WHILE the Marianas Public Lands Authority supports a bill seeking to provide low income concrete housing loan program for local residents, it has concerns on the sufficiency of funds to finance such program.
“Ideally, any legislation that takes into account hardships of a community and does away with it, turning into a positive result a negative or impending circumstance is something worthy of support.
“The…bill is just one such effort we believe deserving of our support,” said MPLA director Bertha Leon Guerrero in a recent letter to the House Committee on Ways and Means.
Leon Guerrero said H.B. 13-58’s intent is “noble” because every homestead lot owner who is qualified for a housing loan would become financially capable of building a descent home for his family.
Rep. Pedro P. Castro, R-Saipan, introduced the measure.
But the agency raised concerns on the number of loans that the Northern Marianas Housing Corp. could extend. H.B. 13-58 seeks to appropriate $5 million from the Marianas Public Lands Trust for loan applicants that would be processed by NMHC. “Without statutorily permitting NMHC to invest the $5 million in interest-earning accounts or market, the total sum to be appropriated would be depleted quickly,” said Leon Guerrero.
She said that at $50,000 maximum loan per applicant and with only $5 million, NMHC could only loan money to 100 applicants. MPLA also seeks clarification on whether it is the intent of H.B. 13-58 to qualify individuals who have no income to apply for housing loan.
Leon Guerrero suggested that a provision stating the base amount for housing loan application be included in the measure.
The MPLA also disagreed on the findings section of the bill that homesteaders are being “forced to construct less superior dwellings (that are) not concrete.”
