The Government has waived penalties imposed for the non-payment of rent for Hiyaa flats, according to the Housing Development Corporation (HDC).

HDC said the waiver applies to fines imposed from 1 January 2024 until the end of last month. During this period, approximately MVR 1.9 million was collected as penalties. The Government has also previously waived penalties related to unpaid Hiyaa flat rent for 2023.

Monthly rent for a two-bedroom Hiyaa flat is MVR 3,984, with an additional MVR 1,000 charged as a maintenance fee, bringing the total monthly payment to MVR 4,984.

HDC said that of the 8,000 social housing units developed in Hulhumalé, only around 3,000 residents are paying rent regularly. Outstanding rent arrears are estimated to exceed MVR 700 million.

During a meeting with residents of Hulhumalé Phase II last Thursday night, the President said steps are being taken to ease financial pressure on Hiyaa residents. He stated that up to MVR 200,000 in fees incurred for flat finishing works would be forgiven, and that additional relief would be provided for residents with backlogged payments.

The Government has also introduced wider measures to improve the affordability of social housing. In this regard, the President instructed the Bank of Maldives (BML) to reduce profit rates on Hiyaa flat finishing loans and Vinares flat purchase loans. The Bank has indicated that it will reduce the profit rate on Hiyaa finishing loans from 12 per cent to 10 per cent, introduce flexible repayment arrangements for borrowers facing financial hardship, and lower the profit rate on Vinares flat purchase loans from 9 per cent to 8 per cent.

Affordability measures have also been extended to the Fahi Dhiriulhun Corporation (FDC) 4,000 flats. Under the revised terms, monthly rent for three-bedroom units has been reduced from MVR 10,500 to MVR 10,000, while the advance payment has been lowered from MVR 25,000 to MVR 8,000. For two-bedroom units, rent has been reduced from MVR 7,000 to MVR 6,000, and the advance payment cut from MVR 15,000 to MVR 6,000.