What is it?
Guaranteed Purchase Programme (GPP)
The Guaranteed Purchase Programme (GPP) is an initiative between the National Housing Trust (NHT) and developers, through which the NHT agrees to purchase for its contributors all or some units in housing developments.
The NHT, under GPP welcomes applications from public and private sector real estate developers to deliver affordable housing solutions for its contributors in its lowest income groups.
Through this programme, the NHT is able to leverage the efficiencies within the private sector to deliver more high-quality housing projects at reasonable costs and within faster timeframes and maintaining a high-quality product.
GPP Facts
We are proud of our works
7
Years of Service
2229
Housing Starts
1115
Housing Completions
ELIGIBILITY CRITERIA/DOCUMENTATION
GPP Project Proposal
Developers submit proposals to the NHT for consideration using a combination of press advertisements as well as targeted presentations through the associations in the real estate community.
- Information presented in the Project Proposal must correspond to the information presented in all the supporting documents, including plans/drawings.
- In the event that the applicant is not the owner of the project lands, they are required to submit a copy of the Agreement for Sale evidencing an ongoing purchase, along with the Copy Title.
- If the required approvals have not yet been granted, it is essential to provide proof of submission to the relevant authorities.
ELIGIBILITY CRITERIA/DOCUMENTATION
GPP Evaluation
The assessment process for the GPP is guided by the project location, demand considerations building specifications (sizes, standards and finishes) and demonstrated capacity to deliver.
In addition to the criteria above, proposals are assessed based on their capacity to deliver solutions at benchmark selling prices which are subject to periodic reviews.
Where the developer submits all the requisite documents for Stages 1 & 2, the NHT will conduct a single detailed evaluation of the proposal and if accepted, make a recommendation for Final Approval of the GPP Proposal.
Stage 1
Submission of information/documents to meet the minimum requirements for developers to qualify for evaluation by the
NHT.
Stage 2
In addition to the qualification documents for Stage 1, the NHT will require additional documents to conduct a detailed review.
ELIGIBILITY CRITERIA/DOCUMENTATION
Advance Payments
The NHT may agree on advance payment of 5% to the developer.
The guiding principle of the GPP is that the Developer must fully finance the project. However, such requests will be considered on a case-by-case basis based on the benefits to the contributor. The Developer must provide justification for such a request.
If approved, the advance payment must be secured by way of an advance payment guarantee from a reputable financial institution acceptable to the NHT. Should a developer default on the delivery of the housing solutions to the NHT, the advance will attract interest charges at commercial rate.
NHT Responsibilities
NHT undertakes the marketing in respect of the agreed number of solutions.
The NHT is responsible for:
Purchased Units
Accepting the risk for marketing and selling the units it purchases in the development.
Monitoring
Monitoring the construction works for adherence to the terms of the GPP Agreement.
Payment
Payment of purchase monies in accordance with the terms of the GPP Agreement.
Developer
Responsibilities
The developer accepts all the risks associated with the planning, designing, financing and completing the housing solutions.
Under the programme the developer is responsible for:
Submitting Proposal
Submitting a proposal in keeping with the NHT's guidelines. This is to include at least one (1) valuation from a Chartered Valuation Surveyor, for each type of unit, which is required prior to the issuance of final approval.
Sourcing Financing
Sourcing the financing required for the planning, design, and construction of the development.
Design
Designing the infrastructure and housing units.
Obtaining Approvals
Obtaining the approvals for the subdivision and building from all the relevant authorities and agencies.
Construction of Development
Construction of the development (Units & infrastructure) in its entirety as per the approved designs and requirements of all approval agencies & authorities, and to applicable standards & regulations.
Provisioning Documents
Provision of Certificates of Title, Government Electrical Registration Reports and Surveyor's Identification Reports, Termite Treatment Certificates, among other documents/items for completed units to the NHT and within the period specified in the GPP Agreement.
Handover
Handover of the infrastructure to the relevant agencies & authorities.
Repairing Defects
Repairing all defects that manifest within the Defects Liability Period and construction defects as per the agreement with the NHT.
Correcting Defects
Correcting all construction related defects that manifest up to two (2) years after the expiration of the Defects Liability Period.
Guaranteed Purchase Programme
Developers FAQs
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