Property Matters – HDC Housing Bonds Part Three

Property Matters – HDC Housing Bonds Part Three

The first article in this series set out the background to these proposed bonds and the implications of the HDC’s perennial problem with bad property titles.  The second drew parallels between these proposals and the roots of the 2008 Wall Street crash, with some references to Jamaica’s National Housing Trust and its contribution system as an alternative for financing affordable housing.  This week I conclude by delving into the heart of the matter, the HDC’s finances and its performance in terms of its existing bond portfolio.

One of my persistent complaints against many of our State Agencies, including the HDC, is the long-term failure or refusal to publish proper audited accounts as required by laws and regulations.  nha-hdc-logoI am pleased to report that my requests for NHA/HDC financial statements from 2003 to 2018 were satisfied in April this year.  Once again, I thank the exemplary officers at the HDC for their assistance.  Even if this time I had to engage my attorney to send HDC a pre-action protocol letter before the financial statements were released and what is more, they have not refunded my legal fees.

Those financial statements are for the NHA from 2003 to 2005 and the HDC after 2005.  This article is focused on these proposed bonds so the first point to raise is the status of those financial statements. Continue reading “Property Matters – HDC Housing Bonds Part Three”

Property Matters – HDC Housing Bonds, part 2

According to the Parliament’s Joint Select Committee 2015 Report into TTMF

“…In 2008 we had established what we called an HDC Unit in anticipation of 3500 mortgages from HDC within three years. Three years later we had to disband that Unit because the HDC did not have the titles that would afford mortgages…”
—testimony of TTMF’s then Managing Director, Ms. Ingrid Lashley, at pg. 126)

The most frequent question arising from last week’s article was in relation to this issue of bad titles on homes built by NHA and HDC, which made it impossible to finance sales via the traditional mortgage lenders. This requires an explanation before getting to the root of my concerns over the parallels with the US financial collapse in 2008 – the Wall Street meltdown which extended to have global consequences. Beyond that, I will draw on Jamaica’s National Housing Trust as an example of an alternative system of housing finance, less dependent on the agents of financialization now looming in the current T&T proposals.
Continue reading “Property Matters – HDC Housing Bonds, part 2”

Property Matters – HDC Housing Bonds

This article will examine the proposed HDC Housing Bonds announced by Finance Minister Imbert in Parliament on Friday, 20 September 2019.  The proposal is to borrow $1.0 Billion via bonds in various tenors offering investors tax-free returns of 4.5%.  The funds raised are to be used for purchasing HDC homes, which was stated to be of importance in addressing critical financial challenges in that State Agency.

Continue reading “Property Matters – HDC Housing Bonds”

Property Matters – In-Dependence?

 

“Local contractors and consultants who compete with foreign companies should be provided with the same or equivalent benefits as enjoyed by those foreign companies and should be protected from unfair competition through matters such as soft loans.”
—The Uff Report‘s 43rd recommendation, on the benefits awarded to foreign contractors.

 

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This article will delve into the large-scale program for 5,000 new apartments to be built for HDC by China Gezhouba Group International Engineering Co Ltd (CGGC). I am writing this on the night before our 57th anniversary of Independence and my reflections are bittersweet, dwelling on those old discussions about how, for many countries in the Global South, Independence was only symbolised as a spectacle. We used to call it Flag and Anthem Independence, all form with little substance.

As the fight for transparency in our Public Business is waged against those officials who are hostile to the truth, my mind runs on the widespread recent discussion on the proper performance of the National Anthem; the re-emergence of the colonial offense of Sedition; the bizarre, backward, dress-codes to enter public facilities (no sleeveless, no shorts, no cap or hat, no this and none of that) and so much else in the same vein. At the same time as the endless discussions on these issues, we have a cultivated, enforced silence on the huge deals and arrangements within which our Public Assets are bargained. Continue reading “Property Matters – In-Dependence?”

Property Matters – Affordability and Legality

The previous three articles, I, II and III exposed counterfactuals, those being baseless claims, hypotheses or beliefs. In those cases, I dealt with large-scale toxic untruths, shamelessly promoted by those who know better. All that is in it.

Showing Trinidad and Tobago A New Way HomeThis week I continue my Season of Reflection, turning to T&T’s Housing Policy and Program. The Housing Policy (2002) was implemented via the National Housing Authority (NHA), which was succeeded in 2005 by the Housing Development Corporation – established by the HDC Act. This week’s counterfactual is that our housing policy and the HDC are dedicated to producing affordable housing.

This article will establish just how small is the HDC output of affordable homes and go on to locate these operations within the legal obligations governing that Public Institution. Continue reading “Property Matters – Affordability and Legality”