Housing Development Corporation (HDC) has introduced a two-year rent offset for Hiyaa flats, allowing residents to utilise the allocation provided for finishing works to cover outstanding rent obligations.

According to HDC, details of the arrangement were communicated to flat owners through a letter, outlining that the MVR 200,000 allocated per unit will be deducted from unpaid rent balances, excluding maintenance fees, in line with a pledge made by President Dr Mohamed Muizzu.

Under the scheme, residents will not be required to pay monthly rent until the allocated amount is exhausted, effectively resulting in a rent-free period of up to two years, while a monthly maintenance fee of MVR 1,000 will continue to be charged, with penalties previously imposed for non-payment of rent also waived.

The letter further states that where outstanding rent is fully offset by the allocation, no rent will be payable until the equivalent amount, calculated at a monthly rate of approximately MVR 5,300, is utilised, with adjustments to be reflected through HDC’s online portal once system updates are completed.

The initiative forms part of efforts to address concerns raised by residents over finishing costs and housing affordability, with the Government also previously indicating that agreements related to Hiyaa flats would be revised to prevent further increases in rent.