Government to seize illegally rented social housing flats

Housing Minister Dr. Abdullah Muththalib announced today that the government will soon begin inspections of flats allocated under social housing schemes, as the illegal renting of these units is unacceptable.

The issue surfaced yesterday, barely two weeks after the government began handing over keys to flats built in Hulhumale Phase 2 under the Gedhoruveriya social housing project, with several units being advertised for rent at inflated prices.

In response, Minister Muththalib stated today that the government has decided to cancel the agreements and confiscate flats that are found to be rented out in violation of the agreements, or flats where individuals other than the designated recipients are residing.

"Therefore, this Ministry is working to commence the inspection of units distributed as social housing as soon as possible, in coordination with relevant authorities," the Minister said on X.

He emphasized that these social housing flats were built using public funds and were heavily subsidized, meaning they were allocated at reduced rates.

The Minister stated that the government will not tolerate the practice of renting these units at exorbitant prices or using them for purposes other than residency by the individual who signed the agreement.

Minister Muththalib also publicized the specific clauses from the agreement between the flat recipients and the Fahi Dhiriulhun Corporation (FDC) that prohibit third-party renting. The agreement specifies that the tenant is prohibited from renting the flat to a third party.

Furthermore, the FDC is granted the authority to investigate any complaints received regarding subletting and to take appropriate action.

The FDC itself issued a warning today, stating that flats allocated to the most housing-vulnerable individuals will be confiscated if they are rented in breach of the agreement.

FDC Managing Director Hamdhan Shakeel reiterated on X today that these social housing units are prioritized for citizens in the direst need of shelter. 

"We inform you that if the flat is rented against the agreement, the parties renting the flat will be traced, and the agreement signed with them will be canceled and the flat confiscated, in accordance with the agreement," he said.

Some of the flats handed over so far under the Gedhoruveriya schemes have already been advertised for rent, complete with photographs. A three-bedroom flat has been advertised for MVR 25,000, which is MVR 13,500 higher than the government-fixed rent of MVR 11,500. 

As per the agreements between the flat recipients and the FDC, such rentals are strictly prohibited and are grounds for confiscation.