The Vice President Dr. Mahamudu Bawumia on Tuesday launched a novel innovative National Rental Assistance Scheme (NRAS) in Accra.
The NRAS, to be managed by a private sector property manager under the auspices of the Ministry of Works and Housing and other key stakeholders, is designed to make rental accommodation more accessible, affordable and convenient by taking away the unfair burden faced by lower income households and the youth across the country of multi-year rent advance payments demanded by landlords.
According to the Vice President, the initial roll out, with a seed funding of Ghs30m, will take place in the Greater Accra, Ashanti, Western, Eastern, Bono East and Northern Regions, where data from the Ghana Statistical Service indicate renters have the greatest challenge with rental accommodation.
“In partnership with the private sector, the Scheme will provide low-interest loans to eligible Ghanaians to enable them to pay rent in advance. These loans will be repaid on a monthly basis to match the tenor of the rent and will be insured to ensure sustainability.
“The Scheme will target individuals in the formal and informal sectors with identifiable and regular income. The rent advance loans will be paid directly into landlords’ bank accounts, who would also have to register with the Scheme,” Dr. Bawumia explained.
Recounting the various steps which culminated in the Scheme being part of the NPP’s 2020 Manifesto, Vice President Bawumia emphasized that the interventions undertaken by the Akufo-Addo Government since it assumed office in 2017, particularly the National Digital Property Address System (GhanaPost GPS), the National ID system and Mobile Money Interoperability had made it possible to roll out a scheme where all parties are confident of conveniently having their needs met.
“As a people-focused Government, providing meaningful shelter for our citizens has formed a significant part of this Government’s developmental goals, and measures taken to address problems associated with the housing sector, especially the rental housing sector, have remained vital to our development agenda.
“When I visited the Rent Control Department in July 2020, I noted the overall importance of the rental housing market in our quest to increase access to housing options. I reiterated plans by Government to make the Rent Control Department more effective and efficient, while also, reviewing the Law governing rent management in the Country to make it more relevant to evolving trends.
“More importantly, I also mentioned that on the issue of payment of rent advance, Government is putting in place plans to introduce a new programme to bridge the information and financial gap between tenants and landlords. These measures would enhance tenants’ creditworthiness and reduce the need for large rent advance requests by landlords.
“I am particularly excited to learn of the eligibility criteria that have been adopted in the selection of beneficiaries for the Scheme. It does not only support the call to synchronize all platforms with the National Identification System but also the data produced from the implementation of the Scheme will facilitate government efforts at expanding our revenue stream through the improved collection of Rent Tax,” he stated.
