It was interesting to learn that discussions with financial institutions on government’s housing policy (see related story) have already begun, according to Minister of Public Housing, Spatial Planning, Environment and Infrastructure VROMI Patrice Gumbs. Submitted to Parliament on February 3, it proposes the delivery of 120 housing units per year over a decade.
However, this target is not limited to new construction and also not solely a government undertaking. It includes both new construction and the repurposing of existing buildings and housing stock through a multi-stakeholder approach involving private developers and other partners.
At least 70% of the programme is expected to come through reuse, densification, apartment developments and semi-detached town-house models rather than exclusively through new greenfield developments. Government has finalised the purchase of the Belvedere Remainder land, but the policy does not envision all 1,200 units being constructed in there. The current Belvedere housing project consists of 474 homes.
Housing should cost no more than 30% of median net income, which using a 2025 baseline study equates to approximately 900 Caribbean guilders per month. Affordability would be protected through a combination of regulatory, supply-side and financial measures, including subsidies, mortgage guarantees and rent-to-buy programmes.
Since St. Maarten Housing Development Foundation (SMHDF) currently has approximately 4,000 housing requests on its waiting list, the need is clearly there. According to the minister, this could represent around 7,000 people overall.
Other than building more social homes, the Rental Tribunal can help. The idea of placing it fully under VROMI instead of General Affairs (AZ) as suggested would seem to make sense.
However, the maximum property value of 200,000 Caribbean guilders for disputes between landlords and tenants handled by the tribunal is no longer adequate in today’s real estate market. An amendment has been proposed to raise this to Cg. 850,000.
That amounts to a more than four-fold increase, which some consider rather drastic. Perhaps, but the current threshold is no longer in keeping with the times.
