More affordable housing for low-and middle-income earners – Prof. Prasad

Great news to low-and middle-income earners as the Government through the Housing Authority and Public Rental Board, is looking at delivering around 2,900 residential lots and more than 1,800 houses in Nepani, Wanibuku, Davuilevu, Tavakubu, Tavua, Wairabetia, Tacirua, Waqadra, Waila and Veikoba.

Deputy Prime Minister and Minister for Finance Professor Biman Prasad says access to housing remains a challenge, especially in our major urban centres.

He says apart from the Housing Authority and PRB, they are also collaborating with other key partners like Habitat for Humanity, HART, Koroipita and other private sector partners to deliver affordable housing solutions.

Professor Prasad says a total of around $4 million is provided for these partnerships.

He says the tax incentive available for the development of subdivisions has been extended which provides developer profit exemptions and customs duty concessions for land developers undertaking investment in residential subdivisions.

The Deputy Prime Minister adds this has been quite effective in encouraging investors to add additional residential lots and increasing the overall stock of housing in Fiji.

He also highlighted that the low-interest rate environment remains conducive for housing finance with home loans provided at just below 4 percent from the commercial banks.

Professor Prasad says they will also allow FDB to re-introduce housing loans on a small scale. The Deputy Prime Minister says to support low and middle-income families with home deposits, they will continue with the first home buyers grant.

He says for those earning below $50,000, a government grant of $30,000 is available for first home construction while $15,000 is provided for first home purchase.

Professor Prasad says for those earning above $50,000 but less than $100,000, a first home construction grant of $20,000 is available and a $5,000 grant for first home purchase.

He adds this will continue with a budget of $3.5 million.

On informal settlements, Professor Prasad says the country faces major challenges in this area and the rise in squatter settlements is linked to our history.

The Minister says they remain committed to redeveloping and formalizing our squatter settlements with the issuance of proper lease titles and appropriate facilities and services.

He says around $15 million is provided for the formalization of 6 informal settlements in Tavela, Tore, Field 40, Valequyaya, Sakoca and Vunika.

Professor Prasad says they will also start four new areas including Lovu Seaside, Nabare, Delaisaweni and Caubati where this will formalize around 1500 housing leases.

In response to eviction notices given to families in areas like Nabua Muslim League, Veidogo in Vatuwaqa, and Nadiri, the Deputy Prime Minister says the Government is providing funding of $2.2 million for relocation and resettlement.

He says the funding will be used to commence critical preparatory work, including consultations with affected communities, land negotiations, and detailed implementation planning to ensure that affected families are provided with secure resettlement options.

Professor Prasad says the VAT refund scheme for the construction of homes will continue and under this scheme, any person constructing their first home is eligible for a refund of all VAT paid on construction material up to a value of $120,000.

He adds that they are also expanding this for the installation of solar power on residential homes and reconstruction of homes destroyed by termites for households with less than $50,000 income.

The Minister says this will complement the termite construction subsidy of $5,000 provided to families earning less than $30,000 and $2,000 to those earning between $30,000 to $50,000.

He says the Government has allocated $2.9 million towards this, on top of the $5 million that has already been spent when the initiative was introduced.