$5M soft loan for displaced and low cost housing signed

$5M soft loan for displaced and low cost housing signed

  26 Jul 2016

By: L.N. Reklai

July 25, 2016 (Koror)  $5 million dollars of low interest housing loan funds for displaced families, affordable housing  and  low income families, was implemented yesterday through a Subsidiary Loan Agreement signed by Palau national government and Palau Housing Authority.

The loan was acquired by the national government from Mega International Commercial Bank and will be administered by Palau Housing Authority.  The interest rate is up to 5% with terms of 25 years. [restrict]

The targeted portfolio allocates $1.5 million for displaced housing, $2.5 million for States township projects (States to provide land, PHA to construct affordable housing) and $1 million for Palau Housing loan program which is targeted to low income housing programs.

In order to address the growing issue of displaced families, access to affordable housing and assisting low income and special needs families obtain affordable housing, Palau government has sought a soft loan of $5 million to help.

According to Ms. Frida Delmau, Director of Palau Housing Authority, there are 80 listed displaced families and 70 regular Palau Housing Authority clients.  PHA this year, has approved about $500,000 for 14 displaced applicants and 12 regular PHA customers and they expect to release another $500,000 loans before the year end.

“President Remengesau wants the people to be able to easily access this help and urges PHA to do its best to assist them access this fund without compromising the required loan obligations,” stated Minister Elbuchel Sadang during the signing.

“The biggest obstacle to getting a home built right now is lack paperwork on land ownership or land use right.  We can’t release a loan unless a person has the right to use the land to build a house and we  request that people who need this help, get this document ready before applying for a loan,” said the Palau Housing Authority Chairman Yano.

Minister Sadang concluded the signing by stating that Palau Housing Authority can loan the fund out, pay back the loan and the interest will continue to be used to fund displaced housing and affordable and low cost housing needs of the people. [/restrict]