The Government’s new Housing Bill, recently submitted to Parliament, will make it easier to address rent defaults in social housing flats, according to Minister of Construction, Housing and Infrastructure Dr Abdulla Muththalib.

Outstanding rent exceeding MVR 700 million has accumulated across 8,511 flats currently managed in Hulhumalé, according to figures published by Housing Development Corporation (HDC). Of these units, only 3,219 tenants are making regular rent payments, while 5,099 flats remain in arrears, highlighting the legal and administrative challenges in recovering unpaid rent under the current system.

Addressing concerns of non-payment, the Construction Minister explained that rent defaults not only reduce State revenue but also disrupt the implementation of other housing and development projects. He noted that when tenants fail to pay rent consistently, it affects the Government’s ability to repay loans, making it harder to secure further financing from banks for future housing developments.

At present, flats are allocated through sale purchase agreements, which makes it difficult for the state to reclaim units or take legal action against tenants without lengthy court procedures. The Minister indicated that the proposed Housing Bill aims to address this challenge by establishing a simpler legal framework to manage such cases.

The Minister also outlined plans for the 4,000 flats being developed by Fahi Dhiriulhun Corporation (FDC), part of the largest ongoing social housing initiative in the Greater Malé Region. Under the new structure, tenants will be able to gain ownership after completing 25 years of rent payments. Agreements will be modified to support this model, either through bank mortgage financing or by transferring ownership to the tenant at the end of the payment term.