Homeowners looking to sell their affordable housing units may soon find the process less restrictive, as new regulations designed to clarify Section 54 of the Affordable Housing Bill, 2023, have been proposed, offering a clearer framework for sales.
Under the Draft Affordable Housing Regulations 2024, unveiled this week, cash buyers will be allowed to sell their units eight years after they have fully paid for them. Despite the recommended changes, owners are still required to obtain written consent from the Affordable Housing Board before any sale.
According to the draft regulations, "For purposes of section 54 of the Act, a purchaser shall not sell their affordable housing unit until eight years after completion of payment of the agreed price has lapsed." This new timeline aims to stabilise the market and ensure that the benefits of affordable housing are not prematurely diverted.
In a notable distinction, the regulations specify that these restrictions do not apply to purchases made through a mortgage, offering flexibility to a broader range of homeowners.
When the parameters for a sale are met, cash purchasers will need to seek the board's approval. The Board is tasked with ensuring that the sale price is aligned with current market rates, maintaining fairness in transactions, and protecting the interests of both buyers and the community.
The application process for consent to sell involves a written request to the Board detailing the reasons for the sale. The board then has 14 days to make a decision, considering factors such as the duration of ownership and the proposed sale price concerning market conditions.
Adding a layer of oversight, the Affordable Housing Board is granted the first right of refusal on any unit coming up for sale. This provision is intended to preserve the stock of affordable housing and prevent speculative practices that could undermine the sector's stability.
The public has been invited to voice their opinions on these regulations. Lands Cabinet Secretary Alice Wahome announced that the public consultation period is open until April 29, with Kenyans encouraged to submit feedback through written memoranda or attend in-person forums across the country.
"The Affordable Housing Regulations, 2024 have been finalised and are now available on the State Department for Housing and Urban Development website for public review," Wahome stated in a gazette notice.
This regulatory update comes as President William Ruto's administration contends with a legal challenge over the Affordable Housing Bill, enacted earlier this year. The government's move to introduce a 1.5 per cent deduction from March salaries to fund the scheme has been a point of contention, sparking widespread debate.
