139 tal-1990

I..N . 139 of 1~

HO~lEOWNERS IUP (ENCOURAGEMENT) ACT, 1988

(ACT NO.XXV III Ot' 1988)

lIome Own~n;hip (Encouragemenl) ( Plln:h~ ot Government Dwelling-

lIoll5e!i Scheme) Rtogulatlons. 1990

IN clIerciK of t he powers confe rTed by scC'lion 3 of the Home

Ownership (Encouragement) Act, 19S8, the Chairman of the Housing

Authority , with the approval of th e P~rliam enlary Secretary in tIle

Mini stry for Social Policy with responsi bility for Housi ng, has made the

fo llowing regul alions:_

These regulations may be cited as Ihe H ome Ownershi p a .. ,ion.

( Encouragem ent) (PUrch3se of Governme nt Dwelling- Houses

Scheme) Regul ations, 1990.

( Regolarnenl 2)

Skema la' 1-1990 ghu-Xiri ta' Djar la' Abilazzjoni lal-Gve rn

(S kema E)

l. Din 1- l skemal iSl a.lisscjjal.ll- l skc:ma l a.I- I 990ghax-Xi rila .To.ot~

Djar la' Abilaujoni tal-Gvem (Skema El u ghandha lapplika ghal

a I'P1ikazzjonijiel ghu·x iri ta ' dja. ta' abi laujoni li huma proprjcl~ tal.

Gvem minn pcrsuni li ghali hom lapplika din l-lskema.

F'din 1, lsl; cma. ke mm-i l darba r-rabta' tal-klic:m ma Ichliegx To"',

2. ~on'ohra

"applikanl" tfisser pcrsu lla li t3pplika ghax·xiri ta' dor ta'

abi t3zzjoni tal·Gvern tahl din I- Iskcma;

"I·A 11" I,rifc:rcnza ghall·kla wiola 12 la' di n 1· lske ma gha ndha

I· isless tifsi ra moghtija lilha fdi k il-kJaw:i:ola;

"1·A11 prinCi pali" tfisse r I·AII la' 1·1988 biex ihajjar !'crsuni

jsiru Sid Darhom ;

" 1·AwIOrit1t'· lfisse r I· A wlorit ~ tad· Djar. imwaqq fa bl-artikolu

3 ta' I· A11 la' 1·1976 dwar I· A "'1 0rit~ lad· Djar;

Mbencfi~jarj u M ghandha I·islcss lifsira moghtija lilh a f1 ·artikolu

2 Ia·1· Att printipali;

Mdar la ' abi tazzjoni M ghandha l-isles5 lifsira moghtija Hlha n·

artikolu 2 ta' I-AII principal;;

MGvern" lfisscr il-Gvern la ' Malta ;

Mincome total; fis_scnoM ghandha l·iSltSS tifsi rl moghlija 1;lha

fis-subklawtola (4) tal-klawtola S la' din l- Iskema ;

"kerrej rikonon ut lfisscr pcl'lUna 1; jkollha dar tl'

M

abitazzjoni tal -G vem b' titolu ta ' kirja mill-Gvern u rikono:o:ul a

bhala lali mill·Gvem ;

"preskritt" lfisscr preskrill bl-A wIOrit1;

Mrcsidenza ordinarja" ma tinkludill residenza las-sajf;

Mscna bati" lfisscr is-scna mlnnufih qabcl is-sena 1; fiha ssie

applikaujoni tah! din J-Iske ma u b'riferenu ghas-subk lawtola (S)

tal-klawtola 8 tfisse r is-sena minnufih qabC'J is-sena 1i fiha Itun

dovula 1i SSiT revizjnn; la1'lt dik is-subkla wtola.

The Scheme enti tled Purchase of Gove rnment Dwelling- Ioh t;",,,,

!-louses Scheme. 1~ (Scheme E) in the Schedule 10 tllt!X regulalioJl5 shaD Sch< .....

have effect from the dat e of the coming into force of these regulations

for the encouragement o f home ownership in Malta and shall lapse one

year after that date .

