State housing company says eligibility expanded, not prices

A prospective homeowner is alleging that the state-owned housing company HOPE Inc has effectively shifted eligibility beyond the reach of low-income Barbadians, but the company insists its mandate and pricing remain unchanged, Barbados TODAY has learnt.

Home Ownership Providing Energy (HOPE), whose mandate is to provide accessible housing to lower-income earners at affordable prices, rather than to make a profit, has “moved up the threshold”, the complainant, who did not want to be identified for fear of victimisation, claimed. 

She said she was at the point of selecting a house when she became aware of the development.

But in a firm counter, HOPE “categorically” dismissed the allegation, insisting that its mandate has not changed.

“At no time has HOPE increased the advertised sales prices of homes within its developments. Our mission remains unchanged: to provide eligible Barbadians with access to affordable, quality, hurricane-resilient homes and a pathway to sustainable homeownership,” Chief Sales Officer Nicôle Layne told Barbados TODAY.

But since HOPE’s launch, there have been two Cabinet-approved adjustments to the upper income cap to expand eligibility to a broader segment of working Barbadians.

Layne said: “In October 2022, the upper limit was increased to $5 000 net monthly income to allow more public servants, including nurses, teachers, and police officers, to qualify.

“In May 2024, Cabinet approved a further increase to $6 000 net monthly income to accommodate additional middle-income workers in both the public and private sectors.

“These changes expanded eligibility and did not disadvantage lower-income applicants,” the chief sales officer maintained.

“To qualify as a prospective homeowner with us,” she pointed out, “persons must be at least 18 years old, a Barbadian citizen or resident, have consistent employment for a minimum of two years, earn no more than $6 000 net per month after statutory deductions, have not previously owned land or property and complete an application form.”

A person earning $2 500 net per month could still qualify and be referred to their preferred financial institution for mortgage consideration, she said.

“Once an application is approved, persons may be considered for available housing in HOPE’s various developments in the order in which qualifying applications are received. Before a lot is allocated, applicants are required to provide updated financial information, including a mortgage certificate, and undergo pre-qualification checks.”

She noted that the process continues with the selection and allocation of a lot by the applicant. “HOPE will then issue an Intent of Sale letter to the applicant, who must then seek financing directly from a lending institution of their choice.”

Layne continued: “While the HOPE team does assist applicants through the process as much as possible, the final decision to provide funds/a mortgage is made solely by the applicant’s financial institution and is outside of HOPE’s control.”

The government had slashed nearly $1 million from the operating costs of the housing company following significant restructuring aimed at addressing inefficiencies and public criticism, then Minister of Housing Dwight Sutherland told Parliament during the Estimates debate in March last year.

That same year, the project faced intense scrutiny following Prime Minister Mia Mottley’s acknowledgment of “teething problems” and troubling revelations uncovered by the administration. Two separate investigations were authorised – one conducted at the departmental level and another led by the Auditor General.

In its response to the Special Audit of the Auditor General dated April 2, 2025, which formed part of the report, HOPE said: “It is regrettable that the results of the report indicate certain and clear shortcomings in the initial operations of HOPE, particularly regarding the ability to build houses in a cost effective, efficient and timely manner.

“However, with the new leadership, along with the implementation of strategic changes within HOPE, the public can be assured that HOPE is actively addressing these concerns.”

(EJ)