Property owners will be able to lease apartments or houses to the Housing Authority that will then rent them out to tenants at subsidised rates, according to a new scheme launched yesterday.

The authority will be strict when it comes to regulating tenants as it does not want to discourage property owners from joining the scheme

The scheme aims to provide homes for the 500 families on the priority waiting list of the authority, Family Minister Dolores Cristina said. These priority cases include people who need to move to larger homes, people living in shelters such as domestic violence victims and former prison inmates.

Housing Authority chairman Charles Borg said the authority would be launching a call for applications for property owners who wished to lease apartments or houses to the authority. Property owners will benefit from reduced tax rates, of five per cent, on their guaranteed rental income and will enter into a contract with the authority for a minimum of 10 years, he said.

The property must be finished, have all necessary planning permits and be up to standard. An independent board will evaluate property to ensure it reaches standards and to determine how much the authority will pay, in commercial rates, depending on the location and size.

The authority will then sublease the property at a subsidised rate and will take the responsibility of the property once leased.

“The authority will be strict when it comes to regulating tenants as it does not want to discourage property owners from entering the scheme,” he said. This type of scheme, he added, roped in the private sector in the provision of housing so the authority did not have to build new blocks that took time.