FDC fines flat owner for subletting housing unit in Hulhumalé
Written warnings were issued to the owners of three other flats found to have been sublet. Two additional cases are currently under investigation.
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The Fahi Dhiriulhun Corporation (FDC) has fined the owner of a social housing flat in Hulhumalé for subletting the property in breach of the terms of the housing agreement.
Under the conditions of FDC housing schemes, flats allocated through rent-to-own arrangements cannot be sublet to third parties until all payments have been completed and ownership has been formally transferred. Breaching this condition may result in penalties or repossession of the unit.
FDC said it is investigating a number of cases involving housing units being rented out in violation of programme regulations.
According to the corporation:
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One flat owner was fined last month for subletting a unit. The amount of the fine was not disclosed.
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Written warnings were issued to the owners of three other flats found to have been sublet.
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Two additional cases are currently under investigation.
FDC said the housing units were allocated to assist individuals and families in need of housing and are intended for residential use by the beneficiaries.
The corporation noted that using the flats as rental properties constitutes a breach of the agreement signed with beneficiaries.
The issue of subletting social housing units has been a recurring concern. Although the agreements prohibit the practice, some beneficiaries have rented out their flats to third parties at rates significantly higher than the monthly payments due under the housing scheme.
In February, the owner of a flat in FDC's Amaan Udhares housing project was fined MVR 50,000 after the unit was found to have been rented out and used as accommodation for expatriate workers.
Housing authorities have repeatedly warned that social housing units may be repossessed if owners violate the terms of their agreements.
Minister of Housing, Land and Urban Development Ali Haidar Ahmed has previously stated that action would be taken against those who sublet government housing units, including through legislative measures if necessary.
FDC currently manages around 4,000 housing units under various social housing programmes. The corporation said it will continue monitoring compliance with housing agreements and investigating reported violations.