Govt urged to slash rent on ‘Gedhoruveriya’ flats, waive off downpayment

The Fahi Union has called on the government to waive off the downpayment and revert the rent on the 4,000 flats built under the ‘Gedhoruveriya’ housing scheme to the original rates announced by the previous administration.

The 4,000 units were developed in Hulhumale’ Phase II by the Fahi Dhiriulhun Corporation (FDC) during the Maldivian Democratic Party (MDP) administration.

The appeal to reduce the rent on the units comes after the Housing Development Corporation (HDC) waived off two years of rent on the Hiyaa flats, developed in Hulhumale’ Phase II during former President Abdulla Yameen Abdul Gayoom’s administration, in which incumbent President Dr. Mohamed Muizzu served as housing minister. Coming just days ahead of the local council elections, the decision sparked criticism.

In a statement on Wednesday, housing advocacy group, Fahi Union said that they have appealed to the government to implement multiple measures to ease the burden on the families living in the ‘Gedhoruveriya’ flats, including granting a deferment on rent and changing the type of agreement.

The group noted that though MDP administration had announced the monthly rent on two-bedroom flats would be MVR 6,000 and the three-bedroom flats would be MVR 8,000, including maintenance fee, the incumbent administration had raised the rent to MVR 7,000 and MVR 10,000, when it drew up the agreements.

Fahi Union said that this was a heavy financial burden on the families that live there, and asked the government to reduce the rent to the rates set by the former administration, and to waive off the downpayment.

The group also asked the government to take into account the current global economic crisis as well as the huge move-in cost, and extent the grace period on rent from the current three months to between six months to one year.

The Fahi Union also expressed concern that the agreements issued for the flats were “lease” agreements. The group said that the Male’ City Council has stated that recipients of the flats cannot be issued Male’ residency registries based on the agreement, resulting in families facing challenges in admitting children to schools and accessing other basic services.

They asked the authorities to change the agreement to a buyer’s agreement like those issued for other social housing units.

Fahi Union said that since coming to office, President Dr. Mohamed Muizzu has reduced the rent on flats in Hulhumae’ Phase I, the Hiyaa flats, the Vinares apartments, as well as social housing units across the country.

The group asked that the government therefore apply the same principles and reduce the rent on ‘Gedhoruveriya’ flats as well.