A UNIQUE SCHEME

In a decisive move to address the acute shortage in Lagos metropolis in partnership with First World Communities Ltd, the Lagos State Government is developing high quality affordable housing under a unique Cooperative Home Ownership Scheme (CHOIS). The Lagos CHOIS LP is a public-private partnership between the Lagos State Government and First World Communities Ltd, incorporated for the specific purpose of developing 10,000 affordable housing units across the three senatorial districts in Lagos by 2016. The primary objective is to deliver housing for low and medium income households in sustainable communities, on a scale that is unprecedented in Nigeria. CHOIS offers a sustainable approach to housing provision through Shared Equity, Lease-to-Own and long term management of estates. Cooperatives would be used to aggregate housing demand, which facilitates more cost efficient developments and also promote community building. CHOIS includes a robust arrangement for managing the homes in the long term, using the lease-to-own model that has been successfully deployed across the world.

 

The Partnership is secured by a Partnership Agreement dated 31 July 2008 establishing the Limited Partnership and duly registered on 25 August 2009 as LPN 025 under the Partnership Law of Lagos State 2003, amended 2008.

 

Key Project Objectives

1. Develop up to 10,000 new affordable homes in sustainable communities including supporting infrastructure and amenities;

 

1. Promote home ownership through the Shared Equity and Lease-to-Own schemes;

• Promote savings culture through the development of CHOIS Clubs – housing savings clubs in major institutions and public sector

 

1. Deliver a construction artisans apprenticeship scheme for up to 2000 trainees;

 

1. Promote innovation and best practice in sustainable housing design including industrialised production, energy efficiency and

For most households on low to low/medium income, the conventional principal plus interest repayment mortgage is unlikely to be accessible or even affordable. As a result, many people in this income group are excluded from access to decent housing.

MyCHOIS is designed to offer an alternative, stepped approach to home ownership allowing prospective purchasers to pay for their homes in small affordable steps whilst offering a decent return for investors.

 

The key features of the scheme are as follows:

 

• Prospective buyers pay a defined minimum 10-15% of the total purchase price to move into their home. This initial deposit is expected to be funded from personal

 

• After taking possession of their home, buyers will pay a monthly charge to cover interest payments on the outstanding purchase

 

• Between Yr 3 – 5 from the date of taking possession, buyers are required to redeem the outstanding purchase price by “buying ” the equity they do not own at a predetermined value per annum.

 

• On completion of payment in Yr 5 (or earlier where the buyers exercises their right to pay early), title passes on to the buyer. Up until then, title is held by the investor.