A rent-to-own housing policy was initiated on Tuesday by the Lagos State Government which steps down 30% equity contributions largely for artisans, traders and non-salary earners in the state. The state government also said that the new policy would eventually lead to a mortgage scheme for the Lagos Home Ownership Mortgage Scheme (Lagos HOMS).
The State Governor, Babatunde Fashola (SAN) disclosed this at a town hall meeting on the Lagos HOMS held at the Lagos TV complex with the Commissioner for Housing, Mr. Bosun Jeje among others. The Governor said that the rent-to-own scheme would allow the artisans and traders to access Lagos HOMS meaning that the artisans, tradesmen, non-salary earners and the informal sector at large do not have to pay the 30% down payment before they move into their apartments. He said that although the new policy is slightly different from the mortgage scheme itself, it will ultimately lead to a mortgage scheme and open access to housing to more people who cannot afford a mortgage. He explained, “But we are working on the new housing policy. When it is done, we will announce the commencement. It simply means that once they are qualified for the scheme, they will be allowed to move in under the rent-to-own scheme. The beneficiaries will be paying rent which will eventually lead to mortgage. But in an instance where a beneficiary loses his job and cannot continue with the scheme after some years, such a person will get back all he has paid. Already, another person will be waiting to buy the apartment.”
The housing commissioner, Mr. Bosun Jeje provided insight into how the rent-to-own programme would work, pointing out that the state government has not waived the 30% housing equity contribution entirely. He expressed the reason why the Lagos state government is focused on the informal sector. He said, “When we built those houses, we discovered that the houses are both for the formal and the informal sectors. You will discover that only the formal sector can boast of salaries every month for the 30% equity contribution. So we looked at the informal sector. All of us are paying taxes but we cannot all be collecting salaries. The informal sector must benefit from Lagos HOMS. They do not have salaries. They do not have a structure that they can rely on. We have to call them and make an arrangement of how they will benefit from this scheme.”
The Governor reiterated the fact that the Lagos HOMS programme is solid, that openness is assured and sustainability is also steady and that every month, his government has promised to put a minimum of two hundred homes on the table. He continued, “The next level is, of course to multiply access into the scheme. As said at the launch of the scheme in March, there is nothing we have done than to cast a stone. We will continue to respond and react when we see the reality of how the project and programme is impacting on people’s lives.”
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This article was first published on 10th July 2014
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A rent-to-own housing policy was initiated on Tuesday by the Lagos State Government which steps down 30% equity contributions largely for artisans, traders and non-salary earners in the state. The state government also said that the new policy would eventually lead to a mortgage scheme for the Lagos Home Ownership Mortgage Scheme (Lagos HOMS).
The State Governor, Babatunde Fashola (SAN) disclosed this at a town hall meeting on the Lagos HOMS held at the Lagos TV complex with the Commissioner for Housing, Mr. Bosun Jeje among others. The Governor said that the rent-to-own scheme would allow the artisans and traders to access Lagos HOMS meaning that the artisans, tradesmen, non-salary earners and the informal sector at large do not have to pay the 30% down payment before they move into their apartments. He said that although the new policy is slightly different from the mortgage scheme itself, it will ultimately lead to a mortgage scheme and open access to housing to more people who cannot afford a mortgage. He explained, “But we are working on the new housing policy. When it is done, we will announce the commencement. It simply means that once they are qualified for the scheme, they will be allowed to move in under the rent-to-own scheme. The beneficiaries will be paying rent which will eventually lead to mortgage. But in an instance where a beneficiary loses his job and cannot continue with the scheme after some years, such a person will get back all he has paid. Already, another person will be waiting to buy the apartment.”
The housing commissioner, Mr. Bosun Jeje provided insight into how the rent-to-own programme would work, pointing out that the state government has not waived the 30% housing equity contribution entirely. He expressed the reason why the Lagos state government is focused on the informal sector. He said, “When we built those houses, we discovered that the houses are both for the formal and the informal sectors. You will discover that only the formal sector can boast of salaries every month for the 30% equity contribution. So we looked at the informal sector. All of us are paying taxes but we cannot all be collecting salaries. The informal sector must benefit from Lagos HOMS. They do not have salaries. They do not have a structure that they can rely on. We have to call them and make an arrangement of how they will benefit from this scheme.”
The Governor reiterated the fact that the Lagos HOMS programme is solid, that openness is assured and sustainability is also steady and that every month, his government has promised to put a minimum of two hundred homes on the table. He continued, “The next level is, of course to multiply access into the scheme. As said at the launch of the scheme in March, there is nothing we have done than to cast a stone. We will continue to respond and react when we see the reality of how the project and programme is impacting on people’s lives.”
