50% of Hulhumalé flat tenants irregular with rent

Housing Development Corporation (HDC) states that 50 percent of Hulhumale' tenants are irregular with their rent payments. 

On October 11th, Sun submitted a request under the Right to Information Act, seeking details on the number of flats managed by HDC in Hulhumalé and the proportion of tenants who consistently pay their rent. Sun also sought the total outstanding rent amount as of that date and the reasons cited by tenants for non-payment.

In its response on Monday, HDC detailed that it manages a total of 10,077 flats in Hulhumalé, with approximately 50 percent of these units paying rent regularly.

However, the Corporation declined to disclose the exact amount of unpaid rent accrued up to August 11. HDC cited Section 25(a) of the Right to Information Act as the basis for withholding this information.

The cited provision states that information may be withheld if it was obtained under an agreement of confidentiality, contains commercial secrets, or if its disclosure would adversely impact the commercial or financial interests of a third party.

Furthermore, HDC stated that it does not maintain records regarding the specific reasons why tenants generally fail to pay rent.

Despite HDC’s current stance, the corporation had previously shared similar data with Sun on May 27 of last year. At that time, HDC reported managing 8,511 units for which rent was collected.

The records then indicated that 3,219 social housing units were paying rent regularly, while 5,099 units were recorded as delinquent. HDC had also disclosed that as of February 28 of that year, the corporation was owed MVR 728 million in outstanding rent from social housing units.

Under the standard social housing agreements, HDC retains the authority to repossess flats if rent is not paid consistently.

While many tenants strive to meet their obligations, the financial challenges following the COVID-19 pandemic made regular payments difficult for a significant number of residents. Subsequently, former President Ibrahim Mohamed Solih’s administration introduced relief measures.

The incumbent administration has also implemented rent reductions for social housing flats in Hulhumalé.