Low income Bermudians will soon be able to enter a lottery for four-bedroom homes priced at just $199,000.

The draw for 98 homes in a new 196-home development in St David?s will take place early next year.

And four-bed waterfront townhouses will go on the open market at around $895,000.

The development by Bermuda Homes for People, featuring one-bed, two-bed, three-bed and four-bed homes, is called Harbourside Village and is scheduled to be ready in 2006.

More than half of the homes will be two-bed and there will be 16 homes designed for seniors.

Bermuda Homes For People chairman Richard Winchell said he was thrilled to be involved. ?It?s a very exciting opportunity for Bermudians.?

Bermuda Housing Corporation (BHC) will be vetting applications for the draw.

BHC general manager Vance Campbell said it would only be open to people who had never owned a home although exceptions would be made for seniors and those who had lost a property through divorce.

He said the income levels for a couple wanting the smallest property must not exceed $65,000. That level increases incrementally to a cap of $85,000 for a six-person household.

Assets would also be taken into account in assessing applicants said Mr. Campbell although he said people who had a tiny share in a house with numerous other siblings wouldn?t necessarily be ruled out.

Applicants will also have to attend an education session similar to that required for those joining a condominium association.

Project manager John Gaston said the development features a square a bit like St. George?s.

He said: ?It?s reflective of a village common area.? Three recreational areas are planned while each property will have its own garden. It is being built around a marina and will feature retail outlets, day care and a community centre.

The remaining 98 units will be sold on the open market and will help the finance the project.

They will be priced from $300,000 for elevator-assisted units for seniors and physically-handicapped residents to $895,000 for four-bed townhouses on the water.

Made out of hurricane-resistant concrete the homes will be built 18 months after ground is broken early next year say developers who are holding a site visit on November 20 and 21 at the waterside property. More than half the homes will have waterside views.