Funds scarce for housing projects

Some 45 families may never achieve their dream of owning a home as the Koblerville housing project remains in limbo following difficulties in getting funds to complete much-needed infrastructure improvement.

The Northern Marianas Housing Corporation is appealing to the Senate to approve appropriation of $2.4 million to install sewer, power and water as well as road infrastructure within the housing project — funding that has been pending for months.

NMHC Executive Director Marylou S. Ada pleaded yesterday to senators to immediately act on the measure that was passed last week by the lower house.

This is the same bill approved earlier last year by House members, but was amended by the Senate to set aside $800,000 for various projects on Rota and Tinian.

But Ms. Ada said $1.6 million was not enough to finish the project, and the $2.4 million was the amount quoted by contractors to install the infrastructure.

“We have forty-five families who have been waiting for such a long time. If we don’t get the money, we’re going to be passing on the infrastructure costs to them which means that they will not become affordable,” she told reporters in an interview.

“This means some of them will not be able to qualify, which means some of them will drop out of the project because they can’t afford the monthly installment,” added the housing chief. “We don’t want to pass the cost to the homeowners because we’re going to have forty-five empty homes.”

The project, which began two years ago, is still awaiting the appropriation before the 45 families can start moving in. These future homeowners have qualified under the financing scheme worked out by NMHC with local banks.

“I am pleading to [senators] to pass the bill so we can finish the work,” said Ms. Ada.

Senate Fiscal Affairs Committee chair Sen. Edward U. Maratita said that while the leadership has yet to look into the House measure, the housing corporation’s request will be considered.

“Since [NMHC] is pleading, maybe we should consider it and this is for the benefit of the people, particularly Saipan,” he said.

The $2.4 million will come from the interest earned from $140 bonds floated in 1987 by the CNMI which, according to Ms. Ada, is the only viable source of funding for the Koblerville project.

Senators, particularly from Rota and Tinian, have apparently wanted to get their share from the funds since these are part of the capital improvement projects.

But Ms. Ada maintained the two municipalities will receive funding from the recent $60 million bond proceeds for their own CIP program.

“I think they are going to pass it because there are forty-five families at their mercy that are ready to move in,” said the NMHC chief.