BML given land at no cost for affordable flats project

The government has today handed over land from Vilimale' and Hulhumale' to national bank Bank of Maldives (BML) to conduct an affordable housing project under the central bank Maldives Monetary Authority (MMA)'s Inclusive National Affordable Housing Scheme policy. 

Minister of Construction, Housing and Infrastructure Dr Abdulla Muththalib stated that this land is being granted to BML at no cost, with the government to bear the costs instead. 

Speaking at a ceremony held at BML Head Office today to handover the land, Minister  Muththalib stated that today is the day that the government and the national bank have joined forces to work together towards addressing the most major challenge faced by Maldivians. 

Under this project being conducted by BML, 300 flats will be developed in Vilimale', and 2,700 flats in Hulhumale' Phase 1 and Hulhumale' Phase 3, he announced. 

"To ensure that these flats can be given at affordable rates, the government is handing over the land to the bank, without any additional costs by the bank. The State will be carrying that cost. With this, God willing, the price of these flats can be maintained at near the price of the social housing flats that are being given now," he said. 

Muththalib said that the flats will be given to recipients deemed eligible through applying for a programme announced by the government. These recipients must also fall within requirements set by the bank, he added. 

"The bank has joined hands with the government to resolve the housing difficulties faced by Maldivian citizens. This is, in honesty, more cooperation than any previous management has extended," Muththalib said. 

Muththalib asserted that housing is a right of every family. He said that the government is working to ensure that every family has the opportunity to seek appropriate housing at affordable prices. Similar projects at different levels would be introduced by the government in future, he assured. 

The project will be undertaken by the bank's subsidiary BML Affordable Home Leasing Pvt Ltd, which is fully owned by the bank. 

Last month, MMA introduced the Inclusive National Affordable Housing Scheme policy, under which affordable housing will provide financing within the financial system to first-time home buyers in the Male' region. MMA stated then that 10 to 15 percent of the loan portfolio of all banks should be set for this scheme. 

The purpose of the BML subsidiary BML Affordable Home Leasing Pvt Ltd is to develop these 3000 flats and to lease them under a Lease Ending With Ownership model. Once the rent period is completed, the flats' ownership will be transferred to the renters.