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Families to bear the full cost of the removal or relocation of their homes under the new Informal Lot Allocation Policy

Families to bear the full cost of the removal or relocation of their homes under the new Informal Lot Allocation Policy

By Iva Danford
26/11/2020

An informal settler will need to bear the full cost if their homes are required to be removed or relocated under the new Informal Lot Allocation Policy.

The Ministry of Housing and Community Development will be carrying out public consultations on the new policy that will look at how lots are allocated in developed informal settlements.

The policy states that once an informal settlement has been upgraded the Ministry will conduct property title searches and household income information verification with other relevant government ministries and institutions including the Fiji Revenue and Customs Service and the Fiji National Provident Fund.

The policy states that a list of all informal settlers and their preliminary assessment of eligibility will be presented to the Allocation Committee for approval.

The Allocation Committee shall be comprised of Permanent Secretary for Housing and Community Development who is the Chair, Director for Housing, Chief Executive of the Housing Authority, Director for Lands if a decision is required for State Land or the iTLTB Chief Executive Officer if a decision is required for iTaukei Land.

The policy states that the lot lease land title must be under the name of both the applicant and the spouse or partner, the term of residential lease shall be 99 years and the lot shall be used for residential purposes, the applicant is required to construct and/or formalise the house on the lot within 24 months from date of allocation of the lot lease, unless otherwise approved in writing by the Allocation Committee.

It states that all lot recipients may apply for housing grant assistance offered by the Ministry provided they apply and meet the eligibility criteria.

The Ministry may provide information on design of lower-cost residential buildings but will not be responsible for any construction works.

The approved applicant shall make their own arrangement for building financing and approvals, dwelling construction and arrange and pay the appropriate service connection fee to the utility providers.

The Ministry will raise awareness and offer guidance on building cost-effective climate change and disaster-resilient structures.

Each eligible household allocated a lot within the programme must pay allotment price to the Ministry for the allocated upgraded lot.

Under the policy, if the household income range is less than $10,000, Government subsidy level is 90% of the current market value of allocated lot.

If the household income is between $10,001 and $15,000 the Government Subsidy level is 80%, if it is between $15,001 and $25,000 the Government Subsidy level is 70%, if it is between $25,001 and $35,000 the Government Subsidy level is 60% and if it is between $35,001 and $50,000 the Government Subsidy level is 40% of the current market value of the allocated lot.

If the household income is above $50,001, people have to pay the current market value of the allocated lot.

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