Minister On BHT Audited Financial Statements

The Bermuda Housing Trust “has achieved yet another successive, clean and unqualified audit for the financial year 2024/25,” Minister of Housing and Municipalities Zane DeSilva said in the House of Assembly on Friday [Feb 27].

The Minister’s full statement follows below:

Mr Speaker,

I rise today to provide this Honourable House and the Public with an update on the Bermuda Housing Trust. I am pleased to inform this Honourable House that the Trust has achieved yet another successive, clean and unqualified audit for the financial year 2024/25. The audit was once again conducted by the Office of the Auditor General, and the Trustees are justifiably proud of this outcome.

It is all the more impressive Mr. Speaker when Members take into account the challenges the Trust has had to face and is continuing to face. One of those challenges is readily apparent by a close review of the financial statements, and that is, Mr. Speaker, the growing gap between income and expenses.

This is chiefly the result of the Trust’s long standing commitment not to raise rents on sitting tenants, which has been maintained in the face of increased and increasing costs of maintenance of the five properties the Trust manages for seniors.

I pause here, Mr. Speaker, to remind Members that the Trust was established by legislation now some 60 years ago, namely the Bermuda Housing Trust Act 1965, with a statutory remit, or statutory mission, if you prefer, of providing homes for seniors in need at the most affordable rents possible. Here is what the Act states: “The function of the Trust shall be to initiate and administer one or more schemes for the relief of poverty, suffering and misfortune among elderly persons in Bermuda by the provision of accommodation for such persons on favourable terms”.

Over the years, this has seen the Trust grow to the point where it manages five properties spread throughout the island: Elizabeth Hills next to Fort Hamilton; Purvis Park off Middle Road in Paget; Heydon Trust in Somerset, opposite Willowbank; Dr. Cann Park not far from the Rockaway ferry stop; and Ferguson Park at Southside. These properties total 185 rental units, which provide homes for the same number of seniors.

While commendable, Mr. Speaker, this number is not enough to meet a growing demand in Bermuda. As Members will know and appreciate, seniors in Bermuda are living longer and the number is growing rapidly to the point that it is projected that by 2035, one in three Bermudians will be aged 65 years or older.

The Trust therefore has a key and important role to play as the Government develops a housing strategy that meets the needs of all Bermudians, particularly seniors. To this end, the Trust has already shared its views and proposals regarding the draft Bermuda Affordable Housing Strategy 2025–2035, including support for the construction of new BHC senior housing adjacent to Cann Park, identified in the draft Strategy as a critical priority. That will produce another 110 homes.

Mr. Speaker, It is fair to say that the trustees are acutely aware of the challenges we face in meeting the housing needs of our seniors and that they are determined to meet those needs. This may well necessitate an overhaul of the Trust’s statutory mission in the future. With that in mind, the Trustees will this year seek to broaden their fundraising capacity by pursuing registration under the Charities Act. This has not previously been necessary, as the Trust was granted charitable status upon its establishment under the 1965 Act of Incorporation. Registration would create an opportunity for the private sector to participate while enabling the Government to deliver more homes.

But, and in the meantime, Mr. Speaker, the Trust is actively looking at ways by which they can deliver the most effective service possible. Here I am pleased to report that the trustees are working actively with my Ministry to see what can be achieved through collaboration and cooperation with the Bermuda Housing Corporation. The two organisations are after all in the same business, providing the most affordable housing possible, and they often share the same waiting list of seniors in need. More importantly though, for the Housing Trust, working more closely together may well result in operational efficiencies that will lead to a reduction in expenses, particularly when and where issues of maintenance arise.

This is especially true for the Housing Trust and its ageing housing stock, along with the type of construction that was employed at Dr. Cann Park. As Members may know, Dr. Cann Park is currently undergoing extensive much-needed renovations which were unfortunately set back when the Trust had to end its contract with one contractor and reemploy another after once again soliciting bids through the Request For Proposal [RFP] process.

The Trust is pleased to report, Mr. Speaker, through me, that substantial progress towards completion has been made. This is important as Dr. Cann Park provides accommodation for up to 100 seniors and represents a significant revenue stream for the Trust. I am also pleased to note that this is a project on which the Trust availed itself of the supervisory assistance of the Bermuda Housing Corporation and is showing the value of the two organisations working together.

In 2026/27, the BHT will undertake the complete renovation of 16 units at Dr. Cann Park, utilising the Bermuda Housing Corporation’s Private Sector Refurbishment Programme. This represents an investment of $125,000 per unit. Delivered in partnership, the initiative will directly benefit eight BHC tenants aged 65 and over, as well as eight Bermuda Housing Trust clients. Another 16 units available to our people.

For the Trust, trimming expenses and keeping down costs is the first goal. The Trustees would prefer it if they could maintain their policy of not raising rents on sitting tenants. Here, Mr. Speaker, it is worth noting that rents on the five properties, for what are mostly one bedroom units, range from a low of $875.00 to a high of $1100.00, depending on when the senior entered a property. The median rent is around $1000.00.

I am certain Mr. Speaker that members do not need me to point out how favourably these rents compare to market rents and thus what a help they are to seniors on fixed incomes.

So it is that we in the Ministry of Housing and Municipalities commit to doing all we can to assist the Bermuda Housing Trust and its trustees in continuing to provide our seniors with rental accommodation at the most affordable rents possible.

Before I close Mr. Speaker I would like to acknowledge and thank those who served as trustees for this past year:

• The Hon. John Barritt, chairman;
• Rochelle Simons, deputy chair;
• Anthony Mouchette;
• Daniel Robinson;
• Juan Smith;
• Marco Bortoli;
• Alexander Abbott;
• Robert Trew;
• and Craig Simmons.

Mr. Smith will be stepping down after twelve years of service as a trustee and I would like to warmly thank him for his dedication and service.

I must also take this opportunity to acknowledge and express my deepest gratitude to Mr. Barritt, a former Member of this Honourable House, who has served the Trust as Chairman since leaving Parliament 15 years ago and who has decided to step down at the end of this year.

Mr. Speaker, John Barritt’s service has been nothing short of phenomenal. After 18 years as a Member of Parliament, during which he held several ministerial portfolios, he transitioned directly into the Chairmanship of the Bermuda Housing Trust. I hope he is listening from the comfort of his rocking chair in the UK, where he is enjoying well-earned time with his family. I would also like to thank his wife for her steadfast support, which has enabled him to serve Bermuda so faithfully over the past 33 years.

Mr. Alexander Abbott has graciously agreed to assume the role of Chairman, and we warmly welcome him to this position of leadership. We look forward to his stewardship and wish him every success as he guides the Trust into its next chapter.

I am also pleased to note that Mr. Barritt has kindly agreed to remain on as a Trustee for his final year, ensuring a smooth and seamless transition. We extend our sincere appreciation to him for his continued support and dedication during this period, and offer our very best wishes to both gentlemen in their respective roles.

Thank you Mr. Speaker.

#BermudaPolitics #BermudaRealEstate

Category: All