Housing Development Corporation (HDC) has issued a warning to social housing owners over the growing problem of renting out government housing units to foreigners at higher prices.
In a statement released on Wednesday night, the state-owned company said it has received multiple complaints that housing units allocated to low-income families are being leased to foreign tenants. HDC noted that some flats, particularly in the Hiyaa towers in Hulhumalé Phase II, are no longer occupied by the rightful owners.
HDC has instructed owners who have rented their entire units to foreign tenants to vacate those tenants before 3 January. The company said failure to comply will lead to the cancellation of housing agreements.
HDC reiterated that the social housing scheme is intended to provide affordable accommodation to households in need, and that renting out full apartments violates the agreement signed between the corporation and the owner. The company said further action will be taken against those who continue to breach the rules.
According to rental regulations gazetted by the Housing Ministry in 2022, owners are prohibited from leasing an entire apartment from a government social housing project. Only individual rooms may be rented out under the regulations.