HDC Rent Defaulters to Face Credit Consequences as Data Shared with Maldives Monetary Authority

The Housing Development Corporation (HDC) has started reporting rent payment information of tenants in government social housing to the Maldives Monetary Authority’s (MMA) Credit Information System. This means that residents who fall behind on rent could see their credit scores drop, potentially limiting their ability to access loans or other credit services.

Since joining the credit system in March 2025, HDC has been regularly updating tenant payment records. The goal is to improve how the corporation operates, maintain financial stability, and deliver better services to residents.

Rent Defaults to Influence Credit Ratings and Loan Approvals

With this new integration, unpaid rent will become a factor that banks and financial institutions consider when deciding whether to approve loans, restructure debts, renew contracts, or offer credit. Essentially, tenants who fail to pay rent on time risk damaging their credit profiles.

HDC emphasized, “If rent payments are not made, individuals will see their credit ratings decline, which could affect future borrowing capacity.”

Rising Rent Arrears Highlight Growing Financial Pressure

According to figures shared with Mihaaru, rent arrears owed to HDC had reached MVR 894 million by June 2025. The largest share of this debt, MVR 628 million or about 70 percent, comes from the Hiya Project, which allocated roughly 7,000 flats. Hulhumalé Phase 1 accounts for MVR 230 million, or 26 percent, while Vinares Flats contributes MVR 37 million, making up the remaining 4 percent of unpaid rent.

Among the 8,511 housing units in Hulhumalé, only 3,219 tenants are paying their rent regularly. This means around 60 percent, or 5,099 units, currently have overdue payments.

Back in 2022, the rent default rate was between 30 and 40 percent. The near doubling of this figure over three years has created a serious challenge for HDC’s financial health.

What This Means for Social Housing and Public Finances

Sharing rent payment information with the MMA marks a clear shift in how social housing tenants are held accountable. By linking rent payments with credit scores, the government is encouraging timely payments and aiming to reduce growing arrears.

For residents, this means rent responsibilities now carry wider financial consequences beyond just the housing sector. For the government, the step is designed to safeguard public resources and ensure social housing remains financially sustainable over the long term.

As the system rolls out, it will be important to watch how tenants adjust to these changes and whether rent collections improve. For many, staying current on rent may now be as crucial as managing any other credit obligation.