The amount of the subsidy granted by the State to the purchasers of the homes ranges between one and 1.2 million
Taken from the Caribbean
SANTO DOMINGO. - The Dominican Republic has been grappling with a housing deficit for decades that will take many years to reduce; however, the current government administration, through the Ministry of Housing, Habitat and Buildings (MIVEHD), is clear that it must address the problem and is outlining specific strategies to do so.
“It’s an inherited problem, but in one year we’re going to build 7,500 homes, which is what the previous administration built in eight,” Housing Minister Carlos Bonilla Sánchez told the newspaper El Caribe and CDN, Channel 37, in a special interview. He was the guest at yesterday’s weekly luncheon, an opportunity he used effectively to list what he has accomplished in 12 months at the helm of the National Housing Institute (INVI), as well as the plans he has in the pipeline for the ministry he was tasked with managing, which was transformed into a ministry by decree 497-21.
This year, INVI has a combined budget of approximately RD$15 billion, an unprecedented sum, according to Bonilla Sánchez. “It used to manage two or three billion RD$ annually. The difference is very significant and demonstrates President Luis Abinader's commitment to Dominican families, because a home is truly for the family,” he stated.
He recalled that the Constitution of the Dominican Republic establishes the right of all people to access housing and that this is a sector that has been largely neglected by previous administrations. "It is essential to give this issue the importance it deserves, because owning a home is a long-held dream for many Dominicans," the official stated.
He made it clear that one of the tasks he was given when he was appointed – first at INVI and now as Minister of Housing – was to reduce housing deficits, both from a quantitative (quantity) point of view, and from a qualitative point of view (the latter refers to homes that, for example, do not have water, that are built with vulnerable roofs, dirt floors and in areas of high vulnerability).
The figures handled by Bonilla Sánchez indicate that the housing deficit, both in terms of quality and quantity, is around two million units.
“To address these deficits, we have two programs. One is called Mi Vivienda (My Home), which involves building 7,500 low-cost homes for Dominicans within a year. In addition, it provides access to housing for people who have never had the opportunity, allowing them to own a home by paying approximately ten thousand pesos per month. Furthermore, there is the Plan Dominicana se Reconstruye (Dominican Republic Rebuilds Plan), which involves the reconstruction of more than 30,000 units, of which we have already completed 10,000. The plan is for this program to continue throughout the current administration,” he noted.
She attended the meeting accompanied by Eduardo Guarionex Estrella, Vice Minister of Cooperation and International Relations, and Patricia Florentino, Director of Communications for the Ministry of Housing, Urban Development and Housing (MIVHED).
Representing the press were Nelson Rodríguez and Héctor Linares, Director and Deputy Director of elCaribe, respectively; Alba Nely Familia, Director of CDN; and Julissa Céspedes, a program host for the television station.
The annual repair goal aims to reach at least 15,000 homes, estimated Carlos Bonilla. This includes everything from floor repairs to structural work. The greatest demand for housing solutions is concentrated in the 500,000 peso range and below, according to the minister, who clarified that these figures are estimates, given the need for a more in-depth census on the matter.
He reported that a bill is currently before the National Congress that seeks to raise the threshold for low-cost housing to 4.5 million (all homes costing less than that amount qualify the buyer for a housing bonus or ITBIS bonus). “This would be a very important benefit for the middle class, which doesn't reach the current threshold. But we don't want to compete directly with private developers. We're providing incentives so that the market, that is, the builders, can develop these projects and create jobs. We focus on low-cost projects that, due to budget constraints, private developers couldn't undertake,” he explained during the conversation.
Until now, INVI has classified as "low cost" those homes whose sale price is equal to or less than RD$3,829,454.43, for contracts signed from January 1, 2021.
The amount of the subsidy that the State grants to a homebuyer ranges between one million and one million two hundred thousand pesos, depending on the unit. There are units of 52 square meters and 72 square meters. "That's what makes it possible for the person to have such a low monthly payment, equivalent to 10,000 pesos," he explained.
The government evaluates who receives the subsidy, ensuring it's for those who truly need it. "The married couple must earn less than five minimum wages per month to qualify," the minister explained. The Ministry of Housing, Urban Development and Housing (MIVEHD), for its part, has committed to issuing building permits within two to three months. Currently, the process takes up to a year.
A look back at the past 12 months
Among the achievements of Carlos Bonilla's administration during his first year at the helm of INVI were the construction of buildings at 12 health centers and the remodeling of buildings at two others. In total, 154,236 square meters were constructed and remodeled, and 459 beds were added for patients at the health centers where work was carried out, according to the figures.
Official statistics also mention the reactivation of works in 13 health centers that were paralyzed in 10 provinces, which will mean the incorporation of 847 additional beds, the consolidation of a team of highly trained young engineers committed to building a better future for the Dominican Republic and the implementation of good practices and professional tools acquired in the private construction sector, now transferred to the public sector.
The current authorities took over the completion of pending works from the Office of Supervising Engineers of State Works (OISOE), such as hospitals and other health centers, managing not only to meet suitable deadlines, but also to use state resources responsibly, adhering to the laws and administrative procedures.
According to Bonilla, this first year in office is the best endorsement for the creation of the Ministry of Housing, Habitat, and Construction, because it demonstrates the need for greater transparency in this area of public administration and shows that this is the way to more efficiently address the needs of Dominicans in terms of socially-purpose construction. “We have worked to restore people's trust in institutions and public servants by addressing their needs and meeting their expectations,” he said.
When the minister was asked about what this government found at the OISOE, he listed pending hospital projects and works that needed to be reactivated or completed, as well as a lack of equipment, due to inadequate management or administration. “There were even projects delivered unfinished and works assigned without a bidding process in accordance with the General Law on Purchases and Contracts,” he said.
Data from the Ministry of Housing indicates that at the payroll level, efforts are being made to streamline public spending through reductions within INVI and what was previously part of OISOE, resulting in savings of around RD$330 million annually.
There were games that were not played
The current administration asserts that it found invoices for work items that were certified but not executed, as well as irregularities in contracts and the awarding process. These audits have resulted in savings of approximately RD$2 billion for the State. The conversation with Minister Carlos Bonilla and Vice Minister Eduardo Guarionex Estrella was extensive, leading him to acknowledge that upon assuming his position, he found a group of honest men and women eager to work to change the reality of their country. "Together with them, we have made progress in making the institution and its processes more efficient, and in improving the results of our work," he stated.
