Summary of Public Accounts Committee Meeting: 5 November 2026

The Standing Public Accounts Committee (PAC) resumed its hearings into the Office of the Auditor General (OAG)'s report, “The Government's approach to improving access to affordable housing”, with Chairman Roy McTaggart outlining the findings concerning the National Housing Development Trust (NHDT). The report noted that NHDT spent $41 million between 2019 and 2024, delivering 36 homes under the New Affordable Housing Initiative and two projects under Build on Your Own Property. As of February 2026, 1,194 applicants were on the waiting list, with an average wait of 3.6 years. The report also identified governance weaknesses and made five recommendations to NHDT, all of which were accepted.

NHDT Chairman Mark Scotland and Affordable Needs Administrator SaraLee Moore appeared before the Committee. Responding to Committee member Julie Hunter, Mr Scotland acknowledged that NHDT homes remain unaffordable for many applicants despite significant subsidies. Two-bedroom homes currently sell for $170,000 and three-bedroom homes for $185,000, while construction costs range from approximately $250,000 to over $300,000 when infrastructure and land costs are included. He explained that 60–65% of applicants earn below $3,000–$3,500 monthly, making mortgage financing difficult. Ms Hunter raised concerns about applicants remaining on waiting lists without realistic prospects of homeownership, while Mr Scotland highlighted the need for alternative options, including rental and lease-to-own programmes.

Mr Scotland agreed that the current subsidy model is financially unsustainable at the scale required to meet housing demand. He confirmed that 60 homes have planning approval in West Bay, with contracts awarded for 14 replacement homes, and another 25 have approval in East End. NHDT aims to deliver approximately 30–40 homes annually, subject to available funding. He also outlined plans to explore multifamily developments and public-private partnerships to reduce costs and increase housing supply.

Responding to Committee member Kenneth Bryan, Mr Scotland outlined governance improvements, including the approval of a board charter and governance policies on 24 September 2026. A strategic plan is being developed for early 2027, alongside recruitment for a permanent Chief Executive Officer. He also confirmed NHDT's involvement in discussions on the proposed Housing Authority under the Government's Public and Affordable Housing Policy and 10-Year Strategic Plan.

Mr Bryan questioned the expenditure and housing delivery figures presented in the audit. Mr Scotland stated that NHDT's records showed 49 Affordable Housing Initiative homes and two Build on Your Own Property homes delivered between 2018 and 2024, totalling 51 homes, compared with the figures cited by the OAG for 2019–2024. Financial Secretary Kenneth Jefferson clarified that the approximately $68 million referenced in the report included $26.5 million in stamp duty revenue foregone, approximately $37 million in construction costs and $4 million in administration costs.

On procurement and transparency, Mr Scotland explained that recent West Bay contracts were awarded through competitive evaluations designed to provide opportunities for smaller local contractors. He confirmed that NHDT is reviewing its applicant selection criteria and developing a scoring system, alongside an online portal to improve application processing and provide applicants with regular updates. He also noted that NHDT currently has approximately 11 staff, compared with the 22 recommended by a Deloitte organisational review.

Ms Hunter questioned outstanding rental arrears of $376,315 owed by 18 tenants under older affordable housing arrangements. Mr Scotland confirmed that, to his knowledge, none had been recovered, with the Trust reviewing outstanding balances to determine what remains collectible or may require write-off.

The Committee also discussed the Government-Guaranteed Home Assisted Mortgage programme, which covered 325 mortgages. Mr Scotland stated that only one mortgage remained with a Government guarantee obligation, while Mr Jefferson reported approximately $900,000 in historical Government payouts on defaults and a remaining guarantee exposure of approximately $1,400–$1,500. Mr Scotland also referenced the proposed Home Ownership Mortgage (HOME) programme, which is being developed by the Ministry, and confirmed that five Build on Your Own Property homes had recently been handed over, with two awaiting completion.

Mr Scotland acknowledged that planning requirements and limited funding continue to affect housing delivery, reiterating the importance of sustainable financing and greater private-sector involvement.

The next witness was Chief Officer for the Ministry of Planning, Lands, Agriculture, Housing and Infrastructure, Eric Bush, who in responding to a question from Mr McTaggart about the National Development Plan, advised that a new planning statement is anticipated by first quarter of 2027. He explained that a framework for a new plan was presented, public consultation occurred in summer 2024 and feedback is under review by the National Development Appeals Tribunal.

Speaking on the Government Guarantee Home Assistance Mortgage, Mr Bush said the programme has not yet been reintroduced, though a proposed redevelopment is under Government consideration.

