Telesource grabs housing contract

This is good news for families waiting to own their dream house.

After almost six months of deliberation, the Northern Marianas Housing Corporation has chosen to award the Koblerville expansion project to Telesource, edging out nine other companies in a tight race to win the contract estimated at about $7 million.

Viewed as a measure to spur the slumping economy, construction of the 45-unit housing project will begin as soon as Telesource has met the terms of the contract, said NMHC Corporate Director Marylou S. Ada.

The Board of Directors reviewed in a closed-door meeting on Tuesday the proposals of three firms which made the final round of evaluation, including Telesource, Pac United and North Pacific Builder.

In a statement, NMHC said these companies were rated on technical criteria, such as experience, ability, record of past performance, estimated project completion date and estimated cost of construction.

But Telesource won most of the votes, based on the recommendation of SSFM, the construction management firm hired by the housing corporation to assist them in bidding out the project.

Ada said the agency is “pleased and happy” with the outcome of the results, noting that it has taken NMHC almost two years of planning, design and bidding on the project.

“We are now at a crossroads,” she explained in an interview. “We’re moving forward now that 45 families will soon own their dream house.”

A formal awarding of the contract to Telesource will be scheduled once the contractor has completed the requirements of the agreement, according to Ada.

“This comes as great news, especially for the 45 families that have been prequalified for loans to purchase the housing units,” officials said in the statement.

“These families are quite excited and are eagerly waiting for the completion of the project, so that they move into their brand new homes.”

First-time homeowners are the beneficiaries: The Koblerville expansion project is intended to provide housing units to first time homeowners who will pick among the 19 models designed by a Honolulu-based architectural firm.

According to the housing agency, the subdivision is designed to be an innovative and ideal community for local families with restrictive agreements to be implemented to ensure that high standards are maintained.

More than 100 applications were received by NMHC. Out of the 45 eligible families, five will qualify for the two-bedroom house, 25 for the three-bedroom house and 15 for the four-bedroom units.

Local officials have been looking at the construction industry to help alleviate the current economic slump since the project is expected to benefit small contractors who are bearing the brunt of the two-year crisis.

Although the downturn has reduced funding for public projects, NMHC has forged partnerships with other CNMI and federal agencies to help them finance their housing plans on the island.

The Commonwealth Utilities Corporation has closed a deal them to reimburse the agency the estimated $1.22 million cost in the installation of power, water and sewer facilities for the Koblerville project.

The government-owned utility firm will pay a monthly due of close to $13,000 to NMHC for the next 10 years at an interest rate of five percent per annum, after which CUC will assume ownership of the infrastructure.

Other assistance is also underway for the financing of the houses which is expected to come from NMHC-MPLT Home Loan Program and the US Department of Veterans Affairs Native American Direct Loan Program as well as from private lending agencies.