Sint Maarten Social and Affordable Housing Project

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The proposed project aims to increase the availability of resilient and affordable rental housing, managed by SMHDF, while simultaneously strengthening the institutional capacity of the housing sector. This will be accomplished through two key approaches: (i) enhancing SMHDF's financial, technical, and operational capacity to establish itself as Sint Maarten's leading force for social and affordable housing initiatives; and (ii) addressing key barriers within the housing value chain to facilitate the growth and development of the broader housing market.Project Components:Component 1 – Institutional Strengthening and Enabling of the Housing Market (US$1.5 million)• Subcomponent 1.1: Institutional Strengthening for SMHDF. The subcomponent will provide funding for technical assistance related to (i) improving financial planning and accounting systems, including the technical capacity to maintain them; and (ii) implementing an integrated property and financial management system to improve efficiency and accuracy in the management housing units. • Subcomponent 1.2: Enabling the Housing Market. The subcomponent will provide the GoSXM with funding for technical assistance related to: (i) developing a comprehensive National Housing Policy; (ii) developing a strategy and information system for income verification of beneficiaries of housing subsidies and its implementation in collaboration with SMHDF; (iii) developing a strategy for the creation of an affordable housing fund or other strategies to incentivize the development of affordable housing; and (iv) developing public communication and/or consumer education programs related to the national housing policy and other key housing related issues such as unlocking succession land, accessing mortgages, etc.Component 2 – Social and Affordable Housing Development (US$15.5 million)Component 2 aims to address the shortage of social and affordable housing in Sint Maarten by financing the construction of new resilient rental housing units. The housing development will be constructed on a land parcel 095/2011 in Upper Princess Quarter, Hope Estate. The project is expected to build approximately 88 units, with a mixed-income housing model that integrates social and affordable or workforce units in the same development. SMHDF is expected to contribute between 15 to 20% of the construction costs through a mortgage loan. Once the housing development is completed it will be transferred to SMHDF for its management. Component 3 – Project Management (US$3 million)Component 3 would finance the related administrative expenditures for project management to be carried out by the NRPB and led by a Project Manager, including the needed expertise in contract management, procurement, financial management, environmental and social standards, other technical matters, and M&E, including project audits, and operating costs.