SCHED ULE

( Regulation 2)

Purchase of Governme nt Dwelling- HoUSC'S Scheme, 1990

(Scheme E)

I. This Scheme may be cited as t he Purchase of Governmen t Cil. -.

Dwelling-Houses Scheme, 1990 (Scheme E) and shall apply to

applications fo r the purch ase o f dwelling-houses which are the propcny

of the Government by persons to who m this Scheme appli es.

2. In this Scheme, unless the conteJ(t othe rwise requ ircs:-

IntcfJ'fC'"'''''''

- the Aee with reference to clause 12 of Ihis Scheme has Ihe

sam e me anin g assigned to it in th at clause;

- aggregate ann ual income ·· has the same meaning assign ed 10

it in sub-clause (4) o f clause: 5 ofl his Sche me ;

"appli cant"' means a person who applies fo r th e purchase o f a

Government dwe lling-house under thi s Sche me;

- the Authority- mea ns the Ho usi ng Authority established by Aa xv", I ~

section:> of t he Ho using Au thority ACI, 1976 ;

" basic year" means t he year immediat ely preceding the year in

which an applicat ion under Ihis Scheme is made and with refe rence

to sul:H:lause (5) of clause 8 it means the year immediately

preceding the year in which a revision under Ihal sub-clause is due ;

" beneficiary" has the same meaning assigned 10 il in $ed.ion 2

of tile principal Act;

- dwelling-bouse has the same meaning assigned 10 ;1 In

M

section 2 of the pri ncipal Act

- Gove rnment" means the Government of M alta

"ordinary residence" does not include a summer residencc;

-prescribed" means prescribed by the Authori ty;

Owne~hip

- the princi pal A ce means

the

Home

(Encourage ment) A ct. 1988

- recognised tena nl" means a person holding a Gove rnment

dwelling- house under a title of lease from th e Government and

recognised as such by the Gove rnment.

(I) Any person q ual if~ 10 do 50 unde r this Scheme may

mak e an application o n the prescribed form to the Amhori ty req uesting

to purchase a Government dwelling- house of which he is the retognised

te nant and which is occupied by him as his ordinary residence_

(2) A person shall qualify to mak e an appl ication under this

Scheme where, on the date of the application

(a) the applicant or. in the casc of a married lXluple, the

applieanfs spouse, is a citizen of Malt a; and

(b) the applicant and the applica nt's spow.eor fiancteJfianct

are residents of Mal ta and have been 50 resident continuously for

not less thon twelve consecuti ve month s im medi ately preceding the

date of the application.

(3) A person shall not q ualify to make an application under

thi s Scheme if the applit ant or the a pplican t's spouse has already

benefited unde r

(a) any of Ill<' schemes published by Government Notices

Numbers 11 and 12 in the Government Gaze lle o h he 6th January,

1987; or

(b) the scheme published by Government Notice Number

138 in the Government Gazelle of the 20t h February, 1987; Ot

(c) any of the schemes publislled by Gove rn ment Notices

Numbers 124. 126, 127, 128. 129 and 130 in the Government

Gazette of th e 16th February, 1988: or

(d) any assistallce under what used to be known as the

"Home Ownership Scheme" or any other assistance for the

encouragement of home ownership by the Depanment of Social

Housi ng or by tbe Land Department or by the Authority o r by any

of them joinlly.

(4) A person shall also not qualify to make an application

under Ihis Scheme if he has acquired land from the Government which

had been expropriated by virtue of the provisions of the Building A<tl of !9IlJ.

Development Areas Act, 1983.

(5) A person who , on the coming into force of this Scheme,

has an application pending under any of the schemes published by

Government Notices Number.; 127 and 128 in the Government Gazette

of the 16th February, 1988 may , unless he has entered into a promise of

sale agreement with the Authority in respect of that application ,

renounce that application and make an application under this Scheme

upon payment of the administrative charge provided for in clause 13 and

that cha rge shall not be refundable.

