Lagos rekindles low-income earners’ hope on mortgage-backed homeownership

After a long period of suspense and anxiety among citizens over the continued delay in implementing its pace-setting housing finance initiative known as Lagos Homeownership Mortgage Scheme (LagosHOMS), authorities of Lagos State government have rekindled hope in the scheme with the assurance that its implementation would begin this year.

LagosHOMS was the state government’s response to increasing inability of its citizens to own homes through personal savings as it was aimed to provide pocket-friendly housing solutions.

The scheme, designed to be accessed through mortgage loans payable between 10-20 years at single-digit interest rate, is currently being fine-tuned by the state government for the rollout before the end of this year.

Bosun Jeje, the state commissioner for housing, explained to BusinessDay in a telephone interview that the state instituted a mortgage framework that would allow income earners and intending homeowners to benefit from the scheme, disclosing that the scheme was intended to be implemented in the first quarter of this year, “but we had to go back and re-strategise on our plans to enable us produce sustainable process that can withstand the test of time”.

“Currently, we are incorporating the final logistics into the scheme to ensure it would be appreciated by all interested parties and even utilised by subsequent governments,” he added.

On some of the modalities to be employed by the state government, the commissioner said: “Currently, some of the houses have been completed and allocation will start from the completed houses, while those presently being built will be allocated when completed.”

A close observation of the state’s teeming population shows a wide disparity between the housed and the un-housed as a significant number of the low-income earners have been restricted to make-shift structures at the city’s suburbs.

It would be recalled that the commissioner had, at this year’s ministerial press briefing earlier in the year, disclosed that the state government would soon allocate a total of 2,624 housing units to residents through the scheme as part of its efforts to address the housing shortfall in the state.

According to him, there were 264 flats in 22 blocks at the Igbogbo 2B scheme, 144 units at Shogunro 1 and 96 units at Shogunro 2, as well as 36 units at Shitta, all developed by Lagos State Development and Property Corporation (LSDPC).

He added that the New Towns Development Authority (NTDA) delivered 492 units in Igando; 844 units in Omole 2; 48 units in Magodo 2; 96 units in Lekki 1; and 84 units in Lekki 2.

Others are 540 special units in Sangotedo; 120 units in Ilupeju, and 60 units in Mushin; while the Ministry of Physical Planning and Urban Development delivered 560 units in Odo-Onasa, Agbowa.