The Lagos State Government has said that it would soon launch an Affordable Housing Development Trust Fund to bridge the housing gap in the state.
The fund which will be established in collaboration with Arctic Infrastructures, a non-governmental organization, is a financial product intended to support property developers and homeowners.
This disclosure was made by the Lagos State Commissioner for Housing, Mr Moruf Akinderu-Fatai, on Thursday in Lagos, while inspecting ongoing housing projects, according to the News Agency of Nigeria.
Akinderu-Fatai said that they are working at getting Lagosians to access the funds at below 10% and getting mortgages in the state at also less than 10%.
What the Lagos State Commissioner for Housing said
Akinderu-Fatai in his statement said, “The fund will reduce the challenge of financing housing development and empower people, particularly the low and medium-income earners to access housing without undue financial stress.
When you talk of construction, the development partners are people in business and people who are going to live in these houses.’’
He explained that it was not easy to raise funds, hence the state government would collaborate with international partners to deliver homes at low rates.
The commissioner said, “We are also looking at how to get mortgages below 10% as well as how people who want funds can access it below 10%. Presently it is about 22% and that is not really good in terms of shelter delivery.’’
Akinderu-Fatai said the housing challenge in the state was complex due to the uncontrollable influx of people from all over the nation adding that the government was taking proactive steps to meet the demands resulting from the population upsurge to bridge the housing gap.
He said the trust fund was the state’s response to its peculiar housing challenges.
Akinderu-Fatai further said apart from the ‘Rent to Own’ scheme which offered an opportunity for repayment over a 120-month period, the government was also opening up hinterlands and developing infrastructure for accessibility.
He acknowledged that land grabbers and issues of litigation were slowing down the commencement of the construction of two proposed workers’ villages.
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The Lagos State Government had a few days ago moved to reduce the barrier to homeownership in the state by announcing plans to upscale its housing delivery performance and subsidize the cost of the homes.
The government initiative is in response to the growing gap in housing demand in relation to the available accommodation in the state.
Also, the State Governor, Babajide Sanwo-Olu, had directed that cost of homes built by the state should be lower than the market price to make homeownership easier for the people, adding that the government is seriously working at having more homes available for residents before the end of the year.