(6) Notwithstanding the provisions of sulKlause (3) of this

clause, a person who benefits, or qualifies to benefit, under this Scheme

shall not be disqualified for that reason alone from benefiting, after the

coming into force of these regulations, under the scheme published by

Government Notice Number 124 in the Government G azette of the

16th February, 1988 or under any other scheme substituting it.

(7) Saving the provisions of sub-clause (I) of clause 13, any

expenses incurred by the applicant in connection with his application

shall not be recoverable by the applicant whether or not his application

is successful.

An applicant who is legally separated from his spouse shall

produce a copy of the final judgement of the competent COU"

pronouncing separation or a copy of the public deed effecting

separation by mutual consent of the spouses with the authority of the

competent court.

(I) For the purposes of this Scheme, the income of the AW·",.

applicant shall include:-

(a) gross gains or profits from any trade, business, profession

or vocation;

(b)

gross gains or profits from any employment or office;

(c) gross gains or profits arising from the sale of any property

Or from the carrying on or carrying o ut of any profit-making

undertaking or scheme;

(d)

dividends, inte rests or discounts;

(e)

any pension, charge, annuity or annual payment;

(I') rents, royal ties, premiums and any other profi ts arising

from prope rty;

(g) the value o f any produce receivable: in rc:spect of the use

of ~a pital, pmpeny. seed o r stock for the p urpose of hu sband ry or

any share: o f profits rece ivable in respe~t of such use;

(h)

any social benefit or allowance:;

(i) subject to sub-clause (3) of this cla use, any gains or profits

fa lling under the descript ions in the fo regoi ng paragraphs, o tncr

than those in paragraphs (a) and (b), made by th e applicant 's

spouse or fianctelfianct;

(j) subject tosub-clause(3)ofthisclause, fifty percent (50%)

of the gains or profits falling unde r any of the descriptions in

paragraphs (a) and (b) made by the applicant 's spouse or fian cte!

fianct ;

(k)

any o ther gains or profits.

(2) Where the applicant, and in the case of a married or

e ngaged couple. the applicanl o r his spouse o r fianctelfiane~. or both,

were gainfully occupied duri ng only a pa rt of Ihe basic year , the gain s or

pro fits from such OC(:upa tion shall be proje.::ted pro rata for the whole

basic year provided that the applica nt. spouse or fia nc~e!lia nct, as the

case may be, is gainfull y occupied on Ihe date the Authority receives

the application.

(3) Where the applican t was not gainfully occupied during

the bask year, the provisions of paragraph (j) of sub-clause ( I) of this

clause shall 1'101 apply and the entire gains or profits falling unde r the

descriptions in paragraphs (a ) and (b) of the said sub·c1ause ( I) made by

the spouse or fianctclfiance shall be induded in the uppl icant's income.

(4) The aggregate a nnual incomeof lh e applicant shall be th e

income of the appli cant determincd in accorda nce with the foregoing

sub..clauses from which the sum of onc thousand Mal tese liri ( Lml .OOO)

shall be deducted.

( I) The applica nt shall give 311 that in formation regarding his

financial mcallS as he may be req uired 10 give by the Authority and for

thi s purpose the a pplicant shall a uthorise the Commissioner of Inland

Revenue, the Director of Social Securit y and any other person as may

be nece:SS<lry. to give the Authority an y infonnat ion conce rning the

applicant's income duri ng the basic yea r,

(2) The Authority may requi re the applicant to sign any

declaration il mayoonsider nccessaryfo rth~ car rying out of l hisScheme

and the 3ppl ica nt shall allo .... the: Authori ty to inspect his onlinal'}'

res idence and any Ol her tenement held by him as the Authori ty may

require .

(I) Where the aggregate an nual income of the applicant in _ p t > « "

the basic year does IKlt e.cceed sb thousand Maltese liri ( Lm6.000). the

purchase price for the absolute ownership o f a Gove rnment dwelling-

house shall be the frec morla:: t value of Ihal dwelling-house as

determin ed by the Authority red uced as shown in the KWnd column of

Table A annexed 10 thi s Scheme in proportion to the aggregat e annual

income o f the applicant as shown in the first CQl umn of the said Table.

subject to sub-dause (3) of this cla use.

