Housing Corporation makes $1.2 million profit
The Samoa Housing Corporation has recorded a profit of $1.2 million for the 2018 financial year, which is an increase from $1.09 million recorded in the previous financial year.
The Corporation’s financial performance in the last financial year were highlighted in the 2018 annual report.
C.E.O. Matautia Rula Levi described 2018 as a successful year, but challenged the organisation to continue to lead in terms of financing affordable homes and rental properties.
“The financial year 2018 has been successful and challenging as the Corporation persistently pursued its strategic direction in its mission of being dynamic leader in financing affordable homes and rental properties.
“This vital role in providing reasonable financial assistance has enabled accessibility of people not usually eligible for loans in commercial banks and remarkably served the legislated social interest of the Corporation,” she said.
The CEO attributed the organisation’s success to the prudential management of the organisation.
“Significant results reached this year were the outcome of prudential management. The growth of the portfolio to $48.4 million reflected a rise of six percent from F.Y. 2017.”
The Corporation’s loan portfolio also increased from the previous financial year and totalled $22,2204,308 according to the CEO.
“Determination to level up the quality of the portfolio pressed the increases approval of mortgage loans that countered the inherited risk of the unsecured portfolio. Loans approval totaling $22,2204,308 recorded an increase from the previous financial year indicating an average monthly approval of $1.9 million tala.”
According to Mata’utia, the rigorous competition in the housing market, the high costs of goods and services and pursuit of delinquent accounts are the major challenges.
Other services provided by the Corporation included Government rental that dated back to 2013, which the CEO said is another challenge.
“Upgrading the housing rental stock is a continuous challenge in keeping abreast with the market standards and sustainability assurance.
“The rental property operation is progression well despite the constraints of limited resources and unforeseen uncontrollable circumstances. The total costs in upgrading the housing stock this year amounted to $695,535.”
According to the 2018 annual report, there are 73 Government rental houses located in Fagali’i, Vaiala and Moto’otua. The net rental portfolio is $1,605. Its opening balance for the said finance year was $15,122 and total rental charged for the year was $602,660.
However, the rental payment outstanding is $550,858 while $57,481 was rent paid in advance. Furthermore, the annual report stated that doubtful rental is $7,838 to leave a balance and net portfolio at $1,605.