Bonaire Housing Ordinance: Useful and a Necessity!
The Housing Ordinance start-up note was presented on November 28, 2024, in the Island Council during the Standing Committee on Spatial Planning & Development. With this start-up note, the Executive Council wants to involve the Island Council at an early stage in the usefulness and necessity of this future ordinance. The concrete goal is a balanced distribution of living space on Bonaire. The main goal is to make it possible to give priority to people with a social connection to our island when purchasing a home.
Currently, residents of Bonaire experience difficulty finding a suitable and affordable home. The waiting list at Fundashon Cas Boneriano for social housing is long, as is the waiting list for applications for leasehold land for the construction of one’s own home. The construction of new social housing is of great importance and is also taking place, but it is expected not to be able to completely solve the problem. That is why we are now looking at ways to better regulate the distribution of the current housing stock. The starting note Housing Ordinance 2025 basically forms the first concept for the further interventions that will be developed in the coming period. An important starting point is the Management Program “The difference – fair and sustainable,” which stipulates that we must provide affordable owner-occupied and/or rental homes in the existing neighborhoods.
In addition to various other ongoing important interventions, such as building more affordable homes through area development (including Proyekto Bibienda Pagabel) and issuing leasehold land for the purpose of building one’s own home, flanking policy also appears to be necessary. However, in order to get the basics in order, it is also necessary to implement flanking regulations, such as this housing ordinance.
Intervening in the market is not a goal in itself, but a measure to reduce the shortage of affordable homes on Bonaire. The shortage has increased significantly in recent years due to several causes. “We see that the average price of a home has increased from USD 241,000 in 2011 to approximately USD 410,000 in 2022,” says Deputy Anjelica Cicilia. This data is based on CBS data on the number of transactions versus the total sales value on an annual basis.
Housing Ordinance Rules
In their letter of 22 February 2024 on the amendment of the WolBES and the FinBES, the Island Council wrote the following about the measures to protect the housing market: “According to criteria to be determined, the acquisition of residential real estate will be subject to stricter conditions in order to protect housing interests and affordable housing stock. Bonaire will therefore reconsider the housing ordinance, the building ordinance, and the Bonaire Spatial Development Plan (ROB) in the short term and with priority.”
The purchase market is now being started. The Executive Council does not rule out that if practice gives reason to do so, a housing permit will still be considered in the near future as an instrument on the rental market. In the Decision-making Meeting of 17 December 2024, the Island Council agreed to the further elaboration of the ordinance. Concrete proposals and lines of thought that were presented include:
- 5 years of uninterrupted residency in the past 10 years;
- Social bond in accordance with the definition of island children;
- The regulation will apply to homes with a market value of up to 175% of the mortgage guarantee. The mortgage guarantee Bonaire currently has a threshold amount of USD 305,000.
Owner-occupancy Requirement
The policy agenda for Housing and Spatial Planning for the Caribbean Netherlands (VRO CN) returns to the fact that Bonaire, Sint Eustatius and Saba are expected to establish a housing regulation that includes a self-occupancy obligation. This self-occupancy obligation means that the buyer is obliged to live in the house themselves, for a certain period. This prevents houses from being bought and built as an investment object and being rented out or (re)sold immediately or shortly after construction, which usually has a price-raising effect.
The owner-occupancy requirement applies to everyone who buys a house, up to a certain market value. Also to residents with a social bond who want to buy a second home to rent out. However, consideration is being given to cases in which the owner-occupancy requirement would not have to apply, for example, to homes that have been declared uninhabitable and are being renovated by the buyer, to a home as an inheritance, or if a home is sold as a rental.
If the owner-occupancy requirement were to also apply to new construction, this could have a dampening effect on construction. Homes that are newly built increase the housing stock. That is why the Executive Council proposes to only apply the owner-occupancy requirement to (existing) owner-occupied homes, and not to new construction. In the case of new construction, it does apply that if the builder, for example, a project developer, wants to sell the home, it must be sold to someone with a housing permit and, therefore, with a social connection.
In discussions with Stakeholders
The Executive Council is already discussing with various stakeholders to arrive at the best starting points for the Housing Regulation. “The usefulness and necessity are seen by several stakeholders. In discussions with various real estate agents, financial institutions and developers, concerns and points of attention have been shared with us. But one thing is certain: the benefit and necessity of the regulation are understood by all stakeholders. The consultation round with various parties is in full swing. The biggest concern to date seems to be the ceiling up to which the Housing Ordinance would apply. The market indicates that the amount of USD 533,750 (175% of USD 305,000) is too high. Further research is currently being conducted into this.”
“We hope to be able to return to the Island Council soon with a concrete proposal for this ordinance,” says deputy Anjelica Cicilia. “A concern of the market that I absolutely want to remove is that the Housing Ordinance would mean that no one would be able to sell their own home. This is absolutely not the case. The only goal is to give priority to a specific group. And that concerns our island children and people with a social connection to Bonaire.” In addition, as with all new legislation, everything that happened before falls under the old regulations. So, the new preconditions will become valid after the Island Council has established the ordinance.
The initial note Housing Ordinance can be viewed via the website of the Island Council Bonaire (www.konsehoinsular.org). If you, as a resident or interested party, have additional questions, you can send an email to kontami@bonairegov.com with a reference to the initial note Housing Ordinance in the title.