The State Department of Housing has published the draft Affordable Housing Regulations, 2024 which will fully operationalise the Affordable Housing Programme.
Among the areas that the regulations highlight is the exemptions from the 1.5 per cent Housing Levy. The exemptions were detailed in the Act with select Kenyans set to be exempted from the deduction programme depending on their income and background.
The regulations also provide details on the eligibility of Kenyans and the application process that will be followed by Kenyans seeking to be exempted.
"The main objective and reason for the proposed Affordable Housing Regulations, 2024 is to operationalise the Affordable Housing Act, 2024 and provide clarity on its implementation.
"Specifically, the Regulations seek to provide for eligibility, application, validity and revocation of exemptions from the imposition of the Levy under section 6 of the Act," read the draft impact statement.
16 Guidelines Addressed in the Regulations
Apart from the Housing Levy exemptions, the regulations also give clear guidelines on the allocation of houses. Guidelines on how a house can be relocated in case one defaults in the payment for the houses.
The regulations also address the amount of deposit to be paid by Kenyans. Initially, Kenyans were to pay 10 per cent of the house value, however, MPs noted that the provision was too high.
Additionally, the regulations provide criteria through which one can change houses under the programme.
"The Regulations seek to provide for loan interest rates or administration fees under section 51 of the Act, provide for procedures relating to the off-take of affordable housing units and provide for the eligibility criteria to enter into an agreement to develop institutional housing
"It also provides for the application procedure for approval to develop institutional housing through implementing agencies," read the impact statement in part.
Other areas addressed in the regulations included physical and social infrastructure set to be developed in the projects, notice of affordable housing on settlement, withdrawal of voluntary savings under Section 52, and provision for rural affordable housing units.
"The regulations seek to provide for the conduct of Public participation by the Board, provide for eligibility to enter into an agreement to finance off-take, application for approval and provide for application for approval to offer off-take," the State Department stated.
Notably, the regulations also provide a framework that will restrict Kenyans from disposing of units acquired in the programme.
Kenyans are expected to give their views on the draft regulations through a public participation schedule set to begin on April 23 -29, 2024.
