Legislation to allow restricted persons to buy residential units within the City of Hamilton for the next four years was approved by the House of Assembly this week.

Jason Hayward, the Minister of Economy and Labour, told the House on Monday that the Economic Development Amendment Act 2024 was intended to encourage investment in residential developments in the City beyond the Economic Empowerment Zone.

“The City of Hamilton Plan recognises that residential development is an essential component of revitalising the City, yet its potential is not being leveraged at present,” Mr Hayward said.

“The amendment Bill aims to enable the opportunity to grow the residential population in the island’s capital.

“Increasing the resident population of the City will help transform it into a vibrant economic hub where persons can live, work and play.”

Mr Hayward said that in 2019, the Economic Development Act was amended to provide for approved residential schemes, which could be purchased by restricted persons — people without Bermudian status under immigration law — without the limitations usually in place.

“The aims and objectives of the 2019 amendment was to encourage economic activity and development in all EEZs, primarily in North East Hamilton,” he said.

“It also permitted a restricted person to hold and acquire one or more residential valuation units in an approved residential scheme without any of the restrictions that would otherwise be imposed by the Act

“This specific amendment seeks to further facilitate foreign direct investment in the EEZs by removing restrictions around ownership of residential real estate.”

He explained that the latest amendment would extend the regime throughout the City of Hamilton.

The amendments include a sunset clause, limiting the provision of approved EEZ residential schemes to applications made on or before March 31, 2028. However, the minister would have the power to extend that deadline through a negative resolution.

“When investors are looking at how they are going to make a return on their developments, they now know they have a wider pool of individuals that they can market and sell their properties to,” he said.

“It also would allow for many of our expatriate workers to participate in purchasing properties in the City of Hamilton.

“This is a win-win for the City of Hamilton and the wider Bermuda as, if we have more persons residing in the City of Hamilton, it frees up the capacity in the housing market throughout the entire island.”

Scott Pearman, the Shadow Minister of Legal Affairs and Home Affairs, said the Bill would essentially create separate categories for the development of residential units within the EEZ and those within the Corporation of Hamilton municipality but not in an EEZ.

While restricted persons would be able to purchase units in either of the two categories for at least the next four years, concessions would still be limited to the EEZ.

Mr Pearman said that the OBA supported the premise of bolstering residential development in the City of Hamilton and offered no objections to the proposal.

“Obviously we live on a very small island, and if there is an opportunity for residential in Hamilton, that is a good thing,” he said.

“We have seen people take that in the past and drive it forward, and it was positively received all round.”