Government in race to increase housing stock
The Government is raising the number of Bermuda Housing Corporation properties, making the quango responsible for a staggering new total of 777 rental units.
It is part of the government plan to tackle housing deficiencies outlined in the Economic Development Strategy Bermuda 2023-2027.
From 2010 to 2021, which included a period of increased emigration, the number of island households grew from 26,923 to 28,295, an increase of 1,372.
Today, faced with a need to grow the working population, an expansion in residential premises has become critical.
The report highlights: “There will be a need for more housing to accommodate a greater number of individuals living and working in Bermuda.
“Currently, there is an acute housing shortage, resulting from the current demand for housing outpacing the current supply.”
Faced with housing shortages all round, but acutely at the lower income end, authorities had to find ways to increase public housing options.
Planners have identified 493 acres (or 931 vacant parcels) of land zoned Residential 1, Residential 2 or Rural – two thirds of which automatically meet the lot size requirements of the Bermuda Plan 2008.
The other third is impacted by woodland reserve and/or agricultural reserve conservation areas which limits their development potential. However, in many cases, the amount of land within these lots that is covered by a conservation area is marginal.
The report points out: “There are 582 parcels or 181 acres of vacant Residential 1, Residential 2 or Rural land that have no conservation area development restriction, the majority of which are located in Sandys Parish.
The data analysis for housing demand and supply therefore indicates that there is ample land available to meet housing demands within existing residential zoned areas as well as the Mixed Use Zones and the City of Hamilton, and that it is not essential to zone any new lands as Residential.
Action items
• Support the expansion of residential dwellings in Economic Empowerment Zones
• Expand the eligibility for Approved Residential Schemes from solely the EEZs to the entire city
• Increase inventory of public affordable housing
• Encourage and support housing developments in residential zones highlighted in the Bermuda Plan and other geographical area specific plans
• Continue to support and facilitate schemes that promote new home ownership
The report said: “Government committed to providing $15 million over the next three years to build more affordable public housing units.
“The Ministry of Public Works through the Bermuda Housing Corporation is undertaking the renovation/retrofit of 137 older residential units to increase the amount of affordable housing options for Bermudians.
“Sixty of these units are presently occupied and will undergo minor-to-medium refurbishments.
“The remaining 77 are units representing the entire stock of vacant and derelict units that require major retrofits. These 77 units will be added to the BHC rental unit inventory bringing the total amount to 777.
“These newly added units are set to be priced under the Rent Geared to Income Based Scheme which is capped at 35 per cent (25 per cent rent and 10 per cent savings) of the total household income.
“This system allows for low and middle income families to afford a quality standard of living as well as save 10 per cent of their household income.”
The Ministry of Public Works launched its Short Term Economic Stimulus Programme in 2020 to maximise pandemic employment, including a series of ongoing works, upgrades and refurbishments at 17 housing units on Bermuda Housing Corporation properties.
The government plan to increase the number of habitable residential units including some at Morgan’s Point, targeted for conversion into a mixed-use site for the development of a range of residential rental apartments including a component for seniors’ housing, with an active and engaging Amenities District.
The report outlines: “This project will create significant benefits and will positively impact Bermuda's residential rental market.
“Bermuda has experienced residential demand that has been growing over time, but more acutely in the last few years.
“The first phase of this project should partially address this deficiency in supply by adding some 101 units within two to three years, and with the capacity to scale up.
“An amenities village which will be open to all, will contain dining, retail, a boardwalk and a farmers market. At the centre of the redevelopment plan is the concept of ‘live, work, play’ all on-site.
“Pricing for the 48 apartments within the Amenities District is expected to be affordable. Additionally, the overall additional supply should help to reduce the cost of residential properties in the broader market.”
These ideas are designed to sit next to the plans for the City of Hamilton to play a significant role in the expansion of residential development opportunities.
The report insists: “The City of Hamilton Plan 2023 recognises that residential development is an essential component of revitalising the city.
“Currently, the city is not being leveraged to its highest potential and presents an untapped opportunity to grow the residential population in the Island’s capital.
“Increasing the residential population of the city will help to create a vibrant economic hub where persons can live, work, and play.”
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