Salary Deductions Likely Under Government’s New Rent-to-Own Housing Programme

Homeowners participating in the government’s new rent-to-own housing programme are likely to repay their mortgages through salary deductions as part of a financing model designed to ensure long-term sustainability and expand access to affordable housing, Director General of Communications Maurice Merchant said Thursday.

Merchant outlined the proposed repayment system during the question-and-answer segment of the weekly post-Cabinet media briefing after Cabinet announced plans to construct 100 new homes under the government’s Social Housing Programme in Bolans and Barbuda.

He said officials are developing a structured repayment mechanism that will allow beneficiaries to gradually transition from tenants to homeowners while ensuring public funds can be recycled to finance future housing developments.

Merchant said one option under consideration is assigning a portion of a homeowner’s salary directly toward mortgage payments.

“The idea is to have some sort of salary assignment so that repayment is guaranteed,” Merchant said, explaining that the government wants to create a disciplined repayment system that protects the long-term viability of the programme.

According to Merchant, Cabinet is seeking to avoid a situation in which beneficiaries receive government-built homes without meeting their repayment obligations.

“It won’t be a free-for-all,” he said.

“There has to be strict adherence to the repayment arrangements.”

Merchant explained that repayments made by homeowners will be placed into a revolving housing fund that will finance construction of additional homes for future applicants.

He said the revolving fund is intended to make the programme self-sustaining by allowing each generation of homeowners to help finance housing opportunities for others.

“The money that comes back will be used to build more homes,” Merchant said.

Cabinet announced Wednesday that the first phase of the programme will include 100 homes being constructed with assistance from the Government of the People’s Republic of China, with 50 homes planned for Bolans and 50 for Barbuda.

The homes will be offered under rent-to-own arrangements through the government’s Social Housing Programme, allowing qualified applicants who cannot obtain conventional commercial mortgages to access financing through the National Housing Programme.

Merchant said the administration believes the repayment model will allow the programme to expand over time without placing an unsustainable burden on public finances.

He noted that the approach could eventually be applied to additional housing developments, including future phases of the Booby Alley Housing Project, as the government seeks to broaden access to affordable home ownership across Antigua and Barbuda.

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