Over 2,600 Hiyaa units in default of rent

A large number of tenants of the Hiyaa flats, developed in Hulhumale’ Phase II under a state social housing scheme, aren’t paying their monthly rent, according to Housing Development Corporation (HDC).

Sun filed a Right to Information (RTI) query to obtain statistics on the units that fail to make regular rent payments.

According to the information provided by HDC, of the 6,338 units leased from the Hiyaa flats, 2,678 units have not paid the rent in the last three months. It amounts to 46 percent of the Hiyaa units.

With a monthly rent of MVR 7,500 and a maintenance fee of MVR 1,000, tenants need to pay MVR 8,500 each month.

The three-month outstanding rent of 2,678 units amounts to around MVR 68 million.

The previous administration had decided to set the monthly rent to MVR 5,600. However, the rent was deemed unsuitable and raised by the current administration. The total payment for the units is divided into monthly rent over the course of 25 years.

The Maldives Development Update report released by the World Bank expresses concern over outstanding rent payments from social housing projects.

The World Bank said that the over MVR 10 billion spent on the Hiyaa project was high for a social housing project.

The institution also noted that while the Hiyaa units were given to tenants of different financial means, the rent remains uniform. The report notes the units are heavily subsidized by the government.

HDC recently warned it would fine tenants who default on rent payments for Hiyaa flats. However, the corporation has not disclosed whether any tenants have been fined.