THOSE in need are unlikely to benefit from a Government plan to install 150 affordably-priced homes in St. David's and Paget.

So believes Opposition Senator Kim Swan, who said that without flexible lending policies and other measures which would make the homes accessible to the lower middle class, the purchase price remains far too high.

The Senator was referring to a Throne Speech promise, in which Government repeated its 2005 commitment to produce 330 units in 30 months.

Those under contract to come include 150 houses ? 96 at Loughlands in Paget and 54 at Southside in St. David's ? which "will not meet the needs of those persons in need", Mr. Swan said.

"I feel (Housing Minister David Burch) and the Government should be taken to task. They're simply building for building's sake. Persons at the lower end can't wait for the market to move towards them. They need understanding from Government, which now, at the eleventh hour, is attempting to do something. We need regulations and covenants in place.

"Government has agreed to sell the units lower than the market rate ? that's a step in the right direction, but the market is so far beyond the lower middle class that they have no chance of being eligible. Really, the only persons eligible to take advantage of the 150 units are those in the middle, or upper middle class. It doesn't meet the need that has been with us for some time."

He described Government's affordable housing commitment as "an election push" insisting it would fail to meet its intended target without assistance.

"Government should make a pledge to find homes for persons who find themselves economically (disadvantaged)," said Sen. Swan. "You only have to look in the paper to see that there are now few homes listed for rent or purchase that are within the means of the average person."

He said that in order to qualify for a loan of $450,000, a household would require an income of close to $90,000.

"That's just to qualify. It certainly excludes single parents who are working and it's the biggest stumbling block. A single parent who earns $60,000 is considered a professional and still, their wage is not sufficient. I know what that's like."

It was therefore essential that the Bermuda Housing Corporation (BHC) engaged measures which would enable more Bermudians to own their own homes, he insisted.

"150 of the 350 homes they're intending to build still don't meet the needs of those in the most need."

He suggested several policies which would benefit potential homeowners.

"A qualifying person buying a house for $450,000, which on the market would cost $800,000, is buying at an agreed adjusted value. So first, a formula must be established to protect the resale value of the property."

The purchase of such homes should be limited to first-time buyers, to persons with the greatest need and those with applications before the BHC, he said.

"And then when they are in a better situation they can sell, at a ratio equal to the purchase price, to another qualifying person so we're not reinventing the wheel 15 years on from now. The intent would never be to sell below what the house was purchased for, but never to take advantage of the windfall as the market goes up. Therefore, Government would still have that equity to pass on to future homeowners."

Bermuda's booming economy has left many behind, he added. What was once considered a middle-class wage is no longer.

"Consider a single mother who's been in a job for some time, who earns $60,000, but is bordering on poor. Years ago, when the last census was taken, that was a middle-class wage but wages have not risen at the same rate as the economy. That's where we should apply what I'd call the eligibility to afford formula.

"Then, qualifying persons in different categories ? a mom who has held a job for several years, and is doing all the right things but is still struggling ? could be eligible to purchase. That's where liberal interest rates come into play. A Government-backed sliding interest rate could make a difference. Two or four per cent makes a huge difference in families struggling, but owning a home, and not being eligible or even finding a home to rent."

Just as essential was a binding contract that the owners must live in the homes.

Said Sen. Swan: "And, there should be minimum ownership periods so that (people can't speculate). Unless you put the guidelines in there, that isn't guaranteed and the need in the community is so critical.

"Another consideration certainly has to be given to working families, in particular, qualifying single parents. We need to look at how we can work with covenants and formulas to be able to help persons cope with the extremely high cost of living we're confronted with."