The Tribune

A Bahamian real estate broker says his proposed Rental Assistance Programme for Hurricane Dorian victims is gaining “incredible momentum” among potential investors.

Mario Carey, principal of Better Homes and Gardens Real Estate MCR Group Bahamas, said businessmen and high net worth individuals had reacted favourably to the idea of buying distressed New Providence homes at affordable prices - and with reduced closing costs - as a solution to the housing needs of Dorian evacuees.

“We had a group of high net worth individuals on the island this week for a private event hosted by Bahamian businessmen,” Mr Carey said. “When we mentioned the idea of taking unoccupied residential properties, either single or multi-residential, and converting them into short-term rentals at a reduced rate to provide some form of normalcy for families who lost everything during the storm, every single member of that group of the super successful said they would like to be part of it. They recognised it as social entrepreneurship.”

Mr Carey is proposing to create an inventory of all distressed properties in New Providence and populated Family Islands that could support additional children in classrooms, or would have the necessary medical facilities available in special cases.

“Part of the challenge now is that people are being housed all over – in shelters, in hotels, with family or with strangers who have been kind enough to take them in,” he added. “None of those conditions is sustainable.

“Families cannot live in tents, shelters or hotels for extended periods. For those who lost everything, having a roof over their head and a home to call their own, even temporarily, will allow them a chance to begin to build their lives again.

“Contributions that came in immediately following the storm are already slowing down, making it increasingly challenging for government to keep people in those hotels that are charging for rooms.”

Mr Carey suggested there are probably more than 2,000 residential units held by banks and other financial institutions as a result of homeowners defaulting on mortgages. In a small percentage of cases, the homeowner has been allowed to remain in the house while the bank attempts to sell and recoup the money it lent, but the vast majority of these homes sit empty.

“Vacant houses, especially if there are several, bring down the value of a neighbourhood,” he added. “They can be unsightly with uncared-for yards. Vacant buildings become refuges for rats, mice and other vermin, not to mention the drug dependent and the homeless. Often, they are cover for drug deals or criminal acts.”

Mr Carey envisions various groups of investors, led by Bahamians, buying distressed properties, but with reduced closing costs including the possibility of a VAT waiver. Reduced repair costs could be facilitated by import duty and ‘border VAT’ exemptions for those suppliers on the National Emergency Management Agency’s (NEMA) approved list of vendors, which is expected to be issued soon.

Decisions about the extent of government rent subsidies, such as length of assistance and who qualifies, would still have to be made if the idea is approved. Mr Carey has started a round of meetings with officials in the public, private sectors and not-for-profit sectors to obtain these answers and build support for his idea.

Christine Wallace-Whitfield, the Bahamas Real Estate Association’s (BREA) president, gave a personal tentative nod to Mr Carey’s plan, noting the Board had not met and it was only her opinion.

“An occupied property is always a better option than a vacant property in a neighbourhood,” said Mrs Wallace-Whitfield. “Occupied properties are less vulnerable to vandalism, or settings for crime, drugs and general deterioration.

“It would be a solid solution for banks to get foreclosed properties off their books, eventually provide a return on investment for those who purchase and, in the interim and most importantly, provide housing for those who need it.”