1. Use compact fluorescent bulbs
2. Don’t open and close your refrigerator too often
3. Cool hot foods on your counter before placing them inside your refrigerator
4. Don’t place your refrigerator near a heat source (such as a dryer or stove)
5. Iron clothing only once per week in batches
6. Switch off appliances (television sets, DVD players, radios etc.) when not in use
7. Unplug products that are not in use and don’t need to be plugged in (e.g. cell phone chargers)
8. Where possible, use a fan instead of air conditioning
9. Keep the volume of your audio equipment in check – the louder the volume, the more energy used
10. Hang and air dry your clothes instead of using an electric dryer

Outlined below, are procedures to ensure that all eligible persons receive the interest rate reduction due. Mortgagors are asked to take note and to act where necessary.

Mortgagors making payment via salary deduction
As of July 1, 2010, NHT will automatically adjust the interest rate on the loan accounts of all public sector employees currently paying their mortgage via salary deduction and will advise them of the new monthly payment by mail. The Trust will also contact the relevant employers so that the payroll deductions can be adjusted.

Mortgagors NOT currently paying via salary deduction
Some government agencies/departments are now in the process of submitting to the NHT, the names of employees with current NHT mortgages. If your department is compiling such a list, you may ask to add your name and particulars to that list, so that the NHT can adjust the interest rate on your account.

As an alternative to the above, you can visit your nearest NHT office to register for the special 1% interest rate reduction. When visiting the Trust, you must take the following documents with you:

• Your last two pay slips or a letter verifying your employment with a government ministry, agency or institution.

• Valid identification (passport, voter’s identification or driver’s licence)

Mortgagors under the Joint Financing Mortgage Programme (JFMP)
If you are a JFMP mortgagors (i.e. you received your NHT loan through a private institution such as a building society) please visit your nearest NHT office by June 25, with valid identification and documents to verify your place of employment. You should also take along the repayment letter given to you at the time you had received your NHT loan.

If you are not sure whether you are eligible for the additional 1% reduction in interest rate, please check the NHT website at www.nht.gov.jm for a listing of all agencies and institutions to which this special benefit will apply. You may also contact the NHT at 1-888-CALL NHT (1-888-2255-648).

While the National Housing Trust is best known for the schemes it develops and for the range of loans it offers to contributors (mortgage lending), far less is known about its contribution to housing through the financing of schemes developed by private and public sector developers.

“From its inception, the NHT acknowledged that it would not, on its own, be able to build all the houses that the nation needed,” says Donald Moore, Senior General Manger, Construction and development at the NHT. “Furthermore, the Trust also saw itself as playing a crucial role in stimulating the housing segment of the construction industry and in turn, fuelling employment and national wealth.”

Within the last seven years (2003-2010), the NHT has provided loans valued at $8.5 billion to private and public sector developers to construct just over 5,400 solutions in 24 develpoments, through its Interim Finance Programme. Some developments financed in the period under the NHT facility are The Aviary, Portmore Country Club and Resevale Estates (developed by West Indies Home Contractors – WIH-CON), Morris Meadows (developed by NF Barnes Construction & Equipment Ltd), Whitewater Meadows (development Ltd), Vineyards Estates and Caribbean Estates (developed by New Era Homes 2000), Hellshire Glades (developed by Urban Development Corporation) Portmore Villa 2B, Stadium Gardens II and Palms of Portmore (developed by Housing Agency of Jamaica.)

The NHT recently signed an Interim Finance agreement with KEMTEK Development & Construction Limited for 400 two bedroom housing units in two phases of their Stonebrook Vista development at Florence Hall, Trelawny. Mr. Moore says the Trust plans to disburse $1.74 billion under the programme this financial year ending March 2011.

Private developers (for e.g. those who want construction mortgage loans) have lauded the programme. “The NHT’s Interim Financing programme has ready been a huge boost to us as developers. Without the low cost funds, we would not be able to bring attractive and affordable housing to the market, “says Mr. Delroy Alcott, Managing Director, WIHCON. Mr. Barnes of N.F. Barnes Construction & Equipment Co. Ltd., said that his development at Mooris Meadows has benefited immensely from the NHT’s interim finance facility. “The relationship has bloosomed over the years because NHT’s response has always been quick and seamless. Payment schedules are run efficiently and the staff in the Projects Department in particular, are (thorough and well-organized.”

