Changes coming to NHT subsidy policy

Changes are coming to the framework of subsidies offered to contributors of the National Housing Trust (NHT).

Currently, interest rate subsidies are offered to special groups, subsidies based on income, and price subsidies applied to the selling price of a housing solution within a development.

Prime Minister Andrew Holness highlighted in Parliament today that income is not currently considered as an additional criterion for whether a subsidy can be applied to members within a special group or applicants to a particular development.

As a result, he wants this to change.

Effective July 1, the trust will revise its policy on subsidies in an effort to ensure that they are applied to those who are most in need.

Holness said that income will be the sole determinant of whether a subsidy is applied.

Further, there is to be a change in how subsidies are applied over the life of a mortgage.

Currently, the interest rate for each applicant is decided on the basis of income at the time of application and is applied over the life of the loan.

Holness noted that as the circumstances of mortgagors change, their new incomes may place them in a higher or lower income band, lessening or increasing the need for an interest rate subsidy.

With this in mind, he announced that, as of July 1, all new loans will be subject to a periodic review in order to determine whether the level of subsidy given at the opening of the loan is still required or whether a greater or lesser subsidy is needed.

Meanwhile, the NHT's disability grant is to go up.

NHT mortgagors with disabilities or who reside with and care for a family member with disabilities are eligible for a grant of up to $150,000 to be used to retrofit or upgrade the dwelling to make it suitable to serve their needs.

Effective July 1, the NHT will double the grant benefit and allocate up to $300,000 per individual up to a maximum of two persons living with disabilities per household.

In the meantime, the NHT will allow up to three contributors to apply for a two-bedroom or larger unit to better improve affordability.

This policy position, Holness explained, ensures that more persons, particularly family members, can access housing. 

He said a key provision of this policy is that proof must be established that the applicants are bona fide family members, and have demonstrable kinship ties.

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