In a significant escalation of the government’s housing enforcement efforts, the Housing Development Corporation (HDC) has also announced that it will closely monitor and take action against recipients who have illegally sublet state-owned flats under its management — including Hiyaa, Vinares, and Hulhumalé Phase 1 flat projects.
The move comes amid growing public pressure and outrage following reports that Gedhoruveriya Flats, developed by Fahi Dhiriulhun Corporation (FDC), were being advertised for rent at MVR 25,000 per month — more than twice the government-set rate. The scandal has reignited public debate on the misuse of state-subsidized housing designed to support Maldivian families in need.
HDC to Enforce Housing Agreements
In an official statement, HDC confirmed that it is now conducting a review to determine whether flats issued under its portfolio — particularly Hiyaa, Vinares, and Phase 1 — have been subleased to third parties in violation of tenant agreements.
“We are monitoring whether the flats issued by the corporation have been subleased to other parties,” the statement read.
“If any violations are identified, action will be taken against those parties as stipulated in the agreement”.
The corporation’s announcement follows public outcry and media reports revealing that some Gedhoruveriya recipients had begun advertising flats for rent even before the handover process was completed. The listings, many with images of brand-new apartments, have triggered widespread condemnation on social media — prompting swift responses from both FDC and HDC.
Part of a Wider Government Crackdown
The FDC has already initiated an investigation into the matter and reiterated that flats allocated under the Gedhoruveriya Scheme are not permitted to be rented or sublet under any circumstances.
Minister of Construction, Housing and Infrastructure Abdulla Muththalib has also declared that the government will cancel agreements and reclaim units found to be in violation of social housing policies.
With HDC’s entry into the enforcement drive, the government’s crackdown now extends across the entire housing ecosystem — from FDC’s Gedhoruveriya Flats to HDC’s Hiyaa, Vinares, and Phase 1 projects.
HDC’s Expanding Responsibility
HDC’s decision marks a turning point in the government’s approach to housing compliance. The corporation oversees thousands of residential units across Hulhumalé, including Hiyaa flats — where similar misuse has been reported in recent years. Despite government intervention reducing Hiyaa rents to MVR 4,984, these units are often rented out privately for MVR 15,000–18,000, in clear breach of housing policies.
The Vinares flats, which were developed as part of HDC’s premium social housing initiative, have also faced increasing scrutiny amid reports of recipients seeking to profit through subletting.
By formally stepping into the crackdown, HDC reinforces the Muizzu administration’s broader commitment to restoring transparency, equity, and integrity in housing distribution and use.
Reclaiming Housing for the Rightful Owners
The government’s position remains clear: social housing is for the needy, not for business.
Both HDC and FDC have affirmed their readiness to terminate contracts and repossess units found to be sublet or rented out for commercial gain.
“These properties were built with public funds to ensure affordable housing for Maldivian families,” an HDC spokesperson said. “We will not tolerate the exploitation of social housing for profit. All violators will face action as outlined in their agreements”.
The coordinated action between HDC, FDC, and the Housing Ministry demonstrates a united government response to public concern — ensuring that housing schemes serve the purpose they were designed for: to uplift Maldivian families who truly need a home.
