The head of Public Relations at the Rent Control Department, Emmanuel Hovey Kporsu, has explained that beneficiaries of the National Rental Assistance Scheme will repay any loan granted with a 12 percent interest rate.
Mr. Kporsu stated that the interest will be split between the government and the scheme.
“This is a revolving fund from which the government is also going to benefit. The interest on it is about 12 percent and there is a cost-sharing between the government and the service provider. If we are to pay the rent, and we pay GH¢1000, 12 percent will be added, and that 12 percent will be shared between the service provider and the government, and it will be reinvested into the scheme,” Mr. Kporsu said.
In an interview with Accra-based television, Citi TV, he stated that the scheme will eventually be extended to all 16 regions of the country following the pilot phase in five regions, namely Greater Accra, Ashanti, Western, Eastern, and Bono East.
Applicants who intend to rent an apartment for more than GH1500 per month are not eligible for the scheme.
The government duly launched the National Rental Assistance Scheme on Tuesday, January 31, as part of measures to provide decent housing for Ghanaians.
Under the scheme, Ghanaians over the age of 18 with a valid national ID card and verifiable employment with an income are eligible for a rent loan in five to ten working days.
Total rent is paid to the applicant’s prospective landlord, and the applicant makes a monthly payment to the National Rental Assistance Scheme.
Mr. Kporsu also stated that applicants will be evicted from the apartment if they fail to meet their monthly repayment obligations under the scheme.
Speaking at the launch in Accra on Tuesday, January 31, vice president Dr. Mahamudu Bawumia stated that the five regions were “selected for the pilot because they are where there is pressure on rent in the country.”
Dr. Bawumia mentioned that, unlike previous policies that were frequently marred by defaulters, the National Rental Assistance Scheme is being implemented in collaboration with private investors who do not want their investments to be lost and will use any means possible to recover their funds, thereby eliminating any form of political interference.
He also stated that the government, through the Ministry of Works and Housing, has submitted a bill to Parliament in order to replace the current rent law, which was enacted over five decades ago and has since become obsolete.
“I am happy to inform you that the government has made significant strides as far as the housing sector and renting management are concerned. Government acting through the Ministry of Works and Housing has submitted to Parliament for consideration and passage, a rent bill to replace the existing Rent Act of 1963 Act 220. The current Act was passed by Parliament 59 years ago and therefore its relevance has been outlived by the current population growth, urbanization, housing availability, and general trends.”
