CDA targets more home loans for 2000

The Commonwealth Development Authority is targeting to close at least 1,000 home loan agreements by year 2000 in fresh efforts to help Northern Marianas residents own descent housing units, its chairman said.

According to CDA chairman John S. Tenorio, the agency’s subsidiary, the Northern Marianas Housing Corporation, is currently processing 300 more applications for its home loan program.

Over the last two years, Tenorio said, the housing authority has approved between 600 and 700 loan applications, and is about to close about 150 more loan deals. NMHC receives between an average of 20 to 40 loan applications every month.

“By 2000, NMHC should close at least one thousand home agreements,” Tenorio said, as he added that at present there are some 300 housing construction projects underway that were financed and guaranteed by the housing corporation.

The agency’s affordable home loan package, he explained, has encouraged local residents to borrow money from CDA to increase home loan availment in the Commonwealth.

Tenorio added that CDA’s policy of guaranteeing bank loans of applicants has also helped boost real estate loans from commercial banks and stir construction activities at a time when the tourism industry is hurting because of the prolonged Asian financial crisis.

“The increase in real estate loans is largely because of the guarantees issued by NMHC. The housing authority has contributed so much in the economy especially at this time,” Tenorio said.

Statistics from the Department of Commerce showed that real estate loans soared 66 percent to $54.7 million in 1998 from $32.9 million logged in 1997. However, it was not clear whether the increase could be tied to home construction boom or to massive refinancing of loans by property owners, hardest hit by a plunge in the tourism economy.

A big number of commercial and residential spaces have been abandoned by occupants as a result of the business slowdown.

Housing authorities were able to commit over $4 million for the construction and rehabilitation of housing units and landscaping of grounds in 1996 despite its limited funding.

According to a 1996 annual report of CDA, since it sealed the Loan Purchase Agreement with the Guam Savings and Loan, over 60 families have been assisted with the renovation and construction of new dwellings, as well as with the restructuring of home loans.