SPEAKER (British, Woman): Let’s get started. We have a lot to cover this
evening, and not much time. We’re very excited to announce that the government
signed a contract today to build a new low-income housing complex in the Lewis
Park area. The exact site of the building will be just one block from the tube
station, and construction will begin in May.
As our city’s…um, our country’s, really…real estate market has
skyrocketed, people on the lower end of the economic scale have suffered the
most. The government recognises that housing is one of our most basic
necessities, and is thus committed to ensuring that everyone has access to
affordable, safe accommodations. That’s why, after months of planning and
negotiating, they have rolled out a scheme to offer 50 new apartment units to
families that make less than 60 percent of the median income.
I can give you a few details about the building itself. Um, as I said, it will have 50 units. That’s 5 units per storey.
The building has 11 storeys, but the top level is actually a communal lounge
and has access to an open rooftop. Well, 12 stories actually, if you include
the underground parking garage. I should mention, though, that there are only 25 parking spots, and they do cost extra.
Um, the units range from one to two bedrooms, and include appliances
such as refrigerators, dishwashers, stoves, and air conditioning. The units
don’t include in-suite washers and dryers, but there are coin-operated machines
in the basement near the storage lockers. Oh, and one last thing...there are around
30 bike racks in the parking garage, available to tenants on a first-come,
first-serve basis.
As I mentioned earlier, the
building will only be available for families whose combined earnings are less than 60 percent of the median income. A
government official will rigorously review all applications and perform a
thorough background check. Applicants will be required to provide their
financial information, including bank accounts and investments to the official.
Uh, he or she will also need to contact the applicant’s place of employment.
So, as it stands, applications for the units will be accepted starting
in June. Potential residents will have two options: purchasing an apartment
through the government-sponsored affordable mortgage plan, or renting. Let me
explain both options thoroughly.
As part of the government’s scheme, it has worked out a plan with the
Bank of England to offer the most affordable mortgage package in the country to
successful applicants. The mortgage package works like this… Homebuyers need to put down a 5 percent deposit. The government then
provides a 20 percent equity loan at no interest for the first 5 years. In the
6th year, the loan starts at 1.75 percent interest, and it goes up
every year from then on out.
So that covers 25 percent of the housing cost. The remaining 75 percent
is mortgaged by any of the country’s major banks with the lowest guaranteed
interested rates. Fixed rates for 10 years. At the end of the 10-year term,
interest rates are variable, but are guaranteed by the government to stay below
market rate. It’s quite a deal, isn’t it?
Another unique feature of the mortgage package is that low-income
families can co-purchase a unit with members of their extended family. The
reasoning behind this is that co-investing with extended family can
economically empower more people and benefit future generations, while at the
same time promoting responsible financial management. And to facilitate this,
the government has hired a top-notch financial planner with years of experience
working in some of the city’s poorest communities.
Now, purchasing a unit is one option, but renting is also possible.
Eligible families can rent directly from the government if a unit has not been
sold by the date of move-in. Otherwise, people can rent from home-owners,
although we expect this to be a rare situation. Usually homebuyers in low-income
housing actually need the accommodations, and we anticipate that to be the case
for this new project as well. But if for some reason an owner of a unit must
move out, they may choose to rent it
to eligible families.