Ministry seeks public help to shape housing policy
(CNS): UPDATED with consultant costs. An open public consultation has begun to help shape a much-needed policy to address the chronic shortage of affordable housing and other challenges in the local property market created by the ability of overseas residents to buy property here with no restriction or annual taxes.
The Ministry of Planning, Agriculture, Housing, Infrastructure, Transport and Development (PAHITD) said it is looking for “innovative ways to alleviate housing and sheltering challenges that our most vulnerable residents face and decrease the gap between Caymanians and their ability to purchase affordable homes”.
No draft policy or relevant guidelines have been supplied, and the inter-ministerial task force created in April 2022 to address the housing crisis in the Cayman Islands has still not made any of its findings public. It therefore appears that the government is looking for random ideas and starting this process from scratch.
A group of consultants have been engaged to develop an affordable housing policy and 10-year strategic plans. According to the government’s procurement site, the contract was awarded last year to Public Works LLC, a public policy company. Since this story was first posted CNS has now confirmed the contract was awarded in October and is worth CI$276,750.00.
Almost three years after the PACT group formed a government and prioritised fixing the housing crisis, those same Cabinet members (minus Wayne Panton and renamed the UPM) still do not have any clear idea how to tackle one of Cayman’s most significant socioeconomic challenges.
CNS contacted officials and requested a copy of the housing task force report or even an overview of its findings. However, the planning ministry has declined to reveal any details and stated that they are not the owners of this document. We were directed to the Office of the Premier and Cabinet Office, and have contacted both. We are now awaiting a response.
In a press release about the consultation, Planning Minister Jay Ebanks, who has responsibility for housing, merely stated that the public engagement phase was “integral to developing a housing policy that addresses our current challenges and sets a sustainable future. We are committed to creating inclusive housing solutions and look forward to your valuable input.”
Ministry officials said they will be reporting on results as the project proceeds and posting opportunities to participate in surveys, focus groups and forums.
Cayman’s housing crisis is impacting local businesses because low-paid workers find it impossible to find anywhere to live. This is resulting in cramped and inadequate accommodation as landlords squeeze as many bunk beds as they can into rental units, even removing kitchens to make more room for beds. Combined with inadequate public transport, the situation is creating parking problems as even low-paid workers need their own cars.
Developers have little incentive to build affordable homes when there is much more money to be made from luxury accommodation, and homes for sale at the lower end of the market are often snapped up by people wanting to apply for permanent residency, as this adds to the necessary points. As a result, ordinary working people struggle to secure a home of their own and many young Caymanians feel that homeownership is impossible.
The public consultation meetings started Wednesday night on Cayman Brac and continue tomorrow, 1 February. It will be held virtually from noon until 1 pm, accessible via the CIGTV YouTube channel, cable channels (C3 – Channel 3, Flow – Channel 106, Logic – Channel 20), and Facebook.
People can also submit comments via the
Cayman Islands Public & Affordable Housing Policy 10-Year Strategic Plan website
in the “Share My Ideas” section.
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Category: development, Local News, Policy, Politics
Developers don’t pay their share of costs that result directly from their developments. Duty free waivers on building supplies. No income or capital gains tax on their profits.
The jobs they provide are over 90% for expats not Caymanians and these expats have little to no regard for the Caymanian laws and people.
The residents and/or visitors residing in their developments cause the roads to get crowded and wear out, the schools to become overcrowded and the infrastructure of this island to burst at the seams while the rich landowner/developer pockets 100% of the profits and passes on the costs to the CIG general fund.
In other words, they are THIEVES that screw over Caymanians and need to not just be called out but they MUST pay development fees to remedy the negative externalities their developments cause.
Well written – thank you!
You are welcome.
Yeah, but if you allow this to happen in the first place what do you expect? Some expats and status holders own 2-3 properties. Why not?
Not all Caymanians. Someone had to sell the land and partner in the business.
Not a thief if you leave the door open and say come take me, leave a donation on your way out.
