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BY ALICIA DUNKLEY Observer senior reporter dunkleya@jamaicaobserver.com  
June 5, 2012

NHT goodies – PM announces new housing benefits

Contributors to benefit from two-year tax holiday, reduced interest rates

PORTIA Simpson Miller yesterday pulled from the usual bag of goodies as previous prime ministers, using National Housing Trust (NHT) resources in an attempt to win back public support for her Government battered by claims of cruelty and callousness after imposing a $23-billion tax package, described as the largest ever, on the country.

Simpson Miller, in her contribution to the 2012/13 Budget Debate at Gordon House in downtown Kingston, announced several initiatives, including a two-year tax holiday for the National Housing Trust (NHT), which she said would enable the Trust to pass on more benefits to low-income earners and help the approximately 55 per cent of contributors who earn less than $10,000 per week.

“In order to facilitate the process, the Government has agreed to grant the NHT tax-free status in respect of General Consumption Tax (GCT), stamp duty, property tax and transfer tax for the next two years. The NHT will pass on this benefit, thereby enabling more affordable housing for that category of beneficiaries,” she told the Parliament.

Meanwhile, as of this month, grants to the tune of $1.2 million for each qualified applicant will be allocated daily on a first-come basis to qualified walk-in contributors. According to Simpson Miller, this is not a one-time arrangement and will remain in place for the foreseeable future. NHT Home Grant allocation for the last two quarters, ending December 2011 and March 2012, totalled $336 million and benefited 280 qualified applicants who earn $10,000 per week or less.

Yesterday, the prime minister said 10 per cent of the total home grants will be reserved for qualified applicants with disabilities.

And effective September 1 this year, contributors who qualify for loans at three per cent interest will now only repay at one per cent, while contributors who qualify for loans at five per cent will now pay only three per cent. These reduced rates will apply for three years.

Also effective on September 1, hotel workers who earn $10,000 per week or less and who apply for an NHT mortgage during the next three years will receive a one per cent reduction below the normal rate.

In the meantime, the one per cent interest rate reduction for public sector workers, which was originally due to expire on March 31 next year, has been extended to March 31, 2015.

Simpson Miller said the NHT is also to introduce a new Mortgage Partner Policy aimed at more affluent contributors.

“These are settled homeowners who typically do not apply for their refunds and who do not anticipate accessing a benefit from the NHT. They may, however, have a trusted friend, family member or caregiver or gardener, helper or staff member they would want to help. The mortgage partner will forego their NHT homeowner benefit but can qualify for a Home Improvement loan after 15 years,” the prime minister explained. The mortgage beneficiary who is assisted can also access a Home Grant, if eligible, to improve their affordability.

In the meantime, within the next two months, the NHT will be advertising three new developments for which subsidies will be announced in Clarendon, Manchester and St Thomas of some 918 solutions, 259 service lots and 140 service lots respectively.

In addition, $1.6 billion is to be allocated to the Jamaica Defence Force from the Trust to rebuild Lathbury Barracks at Up Park Camp, using its Engineering Battalion.

“A few weeks ago I visited with the very hard-working men and women in the Jamaica Defence Force at Up Park Camp,” she said. “As minister of defence, I toured a number of areas, including their living quarters, and Mr Speaker, I was most distressed to see the deplorable condition in which our soldiers are living.

“The soldiers defend our nation. This Government defends their right to better living conditions,” the prime minister said.

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