Houses will be allocated on a 10-year mortgage plan.
The governor of Lagos State, Babatunde Fashola, on Monday, inaugurated the state’s Home Ownership Mortgage Scheme, HOMS. The scheme is an effort by the Lagos government to improve home ownership for residents.
Speaking at the inauguration ceremony in Ikeja, Mr. Fashola said the scheme was government’s approach to reducing the state’s housing deficit. He said the current economic realities had made house ownership almost impossible for most income earners, adding that the scheme was the state’s response to the problem.
“For many years, our people have had to acquire houses; often times being required to pay cash once and for all, as if they were buying a shirt or a pair of shoes in a shop. This approach in part, explains why a large number of ordinary middle class and working people, cannot afford to acquire homes on the basis of their legitimate income derived from hard work. In Lagos, we are of the view that a home is not something you buy in one day, but over time in a way that your ability to acquire is tied to your income and continued prosperity,” he said.
The governor said 1,104 houses in various locations, had been completed, while 3,156 others were at various stages of completion.
Mr. Fashola said that some housing projects would soon commence in Ijora, Ilubinrin, Iponrin and other areas, adding that a total of 4, 554 new homes would be delivered on completion.
The governor said allocation of the houses would commence on March 4, adding that only residents who had not built their own house, were eligible to apply. He said that applicants must be regular tax payers, and must also show evidence of tax payments in last five years.
He said another condition was that beneficiaries must be prepared to live in the allocated houses, warning that renting out their apartments would attract stiff penalties.
The Commissioner for Housing, Bosun Jeje, said that government would partner with the private sector to provide decent homes for the people.
The highlight of the occasion was the inauguration of a five-man committee that would ensure proper allocation of the houses
Eligible residents can participate in the scheme by applying online at www.lagoshoms.gov.ng.
The houses are to be allocated to successful applicants, selected at a monthly draw, on a 10 year mortgage plan. Winners are expected to pay 30 per cent of the mortgage instantly, while the rest is to be serviced monthly, at an annual interest rate of 9.5 per cent .
The houses under the scheme, include one-bedroom, two-bedroom and three-bedroom apartments, with prices ranging from N4 million to 32 million, depending on size and location.