PORT-AU-PRINCE — The Bank of the Republic of Haiti (BRH) has launched a mortgage loan program, dubbed “10-10-20,” that aims to help the majority of Haitians build new, earthquake-resistant homes.
“The objective is to boost the real estate sector of the country,” Jean Armand Mondellis, a BRH executive who has worked on this project for two years.
Since the 2010 earthquake, countless residents have struggled to raise the funds needed to build the paraseismic – earthquake resistant – homes the government requires. Prior, BRH had started two incentive programs – Kay Pam and Real Estate Promotion and Development Program (PPDI) – for residents to build homes. However, they were unsuccessful.
“This one will make it easier for middle-class beneficiaries,” Jean Baden Dubois, the governor of BRH, said during the launch of the program June 7.
“The down payment to make a loan is no longer between 25 to 30 percent,” he said. “The timeline is more reasonable and BRH will work with the financial institutions to facilitate the feasibility of the program.”
The middle class is defined as anyone who has the income to meet the requirements for building a house of up to $150,000, said Jean Armand Mondellis, a BRH program manager. He did not detail the requirements.
Haiti’s 10-10-20 home mortgage details
In the 10-10-20 program, the first 10 refers to 10% of the value of the property, which a borrower must have in their bank account to be eligible. The next 10 refers to the 10% interest rate that the borrower must pay. Twenty refers to the 20 years a borrower has to pay off the mortgage loan.
Several banks have agreed to join the mortgage initiative at launch, including National Credit Bank, Unibank, Sogebank, Capital Bank and Haitian Popular Bank.
To receive a loan, a potential homeowner must first request one from a participating bank. If the request is approved, BRH will follow up with the lending bank. The loan recipient must then pay 10% of the sum of the loan, BRH will put in 70% and the lending bank will add the remaining 20%.
“The price for this accommodation should not exceed the sum of USD $150,000,” said Mondelis.
What hypocrisy. Many people with accounts at BRh are blocked. The minimum daily wage in Haiti is less than 1000gourdes while a bag of cement is 1300. How do you think the middle class will do. No, this project does not help the middle class.
Haiti is a country in dire need of central planning and macro-economic strategies. Priority should be given to locally manufacturing basic construction items such as cement. That will reduce cost and boost income. New constructions should be structured in properly designed development projects by working with private developers. The chaotic ugly urban sprawl has to stop. That will take a government willing to stand up and negotiate with the international regarding their imposed economic plan for Haiti. That plan is for DR to produce for the Haitian (bantustan). That’s why all their little road projects head east.