GOVERNMENT is to build nearly 100 affordable homes over the next three years in a "watershed" partnership with the private sector.

Unveiling the development yesterday, Works & Engineering and Housing Minister David Burch said the 96 units on the Loughlands property in Paget would sell for as little as $450,000 ? providing "genuine economic empowerment" to young Bermudians struggling to get on the housing ladder.

The first 30 homes are expected to be ready for occupancy within a year, with the completion dates of the remaining two-thirds staggered over an additional two years. The one property now occupying the site, a Grade 3 listed building, will undergo interior renovations to transform it into a day care centre.

The project was put together after developer Gilbert Lopes, who owns the seven-acre site, approached Government last year.

Yesterday Lt. Col. Burch said: "This Government has committed itself to the provision of homes for Bermudians at prices that the average hard-working man and woman can afford. Today, that commitment takes yet another step towards reality.

"The Loughlands property, located at 79 South Road, Paget, comprises 7.71 acres. Under the partnership that has been formed between Government and Mr. Lopes, this property will be redeveloped into 96 housing units ? 28 three-bedroom and 68 two-bedroom units ? and a day care facility.

"More than housing, this project represents genuine economic empowerment. Those young professionals who struggle to understand how their collective household income of $150,000 still cannot afford them a home, need look no further.

"Making homes available to first-time homeowners at prices that are simply unavailable in the ordinary marketplace represents the 'hand-up' that honest, hard-working young Bermudians so desperately need."

Col. Burch explained that Government, through the Bermuda Housing Corporation, will initially own the site and, as the houses are built, a Condominium Association will be formed to manage the facility.

"Completed units will then be resold to first-time homeowners," he said.

"Anticipated sale prices range from $450,000 to $500,000. It is important to note that Government will not make a profit on this project, but will act as an agent to facilitate sales to Bermudians."

The Minister added that a duty-free exemption would be placed on materials shipped in to build the units, lowering the final cost of the homes.

And he pointed out that a number of hurdles had to be overcome before the concept could be approved.

He said the site had been earmarked for tourism development, but was re-zoned with the full support of Tourism and Transport Minister Ewart Brown who had, without hesitation, "recognised the priority of providing opportunities for Bermudians".

And Col. Burch was also full of praise for Mr. Lopes, crediting him with coming up with a fresh approach to the housing crisis.

"Mr. Lopes expressed his desire to do his part to assist with this country's housing crisis ? I enthusiastically embraced the concept and set about securing the support of my Cabinet colleagues," the Minister said.

"To say that this announcement marks a watershed in the provision of housing for Bermudians would be an understatement. Rather than pointing the finger or criticising, Mr. Lopes came forward with land and a plan.

"The economic realities of Bermuda demand innovative solutions, so I want to publicly thank Mr. Gilbert Lopes for coming forward to do his part to help his fellow Bermudians.

"May I add that I plan for this to be just the first of a number of similar Government initiatives to provide affordable housing to Bermudians.

"Today's announcement is another demonstration of this Government's real commitment to the issue of housing in this country and our willingness to engage all segments of the community in delivering on that promise."