Vice President and running mate of New Patriotic Party (NPP) for 2020 election, Dr. Mahamudu Bawumia says the next NPP administration will establish a National Rental Assistance Scheme to provide loans for young people to rent decent homes.
Speaking at the launch of the NPP Manifesto for Election 2020, Dr. Bawumia said the scheme will be an intervention by the government as “rent accommodation is a big problem especially because of the demand for rent allowance sometimes up to two years demand”.
Dr. Bawumia noted that “someone who just finished school and is starting a job doesn’t have that savings to pay all these huge demands for rent allowance” hence a decision by the government to “bridge this market failure by setting up a National Rental Assistance Scheme”.
He added that the scheme will serve persons within the formal employment sector and such persons will be required to provide guarantors to access loans from the scheme.
He indicated that the government will deduct some amount of money from the income of beneficiaries on a monthly basis.
“Under this scheme, if you have a job we can deduct regularly from your income under this scheme. The National Rent Assistance Scheme will give you a loan to pay your rent allowance but it is to the landlord. You need to have formal employment” he said.
The Vice President said the scheme will be established with a seed amount of GHȻ100 million and a further government partnership with the private sector will be reached to raise more capital for the scheme.
“We are going to be putting in place a GHȻ100 million for the National Rental Assistance Scheme and work with the private sector to crowd in more[funds] so that we can get this done and relieve a lot of people who are renting of the burden” he stated.
Story by: Daniel Sackitey | universnewsroom.com