Speech by the Honourable Commissioner for Housing to pre-launch rent-to-own/rental housing policies


ADDRESS DELIVERED BY THE HONOURABLE COMMISSIONER FOR HOUSING, PRINCE GBOLAHAN LAWAL TO PRE-LAUNCH THE RENT-TO-OWN/RENTAL HOUSING POLICIES OF THE ADMINISTRATION OF GOVERNOR AKINWUNMI AMBODE AT BAGAUDA KALTHO PRESS CENTRE, THE SECRETARIAT, ALAUSA, IKEJA  ON THURSDAY, 1ST  DECEMBER, 2016.

 

PROTOCOL

 

INTRODUCTION

Shelter is one of the basic needs of man; it ranks second to food on the scale of human needs. It is in recognition of this that Governments all over the world accord top priority to the provision of housing for their citizens.

Lack of affordable housing affects particularly the low income citizens as they pay a disproportionate share of income for housing or live in inadequate housing that is cut-off from employment and access to health and other social services. For example, one study found that growing up in overcrowded housing reduced the high school completion rate by 11% points for boys and by 6% girls.

It is to mitigate the above and the negative effect of the current economic recession that the administration of Mr. Akinwunmi Ambode has come up with the Rent-To-Own policy and Rental Housing policy in order to increase the number of Lagosians that have their feet on Home Ownership ladder.

Lagos State has always been challenged by the arduous task of providing affordable and decent accommodation for the people of the State in view of its ever growing population.   This is reflected in the various housing schemes developed by different administrations over the years.

Accessing the housing units has been largely on cash and carry basis thereby excluding majority of the citizenry until recently when the Mortgage Scheme was introduced. Even though the Mortgage Scheme was able to accommodate more people on the Home Ownership ladder, a large number can still not afford to become home owners as they are unable to meet the requirement of 30% equity contribution which the mortgage scheme demands.

The present administration of Governor Akinwunmi Ambode in response to the yearnings of the people and in accordance with the inclusive policy of the administration has come up with the Rent-To-Own and Rental Housing Policies aimed at making housing more readily affordable and accessible to the citizenry.

 

RENT – TO – OWN POLICY

  • The Rent-To-Own policy targets the low and medium income earners in both the formal and informal sectors. Under this arrangement, individuals are required to pay 5% of the value of the housing unit as commitment fee and the balance is spread over 10years. This program allows the tenant to live on the property while paying towards ownership at a fixed rent within the period of 10years.
  • A total of 12 Housing Estates have been dedicated for the implementation of the Rent-To-Own policy. The Estates are:
  1. Sir Michael Otedola Estate, Odoragunshin, Epe
  2. CHOIS City, Agbowa
  3. Odo-Onosa, Agbowa
  4. Alhaja Adetoun Mustapha Estate, Ojokoro
  5. Olaitan Mustapha Estate, Ojokoro
  6. Egan-Igando Housing Estate, Alimosho
  7. Igando Gardens, Igando – Alimosho
  8. Oba Adeboruwa Estate, Igbogbo – Ikorodu
  9. Igbogbo IIB Housing Estate, Igbogbo – Ikorodu
  10. Iponri Estate, Iponri – Surulere
  11. Sangotedo Estate, Sangotedo – Eti-Osa
  12. Ajara Estate, Badagry

The policy is to be launched on the 8th December, 2016 simultaneously at the following Estates:

  1. Sir Michael Otedola Estate, Odoragunshin, Epe
  2. CHOIS City, Agbowa
  3. Alhaja Adetoun Mustapha Estate, Ojokoro
  4. Oba Adeboruwa Estate, Igbogbo – Ikorodu

ELIGIBILITY CRITERIA

  1. Applicant must be primarily resident in Lagos State and will be required to submit a copy of their Lagos State Residents Registration Card.
  2. Applicant must be a First Time Home Buyer.
  3. Applicant must be 21 years Old and above.
  4. Applicant must be tax compliant and provide the proof of tax payment.
  5. Applicant must have capacity to pay the 5% commitment fee.
  6. Applicant must pass the Affordability Test and not more than, 33% of the monthly income as rent.

APPLICATION AND SUBMISSION:

  1. Application forms are available at the following locations: Lagos State Mortgage Board (LagosHOMS) Office;LBIC Building, Ground Floor, Plot 1, Assbifi Road, CBD, Alausa, Ikeja, Lagos), or Ministry of Housing, Block 3 Alausa, Secretariat, Ikeja OR Download the form online(w ww.lagoshoms.gov.ng).
  2. Make payment of N10, 000 at the First Bank Nigeria plc. Account Name: Lagos State Mortgage Board, Account Number: 2023834576(Direct/Manual Posting). Complete the application form in accordance with the instructions.
  3. Submit application form with the payment receipt and copies of all necessary supporting documents in person at Lagos State Mortgage Board (LagosHOMS) Office; LBIC Building, Ground Floor, Plot 1, Assbifi Road, CBD, Alausa, Ikeja, Lagos) OR submit online!

 

RENTAL HOUSING POLICY

The “Lagos State Rental Housing Policy” was initiated by His Excellency, Mr.  Akinwunmi Ambode to further ensure housing accessibility and affordability in Lagos State.          The rent for the rental housing will be collected on a monthly basis. The tenants are however required to pay one month deposit.

The rental housing is targeted at the working class and people with regular source of income who may not want to participate in the Rent-To-Own or Mortgage program. Government intends to earmark 20% of the available housing units in each of the dedicated Rent-To-Own estates for Rental Housing.

The rent to be paid will be determined by the prevailing rent in each of the locations while mode of payment will be Direct Debit by the employer / banker to ensure easy collection.

Rented accommodation is not transferable            .

The eligibility criteria, application and submission for Rent-To-Own Housing program will also apply.

A Tenancy agreement which will state the duties and obligations of the tenant and the State Government must be signed by the tenant before the housing unit is handed over.

For both the Rent-To-Own and the Rental Housing, the selection process will be credible, fair and transparent, the details of which will be made available on the day of formal launch.

Gentlemen of the press distinguished ladies and gentlemen thank you for your attention.

ITESIWAJU IPINLE EKO LO JE WA LOGUN!!!



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