Minister of Construction, Housing and Infrastructure Dr Abdulla Muththalib has announced that the government is working on bringing amendments to the law to prevent Hiyaa Flats and other social housing units in Hulhumale' from being rented out.
In today's press conference at the President's Office, Minister Muththalib said that the latest flats issued from Hulhumale' were given on a rent-to-own model, making it easy to take action against those renting them out to third parties.
The agreements for these flats clearly prohibit renting the units out to third parties.
The minister stated that Fahi Dhiriulhun Corporation has been directed to take action against any flat recipients renting out units in those towers. Once such an issue is identified, first the flat owner is fined, and then given a window within which to resolve the issue. If they fail to comply, the flat can be seized.
There are, however, challenges faced in taking similar measures at Hiyaa Flats and other housing projects in Hulhumale', the minister noted, as these were given out on a sales-and-purchase model.
The Hiyaa Flat agreements prohibit any unlawful activity within the units, and Muththalib said the government now plans to amend the law to explicitly make renting them out illegal.
The Minister stressed that renting out state-issued apartments undermines the purpose, policies and standards of social housing programmes.
He also revealed that notices have been served to vacate flats being used as labour quarters at the Hiyaa Flats.
Persistent concerns have surrounded the Hiyaa Flat rentals issue even as the government moves to curb the practice. Units that cost owners about MVR 4,000 in monthly state rent are being sublet at sharply inflated rates exceeding MVR 20,000.
