Experts Offer Solutions to Issues Limiting Access to Affordable Housing Finance

The issues of accessing cheap funds for the provision of affordable housing to millions of Nigerians in need of accommodation came to the fore over the weekend as major parties industry stakeholders were thinking about the exit. Reports by DAYO AYEYEMI.

Acceptable collateral structures/options, acceptable land titles, options to provide operating insurance, and pricing and tenure were listed as blocking issues in accessing funds for the provision of affordable housing in the country.

Providing solutions to identified bottlenecks to free up sustainable and affordable funds for housing provision, the Housing Roundtable, organized by Family Homes Funds Limited (FHFL) in partnership with the Chamber of Commerce Nigerian-British lives up to expectations.

At this thought-provoking forum, attendees, who included real estate developers, housing companies, investors, homebuyers, and mortgage and construction finance providers, offered helpful suggestions on how to overcoming challenges to facilitate access to finance. opportunities for the provision of affordable housing.

Expressing some thoughts on affordable housing finance in Nigeria, Co-Founder/Managing Director of Alitheia Capital, Ms. Jumoke Akinwumi, said there was a need to expand the market and ensure the creation of a conducive environment to attract funds.

She noted that there is public and private capital, but stressed the need to educate housing stakeholders on what it means to finance affordable housing, the options and sources of finance and how to bring them together .

According to her, industry players should start thinking about new financing products rather than relying on the conventional types.

She said they should explore universal funding, adding that potential applicants should package their products to speak the language of funding.

Akinwumi said, "The funds are there; the heavy lifting is with us. You have to look at your products. Investors want to invest, they just want to see the products.

"Until we have a transparent market, we will continue to strangle you."

The forum's interactive working session was moderated by Managing Director of Wemabod Limited, Yemi Ejidiran.

The session focused on how to address blocking issues limiting access to affordable housing finance, issues ranged from acceptable collateral structures/options to acceptable land titles: options for providing removal insurance; and pricing and tenure; each group offering helpful suggestions on possible solutions.

In terms of acceptable collateral to access affordable housing finance, stakeholders suggested that apart from title to good land such as Certificate of Occupancy (C of O), development in the field ; equity contributions by partners, lease from housing development partners; guarantees from cooperative groups and access to cash from potential buyers with a steady flow of income should serve as collateral.

In addition, stakeholders also noted that delays in land documentation, corruption on the part of government officials, and issuance of two different titles to a single plot of land have resulted in C of O n have not been accepted as collateral by financial institutions.< /p>

These problems, they pointed out, have also affected both the demand for and the supply of housing.

To overcome the challenges of acceptable land titles, participants called for the creation of a central land registry at the national level, while each state is also mandated to create one to allow easy access for developers, investors and financial institutions.< /p>

"All state governments must send all their land information to the central portal to activate checks and balances.

"All states should establish a geographic information system (GIS) on land, and where the state does not have the capacity, it should contract out the service to private technical experts", they said.

Instead of C of O or R of O, stakeholders requested the state governor or state government secretary to issue a side letter, adopt a public partnership- (PPP) or form a joint venture (JV) to develop subdivision.

This letter, they said, should be accepted in lieu of the C of O.

They also called for the digitization of land records across the country to facilitate access to land information.

In terms of options for providing removal insurance, participants said it would go a long way if a developer could provide 10% buyer, adding that letters of interest from organizations such as labor unions cooperatives were also important.

In terms of pricing and tenure, they called for collaborations with building materials producers and built environment professionals to reduce the costs of materials, home design and construction...