$40m housing debt

www.fijitimes.com - Thursday, January 28, 2010

AFTER more than two decades of fighting debt, the Public Rental Board will join the Housing Authority and $40million in inherited arrears.

Authority chairman Lieutenant-Colonel Pio Tikoduadua said the merger aimed to improve efficiency in both parties.

A merger date has yet to be set but preparations have started with authority management contracts reduced to three months.

In 1989, the severing of the authority's rental estates eased debts while the PRB was set up with an accumulated debt of $19m.

The authority was established under the Housing Act of 1955 as a statutory body to provide housing for workers in Suva, Lautoka and in any prescribed area.

It was also due to the poor housing conditions of low-income earners who, however, still found authority houses unaffordable.

This resulted in a rented housing program in 1964 offering temporary accommodation for workers unable to buy houses, which was subsidised by the Government.

After financial constraints reportedly because of the rental estates as the subsidy had stopped in 1987, the authority asked the World Bank for help, which recommended the separation of the rental estates.

The PRB charged rent "on economic rates" and was able to make profits and clear its debts.