The Ghana Real Estate Developers Association (GREDA) in collaboration with the Ministry of Works and Housing are to provide for Ghanaians 20,000 affordable housing units annually for the next 20 years.
This is according to Patrick Bonful, President of GREDA.
Making the disclosure at the commissioning of some 204 affordable housing units constructed under the pilot stage of the National Mortgage Scheme (NMS) and Affordable Housing Real Estate Investment Trusts (REITs) (Rent-to-own) Scheme by President Akufo-Addo at Tema Community 22, Mr Bonful noted the association will soon be signing a contract with the Works and Housing Ministry to that effect.
“In April 2019, GREDA submitted a proposal to the president for delivery of 20,000 affordable housing units per annum for the next 20 years, and the president has since forwarded it to the Ministry of Works and Housing for action and the good news is that, we will soon be signing a contract with the Ministry,” he stated.
Making reference to the proposal submitted to the president in April last year, Mr Bonful reminded President Akufo-Addo of some concerns raised in the proposal and pleaded with the president to have them resolved.
Among the concerns raised were a review of the Mortgage Act (2008), a review of the Lands Commission Act (2008) and a review of the Land Title Registration Act (1986).
He also reminded the president of GREDA’s novel plan for the creation of land banks across the country without payments of compensation.
Concluding his address at the commissioning, Mr Bonful thanked Government for the partnering the GREDA to undertake the construction of affordable housing units under the two housing schemes newly launched by Government.
The National Housing and Mortgage Fund (NHMF) was set up to pilot two schemes; the National Mortgage Scheme (NMS) and the Affordable Housing Real Estate Investment Trusts (REITs) (Rent-to-own) Scheme.
Under the National Mortgage Scheme (NMS), mortgages are being underwritten at rates of 10 -12 per cent by the participating banks namely, GCB Bank Limited, Stanbic Bank Ghana Limited and Republic Bank Ghana Limited.
The two schemes have reduced mortgage rates by over 60 per cent, compared to the average market rate of 28 per cent. The Affordable Housing REITs is promoting the rent-to-own scheme with only monthly rent payments and after a period, the occupant has the option to own it.
The rent-to-own scheme will eliminate the burdened two (2)-year rent advance system and is designed to give low income workers the opportunity to rent and eventually own homes.
