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Title: Budget Highlights: Housing – New model to meet needs of all income segments
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Posts: 1376
From: England
Registered: 01/12/2007
Time spent: 8606 hours

(Date Posted:20/06/2008 10:00:57)

The focus for the housing sector is on consolidating and strengthening social housing schemes and putting up new schemes for low income as well as middle income families. A major step is the setting up a Social Housing Fund, for which Rs 500 million are being earmarked.

The integrated housing scheme at Bambous, with its education, empowerment and training components, is being extended so as to benefit more low income families. The project is being implemented in close collaboration with NGOs and the private sector.

In parallel, traditional housing programmes are being strengthened. An envelope of Rs 170 million is being provided in the Budget for the construction of 774 Firinga houses on 10 sites across the island for very low income families. Overall, some 1,582 Firinga units have been delivered during the last three years. Besides, the Trust Fund for Vulnerable Groups will finance the construction of an additional 1,100 units in 229 pockets of poverty as from July 2008.

For the lower middle income families, the Government is leasing plots of State Land of an extent of 50 - 55 toises with all necessary infrastructure at an annual rate of Rs 3,000. Thus, 309 plots in Ville Noire, Souillac, Glen Park and La Cure are being processed for delivery within financial year 2008-09.
The Government is also intent on developing a new model that will meet the housing needs of all income segments of the population. A strong signal in that direction is the allocation, for social housing programmes, of the other half of the 2,000 arpents from the Government/Mauritius Sugar Producers Association deal reached in the context of the sugar reform. The Social Housing Fund will receive and manage the 1,000 arpents and improve financing for housing by developing and overseeing a new and ambitious programme to build new mixed housing communities on a Public Private Partnership (PPP) basis.

About 10 mixed-income communities will be established on the 1,000 arpents of land. Each community will be built as an attractive village to the new energy savings and environmentally friendly standards. It will also include cycle tracks, pavements for pedestrians, large inner roads and adequate green spaces and common areas.

In each development, space would be set aside for about 200 affordable housing units to be expanded by the owner and 100 serviced plots for sale. The developer would build housing for the middle class and commercial use on the remaining land. A first mixed community housing project is expected to be launched during 2008/09 on a pilot basis. The Social Housing Fund will offer a new housing loan to assist in purchase of land and building.

 New loan schemes

Two other new housing loan schemes will be developed by October 2008. The first scheme will facilitate owners of affordable housing units to gradually expand their home. To ensure that the incomes of these residents grow sufficiently to take advantage of this new scheme, the Empowerment Programme will assist them to upgrade their skills and find placements.

The second scheme is aimed at middle income working couples who are first time home owners. The programme will rely on commercial banks to provide a mortgage. To make the payments affordable, the mortgage will be stretched over a period of up to 35 years and the Social Housing Fund will subsidise the initial monthly payments so that the couple does not pay more than 35 percent of their total monthly income.

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