NHC criticised over low cost houses
The National Housing Corporation (NHC) on Monday came under criticism from Members of Parliament, who accused the state entity of selling houses to ordinary people at prohibitive prices.
What you need to know:
- Debating Lands, Housing and Human Settlements Development ministry budget for 2016/17, MPs noted that what NHC referred to as low cost houses did not reflect the reality as the houses were sold at prices, which most Tanzanians could not afford.
Dodoma. The National Housing Corporation (NHC) on Monday came under criticism from Members of Parliament, who accused the state entity of selling houses to ordinary people at prohibitive prices.
Debating Lands, Housing and Human Settlements Development ministry budget for 2016/17, MPs noted that what NHC referred to as low cost houses did not reflect the reality as the houses were sold at prices, which most Tanzanians could not afford.
Even the minister, Mr William Lukuvi, sided with the MPs, saying he had been complaining about NCH houses prices for a long time.
“If you have been following media reports you will be aware that what I have been complaining about is what you have raised. In fact, I have stopped NHC from designing any other new housing project until they come up with a proposal on how they are going to construct low cost houses,” said Mr Lukuvi, when the Parliament sat as an appropriation committee to ascertain his budget.
Mr Lukuvi said he had directed NHC to look for technologies, which would enable them construct houses at a low cost and sale the same to the people. He insisted that such technologies existed.
Mr Hussein Bashe (Nzega Urban–CCM) said people might blame NHC, but given the way the corporation was operating there was no way of changing the prices at which the entity sold its houses.
“As much as I also detest what NHC calls low cost houses, but if you look at how NHC operates, there is no way the corporation will sell its houses cheaper than that as we would like to happen.
“NHC builds houses through loans, which attract interests. People, who buy the houses also buy through credits from banks, which also attract interests. So, let us forget about NHC selling houses at low prices,” he said.
Mr Bashe noted that proposals by many MPs that the government should waive VAT on NHC houses would not lower the prices to desired levels as the tax was a small component in the prices of houses.
Mr Andrew Chenge (Bariadi East – CCM), who was chairing the session, suggested to the government to consider subsidising NHC for the construction of low cost houses.
