The Fahi Dhiriulhun Corporation (FDC) has announced that agreements with the recipients of 4,000 social housing units developed under its housing project will be terminated, and apartments repossessed, if the apartments are rented out in violation of the agreement.
The announcement was made on social media by Hamdhaan Shakeel, the Managing Director of FDC, amid reports that some recipients have listed their social housing flats for rent.
The 4,000 housing units developed by FDC are currently being handed over following the completion of finishing works. So far, the FDC has handed over flats to 78 individuals. However, several of the units have already been advertised for rent at exorbitant rates. Three-bedroom apartments are being advertised on social media for USD 1,620, more than double the government's subsidised rent of USD 745 for the same unit.
The agreement between flat recipients and the FDC prohibit the units from being rented out. FDC has said it will take stern action against such violations, noting that allowing individuals to profit from subsidised housing undermines the purpose of the scheme and deprives those in need of affordable homes.
In his post, Hamdhaan emphasised that the flats are allocated under a social housing initiative, and warned that tenants who breach the terms will have their agreements cancelled and flats repossessed.
Meanwhile, the Minister of Construction, Housing and Infrastructure, Dr Abdulla Muththalib has also confirmed that the government is taking necessary steps to cancel the agreements of the flats allocated under social housing projects and repossess the apartments in similar cases where the flats have been rented out against the agreement.
In a post shared on social media, the Minister noted that the properties allocated under the social housing projects have been developed using public funds and leased at subsidised rates. He reiterated that the government will not tolerate the rental of social housing properties at inflated prices or their use of the properties for purposes other than residential occupancy by the recipients.
The Minister added that said that inspections of the properties allocated as social housing will begin shortly in collaboration with the relevant agencies.
Similar to the FDC flats, several Hiyaa social housing flats, which are leased at a subsidised rate of USD 323 including rent and maintenance, are also leased to third parties at prices ranging from USD 972 to USD 1,167.