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Operation PRIDE continues to face massive financial and structural hurdles

Durrant Pate/Contributor

The Housing Agency of Jamaica (HAJ) has pulled the plug on any new Operation PRIDE projects coming on board, as the project which launched in 1994 by then Prime Minister, P.J. Patterson, is now defunct.

The HAJ, which was charged with completing existing Operation PRIDE which means Programme for Resettlement and Integrated Development Enterprise, is not incorporating any additional informal settlements. This declaration was made by the HAJ in a submission before the Public Administration and Appropriations Committee (PAAC) of Parliament on Wednesday.

According to the HAJ, “While new settlements are not presently being added to the Programme, the HAJ continues to support the Government’s overall response to informal settlements through policy implementation, technical assessments, land regularisation initiatives where appropriate, and collaboration with relevant public sector entities. The management of informal settlements is a shared responsibility across several Government agencies and is guided by considerations such as land ownership, planning and environmental requirements, community needs, and national development priorities.”

Current priorities for Operation PRIDE

HAJ principals advised the PAAC that current efforts are focused on advancing regularization activities and fulfilling commitments within existing Operation PRIDE communities. This is consistent with the Government of Jamaica’s broader approach to addressing informal settlements through a combination of land regularization, infrastructure improvement, planning and development controls, and the promotion of secure land tenure. 

The execution of Operation PRIDE projects continues to face massive financial and structural hurdles because many of the low-income beneficiaries have not fulfilled their deposit commitments nor the completion of payments. Many of the brownfield developments are left half-finished without critical utilities like electricity, proper road networks, sewage and drainage. 

In its submission, the HAJ remarked, “over the years, the Agency has intermittently undertaken the construction of infrastructure in some of the unfinished informal years to qualify the beneficiaries for the receipt of their land titles. The Agency also received some support from the Tourism Enhancement Fund and Jamaica Social Investment Fund in bringing about improvement in a few communities, consequent on the financial constraints that it faces.”

Also, the cost ascribed to these lots was extensively subsidised and was not in keeping with current market values.

Current situation of Operation PRIDE

There are an estimated 600,000 Jamaicans living in 700 informal settlements in Jamaica, of which 100 are in various stages of being “formalised” by HAJ under Operation PRIDE. There are 125 PRIDE developments disaggregated as follows: 44 greenfield developments and 81 brownfield developments for administration. 

These sites are spread over 12 parishes. The total number of residential lots within the brownfield portfolio is 26,568. The Housing Agency of Jamaica, in assuming responsibility for the completion of the projects, embarked on an incremental formalisation process. 

Subject to the availability of funding and the assessment of, among other things, the level of input required to complete the outstanding infrastructure development activities are undertaken in select communities.  There are also instances in which infrastructure works have been undertaken but despite all efforts in handing over to the Municipal Corporations in whichever jurisdiction the development falls, the Municipal Corporations have not taken over the developments on the basis that maintenance fees are to be paid. 

This results in the infrastructure deteriorating over time. Over the years, the Agency has strategically prioritised the strengthening of its balance sheet and, by extension, the enhancement of its financial viability. 

Strengthening HAJ’s financial base

In recent times, HAJ’s management team has carefully assessed all projects in the planning 14 stage to ensure that each project generates sufficient revenue to yield a viable return on the total development cost, while remaining aligned with the HAJ’s mandate to deliver affordable housing solutions. 

The Agency has undertaken a mandate to enhance its credibility within the financial sector and reduce balance sheet liabilities, particularly those that are past due. In 2019, the Greater Portmore Mortgage Portfolio, together with lands at Luana in St. Elizabeth valued at $70,000,000, were transferred to the National Housing Trust in full settlement of three loans totalling $907-million. 

Since then, HAJ has significantly reduced its loan portfolio from $1.2 billion in 2019 to $342 million in 2026 with a further reduction to $222 million projected for YE 2027. Through this initiative, the HAJ has also benefited from the release of more than 1,000 titles previously held by the Trust as collateral for these loans. The issuance of these titles is expected to further reduce the liability associated with purchasers’ deposits.