GOVERNMENT is sending the message that non-Bermudian spouses are not welcome on the island — unless they agree to limit their participation in the housing market and keep their mouths shut on political issues.Such is the opinion of a Southampton couple who were in the process of buying a second home when confronted with the proposed Bermuda Immigration & Protection Amendment Act 2007.

If passed, the Bill will prevent Bermudians married to non-Bermudians from owning more than one property unless the non-Bermudian obtains status — a ten-year process.

The law would not ban unmarried Bermudians or a Bermudian married to another Bermudian from owning multiple properties.

Homeowners Lorraine and Ryan Lipschutz are now asking residents to contact their MPs “to voice their concerns over (the) blatantly discriminatory legislation”. They say they have written confirmation from Chief Immigration Officer Martin Brewer that their understanding of the law is correct.

“The laudable goal of this proposed legislation is to prevent fronting by non-Bermudians and the protection of Bermuda land,” they say in a Letter to the Editor (see e 7<$>).

“However, as a result, this Act also discriminates against Bermudians who are married to non-Bermudians. I am a Bermudian woman married to a non-Bermudian.

“My husband and I purchased a condo shortly after our marriage in 2001. As a non-Bermudian, my husband obtained a licence from the Government to hold a property in his name. We are currently in the midst of closing the purchase of a second home to accommodate our growing family.

“Legal consul at CD&P informed me of the implications of the attached Act, namely, that even if a Bermudian purchases a home in her sole name and was able to obtain financing in her sole name, the transaction would still run afoul of this Act.

“This is because if the property being acquired is used as a family home, I would then be deemed to be holding it as a trustee as defined in section 72(1). My husband would then be required to obtain a licence, which would be acceptable if not for the fact that a non-Bermudian can only hold one license.”

Due for its second reading when Parliament reconvenes in May, the Bill has already come under heavy criticism from the Bermuda Bar Association for “unintentional consequences” it believes “will in turn give rise to inequities and discrimination”.

The Bermuda Chamber of Commerce added its voice to the fray this week, similarly cautioning the Government against creating a backdrop for discrimination.

“The Real Estate Division of the Chamber of Commerce echoes the Bermuda Bar Association’s position concerning The Bermuda Immigration and Protection Amendment Act 2007 Bill in the letter dated February 27, 2007,” said division chairman Susan Thompson.

“We applaud the Government’s efforts in ending the practice of ‘fronting’ — however, we are very concerned of the negative impact and discrimination against Bermudians. Real estate sales and new housing starts are an important aspect to any healthy economy.

“If one reflects on the North American real estate market over the past two years, you can see the negative impact the distressed housing market has had on the economy.

“The passing of this Bill will potentially prevent many Bermudians from the ability to purchase property due to lack of funds that will no longer be acceptable from legitimate gifts or loans from non-Bermudian family or friends.

“This will only fuel the housing crisis that the media often refers to by causing additional strain on an already overheated rental market.

“We, the Real Estate Division of the Chamber of Commerce, would be more than happy to assist in any way possible to help the Government come up with a solution to the fronting issue to ensure that all Bermudians that wish to own property with the help of their non-Bermudian family and/or friends, could do so in a manner that is in keeping with the law of the land.”

Dr. Brewer is off the island and therefore could not comment on whether Government would consider redrafting the Bill. However, the idea was one also mooted by Mrs. Lipschutz.

“It’s been very frustrating for us,” she said. “And I felt it was a situation where, if we didn’t stand up and act, we’d lose our right to complain.

“I decided I wasn’t just going to moan to friends, I would speak out and say what I felt. I don’t know if that was the intent or if any thought had been given to the impact it would have on a small group of people.

“Certainly several MPs are married to non-Bermudians, I would be surprised if they didn’t think of the impact it would have on their lives. I hope there is time to redraft the legislation.

“My understanding is that it was drafted without consultation or limited consultation. With this type of thing, if they’d had input from the start, these mistakes could have been avoided.”

That opinion was echoed by a local real estate agent who suggested Government was failing thousands of potential homeowners.

“I think it’s very ill-advised not to have spent a lot of time looking for input from people in the industry,” they said. “Since when does anyone make sweeping changes without educating yourself on the potential impact?”

The realtor added that the industry had expressed its concern when the Government initiated the first significant change to real estate laws which banned Bermudians from selling luxury properties to foreigners.

“We tried to communicate with the Government and they were simply not interested.”

Combined, the two moves were an attack on all Bermudians, the realtor added.

“The people they have purported to be helping are the very people who are hurting. Millions of potential dollars in purchase tax revenue has been lost. How many Bermudians could those millions of dollars housed? Who’s kidding who? I don’t see any housing for Bermudians. It makes me sick.”

Just as worrying to Mr. and Mrs. Lipschutz are the implications the legislation has for non-Bermudian spouses.

“Since any other Bermudian, unmarried or married to a Bermudian can hold as many properties as he/she is capable and willing to own, this clearly discriminates against those Bermudians who chose to marry a non-Bermudian.

“Not only are our non-Bermudian spouses expected to be neither seen nor heard on the political front, they are also now expected to be satisfied that they can have any home at all — and dare not try to purchase a family home and earn some rental income to pay for the exorbitant housing costs.

“This clearly discriminates against those Bermudians married to non-Bermudians, a fact of which this Government was made aware but does not concern them in the slightest.

“An amendment to allow non- Bermudian spouses of Bermudians to hold more than one license would alleviate this unfair law.”

‘Unfair law’ could have major impact on housing market