Law to be amended to formally ban lease of Hiyaa flats

Housing Minister Dr. Abdulla Muthalib, on Wednesday, revealed that the government is undertaking measures to amend existing legislation to explicitly prohibit lease of Hiyaa flats.

The leasing of social housing units—intended by the state for individuals most in need of affordable accommodation—at inflated rates has emerged as a matter of significant concern. Complaints have notably increased regarding rentals within the densely populated Hiyaa housing project, as well as the Fahi Dhiriulhun Corporation (FDC) flats, which commenced handover last year.

During a press conference on Wednesday, Minister Muthalib underscored that the current agreements for Hiyaa flats do not provide the legal authority for the government to repossess units, even when they are being leased. Nevertheless, he emphasized that, in accordance with the guiding principles and policies of social housing schemes, renting such flats is strictly prohibited. Consequently, he stated that legislative amendments are necessary to enable enforcement actions.

"What we intend to establish through legislation is a clear prohibition on such leasing practices," the Minister said.

In October of the previous year, the Housing Development Corporation (HDC) and FDC had announced initiatives to identify social housing units that had been leased. Minister Muthalib further clarified that, although HDC may not issue public notices on a continuous basis, the corporation is actively monitoring flats being utilized as accommodations for expatriates and is in the process of issuing notices to the relevant units.

"The government is currently focused on two objectives: first, to halt activities that cause a nuisance to residents in these areas, and second, to amend the law to officially declare renting illegal," Muthalib added.

He also cautioned that immediate action would be undertaken upon receiving any reports of renting FDC flats.

The handover of 4,000 flats constructed by FDC commenced last September. Shortly thereafter, a social media advertisement appeared offering a three-bedroom apartment—intended for MVR 10,500—to be rented at MVR 25,000, eliciting widespread public criticism.