The Government’s new policy to limit the joint income level of people applying for Housing Development Corporation’s (HDC) homes to $25,000 may be heading to the courtroom, as Opposition Leader Kamla Persad-Bissessar yesterday said she planned to challenge legally the State on the move unless the policy was reviewed.
While Prime Minister Dr Keith Rowley defended the decision yesterday (See Page A5), Persad-Bissessar described the new plan as autocratic and illegal and warned it would result in costly litigation to the State.
Persad-Bissessar sent out the warning shortly after she and her United National Congress elections slate, Team UNC, filed their nomination papers at Rienzi Complex, Couva, yesterday.
She said thousands of people who were successful with their applications and who have a legitimate expectation of receiving their homes may have a case based on the mere success of their applications and subsequent promise to them by the State.
“To suddenly renege on that promise opens a floodgate to litigation. I intend to take up the matter in a court of competent jurisdiction,” she said, adding it would result in discrimination against thousands of citizens.
The People’s National Movement (PNM) announced a change of policy in the distribution of HDC homes through Communications Minister Maxie Cuffie at Thursday’s post-Cabinet media briefing.
He announced that citizens who had applied for homes with joint incomes of up to $45,000 would no longer be eligible for subsidised State homes, even if they had pre-qualified.
The Government is now limiting the ceiling to joint incomes of up to $25,000. Cuffie said Cabinet decided to revert to the original housing policy to provide affordable housing for low and middle income citizens, since the HDC was operating outside the law.
Some 80,000 people who had applied, many in the public and protective services, will no longer be eligible for HDC homes, former housing minister Dr Roodal Moonilal has claimed.
It was the last People’s Partnership administration that had raised the ceiling to $45,000.
Shortly after the PNM came into Government after it won the September 7 general election, however, Housing Minister Marlene McDonald claimed this change was surreptitiously done and she planned to review it.
Heartless decision
In a release on the issue, in which she seemed to be offering free legal advice, Persad-Bissessar accused the Government of insensitivity.
“On the heels of higher gas prices, the looming property tax, inflation and the sudden increase in food prices, the PNM Government has announced this draconian, autocratic policy which would lead to thousands of our hard working citizens being struck off the list of eligible persons,” she said
“In the interest of the people, we insist the policy be reviewed. We demand a more compassionate stance towards the less fortunate in our society. To do otherwise would be heartless, unlawful and unpardonable by a nation in distress,” she added.
Persad-Bissessar said it was ironic the PNM Government would claim illegality on the PP’s part “when in fact they are the ones whose untimely and harsh decision can be questioned in a court of competent jurisdiction.”
She said in the first instance, the PNM’s illegality “lies in its breach of the fundamental principle of legitimate expectation.
“In law, a legitimate expectation applies to the principles of fairness and reasonableness to a situation where a person has an expectation or interest in a public body or private parties retaining a long-standing practice or keeping a promise.
“Thousands of HDC applicants who were successful in the HDC application have a legitimate expectation of receiving their homes based on the mere success of their application and the subsequent promise to them by the State.”
Saying the PNM’s decision can also be subject to judicial review, she added: “Generally, in law a decision of the State can be reviewed on the grounds of ‘illegality,’ ‘irrationality,’ and ‘procedural impropriety.’ The instant case surely raises the possibility of a review by our courts.”
She added: “There’s absolutely no overriding public interest which can justify this Government’s change in position to the detriment of those persons whom the State has promised housing and can be struck down by the courts as an unfair and unjustified and/or unreasonable departure from the former practice and promises made.”
Persad- Bissessar said the previous ceiling established by her administration was $45,000 “which had acted pursuant to the legislation in its determination of the limit of qualifying persons for affordable housing.
“That law prescribed housing for ‘low and middle income persons.’ It was after long consideration that the Partnership Government sought to set the ceiling at $45,000, as a number of our citizens could not otherwise own a home given the cost of private home development.
“It is highly reprehensible, misleading and politically mischievous to suggest that the Partnership acted illegally.
“Our actions were always in accordance with law and followed dialogue in the interest of the people.”
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McDonald in talks with PS
Housing Minister Marlene McDonald was yesterday in a meeting with the permanent secretary when the T&T Guardian attempted to contact her on Government’s decision to adjust the salary qualification ceiling to $25,000.
She promised to respond later to queries posed on the issue via email but had not up to last evening.
HDC managing director Jearlean John was not available yesterday.
But UNC MP Ganga Singh said the Government’s policy seemed geared to promote single parent families, returning to an old PNM dependency state and creating a new “vote bank.”
He projected political, financial and legal backlash for the players in the scenario from Government and applicants.
Singh said: “Coming at this time of the year, this is a ‘Grinch’ Government move. No one can like this, save the Government.”