Potential and existing residents of Riverwoods housing development, D'Abadie in east Trinidad, are accusing the state-owned developer National Insurance Property Development Company Ltd (Nipdec) and project financier, the National Insurance Board (NIB) of mismanagement of public funds and breach of contract. This strong accusation from residents comes after waiting more than five years to have the three-bedroom units delivered to them after making deposits of $100,000. To date, the residents said that out of the 150 units, only 60 units in phases one and two, called Estuary, were delivered earlier this year, and that was only after some of them was forced to take legal action to get the keys to their homes.
That phase of the project was originally scheduled for completion in December 2006, according to a March 2008 Business Guardian article.
Included in the group that moved into their homes was Jeffrey McFarlane, executive director of the NIB. A resident said he was the very first person to get his home in December 2009. The initial $90 million project occupying 50 acres of land in D'abadie continues to incur costs as some of the units are still under construction while those completed need maintenance repairs. Nipdec had said in 2004 that the upscale housing community, targeted at senior public servants and professionals, would have been completed by March 2007. However, frustrated prospective homeowners said they have lost trust and confidence in these state agencies because there has been no communication between the developer and residents giving reasons why the units are not completed and delivered.
When efforts were made to contact either Nipdec or NIB, the prospective homeowners said they "kept getting the runaround." More than 100 families are effected by this long delay. The Business Guardian visited the development last week Thursday and observed few residents occupied units in the first phase. The unoccupied units were being painted and repaired. Some were overgrown by bush, some roads had big, gaping holes, while some areas targeted for leisure development was overrun with bush.
Frustrated homeowners While Nipdec and NIB are trying to sort out the issues surrounding the eastern development, prospective homeowners stated that some couples have lost their spouse-through divorce and death-while some are reaching the age of retirement-all of which may affect them in getting final approval for their mortgages qualifying for their homes they have signed for since March 2006.
A depositor who wished to remain anonymous said he was totally "disappointed" in how Nipdec and NIB were treating with the situation, and he has lost confidence in them. "If NIB cannot deliver houses, how can I trust them with my pension?" The depositor, who was 46 years at the time of signing the sale agreement, is now 52, and worried he may not qualify for a mortgage. He said he made a deposit of $70,000 on March 27, 2006, payable to Nipdec for his $678,842.72 Estuary Unit in Riverwoods. He even supplied the Business Guardian with his receipt number. He explained the first promised date for his unit was March 2008, but received two subsequent letters indicating further delays. The last letter regarding delivery of his home said it would be ready by March 2009. Another letter he received in April 2009 stated that there was a 12.34 per cent increased cost of his home.
The original sale agreement included an escalation clause of up to ten per cent.
Cost of units in the first phase went up by about eight per cent. The cost of the other units went up by between ten and 12.34 per cent. In anticipation of moving into his new home, the depositor said he sold his old townhouse in Tacarigua in order to purchase the upscale Riverwoods unit. He's now so despondent over the delay as the money from the townhouse sale is being spent on a monthly rent of $3,700 since January 2010. "I have to stop working at 62, so my chances of getting a mortgage is compromised. I hope I could be compensated for damages and for Nipdec breaching its contract."
Another depositor is currently going through a divorce. She is very concerned about her chances of qualifying for a mortgage. The 32-year-old woman, who works in the travel industry, said she made a deposit of $100,000 in March 2005 and was promised the unit in December 2007. Like other depositors, she is still waiting. There has been no word from either state agency on what's going on.
The only correspondence she got was a letter indicating that the cost of her unit had increased by 12.34 per cent. She has lost all hope in acquiring a unit. "This predicament has placed me between a rock and a hard place. I have to face the trouble of finding another affordable unit. But, on the other hand, do I wait forever? This is a very stressful situation." Another resident said it was through the help of Karen Tesheira, former finance minister and Member of Parliament for the area, that she managed to acquire her home in April 2010 after making a deposit of similar amounts in 2006. Unfortunately, the resident said her husband died in December 2009 and never had the opportunity to live in his new home.
