Around half of the tenants living in more than 12,000 flats managed by the Housing Development Corporation (HDC) are not paying their rent, Managing Director Ali Zuhair has revealed.
Speaking on Voice of Maldives’ “Ahaashe Bunaanan” programme, Zuhair said rent defaults remain a significant challenge for the corporation, which manages thousands of housing units in Hulhumalé.
HDC currently has more than 12,000 flats under its management, according to Zuhair, with approximately 50 percent of occupants failing to keep up with rental payments.
“We manage over 12,000 flats. If we look at the non-payment percentage, 50 percent consists of occupants who are not paying rent due to various personal or financial difficulties,” Zuhair said.
The figure means thousands of households occupying HDC-managed properties are currently behind on their rental obligations.
The scale of unpaid rent has been a longstanding issue for the corporation.
Information previously released by HDC under the Right to Information Act showed that outstanding rent from Hulhumalé housing units had exceeded MVR 700 million as of May last year.
The group of tenants in arrears includes both those who have made irregular payments and occupants who have not made a single rental payment since moving into their flats.
HDC has taken steps in recent years to strengthen the collection process.
Following changes to its monitoring procedures, the corporation began issuing notices to tenants with outstanding rent every three months. The notices, described as payment advice, remind occupants of their unpaid balances and their obligation to settle the amount owed.
However, rent collection is not the only issue HDC is attempting to address within its social housing portfolio.
Zuhair said the corporation is also carrying out inspections aimed at identifying flats being sublet or occupied in violation of housing rules.
HDC officials have already inspected all flats within the Hiyaa housing towers as part of the exercise, he said.
The initial phase has focused on cases involving foreign nationals found residing in the flats, with registered recipients being instructed to remove occupants where their presence violates the conditions governing the housing units.
Zuhair said HDC sends formal notices to the registered flat owner whenever such a violation is identified.
Unauthorised subletting has been a recurring concern surrounding government housing schemes, particularly as subsidised flats are allocated to address the housing needs of Maldivian families.
The Hiyaa development in Hulhumalé Phase Two is one of the country’s largest social housing projects, comprising thousands of residential units across a series of high-rise towers.
The latest disclosure highlights the financial challenge facing HDC as it attempts to recover hundreds of millions of rufiyaa in outstanding rent while simultaneously ensuring flats allocated through social housing programmes are being used in accordance with their intended purpose.
