Fahi Union calls for rent reduction and deferment for 4,000 housing units
The Fahi Union has called on the government to reduce the rent for the 4,000 housing units developed by Fahi Dhiriulhun Corporation to the rates initially set by the previous administration and to eliminate the down payment requirement. Additionally, the union urged authorities to extend the current three-month grace period and convert the existing housing agreements into formal purchase-sale contracts. Emphasizing the need for consistency with other social housing projects, the union requested that the government lower the financial burden on tenants to ensure the housing remains affordable for the public.
The towers constructed in Hulhumale' by the MDP administration under the Gedhoruveriyaa housing scheme. | FDC | FDC
The Fahi Union has called on the government to reduce the rent and defer the commencement of lease payments for the 4,000 housing units constructed by the previous administration.
In a press release, Fahi Union stated that under the current administration's lease agreements, the monthly rent for a two-bedroom apartment has been set at MVR 7,000, inclusive of maintenance fees. The statement further clarified that the rent for a three-bedroom apartment, including maintenance fees, has been fixed at MVR 10,000.
However, the Fahi Union stated that the previous administration had set the monthly rent for the 4,000 housing units at MVR 6,000 for a two-bedroom apartment and MVR 8,000 for a three-bedroom apartment, both inclusive of maintenance fees. In its press release, the union called on the government to revert the rates to the original prices established by the previous administration.
The Fahi Union has further called for the removal of down payments for apartments leased by the Fahi Dhiriulhun Corporation (FDC). The union also urged the government to extend the current three-month grace period to six months or one year. This request comes in light of the global economic challenges and the significant financial burden faced by recipients when relocating to these new flats.
The Fahi Union highlighted that the Male' City Council has informed recipients of the government's housing units that they and their families are ineligible for residency registration, as the current contracts are structured as lease agreements. Consequently, the union’s press statement called on the authorities to convert the agreements for these 4,000 flats into sales contracts, aligning them with the legal framework used for other social housing units.
Fahi Union noted that housing schemes issued in the Maldives to date have been categorized as social housing projects. The union further highlighted that under the Hiyaa project—the most recent social housing scheme implemented in the country—the established procedure ensures that the units become the private property of the recipients from the moment the flat agreements are signed.
Following President Dr. Mohamed Muizzu’s assumption of office, calls have been made for the government to reduce the rent for the 4,000 housing units currently under development. This appeal follows the President's previous measures to lower rental rates for flats in Hulhumale' Phase 1, the Hiyaa and Vinares projects, and other social housing units across the country in consideration of the nation's economic situation.
The Fahi Union stated that it has appealed to the President to facilitate a more accessible arrangement for the families allocated these 4,000 housing units. The union urged that this be done fairly and equitably, ensuring that citizens are not burdened with additional hardships, in line with the President's pledge.