The real problem is the 10,000 people per year imported to build developments for non-residents. That needs to be stopped immediately. 10,000 people less in the housing market would mean a massive increase in available rental properties and a massive decrease in rental cost. Decreased rental cost would mean people could save to purchase their own property.
Right. Everyone wants to rent a shady duplex and shanty home.
why? govt do wtf they desire anyways? ZZZZZZ
Single-storey detached residences each one with its own front & back yard, uses up so much land. Apartments / multi-occupancy buildings are the obvious answer, a far more efficient use of scarce land. And cheaper to build. Or stack purpose built containers. That one is a no-brainer but the development lobby, they run the show here.
Rubbish – there is plenty of land for Caymanians and other year round residents. The answer is to stop importing more than 10,000 people per year to build developments for non-residents. 10,000 people less in the housing market would mean a massive increase in available rental properties and a massive decrease in rental cost. Decreased rental cost would mean people could save to purchase their own property.
Available rentals meaning sub standard housing.
So many thumbs down come from those who think high rise ghettos come from these, but not neccessarily so, especially in countries outside the U.S.
As you pointed, they take up much less land than homes. The government could subsidize rent based on income and get poor people out of dangerous shanty towns. Police background checks required on all applicants.
You cannot be from Cayman. Here subsidized properties would be allocated by politicians to those that vote for them. We don’t need the additional corruption. There is enough corruption as it is.
These houses are sold , virtually at cost, to Caymanians who qualify for a bank loan/mortgage guaranteed by government.
A very sensible arrangement that provides housing , an investment , and pride of ownership.
Nothing to do with “developers” or “development lobbies”.
Bull#$% – it is the developers building for non-residents and the 10,000 people working for them who increased demand and pricing in the local rental market and the sales market. They pushed up prices and pushed Caymanians out of the housing market.
A huge part of the problem is zoning regulations.
In “High Density Residential” you need a minimum of a 5,000 sq ft lot to build a home or duplex.
Medium Density – 7,500 sq ft
Low Density – 10,000 sg ft for a house 12,500 for a duplex.
With the high cost of land developers can’t make any return unless they build expensive homes.
Designate some areas with more normal density by world urban or suburban standards. Make an investment in infrastructure and see what happens.
The real issue is the too rapid increase in the population looking for housing. There is plenty of land for Caymanians and other year round residents. The answer is to stop importing more than 10,000 people per year to build developments for non-residents. 10,000 people less in the housing market would mean a massive increase in available rental properties and a massive decrease in rental cost. Decreased rental cost would mean people could save to purchase their own property.
Hey Dingleberry,
We read this the 1st time… repeating the same comment over & over doesn’t make it true.
There is a shortage of housing which is why rents are rising.
Make Tourist Accommodation Tax payable on AirBNB operators 30% instead of 13%.
First of all, government gets the additional revenue which reduces the tax burden on all residents. Second, the bottom line net income of the property on AirBNB is reduced which lowers the incentive to convert residential property that could and should be being used to fix the housing shortage to tourist accommodation in the first place. Some people are making out like bandits and the fact that people have cottoned on to this potentially lucrative cash flow is pushing the price of residential property up for everyone.
Department of tourism is also to blame for permitting so many homes for VRBO type commercial use that are not built for commercial use.
Accidents waiting to happen and then come the lawyers.
Cayman is not alone. One of many recent articles and opinion pieces on the topic. A quick search will land many examples from 2023.
https://unofficialnetworks.com/2024/01/29/the-ski-town-housing-crisis/amp/
The pendulum is swinging back on AirBnB’s and VRBO’s, albeit too slowly for many. Does Cayman have the fortitude to take similar action? Not likely.
The reality seems to be that there is enough demand to support AirBnB’s, VRBO, and the hotels- as I’ve seen very few filing for bankruptcy. Many destinations reporting record or near record tourism. Vacations and second and third homes are signs of increasing wealth (world wide) and disposable income.
It’s a global housing (and land) race.