(2) Where the aggregate annual income of the appli ca nt in

the basic year exceeds six t housand Maltese liT; ( Lm6 ,OOO), th e purchase

de term ined by the Autho rity reduced , wh ere applicable. and lip 10 the

first fourteen tllousan d Maltese liri ( Lm 14,000) of the said value, by onc

percent ( 1%) th ereof for every whole year that the applieant ha s been

recognised as the tenan t of the dwelling-house up to a maximum of tcn

years,

(3) The reduccd purchase pricc sbown in the secQnd col umn

o f Table A annued to this Scheme shall also be further reduced by o ne

pe rcen t (1 % ) the reof for every whole yea r that the appl icant has been

reoogn ised as tenant o f the dwe lling-house up 10 a maximum of 10 years.

(4) Whe re the free market val ue of the dwelling-house: as

dete rmined by the Authority excceds fourteen thousand Maltese liri

(LmI4 ,000) the excess sha ll be payable without any reduction as

provided in the foregoi ng sub-cla use5 o f this clause.

(I) Ten perce nt ( 10% ) o f the purchase price de tennined in Pay_of

acco rdance with the provis ions of th is Scheme sha ll be paid on account "".<iIM< ,,",,".

of the sa id price by the appli ca nt on tbe promise of sale agreeme nt with

the AUlho rily b UI the a mou nt so paid shall not be recove r~blc by the

appli cant should he fail , fo r any reason, to conclude Ihe deed of sa le

with the Aut hority.

(2) The balance of the purchase price sha ll be paid on the

deed of sa le e ntered into between the applicant and the Authorit ~,

Where an applicant does not make \I5C of his right to borrow part of th e

purchase price as provided in sub-clause (3 ) of Ihis cla use len perce nt

(10%) shall be deducted from the purchase price determined in

acco«Iancc: with the provisions of this Scheme and such a deduction

shall be made from the purchase price as reduced in accordance wit h the

provisions of sub-elauses (2) and (3) of clause 7 of th is Sl;heme.

(3) 1lIe applicant ma y borrow part of the purchase price

from a financial institution approved by the Authoritybut the alTlQunt of

the loon shall not excccd the limit laid down in the fourth column of

Table B annexed 10 this Sl;he me , according to the aggrega te ann ual

income o f the applicant as shown in the second column of the sa id Table ,

and sha ll be repayable in monthly instal me nts with in a maxim um period

of twenty-five )'ears from the date of the deed of sale or not late r Ihan

the date on which be becomes sixty-five years of ~ge, whichever is the

earlie r,

(4) Where an applicanl has obtained a loan in accordance

wilh sub-c luusc (3) of this clause. the Authority shall subsidise th e

inte re sts payable on tile loan so that Ihe interests payable by tile

applicant shall be al Ihe nltc dwwn in Ihe th ird column of Table B

3nnClted to this Scheme. No subsidy shall be payable where the

aggregate annual inoomeofthe applicant for the basic year exceeds five

thousand Maltese tiri (LmS ,COO) .

(5) The rate of inte rest payable by the applicant as aforesaid

shall be revi$ed by the Authori ty every two yean on Ihe basis of the

aggregate annual income for the bask year and the amount of the

subsidy payable by the Authority shall also be revised accordingly. The

first revision shall be due on the 1st of 1uly 1992.

(6) The Authority shall ensure that where the aggregate

annual income of Ihe r.u rchaser in any onc rur is less than one thous.and

seven hundred Ma lese \iri (Lm1.700) the payment o f monthl y

instalme nts due in repayment of any loan 3.lI aforesaid shall be

suspended for a period of up 10 three months which ma y be extended by

further periods o f three months provided tha t the purchase r shall

continue 10 pay the rate o f interest payable by him under th is Scheme.

( I) Any dwell ing-house purchased under this Scheme shall

not be transferred unde r any ti tle, othe r than C/lUSI! morris. by the

beneficiary unless he complies with the following provisions o f this

clause.

