housing Policy. The Public Money received would include budget allocations; monies derived from property rentals and sales; bank loans and bond funding. It is important to separate recurrent and capital expenditures. I also asked for those amounts to be itemised by year so that trends can be identified for further examination. Continue reading “Property Matters – HDC Acts”

Property Matters – HDC Financing

“…There are a lot of things that did not go right in the NHA and one of those things had to do with accountability…The HDC is not going to function like that. We are required by law to have the accounts ready in a certain period of time. The CEO will be held accountable and the Cabinet will hold the minister accountable and the Parliament will hold the Cabinet accountable. That is what the HDC means…”

—Then Housing Minister, Dr Keith Rowley, speaking at the launch of the Housing Development Corporation (HDC) in October 2005.

Keith Rowley
Former Minister of Housing, Keith Rowley, M.P.

This week I am shifting focus from the ‘Affordability Hoax‘ to the financial aspect of our country’s large-scale public housing program as conducted by the HDC. I am therefore ignoring other agencies such as the Land Settlement Agency and other types of State funding or tax allowances such as mortgage relief etc.

Dr Rowley was referring to these obligations in the HDC Act (No 24 of 2005)

  • S.18 – to keep the HDC’s books and accounts in accordance with proper accounting standards;
  • S.19 – HDC’s accounts to be audited annually to proper accounting standards, with that audit report submitted to the Minister and the Board;
  • S.20 – HDC’s Board to submit its Annual Report to the Minister within three months of the end of the financial year and the Minister to publish that Report to Parliament within three months of its receipt.

But the HDC has never published any audited accounts in the eleven years of its existence, spanning three political administrations, thus far. That failure and/or refusal to publish audits is in breach of those sections of the HDC Act. Continue reading “Property Matters – HDC Financing”

Property Matters – Achieving Affordability

hdclogoThe previous column labelled the repeated official statements as to the increased supply of affordable homes as ‘alternative facts’. This week, I will set out just what needs to happen for the HDC to provide more affordable housing.

Even when the definition is well established, it is notoriously difficult to deliver affordable housing to those who really need it. The challenges is far greater if there is no attempt by the responsible officials to define the goal. A degree of clarity is therefore essential if affordable housing is to be truly achieved. Continue reading “Property Matters – Achieving Affordability”

Property Matters – The Affordability Hoax

The Affordability Hoax. Drawing by David Cave.

AFFORDABILITY IS THE MAIN PILLAR OF THE HOUSING POLICY SINCE 2002
—Key quote from HDC’s Home Ownership webpage

“…Housing Minister Randall Mitchell says Government has made housing more affordable to low and middle-income families unlike the People’s Partnership government which catered for high-income earners…” December 2016

Randall Mitchell, MP, Minister of Housing and Urban Development

Once again, the HDC and the Minister of Housing and Urban Development, Randall Mitchell, have been in the news with strong claims based on the HDC’s program and new mortgage offerings by TTMF. The headline in this newspaper on 10 February 2017 was “More people to access affordable housing“. In my view those are baseless and misleading official claims which readily qualify as ‘alternative facts’. Bigly so.

These statements are not unique to Minister Mitchell, who is relatively new to this portfolio, but enough is enough. Given the importance of public housing in the nation’s welfare arrangements and the sheer lack of reliable information on the issues, it is now time to dismantle the myth of an increasing supply of affordable housing. Continue reading “Property Matters – The Affordability Hoax”

Property Matters – State Housing Facts

hdc-logoThis is a continuation of my examination of the National Housing Policy (2002), its implementation and the associated implications.

Over the last year I engaged with HDC’s management who cooperated with me, much like the previous team. I asked about new homes produced by the National Housing Authority (NHA) and the Housing Development Corporation (HDC) in the period January 1st 2003 to December 31st 2015 to establish a) the output of completed homes; b) numbers of new homes distributed; c) the tenures of those homes and finally, d) compliance with the allocation criteria established by the 2002 policy.

Showing Trinidad and Tobago A New Way HomeThe 2002 policy is “Showing Trinidad and Tobago a New Way HOME” and it seems to have met the sorry fate of the 1992 national land policy, in that those important policies have both vanished from official websites. The headline of that Policy was the target of 100,000 new homes in ten years. That target was over-ambitious, given the bottlenecks in our system of planning and construction, even if, at that time, ‘money was no problem’. Continue reading “Property Matters – State Housing Facts”