With elections approaching, government waives two years' worth of rent for Hiyaa flat tenants who have been making regular payments, categorizing move as a "finishing discount"
Following the government's decision to deduct the remaining balance of the MVR 200,000 finishing cost allowance from Hiyaa flat rents, tenants who have been making regular payments will be exempt from paying rent for the next two years and one month. Housing Development Corporation (HDC) confirmed that during this period, flat owners will only be required to pay the monthly maintenance fee of MVR 1,000. However, the move has drawn widespread public criticism, with many alleging the relief was politically motivated to coincide with the upcoming referendum on consolidating elections.
The Hiyaa Flats area. | PSM | PSM
Just four days before a scheduled referendum on synchronizing presidential, and parliamentary elections, the Housing Development Corporation (HDC) has announced a two-year rent exemption for Hiyaa flat tenants who have been making regular payments.
Housing Development Corporation (HDC) has implemented this change by waiving the remaining balance of the MVR 200,000 previously allocated as compensation for finishing works on the Hiyaa flats. This move fulfills a presidential pledge made by President Dr. Mohamed Muizzu. The corporation has officially notified flat owners of this adjustment via formal correspondence.
According to the letter, while the outstanding finishing discounts are being waived from the total rent, any unpaid rent currently owed will be deducted from the discount amount. The letter further states that for tenants with no outstanding payments, the discount will be applied at a rate of MVR 5,300 per month.
According to HDC, the total outstanding amount for the finishing discount is MVR 135,714.35 (one hundred thirty-five thousand seven hundred fourteen rufiyaa and thirty-five laari). Consequently, tenants who have been making regular payments will not be required to pay rent for the next 25 months, a period equivalent to two years and one month. However, tenants will still be required to pay a monthly maintenance fee of MVR 1,000.
In letters sent to flat owners, HDC stated that these adjustments are being implemented to fully honor the pledge to reimburse expenses incurred for finishing works.
With only four days remaining until the referendum, many are suggesting that this last-minute, rushed decision was made because the government is certain it will struggle to win the vote, particularly as the PNC faces significant challenges in several Hulhumalé constituencies.
