Building Affordable Homes with BAHOME: A Proven Concept for the Bahamas
At Island Building Solutions, we’re always on the lookout for innovative ways to bring high-quality, climate-resilient homes to the Caribbean. One such concept that’s gained traction in Canada is the BAHOME affordable home model, which we believe can transform housing in the Bahamas.
What is the BAHOME Concept?
BAHOME stands for "Bahamas Affordable Home Ownership Made Easy," and it’s designed to make homeownership more accessible by leveraging a unique financing structure. The model integrates multiple sources of funding to lower the upfront costs for homeowners, making it easier for families to step onto the property ladder. The key components include:
Down Payment Assistance: A combination of a small down payment from the homeowner, matched by an employer loan, and a government-backed loan for land costs.
Non-Profit Development Funds: Contributions from non-profit organizations as low-interest loans.
Government Guarantees: A loan guarantee from a sovereign wealth fund to reduce risk for local banks.
Local Bank Financing: The remaining balance is financed through local banks, making the entire process more affordable and accessible.
A Sustainable Capital Stack with Shared Equity
The BAHOME model is built on a robust capital stack that balances contributions from multiple stakeholders while ensuring all funds are repaid, creating a sustainable financing ecosystem. Unlike grant-based models or one-time giveaways, every participant in the capital stack—whether it’s the homeowner’s down payment, employer contributions, government-supported loans for land, or non-profit development loans—receives repayment upon the sale or refinancing of the unit. This structure generates shared equity, where the homeowner benefits from building wealth while contributors recover their investments, making it a self-sustaining model. This approach encourages long-term stability, accountability, and financial resilience for all parties, ultimately fostering a cycle of reinvestment into the community.
BAHOME Home-Owner Journey
Success in Canada
In Canada, a similar concept, first pioneered by the non-profit developer Home Opportunities in the Toronto neighbourhood knows as “The Distillery District”, this innovative financing model has been a game-changer, especially for middle-income families looking for stable, affordable housing. It’s allowed thousands to own homes without the financial strain of traditional mortgages. By pooling resources and leveraging community and government support, the program has created thriving, resilient communities.
Why the Bahamas?
The Bahamas faces unique housing challenges, including exposure to hurricanes and a high cost of living. The BAHOME model is a perfect fit because it not only makes homeownership more attainable but also aligns with our commitment to climate resilience. By using a similar financing structure, we can help Bahamians achieve stable, affordable, and hurricane-resilient housing.
Leveraging Public-Private Partnerships (PPPs)
One of the key strengths of the BAHOME concept is its ability to integrate with Public-Private Partnerships (PPPs). By aligning the interests of government, developers, financial institutions, and community organizations, PPPs can provide the necessary support and resources to scale affordable housing solutions.
In the Bahamas, a PPP model can enable the government to contribute land and provide regulatory support, while private partners bring in capital, technical expertise, and innovative construction methods. This collaboration ensures shared risk, enhances financing opportunities, and accelerates the delivery of climate-resilient, affordable homes. The BAHOME framework, combined with a PPP approach, creates a robust pathway to sustainable housing development that benefits both the public and private sectors—and most importantly, Bahamian families.
Looking Ahead
At IBSL, we believe the BAHOME concept could revolutionize housing in the Bahamas, offering a sustainable path to homeownership for many. By adapting a proven Canadian model to local needs, we can foster resilient, thriving communities across the islands.
Please reach out to Radek Rybicki (radek.rybicki@islandbuildingsolutions.com) if you’d like to discuss this concept further.
