By Kiana Wilburg
Delivering affordable housing for all was one of the 2020 election promises of the People’s Progressive Party/Civic (PPP/C) administration. Towards this end, the party has been in overdrive over the last four years to clear a backlog of applications for house lots and develop new schemes. At his 2024 end of year press conference, Minister of Housing and Water, Collin Croal proudly shared that the government will surpass its manifesto commitment to deliver 50,000 house lots in five years.
To prove his case, he noted that 40, 290 house lots were awarded to Guyanese from 2020 to 2024. Notably, 27 percent of those allocations was done last year. According to the 2025 budget, the government plans to spend a jaw-dropping $112 billion to continue the development of new and existing housing areas. This will allow authorities to allocate an additional 25,000 house lots, clearly surpassing the party’s manifesto commitment, as the minister noted.
In distilling the 40,290 allotments, Croal said 46 percent of those allocations were made to women, while 28 percent went to men. The remainder covers joint applicants. The numbers also show that the younger generation (below 35 years) received 53 percent of the allocations.
To ensure the 50,000 house lot allocation target is surpassed, Minister Croal said his team will be working assiduously to acquire additional lands. This, he noted, is no easy task. He stressed that it entails in most cases, transforming virgin lands by clearing bushes and inputting the necessary infrastructure such as roads and irrigation systems to ensure the area is ready for development.
Many Guyanese have praised the government for its accelerated award of house lots, a critical step in the homeownership process. But as we stand on the foundation of such a success, a key question comes to mind—Can the average Guyanese family afford to build a home once they receive their house lot?
I believe this is something the government is acutely aware of hence it made certain interventions. This includes the removal of Value Added Tax (VAT) on basic building and construction materials.
Complementary initiatives also include progressively increasing the low-income mortgage ceiling at commercial banks from $8 million to $20 million; progressively increasing the ceiling on housing loans at the New Building Society from $12 million to $20 million; and restoring the ceiling on Mortgage Interest Relief for housing loans to $30 million from $15 million to which the APNU/AFC regime had reduced it.
It is important to also note that Guyana established a Home Construction Assistance Facility (HCAF) in 2022, further enabling affordable homeownership for varying income brackets. There are four main projects which fall under the HCAF facility.
There is the Home Construction Assistance Programme (HCAP) – which allows for the collaboration of the CH&PA with the banks to facilitate access to lending institutions for the construction of three main housing designs across all regions.
As for the Bartica Housing Project (BHP), this entails the construction and allocation of 500 moderate income – 3- bedroom housing units in Region Seven.
With respect to the Lethem Housing Subsidy (LHS), this entails a direct intervention by the Guyana Bank for Trade and Industry and NBS to ensure 600 low income homeowners receive a grant of $1 million from the Ministry of Housing and Water, while the homeowner will finance the remaining $2 million to $3 million, as required to build their house, at an interest rate of 3.5 percent, without the need for collateral or a job letter. It is critical to note that this is the lowest rate in the country. In fact, homeowners would only have to repay $14,000 each month but under the condition of the material and labour being procured locally.
One would recall that President , Dr. Irfaan Ali had introduced a steel and cement subsidy to help first time homeowners cover some of the costs attached to such a venture. Guyana Standard previously reported that for persons with an estimated construction cost of less than or equal to $6 million, they will be given one sling of cement and steel for the foundation. For those with an estimated construction cost of more than $6 million but less than or equal to $25 million, they will be given two slings of cement.
Aside from the foregoing initiatives, there is also the Core Homes initiative which falls under the $5.8 billion (US$28 million) Adequate Housing and Urban Accessibility Programme (AHUAP) funded by the Inter-American Bank (IDB). The project allows recipients to make a $100,000 contribution and the State covers all costs related to the provision of land and the construction of 20 x 20 feet two-bedroom concrete units. A total of 250 low-income families are set to benefit from the programme which comes to an end this year. Each unit costs about $4 million. Beneficiaries also receive a five-year termite treatment certificate and an electrical certificate for the building valid for 10 years.
Last year, the government also announced that a master plan for a $6 billion homestead programme along the Soesdyke-Linden Highway has been completed. This programme will see 500 houses being constructed on some 100 acres of land at Yarrowkabra. Each plot of land will feature several coconut or breadfruit trees in the front yard and the installation of a 20 x 40 shade house to the rear of the house. The homes will be handed over to single parent mothers once completed.
If one were to examine the timeline of policy actions, it would be unfair to say that the ministry has not made considerable progress in implementing plans that seek to reduce housing poverty. It is indeed hard at work. As Guyana’s oil wealth expands, and the government continues to accelerate plans to empower citizens with their own homes, it is anticipated that additional strategies will be implemented to help citizens, especially those within the low and middle income brackets, realize their dream of home ownership through greater access to subsidies, grants, and even interest free loans.
Perhaps, we can also strive to be more targeted in our housing programme too. This could entail providing housing aid and units to senior citizens in desperate need of better living conditions, and women with children caught in abusive relationships. We can also consider offering special housing plans that can include interest free loans for our nurses, doctors, teachers, and soldiers.
I was pleased to learn recently that a consultant, according to Minister Croal, is working on a policy that will guide the way forward on greater access to homeownership. It includes a review of existing programmes, policies, and processes implemented by the Central Housing and Planning Authority (CHPA).
As Guyana looks to 2030 with the aim of further elevating the living standards of its people such a policy will be critical, especially when examined against the implications of skyrocketing costs for land and the worsening effects of climate change that will ultimately drive our coastlanders further south.
Overall, I do believe that Guyana is on the right track with its housing goals. There is clearly a strong foundation for which the PPP can build its promises for the 2025 to 2030 period.
