The first families are expected to move into new Bermuda Housing Corporation (BHC) condos in Warwick at the end of the month, Housing Minister Senator David Burch said yesterday.

An open house and ribbon cutting ceremony was held at the site of the 12-unit complex on Tribe Road No. 2, which will now be known as the Shore View Condominiums.

The units have been at the centre of controversy in recent weeks after The Mid-Ocean News reported BHC paid twice the going rate for their construction and Government may lose more than $1 million on the project.

Sen. Burch said yesterday, however, that the importance of providing new housing units should not be “lost in the furore”.

“Much has been mentioned about these units in the media of late in the wake of turbulence at the Bermuda Housing Corporation,” the newly appointed Housing Minister said.

“So much so, that the positive strides which have gone into bringing these houses to completion have gotten lost...

“However, today it is my intention, with the unveiling of these new units, to send a message to the public that this Government has not lost site of - and is more committed than ever - to the important task of tending to the needs of families who require affordable housing.”

Sen. Burch said the BHC currently holds 305 mortgages valued at $18 million and owns in excess of 100 properties with an estimated value of $65 million.

With the addition of the 12 new, two-bedroom, one-and-a-half bath condos to the Corporation's housing stock, roughly $3.5 million will be added to the overall mortgage.

“The condominiums will be sold to prospective owners, who ultimately own the units outright once they are sold,” Sen. Burch said.

The condos are to be sold to first-time homeowners with responsible records at BHC for a price of $335,000 to $370,000 depending on unit location.

But the condo project has been a centre of controversy for more than six months. Originally, Government refused to announce whether the new units would be used for rentals or sold as condos.

Those waiting for BHC rentals argued they had a greater need for the units but neighbours of the complex organised in favour of selling the units in the hopes homeowners would have more incentive to care for the property.

More recently, several families who thought they would be able to purchase units for roughly $250,000 said they felt cheated out of homes when the price for the units jumped to $335,000 to $370,000, depending on unit location.

Then The Mid-Ocean News reported that, at $406 per square foot of condo space, BHC was paying twice the going rate to contractor Hibiscus Development for construction.

With the cost of the land added to the cost of the building project, the report claimed the actual cost of the condos would be $469,000 - and BHC will take an overall loss of over $1 million.

Yesterday, Sen. Burch focused on the achievements of BHC and Government despite the recent controversy.

“Among the many goals the Progressive Labour Party government set out to accomplish, based on our platform, was to provide subsidised housing for families in the lower income bracket and promote a scheme assisting first time home ownership through amortised mortgages,” Sen. Burch said.

“Over the past four years, we have reviewed the stock of existing housing and have worked with the Bermuda Housing Corporation to answer the call of Bermudian families seeking homes.”

Premier Jennifer Smith officially cut the ribbon opening the new condo complex yesterday before Sen. Burch planted a cedar tree on the grounds.

Also on hand for the ceremony was Health Minister Nelson Bascome, who held responsibility for Housing until last month, Transport Minister Dr. Ewart Brown and invited complex neighbours.

The new units were open for viewing and Sen. Burch said the first families should be moving in by December 1.

“We are always cognisant of the fact that there is much work left to do, but with the opening of these new homes, it is a step in the right direction for alleviating the stresses of suffering families who are in need of adequate housing,” he said.