THE National Housing Trust (NHT) has over $900 million in arrears, which grew 16 per cent over last year.

“The number of mortgages in arrears for 90 days and over as at December 31, 2009 was 13,448 with arrears valued at $901.2 million,” stated Sophia Lewis, communications co-ordinator at the NHT, in a written response to Business Observer queries. “The arrears target will remain at 13 per cent for March 31, 2011.”

This target by the NHT which falls under the Office of Prime Minister is below the rate of increase by private sector building societies which increased their arrears over 90 days up to September 2009 by 54 per cent over the last 12 months to $4 billion.

Lewis stated that common reasons for non-payment included loss of income, reduced income, over indebtedness and illness. The total number of active NHT mortgages as at December 31 was 83,411.

The NHT’s interest on loans and investments is expected to hit $7 billion this fiscal year up from $6.3 billion a year prior, according to the Jamaica Public Bodies, a document published by the finance ministry.

The NHT also plans to grow by 25 per cent the “number of loans written” in the 2010/11 fiscal year at 8,060 compared with this fiscal year which ends in March at 6,408.

The NHT explained that an account is in arrears if the borrower fails to make expected loan payments by the due date, which is the first day of the month, but becomes chronically delinquent if over 90 days.

“However, the borrower would have defaulted on payment if he failed to make full payment in the month. When this occurs, his or her account would be deemed 30 days in arrears. If the borrower fails to make full mortgage payments for three months, then his account would be in arrears for 90 days or “chronic” delinquency,” she said.

The NHT was established in 1976 and is funded by statutory deductions from employers, employees and self-employed individuals. The trust is the largest provider of residential mortgages in Jamaica, with mortgage loans totalling $36 billion.

Last September, the NHT committed to start construction on 12,000 houses over 18 months in six parishes at a total cost of $29 billion. Part of that included a $2.7-billion contract awarded to M&M Jamaica for construction of 834 houses for Longville Development phase three; and $2.3-billion worth of contracts awarded to Ashtrom Building Systems to provide 419 houses. In October, the NHT had contracted Foote Construction for $199 million to begin infrastructure and construction works for housing lots at Hampden Sugar Housing Development.

But other projects include: 288 lots at Hampden in Trelawny and 149 Stokes Hall in St Thomas and 746 houses now under construction at Union Estate. At Perth in Manchester, 1,343 housing units and 257 serviced lots are planned for completion by September 2011. In St James, 148 serviced lots will be offered at Providence located near the upscale Ironshore community and at Bushy Park, Clarendon, 67 studios, one and two-bedroom houses will be constructed.