Minister of National Planning, Housing and Infrastructure Dr. Abdullah Muththalib has stated that the 4,000 flats being developed in Hulhumalé under the “Gedhoruveryaa” (Homeowner) scheme initiated by the previous government will only be registered after completing the rent or installment payments for the 25-year period as per the agreement. Speaking on the “Ahaazey Bunaanan” program of the Voice of Maldives, Minister Dr. Muththalib said that the agreements for these flats have now been finalized for a 25-year period, and the flats will not be registered unless the payments for this duration are completed. The minister explained that this is to make it easier for the government to take action against those who do not pay rent.
“The 4,000 flats that are about to be distributed will have agreements for a 25-year period, and they will only be registered after the rent for this period is paid. By treating it as a rental property, it becomes easier to take action if rent is not paid,” Muththalib said. The minister also noted that this policy was changed due to the increasing problem of non-payment of rent for government-issued flats. He revealed that the Housing Bill, which is currently being prepared for passage in the People’s Majlis (Parliament), will bring significant improvements to address this issue. Once the bill is passed, it will facilitate easier rent collection without going through court procedures for those who fail to pay, the minister stated.
According to Muththalib, housing projects are implemented through large loans, which need to be repaid through an escrow account. Since banks are aware when rent is not paid, it creates significant difficulties for the state to obtain additional loans. He described this as a more serious problem than the state’s difficulty in generating revenue. He also mentioned that this hinders the provision of housing to additional individuals. Statistics from the Housing Development Corporation (HDC) show that out of a total of 8,511 housing units in Hulhumalé managed by HDC, rent is not being paid for 5,099 flats.
According to recent information provided by Fahi Dhiriulhun Corporation (FDC), 90 percent of the work on the 4,000 flats has been completed. However, in a press conference held on the 29th of last month, Muththalib stated that only 1,000 flats have been completed so far, and water and electricity connections for these units will be finished in July. He also said that all flats will be handed over by the end of September.
