Minister of Construction, Housing and Infrastructure Dr. Abdulla Muththalib has stated today that the best way to determine rent for flats given under social housing is to consider their circumstances.
During the press conference held by the Housing Ministry at the President's Office, Muththalib stated that the rent for social housing units is currently being determined in a "blanket" manner, or under one regulation for everyone.
While answering a question posed by a journalist, Muththalib stated that determining social housing unit prices in a "blanket" manner is not the best course of action.
"Maldives currently has a blanket rent reduction. This is targeted to such individuals. It is being done in a blanket manner due to the difficulty of subsidization. This is the fairest course of action for those who are in need. And this is currently the best and easiest course of action as well," said Muththalib.
"Once such a mechanism comes about, moving forward by targeting is what I believe to be the best course of action."
The decision to forgive Hiyaa Flat fines and the reduction of rent and down payments for Fahi Flats has drawn widespread criticism. When the current government took office, the rent for Hiyaa Flats and Vinares Flats had also been reduced in December 2023.
The current government lowered the rent for Hiyaa and Vinares Flats after former President Ibrahim Mohamed Solih's government had done so during the 2023 Presidential Election.
The current government has also reduced the interest rates for the loans given for purchasing Vinares Flats, and so that Hiyaa Flats can be finished.
While answering a journalist's question relating to the rent reduction, Muththalib stated that the current government's policy is to ensure housing for all families.
Muththalib said that when the current government took office, a large portion of the Hiyaa Flat rent had not been paid. He also said that the government forgave the loan fines as a solution to ease the government and flat owners.
"When the current government took office, you would know that a large percentage of loans from places such as the Hiyaa Flat had been unpaid. A lot of people had given excuses. Complaints such as providing free plots are also there," said Muththalib.
"A lot of debt has been accumulated due to the rent having not been paid. This does not mean that the state does not receive revenue, those people will accumulate debt as well. Their lives would be strained as well due to them not having a solution to this and not being able to take out a loan."
Muththalib stated that if social housing unit owners had paid their rent in a timely manner, this situation would not have occurred.
"What the government has done is forgiven the fines. This gives them an opportunity to pay their rent and move forward," said Muththalib.
"If forgiving the fines results in rent being paid, the government would receive the funds and their debt lowered."
