Government launches 'Housing For All' policy

The government launched their 'Boahiyaavahikan Enmenah' [Housing for All] policy last night, aimed at addressing the housing crisis, one of the main pledges of this administration. 

The Ministry of Construction, Housing and Infrastructure said that the policy would be gazetted last night. 

In a ceremony held at the conference hall of Dharumavantha Hospital last night, the policy was launched by Minister of Construction, Housing and Infrastructure Dr Abdulla Muththalib. 

At the ceremony, State Minister of Housing Ahmed Nazim Mohamed said that the 'Housing For All' policy is designed inclusive of all persons above the age of 18, in accordance with President Dr Mohamed Muizzu's pledge. 

In drafting this policy, all consideration was given to determining the best possible means of solving the housing crisis in according with the President's pledge, he said. As a first step, research was done to learn the current status of housing in the Maldives, through which it was learned that the biggest issue is the large portion of the population which applies for social housing. 

While luxury apartments are being constructed in the Male' region, few are eligible for and obtain these flats, he noted. 

"This result indicates that we have been negligent towards a large part of the population. That is the large portion of the population with a good income, but who, due to circumstances, do not have savings or access to bank financing," Nazim said. 

Due to this, social housing alone would not present a total solution to the housing issues, Nazim said, adding that instead, housing projects targeted for different levels of the population is necessary. 

Initially, the Housing Ministry held deliberations regarding this with financial institutes in the country, he explained. This is because many people are faced with difficulties in obtaining housing due to high bank interest rates, high profit rate of Islamic Financing and high equity rates. 

Following discussions with banks, the ministry then met with the central bank, Maldives Monetary Authority (MMA). 

"The result was very positive. Through our efforts with holding discussions with MMA, they established the 'Inclusive National Affordable Housing Scheme' regulation under the authority granted through the MMA Act," he said. 

MMA published last month the 'Inclusive National Affordable Housing Scheme' guideline, under which those in the Male' area can obtain first-time housing through arranging financing within the financing system.  As per the MMA, 10 to 15 percent of the loan portfolio of all banks should be dedicated to this scheme. 

MMA has allowed banks to opt for one of two options in providing financing facilities under the scheme. One is the Lease Ending With Ownership model, such as is offered by BML and where banks finance the project, and the other is End User Financing Option, where the project is financed by developers/investors. 

In the first housing project under this scheme, Bank of Maldives (BML)' subsidiary, BML Affordable Home Leasing Pvt Ltd, is to develop 3000 flats in Vilimale', Hulhumale' Phase 1 and Hulhumale' Phase 3, and lease them under a Lease Ending With Ownership model. Once the rent period is completed, the flats' ownership will be transferred to the renters. The government has now handed over the required land to BML to conduct this project. 

President Muizzu announced last week that under the government's housing policy, 15,000 land plots and 7,500 flats will be issued from the Male' region.