Public sector agencies are also benefiting from low-cost funds from the NHT through this facility. This financial year, agencies such as the Housing Agency of Jamaica (HAJ) have acquired funding to construct housing developments across the island. Some 351 housing solutions are expected to be developed by the HAJ this year using NHT funds. Looking for mortgage refinance & equity lines? Such options are available in the U.S.

Institution loan Programme

Another little known area of support by the NHT is its Institutional Loan Programme. These loans which currently attack interest rates of either 8 or 12 recent are specially provided to entities such as educational institutions, to construct or acquire residential facilities to house their students and staff. Among the eight instructional which have received funding under this programme are the University of the West Indies, the United Theological College, The Mico College and the Nurses association of Jamaica.

To date, the NHT has provided loans valued at closed to $1 billion under the institutional loan programme, and is projected to spend near $700 million under this facility this financial year. The market impact is expected to be even more significant since the Trust is projecting to lend an estimated $3 billion for Institutional loans between 2011 and 2013.

More

See these home loan tutorials and mortgage help information.

• Establish a Commission of Strata Corporations to monitor, regulate and supervise the functioning of strata corporations and to specify the duties and powers of that Commission;

• Provide for the payment of and application of fees collected by the Commission to help to defray its administrative expenses;

• Provide for the mandatory registration of each strata corporation with the Commission and the submission of annual financial statements and reports by each strata corporation;

• Make unpaid contributions a charge on each strata lot which will run with the lot and rank in priority to existing mortgages or charges.

• Provide for the procedure to be followed where a proprietor falls, neglects or refuses to pay contributions to the corporation;

• Give the Strata Corporation a power of sale in respect of strata lot where a proprietor defaults in the payment of contributions to the corporation.

• Provide for the procedure to be followed in the exercise of the power of sale and the application of proceeds of such sale;

• Enable the Commission to take action as an administrator of a strata corporation where the strata corporation is not functioning;

• Establish a Strata Appeals Tribunal to hear appeals and adjudicate on matters affecting the administration and management of strata properties;

• Widen the regulatory powers of the Minister to prescribe the matters that are to be communicated by developers of strata properties to prospective purchasers;

• Indemnify persons serving on executive committees from civil liability arising from actions done in good faith while holding office;

• Increase the penalty for certain breaches of the Act; and

• Provide for additional provisions in the by-laws prescribed in the First and Second Schedules to the Act.

For more information, please contact Jamaica’s Commission of Strata Corporations at:
1 Surbiton Road, Kingston 10
Tel: (876) 926-9748 or (876) 960-9287
Email: info@csc.gov.jm
Website: www.csc.gov.jm

Below, we’ve taken a closer look at the policies mentioned above. All these polices have been developed to satisfy the special needs of lower income contributors.

The Subsidy Programme
Under this facility, non-homeowners who have been contributing to the NHT for at least ten years, and whose incomes place them in the 1% – 3% interest rate band, may apply for a special subsidy of up to $1.2 million. This means that contributors earning less than $10,000 per week, whose NHT loan would not have been sufficient to allow them to buy, build or repair a house, will be able to get more funds. The amount available under this programme is a grant which can supplement any loan the contributor is eligible to receive from the NHT. The NHT will invite applications for this subsidy on a quarterly basis, if the financial performance for the previous quarter had shown a surplus.

Deferred Mortgage
This facility is available to contributors whose incomes cannot service a loan to buy an NHT scheme until at the full advertised price. If that contributor can afford a loan of at least 60% of the purchase price, however, the NHT will grant him/her a regular loan for the sum he/she can afford and will enter into a special arrangement for him/her to pay off the other 40%. While the 40% is outstanding, the mortgagor will not be allowed to make any additions to the unit or use the title for the property as security for any additional loans. This deferred mortgage will be extended only to Scheme applicants and will be limited to a maximum of 10% of the units within any Scheme.

Waiver of 5% Deposit for Scheme Purchases
Applicants who have been selected to buy housing units or lots within NHT Schemes will no longer be required to pay a deposit of 5% of the purchase price of the property. So, if for example, the contributor is qualified to borrow $4.5 million which is the price of the unit, at present he would be required to pay a deposit of 5% or $225,000 out of his own pocket. This means that though he is actually eligible for a loan of $4.5 million, his final loan amount would be $4,275,000 or 95% of the price of the property. As of July 1, 2010 he is not be required to make a deposit, and so he will be able to get the full sum for which he is eligible.