Continuing Mr Bush advised that the Public and Affordable Housing Policy and 10-Year Strategic Plan, identifies issues and provides 96 government-accepted recommendations to address an estimated 3,000-home shortfall. He said the overall cost to address this shortfall is estimated at CI$1.2 billion. He added that the NHDT's operating budget increased but is insufficient to resolve the problem. The policy suggests an annual Government injection of CI$40 million.

In addressing a question from Mr Bryan about the construction of houses in George Town and Bodden Town, Mr Bush stated that with recent developments in North Side, the ministry expects to refocus on George Town and Bodden Town within the next five years.

Mr McTaggart further inquired about land availability to build 3000 homes. Mr Bush stated that the methodology over the past 20 years cannot continue. Instead, future developments must move from single family home subdivisions to multistorey, multi-use apartment blocks due to limited land availability and population density. He noted that the NHDT currently holds 61 undeveloped parcels across various districts.

Mr Bush added that there will be reforms including amendments to the Planning and Development Bill, new planning development regulations and a new building code. He said the new building code aims to lower construction cost and increase efficiency by accepting modern building technologies while maintaining the minimum Category 3 Hurricane resistance standard.

Responding to a question from Ms Hunter about the governance and oversight of the NHDT for delivering affordable homes, Mr Bush said since the report the ministry has taken a critical look at the current Purchase and Ownership Agreement, taking into account the remarks and recommendations of the OAG. He said a formal oversight framework is planned for implementation by the second quarter of 2027, including strengthening monthly reporting and accountability measures. Additionally, restructuring NHDT into a holistic Housing Authority has been approved in principle by Cabinet with implementation targeted for early 2028.

Financial Secretary and Chief Officer in the Ministry of Finance and Economic Development, Kenneth Jefferson and Director of the Economics and Statistics Office (ESO), Adolphus Laidlow were the final witnesses to appear before the Committee. Responding to a question from Committee Chairman, Mr McTaggart about the lack of an officially defined poverty line, Mr Laidlow said a 2006 "National Assessment of Living Conditions" report published in 2008, established a poverty line of $3983 per year. He said this was not accepted due to the composition of the nutritional basket used for calculation, which included items perceived as not typical Caymanian consumption.

Mr Laidlow said the ESO is in discussion with the Caribbean Development Bank for a multi-dimensional poverty assessment. A key challenge is data sharing, specifically granular anonymised data, which remains a concern within government. The Financial Secretary suggested pursuing the assessment due to the lack of in-house expertise. Both Mr. Laidlow and Mr. Jefferson emphasised the importance of an established poverty line as a minimum benchmark for policy decisions and social assistance programs.

Mr Bryan asked about additional surveys conducted by the ESO that can help in assessing the housing conditions, including rental properties. Mr Laidlow said the ESO collects extensive rental data, recently surveying over 5000 rental units to expand its Consumer Price Index rent component from 100 to 500 units. He stated that the ESO does not produce a separate CPI for the Sister Islands due to inconsistencies in product availability and brands, making it difficult to apply standard CPI methodology. This prevents a direct cost of living comparison with Grand Cayman.

Turning to stamp duty waivers, Mr Bryan inquired how stamp duty waivers fit within the Government's overall Affordable Housing Strategy and what specific outcomes they were intended to achieve. Mr Jefferson said the stamp duty waiver regime is extremely popular and leads to property ownership, though it is difficult to quantify how many translate specifically to affordable home ownership. He further noted that recent changes in concession rates were aimed at increasing eligibility for first-time buyers and groups of Caymanian purchasers.
Addressing a question from Mr Bryan about property transfers, Mr Jefferson said legislation has since been amended to address the practice of delaying stamp duty until a property's transfer. He said public education on the risks of such financial arrangements is necessary, as stamp duty is calculated at the time of transfer based on the higher of the purchase price or market value.

Mr Jefferson also provided an update on the HOME programme, advising the Committee that discussions are underway with Class A banks and credit unions to reinstate a Government-Guaranteed Home Assisted Mortgage type-programme, called HOME with increased loan thresholds. Bankers expressed enthusiasm and are expected to propose terms.
Speaking on the Infrastructure Fund, Mr Jefferson said the balance was CI$34.6 million as of September 2026. He said several Cabinet-approved commitments totalling about CI$11 million have been made against the fund and noted that if these materialise, the balance will drop to approximately CI$23 million. He concluded that these commitments are reported to Parliament per Section 11(5) of the Public Management and Finance Act.

The Chairman concluded the meeting by expressing gratitude to the witnesses for their candid responses to the questions. He also thanked the Auditor General's Office and the Ministry of Finance for their support.

Watch Thursday’s proceedings:
Public Accounts Committee | 5 November 2026 | Part 1
Public Accounts Committee | 5 November 2026 | Part 2

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