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NHDCL starts allotting housing to private sector and vulnerable people

National Housing Development Corporation Limited (NHDCL) recognizing the housing crisis and challenges, particularly for low-income employees, is constructing about 860 housing units under the Green and Resilient Affordable Housing Sector Project(GRAHSP), where employees from all sectors will benefit.

NHDCL shared that as per the project document, the private sector subject to fulfilling certain conditions stands to benefit from GRAHSP.

An NGO has been recruited through the project to review the company’s existing allotment rule and will also be responsible for developing the criteria and other guidelines.

The project is funded by the Asian Development Bank (ADB). Project plans started in 2022 are ongoing. By the end of 2025, about 64 units will be completed. The remaining ones will be completed by 2028. Thimphu will only have about 100 units meant for the lowest income group.

Others include one site in Trashiyangtse, two sites in Samdrupjongkhar, one site in Nganglam, and another site in Phuentsholing.

The project is different from any other projects done in the past, as it uses new technology related to energy saving. There will be green components, like rainwater harvesting, solar rooftops, and even the interior designs will be energy-saving.

During a National Day Royal Address, His Majesty The King expressed concerns over the private employees getting poorly paid with Nu 8,000 salary, which is not at all enough to sustain a livelihood in Thimphu where one has to pay high rents for accommodation.

NHDCL shared that they recognize that addressing the housing crisis, particularly for low-income private sector employees, requires a concerted effort from all sectors.

NHDCL CEO says, “While we cannot tackle this challenge alone, we have taken proactive steps as the agency responsible for housing in the country in our small ways, following His Majesty’s concern for those struggling to secure decent accommodation within their means. To support those most in need, we have allocated a portion of our housing stock. As of now, six housing units (Category 5) have been allotted to private employees in the lowest income bracket in Thimphu.”

“Looking ahead, NHDCL will continuously review its allotment criteria and introduce the necessary adjustments to ensure that, while we may not be able to address everyone’s needs, we can at least provide dignified shelter to some of the most vulnerable individuals in the private sector. This initiative underscores our commitment to His Majesty’s vision of fostering a more equitable and sustainable society,” he added.

As of now, Changjiji Housing Colony has 724 units, comprising 676 residential and 48 commercial units.

NHDCL shared that the private and corporate employees are eligible for the NHDCL quarters. However, these allotments are limited to those who are earning below Nu 16,000 per month. So far, 6 have been allotted to private employees in Thimphu.

As for expansion, NHDCL said that currently, there are no plans to construct new affordable housing in the Changjiji colony due to land constraints and other factors.

NHDCL shared that they have received directives from the government regarding specific criteria to be implemented for the Changjiji Housing Colony. These include setting a gross household

income threshold between Nu 24,000 and Nu 40,000 per month as the eligibility requirement for occupying units.

However, there has been no specific directive addressing private and corporate employees earning around Nu 8,000 per month.

NHDCL has designated Category 5 exclusively for the private sector employees and Changjiji colony falls under Category 3. Rent at the Changjiji is already subsidized about 40 percent below the market rate.

The rent for a 2 BHK apartment is charged around Nu 12,000 in the market, whereas NHDCL’s rent for 2BHK at Changjiji is less than Nu 7000.

NHDCL shared that any rent below this will not only distort the market, but the company’s overall sustainability will also be in question.

According to NHDCL, tenants must meet specific criteria to qualify for affordable housing. These include maintaining a household income within the designated threshold, not owning a house or flat within Thimphu Thromde, and ensuring they are not transferred out of the capital city.

NHDCL said, “We are in the process of providing consideration for certain vulnerable tenant groups who may not meet the income threshold for continued occupancy. These include single parents with school-going children, individuals with disabilities, and those suffering from chronic illnesses. Changing jobs does not affect their occupancy, provided their gross household income remains within the specified threshold. However, if tenants change jobs and get transferred out of Thimphu, they are required to surrender their units immediately upon submitting a transfer letter for that particular year.”

NHDCL further clarified that a change in employment does not impact tenancy as long as the tenant’s gross household income remains within the specified limit.

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