Many real estate developers who are bent on embracing the Federal Government initiative of providing affordable housing to low-income earners are seeking best ways to access the Family Homes Funds. To make this fulfilled, the Managing Director of Family Homes Funds, Mr Femi Adewole, has shed light on how developers could access financing under the scheme. Speaking in Lagos, he said FHF only provided finance for developers, who are building homes within the firm’s target cost indicators, adding that preference are given to developers building one-bedroom houses. He said: “We are currently providing capital for developers, whether private or public, but the key requirements are these; we only finance developers, who are building homes that fall within our target cost indicators, and they are challenging, that means that more slots exist for the one bedroom houses.”
In terms of transfer cost, he said that transfer cost being the price to the occupier must not be more than N2.5million to N3million. ”The two-bedroom is from N4million to N4.5million, and three-bedroom is N5.5million to N6million,’’ he said. He explained that FHF would basically finance 100 per cent of the construction cost, adding that it would give 15 per cent advance payment to get started. Speaking with members of the Association of Housing Corporation of Nigeria, Adewole said: “We are basically financing 100 per cent of the construction cost, and 15 per cent advance payment to get you started. In some cases, we are also giving you an off-take guarantee to de-risk the project for you. So it’s an extremely attractive package, because the intent is to bring supply at the level of the market for mortgage origination.” Documents required for the fund include information on the developer, experience and track record; technical information; financial appraisal and assessment and statement on marketing strategy.