HA hopes property owners will recognise benefits of newly launched scheme
The Housing Authority is hoping property owners will recognise the benefits of a newly launched scheme.
It said today it has been operating a rental subsidy scheme, known as Scheme R, since 1999.
Through this scheme, families and individuals can rent property directly from private landlords and apply for a subsidy on their monthly rent payments. 1,200 households benefit from this scheme at a cost to the HA of over €1million annually.
The government is further strengthening this scheme through tax incentives by introducing a reduced withholding tax rate of 10 per cent.
Replying to a recent statement by the Malta Developers Association which said that the authority was making the scheme too bureaucratic, the HA said that in addition to this scheme, it has also been concurrently investing over the years in a robust development programme to address the disparate needs of its clients.
"Following the property market slowdown and the resultant rise in the number of vacant residential units, the authority recognised the need to downsize its development programme and tap into the private property market to meet the requirements of its applicants.
"The newly launched private property rental scheme will be operating in parallel to Scheme R."
It said this scheme was, in essence, a renewal of a scheme launched in 2006 when response from the private sector was very disappointing.
However, the Housing Authority entered into a 10-year agreement for a block of apartments in Qawra.
This worked smoothly to the satisfaction of the Authority, the landlord and tenants.
The HA said that as the current property market situation is somewhat different from what it was was five years ago and the authority is optimistic that more private property owners will recognise the benefits of the scheme.
"The strengthening of Scheme R and the launch of the new rental scheme mark a new phase for the Housing Authority as it develops and implements sustainable housing policies that take into consideration the wider environmental and economic realities nationwide and beyond.
"Property owners will retain the right to inspect their properties and will be entitled to hold the Housing Authority, as their lessee, to account for any breaches in lease agreements.
"Moreover, the authority will be in turn enforcing the strict observance of rental agreements to ensure its tenants fulfil their obligations, respect their neighbours, and keep the properties well maintained."
The HA said that non-compliant tenants risk immediate termination of their contracts.
An information campaign will be launched in January to explain the benefits property owners interested in renting their vacant apartments to the authority will enjoy, including a five per cent withholding tax rate, and a stable and assured income for a minimum for 10 years.
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Bertrand Malley
Dec 21st 2011, 23:17
It now comes directly from the Minister's mouth: the scheme is intended for property owners rather than for those who need a space to live in.
However a different situtation might be too much to ask for given that the Housing Authority's chairman is also the CEO of a private commercial bank. Tax the poor to pay the rich ... that is a really great idea!
Saviour Cachia
Dec 21st 2011, 22:00
As I see it, let me say that the Housing Authority is right in not building more to cope with social housing. But as taxpayer i do not agree with all these tax exemptions or amnesties when after all, Europe is expecting 2013 to be worst than 2012. So is Malta the exeception and all will be going well and good (fuq ir-rubini) even in the Eurozone. And will the letting from the private property be on market value (il-valur tas-suq) and then as it is promised the Governement will subsidy the new dweller according to his/her circumstances. Why all this discrimination with people who inherited their parents/grandparents property and could go more than the meagre 185,00 euros a year, Why not a national exercise has been done before announcing such scheme, even on those properties already being let, and declare a just market rent depending on the size, commodities, and location of such properties. Then the Government/Housing Authority would declare the just rent and subsidize where necessary. This system should have been done on a national basis, not only to the benefit of people in social needs or properties who have their property vacant. Am I correct that this just gesture was waived because we are getting very near a general election? Malta's definition is just one: political convenience.
Joseph Calleja
Dec 21st 2011, 18:00
Hellooooooo HA (Housing Authority) Why not take care of us property owners who are denied access to our property because of an injustice done to us in 1974 if you really and truly want to help? Give me one good reason why my son or daughter have to come and beg you for a place to stay when I have my own property I can let them have for nothing? Yes I am talking about a piece of property in B'Kara that the Government Requisitioned in 1974 and let squatters move into my father's empty property. Yes the same property is still occupied by these same squatters for the last 37 years now at the rental fee of 185.00 euros a year. How generous of the courts. According to the HA they claim they have nothing to do with our property anymore because this property was derquisitioned since 2007. Fine and dandy, but what good does it do me if I cannot evict the squatters/tenants out of my property because the law still protects this renter and her children till death do they part. In the meantime you want to requisition more private properties for your convenience... I say to the HA and the archaic and unjust Maltese law: BAH HUMBUG and I hope you and those responsible definitely will not have a Merry Christmas.
Phil Zammit
Dec 22nd 2011, 05:19
Your point is right on target! In addition, your plight is repeated many times over by thousands of fellow Maltese property owners all itching to support you!! Unfortunately, by yourself (unless you have a DEEP pocket) you will not be able to fight city hall.
Find a way to organize and together you can initiate a class action lawsuit against the Govt. and its unconstitutional owner/renter law. Take it to the European Court if need be! If you don't fight them, they will never end this REVERSE discrimination!
In any civilized country, you cannot be denied the rightful ownership and use of your property (within zoning limits). The law can only enforce a signed lease (usually renewed on an annual basis). If there is no signed lease or the lease has expired, you should be able to give your renter a reasonable notice (e.g. 1 month!) to vacate the premises. If the renter refuses, the Police are obligated to step in and enforce your rights!
Fight for what you and your family deserve and God speed.
Joe Grech
Dec 21st 2011, 17:36
I wonder how all the thousands who borrowed enormous sums of money from the grasping banks to build / buy a home for themselves will look upon this scheme! Most probably they will say that this administration continues to help :
* the very rich property magnates who have been left with too much construction on their hands - Minister Dolores Cristina, renowned for not knowing things happening at her Ministry, will even be giving them a tax break apart from helping them to rent out their properties!
* the very poor ???? who will be keen on getting a house subsidised by the Housing Authority - or rather of all Maltese taxpayers, themselves included!!!!!
As usual, in a rush to get votes this administration comes out with all manner of stupid ideas - ideas that are so prone to being misused.
Really, is this the right way to govern a country?