Brig. Gen. Tuned Reis (Rtd) has charged affordable housing institutions in Nigeria, especially the Family Homes Funds to leverage on their abilities by embracing innovative ideas in coping with the challenges posed by the covid-19 pandemic.
While speaking as one of the panelists during a webinar organized by the Housing Development Advocacy Network (HDAN) held on the 5th of May, with theme ’Family Homes Funds: Mitigating the Impact of Covid-19 with New Homes and Jobs for Low Income Earners,” Reis said that covid-19 highlights the challenges that have always been known to trouble the housing sector.
What is important now for Family Homes Funds according to him is for them to get a clearer sense of what their target audience is; who they are and how to define them.
He said it’s not enough to know what they earn, but to also know what their disposable income is.
He said, ‘’the income of most people in the informal sectors are sporadic and seasonal. There are times where their income is high, and times when they are low. These facts should be determined. This can be achieved by collaborating g more with the private sector.’’
He said FHF, like it is currently doing must not get tired of innovation. ‘’They need to continuously find solution to the myriads of problems along the housing value chain.’’
In that regard, he said they should start looking into things like generational mortgages and building to let. According to him, conversations about mortgages in the country has centered on lending to individuals not to institutions.
It is his hope that we begin to see FHF lending to regulated landlords and Social landlords. Those who will have a mandate to ensure that their rents are affordable because they are benefitting from government funding through FHF.
‘’We should also look beyond the formal sector and broaden the spectrum a little bit in terms of who should benefit. We may want to look at workforce housing. This pandemic has shown all of us that those who render essential services should not live too far away from where their services are needed. The health care workers shouldn’t have to commute far distances to where they need to work. FHF can start looking into providing homes close to where these workers need to live,’’ he advised.
To achieve the kind of housing development needed in Nigeria, he said that the government needs to bring about regulation to bring about trust. Government, he said, should honor their commitments no matter how small.
‘’If we are talking about attracting foreign investors, nobody will want to play in an unregulated market. Government tax system should be transparent. There should be an enabling environment especially for the private sector who are a huge support towards the delivery of affordable housing.’’
Speaking of government, Reis said the buck doesn’t only stop at the desk of the federal government, but more on that of state governments.
Basically, he said that regulating as it affects housing and planning is a state affair. The Federal Government according to him can only give direction so to speak.
As part of its stakeholders’ engagement initiative, he said that FHF needs to help state governments see the benefit of affordable housing delivery.
‘’They need to see it not so much as an expenditure but as an investment that will bring numerous returns to their states including economic and social returns or benefits. States cannot be said to be developing if they do not give a stake in housing to their people. Housing is a way to ensure that the people have a legitimate claim to their state as citizens.’’
Reis said FHF should keep innovating and should also look to funding from faith based associations and not only from the capital level.
