In a significant move aimed at easing the financial burden on low-income households, the Housing Development Corporation (HDC) has waived all late-payment penalties for rent on Hiyaa flats developed in the second phase of Hulhumale’.
The waiver, covering penalties accrued from 2023 totals around USD 123,216.
Announcing the relief, HDC Managing Director Ali Zuhair confirmed to PSM News that the decision aligns with the government’s broader policy of supporting residents struggling to meet rental obligations.
This comes on the heels of a recent meeting between President Dr Mohamed Muizzu and residents of Hulhumale’ Phase II, during which the President pledged further financial relief, including waiving 12,970 USD worth of finishing work costs for Hiyaa flat beneficiaries.
Currently, out of the 8,000 social housing units built in the Hiyaa social housing project, only about 3,000 residents pay rent regularly, leaving over USD 45.4 million in unpaid dues, according to HDC.
To address the growing arrears and improve compliance, the government has also revised rental and security deposit structures for the 4,000 flats developed by Fahi Dhiriulhun Corporation (FDC).
Effective last week, tenants of three-bedroom flats will now pay a reduced monthly rent of USD 551, plus USD 97.3 for maintenance—totaling USD 648.51—while the security deposit has been slashed from USD 1,621.27 to USD 551.2. For two-bedroom units, monthly rent is set at USD 389.1 with a USD 64.9 maintenance fee and the security deposit has been cut from USD 972.8 to USD 389.1.