Ogun Reads Riot Act to Low-cost Housing Schemes’ Subscribers

James Sowole in Abeokuta

The Ogun State Government, yesterday, read riot act to allotees of its housing schemes in various parts of the state, warning them not to resell the houses, within two years after handing over the houses to them.
The government also warned that it would revoke allocation of any allotees who failed to take physical possession of their houses, within 60 days after handing over.

The Commissioner for Housing, Chief Jamiu Omoniyi, disclosed the decisions of the government, at a news conference held to highlight some policies of Governor Dapo Abiodun’s Administration on housing.
The commissioner also clarified issues on controversies that ensued, over the government’s demand that allotees, should bear 50 per cent of infrastructural facilities including roads, electricity, water among others in the estate.
Omoniyi warned that any allotees found to have resold the houses in order to make profit within two years, would be surcharged with the application of the principle of “Best of Judgment” Assessment.

According to him, any allotee that sold his or her allocation, would be reported to appropriate tax authority, that shall handle the matter in accordance with the rule set as conditions precedent before entering into the contract.
He specifically, Said allocations of any person that failed to take physical possession of the property, would be revoked and reallocated to other subscribers that have met the criteria.

He said: “Low-cost housing schemes are not for profit making but social services for low-income earners and civil servants.
“We have discovered that some of the subscribers do not subscribe to live there but for speculative purpose. They get the houses and wait for three months or one year and sell the house for say N20 million.
“Government frowns at a situation whereby somebody bought a house for N5.5 million and sold the same for say N20 million within short period.
“Moreover, not taking possession of one’s allocation shows that one does not need it and it shall be allocated to someone that needs it and subscribers shall be refunded.

“We have revoked allocation of 20 houses at Kobape Phase II because allotees did not take possession within the stipulated period.”
The commissioner disclosed that provision of affordable housing units is a deliberate policy of Governor Abiodun Administration.
He said that out of 5,000 units targeted by the administration, more than 4,000 within first term of the administration has been delivered.
Speaking on the controversies that recently ensued on the housing scheme, the commissioner disclosed that out of the 200 subscribers of the Kobape Phase III Scheme, 110 would be allocated next week.

He said the allocation shall be done on first-come, first-served basis depending on meeting of certain condition precedent and rules set in the form obtained by would be subscribers.
He said contrary to the set rule that defaulting subscribers should be surcharged 10 per cent of the amount paid before defaulting, the governor had approved that the 36 defaulters, should be refunded 100 per cent.

He said the N5.5 million cost of a housing unit, excluded cost of infrastructural facilities that government spent N7m on each house.

However, he said he that the government has subsidised the cost of this infrastructure by 50 per cent, meaning that each subscribers, would pay N3.5million.

The commissioner said this is what some people heard and started saying that the government, has defrauded them after using their money to build the houses.

He said many of those complaining, have flouted the rules of the contract because some of them have applied for more than one whereas the rule is one housing unit for a family so that many people can benefit.