Latest update April 23rd, 2024 12:59 AM
May 18, 2022 News
By Gary Eleazar
Kaieteur News – An influx of expatriate workers into Guyana as a result of its now booming oil and gas sector has, in part, forced government to update its housing laws with the passage of the Condominium Bill 2022 in the National Assembly on Tuesday.
This much was acknowledged by Substantive Ministers responsible for the Housing Sector Collin Croal and Susan Rodrigues as well as their shadow counterpart in the House, A Partnership for National Unity + Alliance For Change (APNU+AFC), Member of Parliament Annette Ferguson.
Promulgated by Minister Croal, the Bill will replace the existing 1989 Condominium Regulation and Miscellaneous Provision Act which together with other housing legislations left an ad hoc system in place—a system the new law is expected to correct.
Presenting the Bill to the House for a debate before its vote, government has recognised that the increase in demand for housing was higher in the urban areas and that those participating in the oil and gas sector are seeking alternative forms of housing options such as townhouses or condominiums.
Certificate of sale
The current legislative framework, the Minister said, did not adequately cater for such a situation and as such, it was clear to government that there was a need to amend or repeal and replace to current laws in order to provide a clear legal framework.
This, he said, would not only offer greater protection to the owners of such units but would provide a clearer path for investors desirous of developing such types of housing.
He noted that there currently exists a situation where persons have developed condominiums but would have been unable to transfer ownership.
Minister Croal also cited as example the duplex homes that were built under the previous administration and while the individuals would have been provided with certificate of sales, banks and insurance companies refused to accept that document for use in transactions with those institutions.
According to Minister Croal, the new legislation draws on the experience of other jurisdictions that have had a history dealing with such types of housing options and pointed to the United States of America (USA) and Barbados closer to home.
The Bill is to make provision for the horizontal and vertical subdivision of land and buildings into units for individual ownership and to make provision for the use and management of condominiums and matters connected thereto.
Reminding of the 1989 Legislation, Minister Croal noted that this provided in large part for subsidised housing, which in turn ended up saddling government with an enormous debt.
To this end, the units in the early 1990’s had to be sold off for as little as $25,000.
Since those persons were issued only with a Certificate of Sale and not a Transport of Titles, over time, persons found it difficult to use the Certificate to obtain loans and insurance and that situation remained in place for years.
Duplex Initiative
Compounding the situation, Minister Croal reminded the House that when the coalition launched its Duplex Initiative, the laws were not updated and as such, these persons too were only issued with certificates of sale, useless at financial institutions.
APNU+AFC’s Ferguson, in her presentation to the House on the Bill, informed that in principal, the opposition supports the legislation but that there were a number of concerns, key among which were the powers to be vested in the hands of the Minister and joined her AFC counterpart Deonarine Ramsaroop’s call for the Bill to be deferred to a Special Select Committee for further clarifications and adjustments where necessary.
She posited that in the present iteration, it can allow for the discrimination of Guyanese developers as a result of the decision-making powers that lie in the hands of the Minister.
She observed too that the new legislation that has been brought about is in large part of a replica of the existing legislation and that there had been minor adjustments.
This, she noted, as she quipped that the government minister was giving the intention there was no such legislation already in existence, stating that it was the People’s National Congress’ vision.
She pointed to the existence of condominiums already in existence and pointed to units such as those in Laing Avenue in Georgetown commonly referred to as ‘Range Houses’.
Ferguson in her presentation did concede that persons had encountered problems during attempts to transact business with financial institutions.
According to the opposition MP, they had attempted in 2017 to remedy the situation but the no confidence motion the following year scuttled this attempt.
She did use the occasion to concede that there is need for updated legislation especially with the demand coming from overseas.
She noted that with the Guyana’s economy on the rise due to the resources to be had from the oil and gas sector, there is need for the modernisation of the laws.
Transformational development
This, she said, is evident with the influx of expatriates coming to Guyana and their demand for different housing accommodation and that their preference would be for gated communities with amenities and condominiums.
While indicating support for the Bill, she was adamant that it be sent to a Select Committee in order for there to be wider consultations not just with friends and cronies but with the opposition and a wider section of the Guyanese society.
Tourism Minister Oneidge Walrond in responding to Ramsaroop’s condemnation of the legislation citing the fact that it did not go far enough; the Minister said the proposed legislation is just one component of a raft of measures aimed at providing better housing solutions.
Rodrigues, the Minister within the Ministry of Housing lamented the opposition’s calls for the Bill to be sent to a Special Select Committee would only further delay the reliefs intended for citizens.
She used the occasion to also rebut allegations over the powers of the Minister and pointed to limitations outlined in the Bill.
According to Minister Rodrigues, with Guyana on the cusp of major transformational development, updating the housing legislation is crucial.
Attorney General and Minister of Legal Affairs, Anil Nandlall in his contribution to the debate observed that it’s a public secret in Guyana that there is inadequate accommodation and the situation is likely to get dire if not remedied.
As such, the administration wanted to ensure that not only are there a number of branded hotels on the horizon or are already under construction but there was also need for different styles of ownerships and condominium form part of that.
Patent and latent
He too sought to lament the “patent and latent deficiencies” in the existing laws, a situation compounded by the dual land ownership system in Guyana—Roman/Dutch.
Such a system, he explained, involves instruments of ownership such as a Transport and a Certificate of Title, depending on the zone within which an edifice is constructed.
He cited too the problems encountered by persons looking to transact business with financial institutions and said that the Bill will remedy this situation.
Seeking to correct his opposition colleague, Minister Nandlall noted that the first condominiums to be constructed in Guyana had been spearheaded under the hand of the late President, then Housing Minister—pre independence—Janet Jagan.
He said, what the PNC did in 1989 was to regularise the status quo for the persons living in those homes in order to provide some form of titular ownership.
Investors, he said, are currently flocking to Guyana and there is need to cater to the real estate boom in Guyana, which has since attracted international companies such as Century 21 Real Estate.
Adding his voice to the debate too was Prime Minister Mark Phillips who dismissed the calls for the Bill to be sent to a select committee saying development delayed is development denied.
He was adamant that the Bill is aimed at providing additional reliefs for its citizens.
Minister Croal in wrapping up the debate iterated it is government’s intention to put the necessary administrative procedures in place as soon as possible in order to bring the provisions to fruition.
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