Executive Director of the Ghana Real Estate Developers Association (GREDA), Samuel Amegayibor, has called for a clear legal framework to govern the proposed housing levy, stressing the need for transparent criteria for selecting developers and beneficiaries of affordable housing projects.
Speaking to Nana Aba Anamoah on Morning Starr on Starr FM, Mr Amegayibor said GREDA fully supports the proposal but insists that its implementation must be guided by clear rules and eligibility requirements.
“We agree with the minister 100%. It’s just that it has to be done within the proper legal framework,” he said.
He said the framework must establish the qualifications developers are expected to meet before accessing the fund, as well as the criteria for determining the ultimate beneficiaries of houses constructed under the arrangement.
Mr Amegayibor explained that one of the major challenges confronting real estate developers is access to affordable financing, as high interest rates on the open market make it difficult to construct houses at prices ordinary Ghanaians can afford.
He proposed that funds mobilised through the levy could be pooled and made available to qualified developers at lower interest rates, subject to agreed housing prices and minimum construction standards.
“If this levy is collected and it is put into a pool, then we set the criteria, we set a much lower interest rate,” he explained.
According to him, such an arrangement could reduce developers’ financing costs and help them deliver houses that meet the needs and income levels of the majority of Ghanaians.
Mr Amegayibor also stressed that affordability must be assessed in relation to household income, noting that housing costs are generally expected to account for about 30 to 40 per cent of an individual’s income.
He said achieving affordable housing would require both financial and technical solutions, including financing arrangements and construction methods that reduce the cost of delivering homes.
He added that the proposed fund should have clear benchmarks for housing prices and minimum standards to ensure that developers deliver homes that are genuinely affordable to the intended beneficiaries.
GREDA maintains that the proposed levy could provide a sustainable source of funding for affordable housing if it is implemented within a transparent legal framework that ensures accountability and equitable access to the fund.
Story By Pamela Quayson