Contributors should note however, that this applies only to the required 5% deposit and not to the amount needed to finance the gap between the cost of the property and the amount the applicant is eligible to borrow. That is, if the unit is valued at $5.5 million, and the applicant is eligible to borrow $4.5 million, he must seek financing for the additional sum of $1 million. He will also be required to pay all closing costs (legal and professional fees) associated with the purchase of the unit.

Q&A
The following are among the questions contributors have been asking since the announcement of the new loan limits, along with the relevant answers.

1. How will I know when to apply for the subsidy?
Answer: Whenever it is time to apply for the subsidy, the NHT will place advertisements in the local newspapers and in the electronic media. At that time applicants will also be informed of all the details regarding deadlines and other requirements.

2. If all I need is $1.2 million to help my spouse by a house, can I apply for the subsidy alone and not bother with an actual loan from the NHT?
Answer: No. The applicant must be accessing a Non-Homeowner’s loan from the NHT to build or buy a unit to benefit from the subsidy. The idea of the programme is to assist the contributor to buy or build a basic unit, where the amount he/she can afford to borrow from the NHT is insufficient to do so.

3. Who will get the 5% waiver on their deposit? Is it a special group or anybody applying for a Scheme unit?
Answer: All selectees for NHT Scheme units will be eligible for the 5% waiver.

4. If I get the subsidy, are there any special conditions that I will have to meet afterwards?
Answer: Yes, the main conditions you will have to meet after receiving the subsidy are:
• You will not be allowed to sell the property you bought with the subsidy within the first 10 years.
• You should not rent the property.

If you breach any of these rules you will be asked to repay the subsidy you had received. If you benefit from the subsidy, you will also not be able to apply for another loan from the NHT. There are other conditions which will be detailed when the NHT advertises for applicants for the subsidy.

For further information on these and other policy changes, visit the NHT’s website at nht.gov.jm or e-mail feedback@nht.gov.jm.

Below we’ve featured some clarification that’s specific to the interest rate policy changes:

All NHT contributors applying for loans to build or buy houses or lots, will enjoy at least a 1% reduction in the interest rate at which those loans will be calculated. This change will benefit both existing and new mortgagors. For existing mortgagors, it will mean a reduction in monthly payments. For new mortgagors it means increased affordability. On the one hand, some persons who did not previously qualify for NHT loans will now qualify, while persons, who had previously qualified, will now be able to get more to borrow from the Trust.

The benefits will be even greater for public sector employees have been given an additional 1% reduction on their interest rate over the next 3 years, thereby bringing the overall reduction rates, to 2%. New mortgagors, 55 years and older, who have also been singled out for special attention, will receive their loans at 2% below the rate applicable to other persons in their income group.

1. Typically, the length of time that you’ve contributed to the NHT is one of the key factors used to determine whether or not an individual will qualify for a loan. Natural, younger persons would not have accumulated many years of contributions. Thus, the NHT has taken a percentage of that required length of time and shortened it, so that more young people can get benefit rather than just older persons who have more years of contribution. Once persons 18 years and older have been contributing consistently for over a year, and their income meets the standards, they are able to reap benefits.
2. Young persons can also use the combined income policy, i.e. where two persons combine their incomes in order to access a mortgage.
3. A third option is through the shared equity programme — for persons who do not qualify to access the full loan, but are qualified for up to 60 per cent. The trust will lend the additional 40 per cent to be repaid over a five-year period. Note however, this applies only to NHT schemes.

Additional benefits that will be available to young people soon include:

1. Transferable benefits – where parents will be able to transfer NHT points to their children.
2. Start of a scheme – nine combined group of two’s (18 persons) can start their own scheme.
3. Persons living overseas can contribute to the trust in Jamaica, by making payments through banking institutions. Steps are also being taken where they can pay via debit and credit cards online.

The first major step for young people now is for them to actually open an NHT account.

LAMP, which started as a pilot project in St. Catherine, has now been extended to St. Elizabeth, Clarendon, St. Thomas, Manchester and all of St. Catherine (except Portmore). Up to October 2010, some 3000 Jamaicans have received their registered titles through LAMP.

How does LAMP work in conjunction with the NHT? Persons who have applied for their registered titles, but have not yet received it or have not yet applied for one, can apply to the NHT for a loan to cover the costs of doing so. After NHT and LAMP have helped them to obtain a registered title, the NHT will also lend them money to build on the land. Naturally, an applicant would need to satisfy all the standard requirements for getting a National Housing Trust loan. Because of the collaboration between the NHT and LAMP, there is a very helpful reduction in the length of time between an applicant applying for a title and getting an NHT loan.