The Malta Developers Association (MDA) refers to the new rental scheme launched by the Housing Authority through which property owners can rent their premises to the authority, which will then sublease it to tenants at subsidised rates.
The idea of using existing vacant building stock for rents to persons who qualify for social assistance in housing originated from one of the many suggestions made to Government before the Budget by the MDA, which had also suggested that a fixed rent for a predetermined period could be incentivised by a reduction in income tax from rents, as actually indicated in the announced scheme.
However, instead of allowing for a free rental market with tenants dealing directly with owners and then registering the lease when applying for subsidy, the scheme has become one where owners lease to the Housing Authority, which in turn sub-leases to the tenants.
This is in fact a major obstacle for the success of the scheme. Owners would normally seek to know who the prospective tenants are before they enter into a rental agreement and should not be obliged to accept anyone who obtains a sub-lease from the Housing Authority.
This would have avoided a lot of expensive bureaucracy and expenses on the part of the Authority, which will now be responsible for potential damages made to properties by its sub-lease holders.
With the announced scheme the property owners concerned will lose all control of their property and what happens to it, much as what used to happen in the past in the case of requisition orders.
It is a pity that such a good initiative has been smothered at its inception in this way rather than being allowed to flourish, something that would not have happened had the Housing Authority consulted interested stakeholders before finalising the scheme.
Malta Developers Association President Sandro Chetcuti described the meeting this evening between the Council of the MDA and Opposition Leader Simon Busuttil as “historic” since it was the first time that the Nationalist Party had invited the Association to such a meeting.
Mr Chetcuti introduced the MDA Council and outlined what the Association stands for and how it works. “The MDA is a lobby group that tackles principles and sees the effect of development on the country holistically. We want a level playing field and seek sustainable development that leaves an environment in which investment will obtain greater returns,” he said.
The Malta Developers Association agrees with the way the government is approaching the development of the site known as the White Rocks.
The MDA augurs that this project be done with foresight because this is one of the most beautiful sites in Malta. The MDA is certain that this project will attract great interest and will create a lot of economic benefit. The site, which is currently in a state of abandonment, can be developed for the upmarket property segment.