NHC says $20m arrears limit housing maintenance as MPs raise concerns

A backlog of more than $20m in unpaid rent, loans and programme charges is hampering the National Housing Corporation’s ability to maintain estates across Barbados, the agency has said, responding to mounting complaints from tenants and scrutiny from MPs over delays in repairs.

The disclosure comes a day after deputy speaker and St Michael North West MP Neil Rowe used Tuesday’s parliamentary debate on the State Acquisition and Vesting of Property Number 2 Bill to question why long-serving tenants continued paying rent while facing persistent challenges getting repairs carried out.

Responding on Wednesday, the corporation acknowledged the concerns surrounding estate maintenance but argued that the public also needed to understand the financial realities affecting its operations.

“It is important that the public is provided with the full context within which the Corporation operates,” the NHC said in a statement issued by general manager Ian Gill.

According to the corporation, up to May 31, it was managing an overall receivables portfolio of approximately $20.3m, comprising $10.9m in rental and property receivables, $7m in loan receivables, and more than $2.4m in programme receivables.

A substantial portion of those arrears had accumulated over many years, it said.

“Every dollar that remains outstanding reduces the corporation’s ability to undertake repairs, improve infrastructure, maintain estates, meet operational commitments and invest in additional housing opportunities.”

The NHC stressed that the revenue it collects is used to finance estate maintenance, repairs, infrastructure upgrades and investment in the public housing stock.

The issue of maintenance was thrust into the spotlight on Tuesday when Rowe, while supporting legislation that would transfer ownership of 224 state-built houses to long-term tenants, said residents in communities including Rosemont, Fernihurst, Deacons Farm and Golden Acre  repeatedly complained about delays in receiving even routine repairs.

“I am in distress that my constituents are still paying rent, but when they call the National Housing depot to get maintenance it is a challenge,” Rowe told the House of Assembly.

He questioned what the corporation was doing with rent collected from tenants who had occupied units for more than two decades.

The NHC maintained that while it fully appreciated tenants who consistently met their rental obligations, maintenance priorities had to be managed within the resources available.

“The NHC fully acknowledges and appreciates that many tenants faithfully honour their obligations by paying their rent on time,” the corporation said.

“Those tenants are entitled to expect that the corporation will continue to prioritise maintenance based on available resources, health and safety considerations and operational need.”

It added: “Every dollar successfully recovered is a dollar that can be reinvested directly into roof repairs, plumbing, electrical works, drainage improvements, roads, landscaping and the general upkeep of the corporation’s housing developments.”

The NHC also noted what it described as a longstanding contradiction affecting its operations.

While there were frequent calls for it to improve maintenance standards, efforts to strengthen rent collection were often met with requests that recovery action against tenants in arrears be delayed or abandoned, it said.

“The NHC is frequently called upon to intensify rent collection and improve maintenance standards simultaneously. 

“However, when recovery action is commenced against tenants who have fallen into significant arrears, it is not uncommon for representations to be made requesting that such action be deferred, suspended or discontinued.”

Although every request was considered “in the interests of fairness and compassion”, the corporation warned that repeated interventions weakened its ability to maintain payment discipline and generate the revenue needed to sustain the housing stock.

To address those challenges, the NHC revealed that its board of directors has already approved a comprehensive policy governing the collection of rents, loan repayments and arrears, together with a broader debt recovery framework.

The proposals have been submitted to Cabinet as part of what the housing agency described as a wider programme of reform.

The policy includes structured account validation, debtor engagement, repayment arrangements, hardship assessments, strengthened governance and enhanced reporting, while aiming to improve collections without penalising vulnerable tenants.

“The corporation wishes to emphasise that these reforms are intended to distinguish between those who are genuinely unable to pay and those who have the financial capacity to meet their obligations but have chosen not to do so.”

During Tuesday’s debate, Minister of Housing Christopher Gibbs acknowledged that customer service and maintenance response needed improvement and announced plans to establish a rapid response unit, supported by a new web-based customer service platform, to improve how tenants report maintenance issues and receive updates.

The NHC said: “The Corporation remains committed to transparency, accountability and constructive engagement. 

“Where statements are made publicly concerning its operations, the NHC has a responsibility to ensure that the public is provided with accurate, balanced and complete information.”

(SM)