Changes are likely to come in the HDC in the near future, which could see the State reducing its subsidy in the cost per unit for housing.

Currently, HDC homeowners pay 60% of the cost of their home, while the other 40% is subsidized by the State.

Under the proposed change, the split will be closer to 75-25.

 This was explained by Jayselle Mc Farlane, Managing Director of the HDC, during Wednesday’s Public Administration and Appropriations Committee (PAAC) meeting.

“The HDC’s board has approved a pricing policy, it’s a strategic measure of the board to keep the prices down and to implement subsidies that can be afforded by the Government, with a maximum subsidy of 25 per cent,” Mc Farlane explained.

The HDC will also seek to make simpler structures, reducing the overall cost per unit.

The recommendations- which have already been approved by the HDC’s board- are currently before Cabinet.

Meanwhile, Chairman of the HDC, Noel Garcia, said these recommendations had come as a need to respond to price increases on the global market.

“Inflationary pressures and a number of other issues such as COVID, with the supply chain logistics, are all contributing to an upward trend in prices that has distorted the 60/40 split,” he said.