ROSEAU, Dominica--Led by Prime Minister Roosevelt Skerrit, the government of Dominica is focused on an unprecedented housing policy that will deliver 5,000 homes to its citizens across the island.
Termed “The Housing Revolution”, the houses come in various sizes and styles such as three-bedroom townhouses, three-bedroom apartments, four-bedroom semi-detached houses, and three-bedroom and two-bedroom apartments. The houses are built to withstand a Category 5 hurricanes and higher, made of reinforced concrete from foundation to roof, constructed to form one solid unit.
Once completed, this policy will increase the nation’s housing stock by nearly 20 per cent, transform over 10,000 lives and create value well over EC $250,000 per home. So far, over 300 homes have been handed over to qualified residents. Despite their value of over $250,000 each, these houses come at no cost to the beneficiaries. The project is financed with funds from the Citizen By Investment (CBI) programme.
The execution of this policy is the result of prudent management of government finances and policies that prioritise low- and middle-income families.
This unprecedented housing policy, the most transformational in the Eastern Caribbean in decades, will have real and life-changing impact on families.
The government is convinced this housing initiative will positively transform the lives of generations to come. The prime minister believes having a place to call home leads to better families, higher performing children at school, reduction in crime and as a result, better communities.
According to regional observers, Dominica is at the forefront of using its CBI programme to transform the lives of its citizens for generations to come. Despite the devastating impact of Hurricane Maria on the island in 2017, the government is still able to deliver on its commitment as a result of the government’s responsible management of its resources.
In addition to building 5,000 homes, the Skerrit-led administration has also made it possible for citizens to own land under its Squatter Regularisation Programme. Under this programme, citizens who have been squatting on government land for decades were able to purchase and obtain title from government.
These low-income citizens purchased the land from the government at $1 per square foot. This price was significantly below the market price which could be in excess of $10 per square foot. Not only did the beneficiaries under this land programme feel a sense of economic relief, pride and dignity, they also experienced an immediate increase in wealth of over $8 million combined. This policy also resulted in greater financial freedom for the beneficiaries, giving many the ability to secure bank loan for the first time.
As part of the government home ownership programme, civil servants in Dominica are also benefitting. Over the past 15 years, the government of Dominica has made available over $110 million in loans to civil servants through the National Home Loan Board. Under this programme, civil servants in Dominica have been able to obtain housing loans at an average interest rate of four per cent, compared to a market rate of up to nine per cent at some of the island’s leading financial institutions. In addition, the first $30,000 of their salaries is exempt from income tax, rather than the first $12,000 that was allowed before the government was elected in 2000.
It is estimated that during the life of a 20-year mortgage in the amount of $300,000, a civil servant will experience savings of over $200,000 or over $850 per month in interest cost. This dovetails with the government’s goal of putting more money in the pockets of civil servants by increasing their effective salary, improving their standard of living in the short term and giving them the ability to save more for their retirement in the long term.
Since his election in 2005, the prime minister is very satisfied with his government housing policy, which he believes has transformed the lives of citizens and will continue to do so for generations to come. Despite the government’s substantial spending on housing, the citizens of Dominica have not been burdened by additional taxes, nor has the country’s debt ratio been severely impacted. The prime minister believes there is more work to be done when it comes to housing, and his government will continue on the path of transforming lives and making Dominica the best place to live for its citizens.
