Government to rent 400 units from private sector

The government is to issue a call for applications to rent 400 housing units from the private sector at commercial rates so that the Housing Authority could in turn rent them to families seeking social accommodation at subsidised rates. Priority would be given to families living in shared accommodation, amounting to around 600.

Winding up the debate on the financial estimates of the Housing Authority, Minister Dolores Cristina said this scheme had already been adopted successfully in Qawra. Owners renting such apartments for more than 10 years would benefit from a reduced withholding tax.

Ms Cristina said that the authority was investing less in building new housing units because of the large number of vacant dwellings on the market.

A number of housing schemes were being reviewed. One such scheme would change the criteria so that people with special needs could be given a better opportunity for independent living. Other schemes aimed at increasing the limit of earnings for people to gain full rent subsidy.

Benefitting from similar schemes would be foster families and people formerly living in institutions or having spent time in prison or in rehabilitation.

The government would also launch a scheme so that tenants residing in the 2,800 government-owned housing units in Cottonera and Valletta could become owners. Assistance on maintenance works would also be increased.

She said the government was gradually introducing the annual minimum rent of €185 under the rent reform. The authority was doing its best to reduce bureaucracy but proper vetting of applications, including checking of financial assets, had to be done properly.

The authority was working with local councils for better maintenance of government housing units in their localities.

Earlier Ms Cristina said 2,190 people had applied for social accommodation, 600 of whom had shared accommodation.

There was a substantial number of people who needed to change their accommodation either because of stairs or because the place was too big or too small. Around 60 people who were offered alternative accommodation had refused it.

She also agreed with the opposition that one could not expect the government to repair damages caused by residents themselves. Everyone should shoulder responsibility.

Ms Cristina said that lifts could not be installed in certain buildings.

At the start of the debate, Parliamentary Secretary Clyde Puli said the government intended to continue its efforts to identify vacant and abusively-occupied property, including garages, in a renewed effort to make better use of its own stock.

As from next year, owners of vacant private properties would be able to register with the authority their interest to rent out their properties and pay a lower rate of tax through a withholding scheme on the income derived.

With 50,000 residences vacant, this was also considered as a means of restricting uncontrolled development.

This year the authority would spend €1.8 million to buy 3,000 dwellings from the original owners after their post-war expropriation for possession and use, so that the dwellings could now be sold to their tenants.

Opposition spokesman on housing Roderick Galdes said the waiting list for social housing should be tackled more vigorously. There were still emarginated families among the lowest-income sector who had been waiting for more than 10 years.

Among the government’s electoral pledges was the promise to buy 2,000 private dwellings but this did not materialise because prices were too high. The promise of enhancing government stock by 200 units had also not been kept.

Mr Galdes said another great failure had been in making dwellings available for first-time buyers – only 35 contracts had been finalised out of 117 floated.

While the minister said the waiting list for social housing was approaching 2,000, the real figure was more like 3,000. The authority should consider raising the subsidy amounts. Late payment of subsidies, sometimes by over a year, did not help. There were 59,000 families who were still waiting for assistance through social accommodation.

A vote of €99,000 for the maintenance of government property was certainly not enough.

Mr Galdes said the Housing Authority did not yet have a transparent distribution policy. The possibilities of abuse and political interference, especially as the general election drew closer, sowed disturbing doubts.

Mr Galdes said he was looking forward to hearing the authority’s projections after the census results became known.