Guam § 4902 - Legislative Findings.

§ 4902. Legislative Findings.

(a) I Liheslaturan Guåhan finds that in 1997, Guam

Housing Corporation announced a bid for the design, building

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and financing of infrastructure requirements for Lada Estates.

As a result, Maeda Pacific Corporation (“Maeda”) the selected

bidder, was granted a contract to design, build and finance the

project. The Guam Housing Corporation and Maeda executed a

contract in the amount over Ten Million Dollars to fulfill the

project’s scope of work.

(b) Furthermore, I Liheslaturan Guåhan finds that Maeda

agreed to the terms such that payment would be due from a

developer who would finance both the outstanding contract with

Maeda and the development of the units at Lada Estates. To

date, Guam Housing Corporation has entertained several bids,

but is unable to secure any contract with a developer. Also, I

Liheslaturan Guåhan finds that the infrastructure project was

due and payable on or before November 1998.

(c) I Liheslaturan Guåhan also finds that while there have

been several bid announcements, initiated by the Guam Housing

Corporation, for the construction of the Lada Estates project

which have been advertised in conformance with the

procurement laws of Guam. Unfortunately, no bidder has been

able to meet the required terms of the contract due to the

provisions requiring substantial up front financial reimbursement

to Maeda. As a result of this hindrance, Maeda has agreed to

renegotiate some of the terms to allow for easier repayment

criteria.

(d) More importantly, I Liheslaturan Guåhan in

discussions with the Guam Housing Corporation and the

mortgage community, identified the key problems that adversely

affected the eligibility of customers and clients to participate in

purchasing of not only the Lada Estates residential project, but

also various single family housing development projects on

Guam. Some of the problems are identified as:

(1) most prospective clients have high debt to income

ratios five (5) year short term debts;

(2) most prospective clients are unable to meet the

required closing cost and down payment for their first-time

home; and

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(3) most prospective first-time homebuyers may need

the lease-to-own housing program so that they may utilize

the lease term to re-establish their credit and thus qualify for

a typical residential loan at the time of escrow closing of the

purchase.

2017 NOTE: Subsection designations were added/altered to adhere to

the Compiler’s alpha-numeric scheme pursuant to the authority granted

by 1 GCA § 1606.

2015 NOTE: Subsection designations were altered to adhere to the

Compiler’s alpha-numeric scheme pursuant to the authority granted by 1

GCA § 1606.