New subdivision to rise in Koblerville

Gov. Juan N. Babauta has asked for the Marianas Public Lands Authority’s cooperation in a new housing project in Koblerville.

Babauta reported that the Housing Task Force is now reviewing bid proposals from prospective developers for the construction of 128 residential houses for the Plumeria Estates in Koblerville.

He has tasked the Northern Marianas Housing Corp. to coordinate with lending institutions to finance the mortgages of the completed homes, which will be used to reimburse the developer for the costs of building.

The lending institutions and NMHC, however, cannot move forward with the financing of the proposed housing subdivision until the MPLA designates the plots to NMHC. The housing agency needs the quitclaim deeds for the Koblerville properties as collateral when negotiating with the banks.

“NMHC and the banks [are] currently negotiating and meeting to pre-approve 128 homeowners. Without the legal document evidencing [NMHC’s] legal ownership [of the properties], the banks are reluctant to commit to purchasing this note,” Babauta told MPLA chair Ana Demapan-Castro in a letter.

He noted that it is only a matter of time before the Housing Task Force awards the project to the winning developer, who will finance the project.

In a brief interview, Demapan-Castro said she recognizes the urgency in the governor’s request. She will include the matter in the agenda when the MPLA board meets today, she added.

Babauta first requested the MPLA’s assistance in the housing project on May 17.

Last Tuesday, he sent another letter to MPLA to follow up on the quitclaim deeds and to inform the agency’s officials of changes made to the original plan.

Initially, the Housing Task Force made plans to build two homestead subdivisions similar to Tottotville. Based on the earlier plan, 78 houses would be built in Koblerville and 74 more on Capitol Hill.

The task force, however, decided to concentrate the housing development in Koblerville, following a site inspection of both areas. The group found that the rugged topography of the Capitol Hill homestead lots made the area too costly for the project.

Further, the task force decided to increase the number of homestead lots in Koblerville “to make the housing development project more attractive to prospective developers,” Babauta said.

Out of the 228 lots in the proposed development area next to Tottotville, only 78 homestead lots have met the permit requirements. But the increase in number of lots available for the Plumeria Estates project was made possible after the Division of Fish and Wildlife agreed to waive their concern on the adjacent homestead lots.

As a result, there are now 128 homestead lots available for the housing project.