MHC owed K700m in ground rentals

The Malawi Housing Corporation (MHC), which provides habitable and affordable houses through plot development, construction and maintenance, is being owed about K700 million in ground rentals by
property owners.

The situation has since affected the corporation’s operations and delivery of services. MHC public relations officer Enerstina Lunguzi yesterday said ground rentals, which are payable per annum and in
advance, are an important source of revenue for the corporation to fulfil its mandate of providing essential infrastructure and services to the nation.

“The corporation has a high number of people on house waiting list.

MHC’s mandate is to construct houses, develop plots and maintain existing housing stocks and roads. The corporation is, therefore, failing to fulfil its mandate accordingly due to huge amount of money
it is owed.”

Lunguzi has since warned all leaseholders, who acquired property from the corporation, to clear ground rental arrears according to the agreement failing which the corporation will not hesitate to repossess
the property.

Malawi’s annual demand for housing stands at 21000, but in an earlier interview with The Nation, Blantyre City Council (BCC) director of town planning and estate services Costly Chanza said only between 10
000 to 15 000 houses are built each year.