YEAR-END REPORT Housing, 1998

The year 1998 has been a great challenge for the Northern Marianas Housing Corporation (NMHC) as it extends the delivery of public housing, mortgage credit and community development throughout the NMI.

“We are especially very pleased that NMHC was able to assist more families throughout the Commonwealth achieve home ownership through the NMHC-Marianas Public Land Trust (MPLT) Home Loan Program,” said Juan S. Tenorio, board chairman.

After many years of contemplating and negotiating, the NMHC-MPLT Home Loan Program finally came to fruition early this year, making the financing of many houses under the program a reality.

Hundreds of residential loan applications were received and processed and by end-Septembe. NMHC closed a total of 120 loans amounting to $9.1 million in residential projects.

Since its charter in 1994, NMHC’s seven loan programs have financed 429 homes and a total loan portfolio of $26.74 million.

“The importance and value we place on family housing needs are high on our list of priorities. In fact, it is an integral part of NMHC’s mission statement. Home ownership ensures that our community’s most precious resources are taken care of,” Tenorio said.

“We were quite overwhelmed with the public’s response to the Koblerville expansion project. Over 200 applicants of low to moderate income have submitted loan applications and were prequalified,” he added.

The project consists of 45 single-family residential homes and some units will be constructed for ADA accessibility and compliance.

Through a lottery system, successful eligible families drew model lots and are now looking forward to the actual construction and completion of the first family home.

Tenorio said the Koblerville project will increase the CNMI’s housing stock. “Unfortunately, however, we were not able to accommodate everyone who applied, but NMHC is exploring other alternatives to further assist these families with home ownership. The Board will soon be reviewing the proposals submitted by contractors and will award the project early next year to be followed by ground breaking activities,” the chairman added.

Another significant NMHC accomplishment, with the assistance of the Legislature, was the passage of the local Fair Housing Act to carry out the intent and purpose of the federal Fair Housing Act.

“Months of intense dialogue with the Legislature brought this crucial piece of legislation to a reality to protect families from housing discrimination. We will continue to work with HUD to have NMHC certified and trained to handle the procedural aspects of the Fair Housing Act,” Tenorio said.

Community Development Block Grant

The projects funded by the CDBG program, along with the homes financed through NMHC’s loan programs, have been the major source of construction activity in the CNMI.

“The Asian economic slump has negatively impacted upon our economy, thus the CDBG funds are utilized effectively to benefit the community, and especially, the very low to moderate income families,” Tenorio said.

Since Oct. 1997 to Sept. 30, 1998, NMHC engaged the services of several architectural/engineering firms for the construction and management services of its CDBG projects.

The most critical and long overdue project is the Saipan recreational facility at the Northern Marianas College campus funded under the 1995 CDBG.

“With the help of the consultant, we are now moving forward with the construction of the gym. The lack of manpower at the Department of Public Works stalled this project from its planned completion this program year,” Tenorio said.

Other projects undertaken by NMHC through the CDBG Projects are the Kagman Community Center, the Tinian Baseball Lighting Project, the Pinatang Park Swimming Pool Phase II and the Dandan Baseball Field Bathroom Facility.

The Kagman Community Center is the first public facility which can be used to serve the Kagman area and neighboring residents as a community center, public hearings, school programs and emergency shelter during typhoon.

The contract for the project is now in process, DPW will execute the contract and NMHC will issue the Notice to Proceed for the commencement of the construction.

The Tinian Baseball Lighting Project is expected to be completed by March 1999. The project is proceeding smoothly and when completed, will provide the community of Tinian the ballfield where softball games and other types of events could be held at night.

The Pinatang Park Swimming Pool is the only designated area on the island where people in the small community can swim while the Dandan Baseball Field Bathroom facility has been completed and was turned over to the community last Nov. 30.

Public Housing Programs

“The Board is strongly determined to remove the bad image of the public housing programs in the Commonwealth and most especially, its predecessor agency as just being an entity administering a low-income housing program,” Tenorio said.

“Continued upgrade of public housing units throughout the Commonwealth is made to renovate units which are termite infested and repair damages to meet housing quality standard requirements by HUD,” he added.

Joint efforts with the Commonwealth Utilities Corporation (CUC) made possible the installation of street lights in public housing subdivisions to make the neighborhood safer, ensure that the area deters drugs/violent activities, but equally important, ensure tenant safety at night.

Neighborhood watch and beautification programs were also implemented. In addition, NMHC privately contracted its ground maintenance and worked with the contractors to beautify and make the subdivisions attractive and litter-free.

Tenants are also encouraged to work towards their independence and self-sufficiency. A collaboration between NMHC and other service-provider government and private/non-profit organization help to provide tenants with nurturing topics to further their growth and development towards independence and self-sufficiency or address social problems and resolution.

This year, the Board also elected to make participation in the Family Self-Sufficiency Program, which was recently implemented, a mandatory requirement for all tenants in public housing.

“It is our understanding that such participation is only voluntary. However, the uniqueness of the Commonwealth, the lack of programs/services common to other jurisdictions, our strive for less dependence on public funds, eliminate family’s perpetual dependence on public housing and other public assistance programs are some reasons behind the Board’s call for more active participation on tenants’ part to help themselves and achieve a partnership with NMHC towards their self-sufficiency,” the chairman noted.

The gradual phase out of the Section 8 rental subsidy program will soon see its second project expire in June 1999 with 25 housing units.

NMHC has sent out the required notices to prepare tenants residing in the projects to prepare themselves for other housing alternatives as well as to encourage their participation to become self-sufficient by enrolling in education and job opportunities and/or training programs.

“NMHC is assisting these tenants who are eligible for home ownership through its loan programs and quarterly community meetings are being held to address their concerns and become better acquainted with programs and/or services with respect to alternative housing provided in our community,” Tenorio said.

“Homelessness is the last thing that we want for these families and NMHC will do everything it can to prepare and assist these families with alternative housing when the contracts expire,” he added.

Planned Projects

A primary goal for 1999 is getting NMHC to be a certified housing counseling agency. Achieving such certification will take the training of personnel in the mainland, the chairman said.

“The economic downturn we have been experiencing led to the skipping of the annual housing expo this year. We are eager to coordinate the next one and we hope that our economy will rebound soon in 1999 so that we may resume this yearly event and enlist corporate co-sponsoring to help defray its cost,” Tenorio added.

Likewise, NMHC will expose the possibility of working again with the Legislature to implement a program similar to the Hula Mae Program in Hawaii, in which the Hawaiian legislature passed a piece of legislation, for low-interest rate residential mortgages program for bonafide resident of Hawaii.

“We can all look forward to working together to ensure that housing and community development programs in the Commonwealth are continually improved with less financial dependence, especially under its Section 8 program,” according to Tenorio.

“NMHC is committed to achieving its goals and objectives and fully realizes its obligations to provide permanent housing assistance to families in need of a safe, decent and pleasant house. Concurrently, however, its major objective is to assist those residents of the Commonwealth who have yet to become home owners,” he added.