- It will be a toll order for the beneficiaries of affordable housing to sell their units in tough regulations drafted by the government.
- The regulations, which are still undergoing public participation, provide that a purchaser of an affordable housing unit who intends to sell or agrees to sell the unit shall seek the consent of a Board.
Image: PCS
It will be a toll order for the beneficiaries of affordable housing to sell their units in tough regulations drafted by the government.
The regulations, which are still undergoing public participation, provide that a purchaser of an affordable housing unit who intends to sell or agrees to sell the unit shall seek the consent of a board.
Those who secure the board’s nod to sell their units shall only sell the houses at least eight years after they purchase them.
“A purchaser shall not sell their affordable housing unit until eight years after completion of payment of the agreed price has lapsed,” reads part of the regulation.
The regulations propose that an application for consent to sell an affordable housing unit shall be made, in writing, to an established board, indicating the reasons for the request.
Appearing before the Senate Delegated Legislation Committee on Thursday, Housing PS Charles Hinga said they will not allow purchasers to sell the units because they will ‘distort’ the market.
The panel is chaired by Tharaka Nithi Senator Mwenda Gataya.
According to Hinga, they had established that there could be individuals who could use proxies to purchase several units with a view of selling them at the market value, which is higher than the affordable housing unit prices.
“If we allow purchasers to sell the units then we will be distorting the market and the affordable housing scheme,” the PS said.
He added; “We must now come up with the rules that will regulate the transfer of the units from one person to another.
Hinga, for instance, explained that a three-bedroom housing unit along Park Road under the affordable housing programme is Sh3.5 million while the same unit costs Sh7.6 million at the market value.
The draft regulations further state that a person shall be eligible to apply for the allocation of an affordable housing unit if that person is a citizen of Kenya, and above the age of 18.
The person shall also quality if he or she has not been previously allocated an affordable housing unit by the board.
In addition, an application for the allocation of an affordable housing unit shall be accompanied by the deposit payable at the rate specified by the board.
“Where applicable, the purchaser may also provide the enumerated unique identification document for slum upgrading projects or a person with disability identification card as proof of identification,” reads part of the draft regulations.
The draft regulations also stipulate that a person may apply for a change of an affordable housing unit before or after taking possession of the unit.
According to the draft, an application for change of an affordable housing unit shall be made, in writing, to the board indicating the reasons for the desired change.
A person who has not taken possession of an affordable housing unit may apply for a change of the house.
This happens if the person meets the specified allocation criteria for the unit applied for and agrees to forfeit their allocated affordable housing unit for reallocation to another eligible person.
“A person who has taken possession of an affordable housing unit may apply for a change of an affordable housing unit if the person meets the specified allocation criteria for the unit applied for and surrenders the unit in a tenantable condition to the satisfaction of the Board,” reads part of the draft regulations.
The regulations further state that where a person allocated an affordable housing unit defaults in the payments for their unit and continues to be in default for one month, the board shall issue a notice, in writing, to that person requiring the default to be remedied.
“Where a person seeks to withdraw their saving in a voluntary savings account by section 52(4)(a) of the Act, the administrator of the fund shall, upon verification, refund the savings and any accrued interest to the person and close their savings account,” reads part of the regulations.
However, senators told Hinga to ensure that his ministry includes in the regulations an online application form for those applying for the affordable housing units.
“Provide for a way through which the citizens can apply online for affordable housing units. Find a way to provide for an appeal mechanism so that when the board declines a person can appeal to the conclusion,” said Tana River Senator Danson Mungatana.
Hinga said they had received more than 702 proposals on the regulations and will comb through to see what can be included in the final draft for publication.