One of the newly completed housing estates on Mahe

The Government's housing programme is on target, with the current stock of ongoing projects contracted amounting to R327 million for 1090 units, Vice-President James Michel has said.

Delivering his 2004 Budget Address to the National Assembly on Tuesday December 2, VP Michel, speaking in his capacity as Minister for Finance, said this was the highest number of housing units ever to be constructed at any one time by the Government.

While on the question of housing VP Michel noted the various changes that had taken place in this area, namely the creation of two companies – the Housing Finance Company (HFC) and the Property Management Company (PMC) – mandated to take over from the Seychelles Housing Development Company (SHDC) as part of the reform programme undertaken by the Ministry of Land Use and Habitat (MLUH).

Apart from granting new housing loans, VP Michel said, the HFC will also eventually take over the total loan portfolio of SHDC.

HFC, VP Michel noted, has also taken over the Home Ownership Scheme (HOS) formed last year to assist families in acquiring their own homes.

Up to October 2003, over 2,000 cases have been processed with 858 cases finalized from which cash receipts of R39 million have been collected. 

"We expect to recover about R20 million during the course of 2004," VP Michel said.

"With the procedural issues with the banks sorted out, cases under HOS are now being dealt with faster and more efficiently and we should be expecting faster inflows in the coming months," he added.

VP Michel said the setting up of the PMC, which will take over and manage all SHDC properties under tenancies as well as all Government buildings, was now being finalized.

The vice-president recalled that families will also be allowed and encouraged to purchase their rented apartments under the HOS. He noted that the Government, through the SHDC, currently has about 1,200 such rental units that will be sold off.

VP Michel also reaffirmed the Government's commitment to continue to assist families whose financial means did not permit under its “Social Housing Programme”, even with the eventual liquidation of SHDC and the taking over of its business by the HFC and PMC with their self financing roles.

"However, instead of relying on Government financing as was previously the case, HFC has now taken over this role and now it is this company which is organizing and managing all financing through loans obtained from commercial banks. Once their homes have been built, families will obtain a loan through HFC from commercial banks to pay for their homes and in the process allow HFC to repay the costs for the construction programme," VP Michel explained.

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