HDC to investigate third party rental of social housing flats

Housing Development Corporation (HDC) has announced that it will begin inspecting whether flats allocated by the corporation are being rented out to third parties.

Earlier, Fahi Dhiriulhun Corporation (FDC) had also said similar checks on flats allocated under the Gedhoruveriyaa housing scheme would be carried out.

In a statement issued today, HDC said that the government’s social housing scheme is designed to provide affordable housing to those in need.

Leasing such flats to another person, therefore, constitutes a breach of the agreement signed between HDC and the flat owner.

HDC said it will verify whether any social housing flats have been sublet, and take action as stipulated in the agreements against those found in violation.

The issue of renting out social housing flats has been a persistent problem. It escalated recently when a three bedroom flat developed by FDC in Hulhumale; was listed for MVR 25,000 in rent before the flats had even been fully handed over.

Both FDC and the Ministry of Housing have stated that they will investigate such cases and take legal action against those who rent out government subsidized housing.

According to regulations published by the Ministry of Housing in 2022, entire social housing flats cannot be rented out. However, owners are permitted to rent one individual room within the apartment.

While these rules are reflected in the agreements for both Hiyaa and FDC flats, no units have yet been confiscated for violating the terms.