Erica Virtue, Staff Reporter
THE National Housing Trust (NHT) has abandoned some mortgages and frozen others on more than 550 apartments in three violence-prone schemes which have incurred a debt of more than $15 million.
The NHT said last week that as of September 2000, arrears of $5.8 million were outstanding for 278 units in Trench Town in Kingston, $9.36 million for 278 units in Denham Town also in Kingston, and $600,000 for 30 units in Tawes Pen in St. Catherine.
Beneficiaries of the schemes, some dating back more than 15 years, were paying $100, per month up to early 1990s. The sum was later increased to $400, but the NHT fared no better in collecting the monthly sum.
The company, in answering Sunday Gleaner questions, issued a press release on Monday stating that in July 1996 it took a decision that all mortgage accounts for homes in those areas should be frozen. Mortgagers would be allowed to transfer the amounts outstanding to a new purchase, on condition that mortgagors advise the NHT in writing that they had abandoned the units and waived all rights to ownership.
Shelly Whittly, NHT's senior director of operation, said most of the houses were vandalised, as owners were forced to move because of violence and others moved voluntary. Mr. Whittly said the NHT did not know the percentage of the houses that were occupied in those areas, adding that he would not be risking the lives of the company's employees by sending them there to find out.
"I'm not going to spend time and money to deal with that portfolio when I have other portfolio to deal with," he said. "But, it is a very difficult situation. And I do not want my officers to go in there right now."
The units, which are located in violence-prone Kingston and St. Catherine communities, no longer carry peril insurance, and owners cannot claim for damage to the properties.
Mr. Whittly said it was the owners who abandoned the properties. The release also stated that letters were sent to mortgagors by the NHT, but most were returned unclaimed.
However, under the present provision, a previous beneficiary can again benefit from the NHT.