She explained that upon receiving the unit, there were several parts of the building that required repairs. Tiles were raised. Pipes were leaking inside walls. A retaining wall close to her home needed repairs.
She complained to the developer and the problems were rectified.
Undelivered promises
Those 60 families who only acquired their homes between late 2010 and 2011 said the problems continue as the state agencies have not delivered on their promises. Michele Smith, president of Riverwoods Homeowners Association, said a committee established because homeowners were not hearing from the official Riverwoods Management Company Ltd, which is in charge of maintenance and other issues at Riverwoods. This company comprise Michael Annisette, Joan John and Ken Maharaj.
Smith said what was captioned in the brochure-proper maintenance, landscaping, clubhouse, jogging track, gym, spa, pool and a leisure park-were not delivered. The land assigned for some of these facilities is now overrun with bush. Smith said that poor communication with residents and prospective homeowners is the biggest problem. Smith stated that she wrote numerous letters to Ravi Ramoutar, chairman of NIB and the company secretary of the Riverwoods Management Company, about these issues but, to date, have not receive any response. Smith said she is currently writing letters to the Minister of Finance Winston Dookeran, Housing Minister Dr Roodal Moonilal, and Anil Roberts, Member of Parliament for D'Abadie/O'Meara.
Response from the developer:
The Business Guardian contacted both Wendy Ali, general manager of Nipdec, and Joan John, deputy governor of the Central Bank and a director of Nipdec and NIB, via e-mail last week Thursday and Friday to get feedback on reasons for the long delay in delivering Riverwoods. Imtiaz Mohammed, communications co-ordinator at Nipdec, said Nipdec answered all 11 questions the Business Guardian sent to Ali's office on Friday and resent on Monday last, but that Nipdec was awaiting clearance from its parent body: NIB. Efforts to get a response from Joan John via phone and e-mail on Monday through the Central Bank's communications officer was futile up to press time. A message left on Michael Annisette's cellphone last Friday got no response. The Business Guardian has learnt that Wendy Ali received her unit, Number 88 in phase one, two months ago. Other residents include Rennie Dumas, former Member of Parliament for Tobago East, (phase four); Joan John, also in Emily Dick-Forde, former housing minister, (phase one), and the son of Arnold Piggott, former minister of agriculture, Number 72, (phase one).
The Estuary
Built on 1,515 square feet of space, The Estuary is described as a compact home built to suit the smaller family unit. It will house three bedrooms, two bathrooms, a living and dining area, kitchen, porch and covered carport. The master bedroom will have a tub and shower stall. Price: $595,000
Qualifying income for a 30-year mortgage: $11,200
The Brook
For the larger or extended family. Encompasses 1,871 square feet of space. Includes family room and study. Living and dining areas open to front porch, which facilitate an extensive entertainment area. Three bedrooms, two bathrooms, laundry room, with an external exit. Kitchen accessible from covered car port.
Price: $795,000
The Cascade
This design will be built on 1,873 square feet. It comes with three bedrooms, two bathrooms, living and dining and powder rooms, with the master bedroom including a walk-in closet and large bathroom. The family area is separate from the rest of the house and opens to back patio.
Price: $795,000
Townhouses (scrapped)
The two-storey townhouses will cover a space of 1,718 square feet. There will be three bedrooms and two bathrooms on the upper floor with a walk-in closet in the master bedroom. The ground floor will contain living- and dining-rooms as well as a family area.
Estimated price: $600,000
The Delta (scrapped)
The only two-level of the Riverwoods' four designs built on 2,545 square feet of floor space. Marketed for the mature buyer. Roman columns leads to wide hallway, from which the ground floor areas can be accesses. End of hallway leads to large back patio, which is also accessible through the dining-room. Also has a covered car port and laundry and storage rooms.
Price: Not yet determined.