A housing project for families in need has been so successful it has been extended for another two years, says Government.

Housing Minister David Burch said the CMIT (Cross Ministry Initiative Team) manufactured housing project has resulted in people clearing their debts and up to six families being reunited with children from foster care.

The three-bedroom units, at Morgan's Point and Beacon Hill, Somerset, have now been surveyed and approved for another two years by the Bermuda Housing Corporation.

Back in May 2006, Government said they would only be in place for 30 months.

"The units are in keeping with the Ministry's overall housing strategy to assist families with the most pressing housing need," said Senator Burch.

He said the CMIT Residential Housing programme taught life skills and money management intervention, including a debt management plan "allowing them to clear outstanding debt that has prevented them from obtaining/maintaining housing in the private sector or through BHC".

Sen. Burch said: "The portfolio of the clients received into the Residential programme included significant debt, poor money management and employment stability, all symptoms or indicators of some social dysfunction.

"Today they are in a better financial position than when they began. We have seen an improvement in employment stability, resulting in an improved management of finances.

"Records indicate an overall 32 percent reduction in client debts."

He added: "Another positive consequence of the Residential programme has been family reunification six families had children returning to the family unit from foster care/kinship care placements."

The Minister admitted some clients were unsuccessful.

"We have been challenged with instability and dysfunction, reflected in unstable employment and in some cases increased debt," he said.

"Since its inception in 2006, two clients have been terminated from the Residential programme due to non-compliance, one family has graduated and two others will be ready to transition within the next six to eight months."

But he added: "We consider the programme a success, albeit a long-term effort.

"This is about teaching families from the ground-up what is required to be successful and responsible."

The remaining occupants will be moved into more permanent accommodation over the next two years.

In addition, the Minister was confident there would be less pressure on Government to provide social housing generally, due to the economic downturn affecting rents in the private sector.

"The cost of housing and rental rates are dropping," said Sen. Burch. "And I think they will drop for some considerable time, so the average Bermudian will be able to play on the open market.

"From our point of view it (the cost of housing) has always been at an unnaturally inflated level and has very much been generated by greed.

"Those who are greedy I hope have put some money away, as there's not going to be the ability anymore to extort from not only guest workers but Bermudians, and I think that's a good thing."