As part of the efforts to improve accessibility and affordability of housing, the Minister of Works and Housing Mr Babatunde Raji Fashola has implored private companies and individuals to give back some of what they control to citizens in the way that FGN has given back to citizens some of what it controls to cushion the effect of COVID-19.
Mr Fashola gave the advice, on Thursday, at the 9th meeting of the National Council on Lands, Housing and Urban Development with the theme:” Housing Delivery in Covid-19 Era and Beyond: The Strategies for Affordability and Accessibility,” in Jos, Plateau State.
According to him, in cases where the rent of businesses or individuals are due for renewal, the private Landlords can give back, by accepting monthly, quarterly or half-yearly rent instead of one, two or three years rent in advance.
He added that the risk of defaults can be secured by Bank Guarantees or Insurance Bonds provided by the tenant adding that where rent has fallen into arrears, it is possible to emulate what FGN did through the CBN to reschedule payment on loans, by re-scheduling the payment for the tenant to more affordable terms instead of pursuing eviction.
“Notably, all of these are matters of voluntary action by property owners and a matter of conscience. And perhaps the question to ask is whether we can do for ourselves or give to one another what we ask the government to do for us or give to us. Beyond voluntary action, there is state intervention which can facilitate access and affordability.”
He pointed out that properties are not necessarily inaccessible or unaffordable because of the price alone, but more often because of the mode of payment.
He said, “A N10million flat would probably be affordable and accessible if payment is spread over five to 10 years as against having to be paid at once.
The same would be one for renting a N2million per annum house if payment were made monthly in arrears or six-month in advance, as against paying three-years rent (amounting to N6million) in advance. These are some of the biggest hurdles that confront our people in almost all states.
“It is, therefore, my candid recommendation to this Council to consider intervention by way of recommending legislation that limits how much advance rent can be demanded or paid for renting accommodation.
“The sanction for non-compliance is that this would be self-enforcing legislation in that the state apparatus such as the courts would not help any party to such a contract get relief as it would be a patently illegal contract.
“This has been tried in other jurisdictions within and outside Nigeria and it has helped to improve accessibility and affordability. Many empty properties in our urban centres remain inaccessible or unaffordable because of some of these factors, and they can be unlocked if we act.”
In his address, Governor Simon Lalong said the state approach to an effective and efficient Housing delivery has been anchored on best practices, that are globally acclaimed to provide solutions to all the underlying causes of our underdevelopment which are hinged on processes and practices.
He pointed out that the state has also adopted a Public-Private Partnership in the acquisition of land and preparation of layouts that are made available for a greater number of people with all the guarantees and authenticity.
“We have realised that many people who are tenants are very keen on owning their own houses, hence the preference for government to facilitate access to lands in prepared layouts with titles.
“To encourage people to key into such initiatives, we have also approved a 50per cent discount on all land-related charges in the state from 2016 to date. This has seen many people also taking advantage of the opportunity to formalise their land documentation thereby allowing us to generate the relevant data that gives us a better picture of property in the state,” he said.
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