Fahi Union renews call to cut flat down-payment as dollar climbs

The Fahi Union has once again urged President Dr. Mohamed Muizzu to lower the down payment for Gedhoruveriya housing units, citing the continued appreciation of the US dollar against the Maldivian Rufiyaa.

The union’s renewed appeal on Saturday follows the current requirement of a MVR 25,000 deposit for completed flats, a scheme initiated by the previous Maldivian Democratic Party (MDP) government and currently overseen by the Fahi Dhiriulhun Corporation (FDC).

According to FDC, as of the 14th of this month, 909 individuals were scheduled to pay their deposits, with 588 having already done so for the MVR 25,000 amount.

In a statement released on Saturday, the Fahi Union criticized the government for allegedly ignoring its earlier pleas to reduce rent and eliminate down payments for the 4,000 public housing flats. The union also highlighted concerns regarding eligibility, stating that long-term Male’ residents who briefly relocated are being denied flats upon their return, receiving letters of ineligibility.

The Fahi Union’s statement referenced President Muizzu's recent visit to Thimarafushi in Thaa Atoll, where he discussed the government's decision to reduce social housing rents for the islanders.

In December, shortly after assuming office in November 2023, President Muizzu directed all relevant government institutions to decrease social housing rents by 20 to 30 percent. This reduction applied to flats built in Hulhumale' under former President Maumoon Abdul Gayoom, as well as Hiyaa flats, Vinares flats, and other social housing units developed by various administrations nationwide.

The union noted that President Muizzu’s justification for the rent reduction at the time was the dollar’s appreciation, which had led to increased prices for goods and services.

"The dollar was worth MVR 16.50 at the time. However, in 2025, when the 4,000 flats will be handed over, the dollar will be worth between MVR 20 and MVR 21," the Fahi Union's statement read.

"Therefore, we urge President Muizzu to reduce the rent and down payment of these 4,000 flats, taking into consideration the situation of the country and the financial and economic situation of the people."

Furthermore, the union called for a reversal of the decision to deny flats to individuals who left the city for short periods, including those forcibly relocated by the state. The union argued that this decision infringes upon citizens' right to housing.

The Fahi Union highlighted that individuals who have been incarcerated, those in custody without conviction, and those who traveled abroad for extended medical treatment or studies are also losing their eligibility for flats despite having lived their entire lives in Male’.

The union also brought to the President's attention the plight of those forced to move to rural areas due to the COVID-19 pandemic and other reasons, who are also receiving letters denying them flats. The association implored the President to cease sending such letters to these "victims of circumstance" and to proceed with handing over the flats. They reiterated their call for the government not to deprive these individuals of their housing rights.

Regarding the 4,000 Gedhoruveriya flats, the FDC reported that agreements have been signed with the owners of 3,000 units. The first of these flats are slated for handover from Tower 14 of Aman Udhares. The FDC had previously stated that flats would be handed over upon payment of the down payment.

The Anti-Corruption Commission (ACC) had previously identified issues with the recipient list announced by the previous government during the presidential election. The current administration conducted a review and issued a new list this year, following over a year of deliberation. However, after the new list faced severe criticism, the Housing Ministry announced that the flats would be allocated according to the original list prepared by the MDP government.

As the flats prepare for public handover, concerns continue to surface. On Thursday, the Fahi Union alleged that 350 of the 4,000 flats were being illicitly sold by individuals impersonating Housing Ministry employees.