Fahi Union raises concerns over Gedhoruveriya Flat agreement terms

The Fahi Union has expressed concern over key conditions tied to the handover of flats under the government’s Gedhoruveriya housing scheme, citing a required down payment of MVR 25,000 and steep penalties for late rent payments.

Following a meeting with officials from Fahi Dhiriulhun Corporation (FDC), the union—an advocacy group representing recipients of government social housing—criticized the approach being taken toward the 4,000 flats currently under construction in Hulhumalé Phase 2.

Housing Minister Dr. Abdullah Muththalib confirmed that the flats will be leased on a 25-year rental agreement, with full ownership granted only upon completion of all payments. He noted that the policy shift was prompted by a growing issue of rent defaults in existing social housing schemes.

In a press statement issued after the meeting, Fahi Union described the Gedhoruveriya scheme as markedly different from earlier housing initiatives. “The FDC has confirmed that these flats are being offered on a long-term rental basis, similar to models used by private real estate developers, and not as immediate ownership transfers like in the Hiya housing scheme,” the union said.

According to information shared by FDC during the meeting, keys to the flats will be handed over only after the MVR 25,000 down payment is made. Furthermore, the Fahi Union claims that significant penalties will apply for delayed monthly rent payments. If payment is not made before the 10th of each month, the rent for two-bedroom flats will rise from MVR 7,000 to MVR 15,000, while three-bedroom flats will increase from MVR 9,000 to MVR 25,000.

FDC has not publicly confirmed these penalty rates, and Mihaaru has reported that the corporation has yet to respond to requests for clarification.

The Fahi Union also highlighted discrepancies between the current terms and the previous government’s housing policy, which had set rents at MVR 5,000 for two-bedroom units and MVR 7,000 for three-bedroom units under the Gedhoruveriya scheme. The union is urging President Dr. Mohamed Muizzu to intervene, citing his previous efforts to reduce rents for tenants of the Hiya and Vinares flats.

FDC announced it will begin signing lease agreements with beneficiaries starting tomorrow. Details regarding the date and time of signing will be shared through the Homeowners Portal.

The government has acknowledged that unpaid rent remains a significant challenge in its social housing programs. The Housing Development Corporation (HDC), which manages several large-scale housing projects, reports that total unpaid rent now amounts to over MVR 895 million. The Hiya project, which consists of 7,000 units, accounts for the majority of the outstanding dues—MVR 628 million, or 70 percent. Hulhumalé Phase 1 flats owe MVR 230 million, while Vinares flats account for MVR 37 million in unpaid rent.

The unpaid amounts include not only rent but also penalties, management fees, and other related charges.

In an effort to improve collections and encourage financial responsibility among tenants, HDC has begun sharing rental default information with the Maldives Monetary Authority’s (MMA) Credit Information System. Tenants with overdue rent may now see their credit scores impacted, potentially affecting their ability to secure loans, renew rental contracts, or access other forms of credit.

HDC officially joined the credit reporting system in March and has since committed to regularly updating tenant data. The corporation says this integration is key to enhancing operational efficiency, strengthening financial sustainability, and ensuring more effective service delivery across government-run housing projects.