The Temporary Trailer project for those displaced by Hurricane Ivan is experiencing many problems, including more than $50,000 owed in back rent in less than six months.
In his latest report on the National Housing and Community Development Trust, Auditor General Dan Duguay said the NHCDT ‘inherited a mess’ when it took over management of the Temporary Trailer project from the Cayman Islands Recovery Operation in July.
Eighty-four trailers, some with two bedrooms, some with three bedrooms, were imported to Grand Cayman by the Government after a CIRO report emphasised the need for immediate housing assistance after Ivan destroyed many homes.
The plan was for occupants to rent the trailers, however the appropriate rental process was not undertaken.
‘CIRO allowed the tenants to move in without paying a deposit, their first month’s rent, or signing a lease,’ the Auditor General noted in his report.
As a result of the lack of proper procedures, the NHCDT was left with the burdensome task of tracking down each trailer tenant and attempting to rectify the situation, Mr. Duguay stated.
‘The NHCDT estimates that approximately 60 per cent of the leases had been signed as at 2 August.’
The first tenants moved into trailers in mid-February. Through the end of July, tenants were in owed a total of $49,160 in rent.
The Auditor General noted that only 20 tenants were current with their payments through 31 July, and that six tenants had yet to pay any rent at all.
The two-bedroom trailers rent for $600 and the three-bedroom trailers rent for $700.
Some of the trailers have their deposits or rent paid by the Department of Children and Family Services, but the Auditor General noted that the DCFS was also behind in its payments to the NHCDT in the amount of $4,250.
DCFS director Deanna Look Loy said her staff was surprised to learn of the arrears.
Netha Ebanks, the DCFS’s administrator and finance manager said she was sure everything had been paid up to date since the time of the Auditor General’s report.
The cost of utilities for the trailers is another issue.
The Auditor General reported that the NHCDT verbally informed tenants that they will be assessed for utilities, but that there was no provision in the lease with regard to the cost of utilities.
‘Therefore, the NHCDT may have difficulty collecting payments for utilities,’ Mr. Duguay stated.
The Auditor General’s office estimated that the NHCDT had incurred charges of approximately $41,000 for water and electricity through the end of July, but had only received $565 toward that cost.
Another point made by the Auditor General concerned the lack of an exit strategy for the trailers.
The trailers are only supposed to remain in the Cayman Islands for 24 months.
‘However, the policy for exportation was not developed and did not exist as of the date of this report,’ Mr. Duguay stated. ‘The question remains as to how the tenants will be removed and where they will live once the 24 months have passed.’
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