The Public Sector Housing Fund established by the government, has provided GH¢10 million as seed money to the HFC Bank to disburse as mortgages at affordable interest rates to public sector employees. This is part of a new strategy adopted to address the problem of house financing to provide shelter for majority of Ghanaians. The Minister for Water Resources, Works and Housing; Mr Albert Abongo, said this in a speech read on his behalf at a luncheon organised by the American Chamber of Commerce (AMCHAM) and the Ghana Real Estate Development Association (GREDA) in Accra on Thursday. The minister said as a result of the lack of a body to regulate the activities of real estate developers, estates had been developed without social amenities. "In other cases, estate developers have charged home owners for services which they never provided," he added. He said the quality of work on some of the houses also left much to be desired, adding that some estates were gradually turning into slums, thereby eroding the capital value of the properties. He announced that the ministry would soon engage stakeholders to come out with a regulatory framework for the industry. Mr Abongo said factors such as the industry's dependency on imported building materials, inaccessibility of land, private individuals delivery of 90 per cent housing stock and the unavailability of mortgage finance were constraints that made houses expensive and impeded the increase in housing delivery. He emphasised government’s commitment to improve the housing situation in the country. He said the draft revised housing policy was ready and undergoing strategic environmental impact assessment by the Environmental Protection Agency (EPA) before being sent to Cabinet and Parliament for formal approval. The President of GREDA, Dr Alexander Tweneboa, said the purpose of the meeting was to highlight issues of concern to GREDA and the challenges that the private sector faced in the housing sector. He expressed optimism that the dialogue would form the basis of future discussions to work together and achieve the dreams of homeowners and decent accommodation for majority of Ghanaians. He said Ghana was currently facing an acute housing problem, adding that production was only above 30,000 units per annum instead of the annual estimated requirement of 110,000 and 140,000 units. He said in order to develop a sustainable way forward, there was the need to dialogue with government on ways in which GREDA could assist government to effectively play its facilitation role in the housing industry and provide Ghanaians with afforc1able houses. Dr Tweneboa suggested that as the government sought to reduce unemployment, emphasis should be placed on the construction industry as a major growth pillar for accelerated growth, social cohesion and economic empowerment. He made a couple of policy suggestions, which he said would make it possible for the private sector to assist with the delivery of affordable housing. They included the lifting of Value Added Tax/National Health Insurance Scheme levies on building materials, restructuring and strengthening of the Town and Country Planning Department and encouraging partnerships between financial institutions and municipal authorities. Source: Daily Graphic