Prime Minister Holness Announces Revised First Step Housing Programme and Contribution Amnesty for MSMEs and Charities
“The buy-back clause will give mortgagors the option to sell the property back to the NHT after a determined time. The Trust may re-purchase the unit for sale to its contributors. The mortgagors who sell their unit to the NHT under this arrangement will be allowed to access a new benefit from the NHT, in full, towards the acquisition of a new home.”
-Prime Minister Holness
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Prime Minister Andrew Holness has announced significantly improved policy changes under the National Housing Trust (NHT) aimed at addressing affordable housing and supporting the recovery of Micro, Small, and Medium-sized Enterprises (MSMEs) and charitable organizations.
Delivering his 2024/2025 Budget Presentation on Thursday (March 21, 2024) in Parliament, Prime Minister Holness announced the introduction of the Revised First Step Housing Programme. This new policy comes with a novel buy-back clause to help significantly address the pressing need for affordable housing.
Under this programme, the NHT will develop one-bedroom apartment complexes, particularly within or near urban centers, as starter homes. These apartments will be made available to contributors via sale agreements with an optional buy-back clause.
“The buy-back clause will give mortgagors the option to sell the property back to the NHT after a determined time. The Trust may re-purchase the unit for sale to its contributors. The mortgagors who sell their unit to the NHT under this arrangement will be allowed to access a new benefit from the NHT, in full, towards the acquisition of a new home,” said Prime Minister Holness.
Mortgagors who utilize this option will receive a new benefit from the NHT towards acquiring a new home. With units already under construction in Vineyard Town and Howard Avenue, St. Andrew, and additional units earmarked for Barracks Road in Montego Bay, this initiative aims to provide stable housing options for single dwellers and young couples without forfeiting NHT first-time homeowners’ benefits.
Prime Minister Holness also announced a policy change to benefit young adults by reserving up to 10% of housing solutions in the current Housing Plan for contributors under 35 years old. This move by the Holness administration is a wealth creation initiative of the government targeted toward youth and represents another move to address intergenerational poverty.
“The NHT will reserve up to 10% of the housing solutions in the current Housing Plan for under 35 years old contributors. 10% of our current housing plans will go to under 35-year-old contributors. Over the next 5 years, this will result in approximately 4,300 housing solutions being available at 100% financing up to $15M, subject to affordability,” said Prime Minister Holness.
NHT Amnesty for MSMEs and Charities.
In the meantime, in a further effort to support economic recovery, the NHT will also offer a Contribution Amnesty for MSMEs and charitable entities facing financial challenges. The Amnesty will waive penalty interest on employee and employer contributions, along with offering a 20% discount on outstanding employer contributions, providing much-needed relief to these institutions during these challenging times.
Prime Minister Holness reiterated the government’s commitment to addressing housing affordability and supporting economic recovery, emphasizing these policy changes as vital steps towards building a more inclusive, resilient and caring economy and society.