MPLA shelves $5.5M request for housing project

The Marianas Public Lands Authority has put on hold the Babauta administration’s $5.5-million request for the Plumeria Estates housing project.

MPLA chair Ana Demapan-Castro said the Public Lands board of directors deferred action on the request during a recent meeting, after the CNMI Housing Task Force expressed plans to look for alternative funding sources for the project.

In a Sept. 20 letter, Gov. Juan N. Babauta asked MPLA to make homestead infrastructure funds available for Plumeria Estates. He said that, based on information from the Housing Task Force, which has been managing the development of Plumeria Estates, the estimated cost of the project is $5.5 million.

The construction period for the project is 600 days. Thus, Babauta noted, funds can be made available in two installments—one in fiscal year 2005 and one in FY2006.

“In order for the [Northern Marianas Housing Corp.] to proceed with arrangements for financing it is now necessary to obtain the commitment of MPLA to make the homestead infrastructure funds available according to this schedule,” Babauta said. “I would like to request that MPLA work with NMHC to prepare the necessary documentation of this agreement as soon as possible.”

He reminded MPLA of its role “to lease public lands for the benefit of the indigenous people, using the revenues derived from these leases to survey homesteads, and develop the necessary infrastructure within these homesteads.”

But in an interview yesterday, Demapan-Castro said the issue has been taken from the agenda during a board meeting on Rota last week. “It was withdrawn upon the request of the Housing Task Force, until further notice. I think they are trying to find other sources to fund the project,” she said.

Earlier, MPLA designated lands for the proposed Plumeria Estates homestead project, which will be built near Tottotville subdivision in Koblerville.

The project involves the construction of new houses on approximately 13 hectares of land. Up to seven different styles of residential homes will be built based on plans and specifications provided by NMHC.

A total of 128 houses with two-, three-, and four-bedroom units will be available to first-time homeowners at a low price.

“The concept for Plumeria Estates is to provide high-quality and affordable housing for indigenous people with financing for the home mortgages arranged with private lenders in cooperation with [NMHC],” Babauta had said.

Babauta said that individual home financing does not address the cost of the roads, drainage systems, and power, water, and sewer lines that the development will require. Construction of the infrastructure must precede the actual home building, he added.