Housing and You…How to apply for a house lot, ‘turn-key’ home

Jul 27, 2014 News

By Leonard Gildarie
This week we will be examining the process involved when applying for a house lot, and, in the case of the government’s ‘turn-key’ homes, what is needed when approaching the Housing Ministry.

The location of your plot will be determined by what you earn.

More and more, based on complaints, I am worried about the processes involved with this and with the applications at the lending institutions for a mortgage.
In the case of applying for the house lots, the Central Housing and Planning Authority (CH&PA) has made it clear for some time now that it is working in a systematic manner.
Like I said before, there is no way to fast track it. Don’t let anyone fool you into believing that they know someone. As a matter of fact, there have been cases in which hapless persons were scammed right in the vicinity of the Ministry’s compound. These scammers would select frustrated persons and approach them, indicating that they have contacts. They would even pick up the phone and call somebody in the Ministry. Only in this case, it is a partner in crime who is not even working there.
A date is set, monies are paid and sometime after, the new house lot owner is handed his/her transport outside of the Ministry. The problem is that the transport is bogus. So don’t go that route.
At the lending agencies, the problem is not so much the application as it is the management of the monies that are given. Again, I have spoken repeatedly about the need for proper handling of the advances. The money is disbursed in tranches…meaning that you would get a particular sum to start the foundation. The agency would inspect while you are building to ensure you are proceeding according to plan and that you have materials on hand. You are asked to submit receipts of the materials purchased, transportation and other costs, and even what you paid the contractors, before the next advance is handed over.
But having a few millions in the hands can be a distraction. A flat-screen TV, a stereo set, the temptations are many. One bank even spoke of a case of someone submitting a bill for KFC to justify their expenses. A big no-no. A few millions are blown away quickly when you start shopping for the windows, roofing materials, paying the contractor and even tiling. You have to be tight-fisted with the money. It is no joke. I keep repeating this, yet we see homes under construction stalled for overspending. In most cases, it is largely the fault of the homeowner.
APPLYING
When applying for a house lot, the government’s policy is crystal clear. You cannot own another property. Except for the special remigrant programme which we will talk about in another column, an applicant must be a resident of Guyana for at least six months prior to applying and at least 21 years of age.
While preference has been given to families with children and the vulnerable, there are no barriers stopping an unmarried person from applying. A common-law relationship is also accepted.
To start the process, an application form has to be bought from the CH&PA’s Brickdam offices. The application form is straightforward, with additional documents like birth certificates, ID cards or passports, marriage certificates if applicable, pay slips and rent receipts, among some of the documents needed.
Applications for a house lot can also be done at the Ministry’s website www.chpa.gov.gy.
Applicants, once they satisfy the requirements, would most likely be told lands are available and where. The location (low, middle, high income section) of your plot will be determined by what you earn.
You will receive notification or an acknowledgement letter that the application is in and later another correspondence of an offer and be invited to participate in a lottery system. This lottery entails you, as the applicant, pulling a house lot number from a bag in a system designed to ensure you have been fairly allocated that plot of land. Your luck will determine whether you get a corner lot or one in the middle of the street.
Applicants will later receive an Allocation Letter which gives details of the land. The applicant will then have to pay half of what the land costs. The balance must be paid within six months. The faster you pay will determine how quickly you reach the next stage, where the processing of the Titles/Transports giving you ownership of the land will begin. This processing fee is around $8,000.
After the initial half-down payment, the allottee will have to enter an agreement of sale with the CH&PA which will outline certain conditions of owning the land. One of the main conditions is that the allottee is not to sell until after 10 years. There have been many reports of Powers of Attorney being used by other persons to gain “ownership” of the lands and properties built. The CH&PA has been waging a war on this and a number of cases are being handled by its legal arm, as it is illegal. The Ministry has even offered, I am told, to have the new “owners” of the house lot, pay the market price in an effort to ensure regularization.
‘TURN-KEY’
In the case of the government’s ‘turn-key’ homes – which range between $4.6M to $14M – the applications are similar. Upon an application being handed in, an assessment will be done to determine the eligibility of the applicant to acquire these. Unless they have the cash, they are referred to the lending agency to obtain mortgage financing. The successful allottee will inspect the home and enter into an agreement of sale and sign papers for the title/transport. These will later be forwarded to the bank. The applicant will also have to submit a letter of satisfaction to the bank. Upon the completion of its own process, the lending institution will forward a cheque to CH&PA for the ‘turn-key’ home.
That’s all for this week, and as usual, please feel free to drop me your comments at [email protected].