Houses & Land should ONLY be sold to Caymanians. If they do Not have a Local Vote’s Card, they should NOT be allowed to buy any of the “Government affordable houses”.
All foreigners should have to pay annual Property Taxes.
I agree with you 1000%, however, it should only be sold to ‘generational Caymanians’, i.e. once their Caymanian lineage can be proven via one or both parents. It should not be available to those looking to check another box for their PR/Caymanian Status application.
2.40pm Until the definition of a ” Caymanian” is changed and enshrined in the Constitution everything Govt tries to do for natives will be usurped by Jamaicans with Status.
Bermuda, Jersey, Guernsey, Isle of Mann, Singapore, Hong Kong. All small places like Cayman but good luck buying a house or owning a car there if you are not a national. Cayman meanwhile positively encourages foreign investors with zero annual property tax and zero capital gains tax incentives.
Madness!
Well well, here is my input. This is an easy fix. Jay, Julie and Andre should arrange a video conference with your counterparts in Bermuda and follow their age old plan for solving the problem. It was implemented by them many many years ago but it still works.
Follow Bermuda’! You can solve the housing and traffic issues in one fell swoop.
Much legislative changes need to be made in order to preserve rights, including the right to own property tax-free, for Caymanians.
Anyone can buy a house in Guernsey …
I have one there and I’m a Kiwi
Round and Round and Round we go!!!!
National Housing Development Trust homes should only be available for Caymanians with a low-income and absolutely nobody else. The fact that overseas people are allowed to buy these is an absolute disgrace.
What happens in other countries if you are aren’t a permanent resident; for example, in Scotland you pay 4% of the cost of the property to the government. We need to start something like this immediately in Cayman.
The people who can afford to spend 12 to 15 million dollars on a condominium can well afford to pay an extra 4%.
Realtors and developers start moaning now 🙄
No need to get brain damage and reinvent the wheel, all the offshore nations have some policy in place to favor locals and residents. And they got to do something about land banking, it’s such a poor use of the land to let it sit unencumbered and encourage speculation. But given who the biggest land bankers are, I don’t predict solutions in my lifetime.
Please tell us who Public Works LLC is and show all bids and proposals received in the RFP process if indeed there was an RFP process.
Public contracts need to be open and transparent. Shine the light on them.
The RFP process is a flawed process, in TOTALITY.
There’s no oversight. The CPO has no authority to enforce due process, negligence or corruption.
No AG, Ombudsman, Premier etc can CORRECT a bad decision made by the steering committee that sits on an RFP decision.
Public Works is an NGO based just outside of Philadelphia. They are a small firm that’s done lots of work in the US and ONE in the Caribbean – the US Virgin Islands. To my knowledge, NONE of their projects was about Affordable Housing. And they’ve NO projects outside of the US.
There was at least ONE Very SOLID proposal put forward by a LOCAL firm and several proposals submitted by the usual suspects.
Absolutely ZERO compelling reason to choose an OUTSIDE vendor for this project that means EVERYTHING to the nation.
I agree that the RFPs Should be available for public review under the FOI Act!
These steering committees and the process are in DESPERATE Need For CORRECTION
Stop developers buying politicians.
Bingo!!!
Ban foreign ownership or require every property to be occupied for at least 90 days per year.
Be sure to close the VRBO loophole too.
Senior civil servants are also bought because they are used for steering applications .
Wined and dined is their reward and they’re made to feel important, then dumped when no longer needed as a new best friend.
How about the DOT stop issuing new Airbnb and such licensing? I understand why they cannot stop it all together, as many of these properties would go into foreclosures without that income. However, as many places around the world have eliminated them all together to help with the housing shortage. It would be a step in the right direction. Just Grandfather in the existing licenses and stop issuing new ones. One step at a time eh?
So you would gladly bankrupt someone and have their property foreclosed on so that you could buy it cheap?
Wow, CaymanKind much?
But you aren’t even thinking it through. If short term lets were no longer allowed, the person would simply convert it to a longer term let and have a permanent tenant. No need to let it sit empty and go bankrupt.
