by Jolene Toves

GUAM - Two bills related to the systems development charge were addressed in public hearing last night. Bill 93 proposes to eliminate the SDC for new residential rate payers building a home of up to 450 thousand dollars. CCU chairman Simon Sanchez testified that Bill 93 would eliminate the SDC charge for 99 percent of new homes built on Guam. The result would mean existing rate payers would have to pick up that tab. Meanwhile senator Ada's Bill 112 proposes to reduce the SDC for moderate to low cost affordable housing also allowing for a 20 percent down with the balance to be amortized for 15 years. Bill 112 would not be applicable to home owners who can afford to construct a new home over 180 thousand dollars.

"Targeted at affordable housing that is priced within the reach of lower to moderate income families. The lower the cost of housing the lower the SDC would be. In our view this bill better balances the interest of new customers and existing rate payers" Sanchez hinted.

Recognizing that home owners that can afford a home over 180 thousand can then also afford to pay the SDC for the infrastructure they need. The current SDC law requires that new customers would be responsible for the costs of water and waste water infrastructure so as not to put a burden on existing rate payers.