An "explosive" expansion in the housing sector is being forecast by the government, in light of a newly-launched public-private sector collaboration between the Department of Housing and the Bahamas Real Estate Association (BREA), which is being touted as likely to lead to more construction starts, better access to low income homes and greater economic activity overall.
Minister of the Environment and Housing Kenred Dorsett said that the government has come to the conclusion that "there's no way" that meeting the demand for housing from low- and middle-income individuals is something that the government can do alone.
Instead he proposed it can be addressed through public-private sector collaboration, with the private sector becoming involved in the sourcing, marketing and construction of property that can be made available to such individuals.
Bahamas Real Estate Association (BREA) President Franon Wilson yesterday described the partnership between the Ministry of Housing and BREA in this regard as a "wonderful" and unprecedented opportunity that was "unanimously" supported by BREA's board.
"This public-private partnership is pregnant with opportunity," said Wilson. "I am not aware of anything being done like this before."
Under the terms of a memorandum of understanding (MOU) signed between the Department of Housing and BREA, announced yesterday at the Ministry of Housing's offices with Dorsett, Wilson and two of BREA's directors, Chandra Parker of Mario Carey Realty, and Eric Russell of T&R Associates, BREA members will help to market already-developed and vacant service lots in government Family Island subdivisions to qualified Bahamians.
Members will also work with the government to identify suitable service lots for the development of low- and medium-income housing, as well as explore with the government the possibility of creating a program of partnerships between construction companies and landowners which would see the private sector develop "turn-key" homes on behalf of the government for sale to low- and medium-income individuals, which Dorsett said could lead to a reduction in the overall cost of providing government homes.
In addition, the terms of the MOU will see BREA collaborate to identify suitable building locations and facilities that would help the government meet its operational needs, and there is an agreement that the two sides and other relevant government agencies will hold a conclave where the real estate sector can present its views and concerns on government policies and legislation affecting real estate development.
Dorsett said: "We want to make sure that there is a collaborative consultation between the government and BREA on how we can continue to provide affordable housing for Bahamians. So that is one of the primary goals that I wish to establish through this relationship. The reality is you (BREA) represent the developers, the ones who are in the market for homes, you should be the ones telling us, based on what people can afford, how best we can meet those objectives.
"Building plots which are approved under the act do not necessarily have to be government-owned. Through the MLS (Multiple Listing Service) you have access to all of the inventory of available lots - be they in New Providence or elsewhere - that have inventory already installed that have subdivision approval. There is absolutely no reason not to put that into the mix in terms of lots that we will make available through the Department of Housing, with the construction of houses thereon to the thousands of applicants to the Department of Housing," he added.
Dorsett said he expects the collaboration to spur greater construction and economic activity overall, as more people begin to see opportunities to have access to their own home.
At present, the government simply cannot meet the demand for this type of housing, he added, with the seven to eight thousand people already having applied for government-built homes likely to be only a portion of the overall number of people seeking homes in this price range.
With the financially-challenged Bahamas Mortgage Corporation just one "approved lender" to those seeking government-built or provided housing, Dorsett revealed that the government has had discussions with "all of the major banks and they are willing to work with the government" to assist with the provision of homes to low- and middle-income individuals.
"I think it bodes well for the opportunity to have an explosive housing sector," he added.
BREA Director and MLS Chair Chandra Parker, a real estate broker with Mario Carey Realty, said: "I was at the board meeting where we approved this (MOU) unanimously. Everyone was very excited about working so closely with the Ministry of Housing. These are issues we encounter every day in our profession, issues with people having difficulty finding housing. We understand how serious and important these issues are. It's a very exciting prospect for me personally, and I know for the board. We represent a very large group of professionals and we look forward to putting those to work for the country."
BREA board director and international leasings chair, Eric Russell of T&R Associates, said: "My personal motto is that every deserving family in The Bahamas should have a home... I think we can do a lot of great things together."
Wilson, who in fact stepped down from the position of president yesterday afternoon at BREA's annual general meeting after determining he would not run again, noted he was particularly looking forward to an opportunity for BREA members to help to mold a land use policy for The Bahamas that could factor into the forthcoming national economic development plan for the country - another component of the collaboration.
"This is really and truly the first step to greater things, towards building a more sustainable Bahamas," said Wilson. "We hope we'll end up with a country that's well-organized."

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