Please consider how things work in the real world before submitting nonsense.
No one forced you to own an investment home here.
Follow Bermuda’! You can solve the housing and traffic issues in one fell swoop.
For crying in my soup – you are not making a lick of sense.
Most people who do Airbnb in Cayman dont have a licence
Right, and a lawyer will bankrupt them when an injury happens.
If you don’t provide feedback you can’t be a part of the solution. If you know people who can’t speak for themselves, be their representative. Get involved with the public process.
Serious question – why should we bother when all available evidence to date is that these PR exercises have no impact on what the developers, the politicians they own, will allow?
All I can say is with the north side representative in charge of housing there wont be much change. What has he proactively done up to this point???
Yes 7:01 am and the statement made by him was most certainly not written by him either. The person writing his various professional statements and public utterances should receive an award. Just sayin …
He’s building i think 30 low-cost houses, some are half built, next to NS primary school. Go take a look …
Starting price for 2-bed, 2 bath is I think 170CI – pretty cheap
Outside investors will never stop buying up real estate and developing for profit. It is a safe investment vehicle. There is no profit in affordable housing.
The PR hounds are well aware of the hack to gain points.
The latter could be made better by eliminating the premise of possible by PR by offering the permit holders a chance to stay on permit for as long as the contract is in effect, with no rollover if they sign a documents that PR is not possible.
It’s a known fact that low cost housing developments eventually turn into distressed neighborhoods, that is why mixed income developments are preferable.
It is true. Even when the lower income families are more or less gifted a house under these schemes, they still can’t be bothered to look after it, or spend a few minutes a week tidying up the yard.
Before you know it the area is littered with half-stripped cars, old sofas and derelict washing machines.
generalise much?
Still don’t understand why affordable, aesthetically pleasing homes made from shipping containers are not mainstream here.
Properly done, insulated and storm hardened, and anchored down these homes are not only a fraction of the cost of concrete & steel homes for equivalent floor area they are quick to build.
Seems like a no brainier, so our policy makers should in theory be able to make it happen. Unless they are of course not going to get their backhanders from the usual development cartels?
Thumbs down from the concrete lobby incoming
There has to be an annual property tax and capital gain tax for non Caymanian owners. It is a no-brainer and the norm in most countries. What is more it would be very easy to regulate and collect.
Plus it opens up an entire new way for Caymanians to earn money fronting. Which Jon Jon and Chris Saunders are all for by their own admission.
IF past and present politicians were for the people then it should never be this way.
how about not cutting down any more freaking trees to help the low income housing recipients save on CUC bills, and not further depend on NAU….JOKE IS WOKE
It is the government policy of encouraging out of control development and bringing in thousands of foreign workers to feed that development that has led to the housing problems faced by Caymanians. The policy we need is one that ends selling out to the developers. Not likely to happen though as the developers own the politicians.
“CAYMAN GONE”: CLOSED-DOOR DECISIONS AND FOREIGN INVESTORS DRIVE AN ISLAND IDENTITY CRISIS
As real estate booms, Caymanians question who their islands are building for.
https://periodismoinvestigativo.com/2022/01/cayman-foreign-investors-identity-crisis/
Here is a policy that will greatly improve housing options for Caymanians.
First – Repeal the sections of the Development and Planning Law implemented over the past 20 years that are designed to hinder residential development by Caymanians for Caymanians.
Second – Disband the CPA and replace the CPA with an elected development control body that is not owned by the development cartel and is not controlled by politicians owned by that cartel. Of course those changes might negatively impact the ‘consulting fees’ received by politicians but then that would be a good thing wounldn’t it.
Here’s some public input: Ban AirBnBs where homeowners don’t live on the property.
Make homes for actual residents and long term lease holders first.
I do not believe that this government has any interest in solving housing issues for Caymanians and other residents.
