Progress in the housing sector after ten years
A GINA Feature by Pamela Evans
Guyana Chronicle
July 12, 2003
Minister Baksh and Region Nine officials inspect water pressure at Lethem.
Housing and Water Minister, Mr. Shaik Baksh (second from left), inspects plans for Culvert City Housing Scheme with Region Nine (Upper Takatu/Upper Essequibo) officials. (GINA photo)
OWNING a house and getting title to the land is the dream of every Guyanese. People have been very aggressive in acquiring land and getting titles over the last ten years.
Prior to1992, the Ministry of Housing was abolished and there was no proper policy on land and house lot distribution. This has changed since the People's Progressive Party/Civic (PPP/C) Administration took office.
Minister of Housing and Water, Mr. Shaik Baksh outlined Government’s goal for the housing sector in Guyana. He said the ultimate goal of the Government’s housing programme is to provide each Guyanese the opportunity to have access to adequate and affordable shelter.
The Minister explained that in order to make the goal a reality, several policies and programmes were formulated and the successful implementation of those have resulted in the Government meeting the social needs of the population for shelter and settlement. He pointed out that the successes of the housing sector created jobs for people in different sectors, including the forestry and commercial sectors.
Since the PPP/C Administration took office in 1992 over 55,000 persons countrywide received house lots from Government through the Central Housing and Planning Authority (CH&PA). A total of 92 housing schemes have been established in all the Regions throughout the country.
It is the CH&PA’s responsibility for the distribution of land for shelter and settlement and the allocation of house lots. The Authority has a broad-based board with representatives from the six municipalities, the Lands and Surveys Commission, the Environmental Protection Agency, the Central Board of Health and the Private Sector Commission as well as the main Opposition Party.
People who acquired land prior to 1992 were not given ownership. To date, some 10,000 persons in both old and new housing areas across the country received titles to their house lots.
The first phase of a new housing scheme has been established at Parafait/Harmonie in May this year with 500 house lots. The scheme will be developed in phases and it will eventually accommodate 6,000 house lots.
Minister Baksh explained that Government is not satisfied with giving people land without ownership. He explained that the idea is to give people a legal document, which they could pass on from generation to generation. The Minister revealed Government hopes to distribute between 8,000 to 10,000 land titles this year.
There is a backlog of land titles to be processed and the Ministry of Housing and Water intends to clear the backlog within the next four years.
The Minister explained that the target set for this year could only be met if allottees come forward and pay the fee for their titles to be processed. The legal fee for the processing of land titles has been reduced from $12,000 to $8,000.
“The initial response that I received is that many persons are now taking advantage of the reduction of the conveyancing fees. We are also encouraging people to take advantage of the one-stop-shop system whereby officials from the Housing Ministry visit the areas and facilitate the process for allottees to pay their fees,” said Minister Baksh.
The construction of houses in the new housing schemes has been given a boost with the building of low-income model houses through a revolving fund established by the Government. Private developers have built about 200 houses so far.
Minister Baksh explained that land is given to private developers to construct both low and middle-income houses. He added that the developers are provided with fiscal incentives.
People who received house lots over the years are accessing loans from the commercial banks at low interest rates to build their houses. The repayment period for the loans is longer than in the past.
Systems have been put in place for allottees to access money from the banks through a letter of assurance. The letter of assurance is issued by the Minister of Housing to persons who makes the payment in full for both the house lot and legal fees.
“We need to broaden the competition in the housing loan markets. I am satisfied that the interest rate has gone down because that has stimulated the housing drive in Guyana,” said Minister Baksh.
He is also calling on the mortgage institutions to be more flexible and supportive to the poorer sections of the society. “I hope they will be flexible in the eligibility criteria for loans. I intend to work with these institutions to see how they can accommodate the poorer sections of the society, because there is a group out there that is left out of the housing loan market,” said Minister Baksh.
Prior to 1992, the demand for housing was growing at an astounding rate and persons erected shacks along Government reserves and unoccupied lands. This action resulted in the establishment of a large number of squatter settlements across the country.
Squatter settlements are plots of that were not surveyed and do not have the basic infrastructure. In many cases the land is overcrowded and create health-related problems. In 1992, when the present Government took office, there were about 120 squatter settlements, both large and small. One of the first tasks of the Ministry of Housing was to register the existing squatter settlements and put a stop to squatting in Guyana because it is illegal.
The Government has improved a large number of squatter settlements and regularized them into housing schemes. The basic infrastructural works including the supply of potable water, the construction of drains, culverts and roads have been a high point on the Government’s agenda to improve squatter settlements. Some residents of the regularized squatter settlements have also received titles to their lands.
To date, about 92 of these squatter settlements have been regularised and the Government is continuing in its efforts to provide residents with the necessary infrastructure to make living comfortable. During this year, an additional 25 squatter settlements will be regularized.
The Ministry of Housing has been encouraging residents to maintain healthy environments in the housing areas. Minister Baksh explained that they have been encouraging people to maintain a healthy environment in all the communities. Residents are urged to dispose of garbage in a proper manner and construct flush toilets instead of pit latrines.