The World Bank has stated that the cost of the Hiyaa housing public project built by the previous government is extremely high. The World Bank made the statement in its Maldives Development Update report released for October 2022.
The World Bank's report stated that the project was expensive and estimated that the total cost of the project is USD679 million, adding that it is a high price compared to the project, which requires the government to spend approximately USD31,800 as a subsidy per housing unit. Given the low monthly Rent-to-Own payments of USD487, the per unit economic cost of the Hiyaa is USD31,800, accounting for 39% of the total combined cost of construction, infrastructure, and refinancing. If the land were to be included in the total cost, the subsidy would be 69% of the unit cost.
Furthermore, the report stated Housing Development Corporation (HDC) has faced cash flow shortfalls that endanger the long-term financial sustainability of the Hulhumale' Phase II project. In 2019, HDC took four loans totaling USD40 million to refinance the interest and principal repayment obligations of the Hiyaa project. The report stated the weaknesses in the Hiyaa project design and implementation have led to the project not completing to a satisfactory standard and further costs being incurred for the government and the people The report also noted that the design and operation of the Hiyaa flat project are not in line with the way people are living in the Maldives. In addition, the individuals who had to enter the flats have been burdened due to the unfinished work when the units were handed over.
Furthermore, the report stated that eviction is not enforced although the law and several court decisions state that the HDC has the right to evict households who are delinquent. It stated that rental default of all social housing projects in both Hulhumale' Phase I and II are high, averaging 2,345 out of 6,338 or 37% of housing units across all projects.