The Tribune

By RICARDO WELLS

Tribune Staff Reporter

rwells@tribunemedia.net

FORMER Bahamas Mortgage Corporation chairman Alex Storr has suggested turnkey homes provided under the former Christie administration were “undervalued,” pushing back against claims the former government sold homes for more than they were worth.

Current Environment and Housing Minister Romauld Ferreira earlier this week insisted new housing initiatives introduced by the Minnis administration rescued Bahamians from the “raw” deals offered under its predecessor.

Mr Ferreira suggested that under the former Christie administration, Bahamians were in many cases being overcharged between $20,000 to $40,000 for government homes.

He asserted people were being made to buy homes valued at $140,000 to $150,000, for $170,000 to $180,000.

He said this reality served as motivation for the Minnis administration’s decision to discontinue offering turnkey homes, but instead serviced lots.

In a statement yesterday, Mr Storr pointed out the BMC has never been responsible for pricing housing properties, but rather in association with banking institutions, financed the purchases.

Mr Storr said pricing under the Christie administration was handled by the Ministry of Housing, of which he contended he had “every confidence” was being responsible.

“As everyone knows, lending institutions will not lend you a dime more than a house is worth, and this was never an issue with any of the commercial banks,” he said. “Their survival depends on this.”

Mr Storr continued: “As a matter of fact, many of these houses were actually undervalued as many times infrastructure cost, actual land value, and other incidentals were not considered in the final price.

“Rather than making nonsensical, erroneous, and baseless accusations, I humbly suggest the AWOL minister get a handle on his ministry and tackle pertinent issues within such as the houses in Queen’s Park Subdivision that lay vacant after being completed more than a year ago, his failure to comment publicly on the firing of several experienced executives at BMC, or the millions of dollars in revenue shortfall BMC will be facing because of the shift in the government’s housing policy.

“In my opinion, the last issue will severely hamper their ability to service their upcoming due bonds without help from an already overburdened treasury and will most likely mean more government borrowing to add to the billions we already owe,” he added.

Mr Storr said the Minnis administration’s various policies have only created grief and hardship for Bahamians, failing to deliver on its many promises of relief.

In line with that, he implored the government to focus on improving its own record, rather than blaming the Progressive Liberal Party for its failures. The Minnis administration is seeking to provide 360 lots in its first phase of its current housing initiative.