If our politicians really wanted a housing policy that benefits Caymanians, that will also unclog the existing infrastructure, control development that is destroying the environment, ensure that development benefits the people of the Cayman Islands, and removes the pressure in the rental market, then ban all foreign construction workers and only allow Caymanians to work in construction.
That would accomplish all of the above almost immediately, and I suspect that it would also reduce the number of semi-derelict vehicles being driven at 80 mph in 30mph zones by folks wearing high vis yellow or orange shirts.
Virtually all of the current large scale development is being done for non-residents and it is massively distorting the property market for Caymanians and other residents. Virtually all of the pricing in the housing market accessible to ordinary Caymanians is grossly inflated by the importation of foreign labour and in particular labour imported to develop property for non-residents.
Enough is enough. We need to send a message to developer owned environment destroying politicians that we are mad as hell and we are not going to take it any longer!
surely there can’t be a glitch with that push to 100,000, –
idiots
Any non Caymanian who already own property must be made to pay property taxes to help maintain all the infrastructure costs to keep this place going. No new sales of any property or houses to any non Caymanians going forward. This will ultimately get things more controllable price wise. But all this will never happen because the money developers and all the real estate people who have the big bucks will shut it down and keep “business as usual”. This is just talk to help the same bunch of useless politicians in power.
Are they looking for a few good new ideas they didn’t consider, or a whole pile of bad ideas that already align with what they’re going to do anyway?
Much of the issue is attributable to the failure of the DCI to properly regulate persons renting properties. Any more than 2 properties requires licensing. Licensing requires 60% Caymanian participation.
If the laws are enforced, the long-standing protections are not permitted to function.
Dormitory style housing in low density residential areas or apartments is also a breach of multiple laws. Again, no enforcement.
If we followed our own laws the problem would be GREATLY mitigated.
Bullseye 🎯
It’s a tough one. Low cost housing creates ghettos within a few years.
The rental market is ripe for exploitation, and is often the case.
We have any number of luxury properties here that are empty for 95% of the time.
We have speculative buying of land, off-plan developments etc, that take opportunities away from those without the financial clout to do so.
There’s the clowns that are the local retail banks and their god awful mortgage offerings.
Anything special offered to caymanians is abused by those who should know better…
It’s very depressing. Young caymanians will be saddled with a mortgage that’s circa 2k a month minimum, for a modest property that would have been way below $1k a few years back, and that’s only if they can afford the deposit.
Closer to $4k plus insurance, strata fees, utilities etc.
Do we really want to augment an ever-increasing population? That is the real question. I think the population has already far outpaced our infrastructure and other resources.
Do we want to become a mini-me of Miami? Yes or no. We seem drastically close to it now, and the phrase ‘tipping point’ comes to mind, particularly when considering our marine resources and overcrowded roads.
say it again thank you for your post
Bullseye 🎯
So the government created a “task force” comprised of themselves then pay a consultant from the USA to help figure out and now they want public input??
Here’s some free public input – update the development plan law. They wont do that cause it goes against the developers.
How about stopping the worldwide sale of condos, etc. before they are even built. Nope they will never close the market.
How about a freeze on the path to PR so those permit holders aren’t buying property before they even get off the plane to use the point system to stay. Nope then they got to deal with the real estate industry.
I could say more but tired of beating this dead horse.
Wasting land space and building affordable homes that aren’t really affordable as they are heavily subsidized by government is not the answer either but let us not forget campaign promises were made for these homes so nope can’t go there either.
Lease to own is a sham. If they don’t qualify now they won’t qualify in 5 years.
You want consultation from the public but you won’t follow the advice anyways. You should have turned to us first before you hired an overseas entity and paid their fees as there is enough local talent that could assist.
Excellent post – thank you!
THANK YOU! And AMEN!
Glad to see someone with clarity, honesty and the balls to share it!
Thank You and AMAEN!!
Well-stated. Good to see we have people with clarity and common sense. The majority of people in the CIG sure don’t!!
Here’s some advice. Stop electing them.
Bullseye 🎯
You hit the nail on the head! Well said!