CHANTILLY GARDENS, Westmoreland — Prime Minister Dr Andrew Holness on Friday took a jab at an election promise by the Opposition People’s National (PNP) to provide housing as well as downpayments on the units, saying that it could drive up the cost of homes on the market.

“The person who is going to receive it, that $500,000, will say ‘Yeah, that’s great,’ not realising that what the policy is actually doing is pushing the prices of homes out of the reach of people,” Holness stated at the ground-breaking ceremony for Chantilly Gardens Housing Scheme in Westmoreland.

The PNP, on the hustings, had outlined a plan to construct 50,000 houses for which people under 35 years old will get a $500,000 grant to make a downpayment towards homeownership.

However, arguing that such a move will have a ripple effect in the market, Holness said, “the wrong policies can have a devastating impact and effect… people are saying, ‘Yeah, great policy,’ but they don’t see the negative impact coming”.

“You have to think carefully,” he said, adding that his Administration gives a great deal of thought to formulating policies.

He highlighted the recent increase in the sum home purchasers can borrow from the National Housing Trust (NHT), and the increase in the various grants from the entity.

“Now you can get $9 million as a single borrower. And if you are purchasing a home and the cost of that home is below $14 million, then you can get up to $12 million. So, we have increased the loan limits from the NHT significantly — and what that has done is to create more persons who are seeking to purchase homes,” he said.

According to Holness, the process of increasing the loan limits was carefully thought out, “because as you increase the loan limits it’s almost, as they say, night follows day that the price is going to inch up because developers say, ‘Ah, you can pay more.’ ”

However, he said the Government has introduced an incentive to developers to build homes within the $14-million band so as to give more people an opportunity to afford their own homes.

The Chantilly Gardens Housing Scheme is a partnership between the NHT and Grange Solutions Limited which will see the construction of 120 two-bedroom, one-bathroom houses under the NHT’s Guaranteed Purchase Programme (GPP).

The GPP, introduced in November 2018, allows housing developers to conceptualise and execute their plans while the NHT absorbs the market risk by purchasing units in the development.

The aim is to leverage the efficiencies within the private sector so that units can be delivered at lower costs, within faster time frames, and with the private partner assuming most of the implementation risks.

Under the initiative, developers have sole responsibility for designing, implementing, maintaining and closing out the projects. The completed units will be made available to NHT contributors using NHT financing options for which they have to be qualified.

“Each of these 750-square-foot homes will feature the durability and the functionality we expect in the 21st century: reinforced concrete walls and roofs, ceramic floor tiles, glazed windows, indoor plumbing and external laundry and, of course, a fitting kitchen for these homes — all designed to provide comfort, safety and dignity,” Holness said.

“But, this development is not only about a house. It includes roads with sidewalks and curbs, a potable water network with fire hydrants, storm water drainage, electrical distribution systems, a centralised sewage treatment plant, [and] lands reserved for green spaces,” stated Holness.

“In other words, we are building not just homes but sustainable, complete, and liveable communities,” argued Holness.

The director of Grange Solutions Limited, Junior Levine, in his address noted that while the planning has been a long journey, he is happy to know that they are at a point where their collective hard work and determination are now bearing fruit.

Levine also lauded the GPP as a powerful, groundbreaking, pioneering tool that bridges the gap between the demand for housing — especially amongst key demographics — and the supplier.

“It is a programme [that] we should encourage others to participate in as it supports what I believe to be a critical component of national development — one I refer to as shelter security for Jamaica,” stated Levine.