(2) Where the transfer is to ta ke piaCC' withi n ten ycars from

the date of the deed of sale concluded with the Au thority the

beneficiary shall, before thc transfer is effccted , pay to the Authority

and the financial institution approved by it under this Scheme. as the

case may he. the whole or part of the valuc of any ~ub!>idy and of any

amount deductcd from thc free marke t value o f the dwelling-house

under this Scheme as laid down in the second column of Table C

annexed to this Sche me .

(3) Where the transfer of the dwelling-house pu rchased

under thi s Scheme is to take pl ace after ten years from the date of the

publication of Ih e deed of sale concluded with the Au thority, the

beneficiary shall not m.ake any paymc nt as provided in sub-clause (2) o f

this clause hut shall give the Authorit y one month's notice of his

intent ion to transfcr the said d ... ·clling- house and Ihe Authorily shall

thereupon tenninate any arrangemcnt for the sub!>i dy under thi s

Scheme of any iDle rests payable by the beneficia ry.

Relief as provided in paragraph (b) of section J o f the

princi pal Act is he reby granted on thc death of the beneficiary, and

where the bene flCiary is married at the lime of the acquisition of Ihe

dwelling-housc, also o n th e death of th e beneficia ry's spousc. in respect

of any dwelling-house purchased by a beneficiary under thi s Sche me

and the provisions of sect ion 6 of that Act shalltherdore apply thereto

Provided that the aforesaid relief shall only apply in respect o f

the first seven thousand Maltese liri (Lm7.(lOO) of the value of t he

dwellin g-house.

The right is hereby granted to registe r und er the Housing

d ...

(Decontrol ) O rdinance a dwelling-ho use purchased by a beneficiary

under this Scheme and th e provisions of section 7 o f the principal Ael

shall therefore apply the reto.

- ..

The transfer of a dwelling-house 10 a beneficiary under this Relid_

Scheme shall be exempt from the following duties under the Duty o n ~"~

Documents Act , 1981 hereinafter in this clause referred to as Mthe ACI XXXI

ol 1981.

Aet'·:-

(a) the duty under Title I1I of Pan I11 of the Act in respect of

any amount deducted in accordance with Ihis Scheme from the free

market value of the transferred dwelling-house.

(b) the duty under Title IV of Pan III o f the Act in respect of

any appraiseme nt o r valuation of the dwelli ng-house made by or o n

behalf of the Authority for the purposes of this Sche me.

( I) Any application under this Scheme shall be lodged A ......... .; ..

personally or by registe red mail by the applicant with the Authori ty and .........

that application shall not be accepted unless IICXX)ftlpanied by the sum of .pplidUians.

twenty Maltese!iri (Lm20) as an administrative ch arge Which , saving

the provisiom of sub-clause (S) of clause 3 and subject to sub-clause (2)

of this clause, shall be refunded to the applicant on the deed o f sale.

(2) Whe re any applicant under thi s Scheme fails loappearon

the promi$eof sale agreeme nt or on thedced of sale, as the case may be,

when called upon 10 do so by the Authority, his application sh all be

deemed 10 have bee n abando ned and the administrative charge

mentioned in sub-clause (I) of this clause shall no t be recove rable by the

applicant .

(I) If at any time it results that th e applicant has made a fal se P.lltl'~

declarat ion for the purposes of any application made by him under the dedorotiono.

provisions of this Sche me the applicant, without prej udice to any

punishment for which he may have become liahle unde r any othe r law,

shall be liable to the payment tothe Authorityofa pe nalty equivalen t to

the sum total of any subsidy and of any amount deducted from the free

market value of the dwelling house under the provisions of this Scheme.

(2) Any person who has made a falsedcclaration aspfOvit1ed

in sub-clause (1) of this clause shall be disqualified for a period of five

years from benefiting from any scheme made wi th the approval of the

Parliamentary Sa:retary responsible for housing.

The Authority shall not agree to the sale under this Schemeof _,.,.,ol

a dwelling-house which , on the advice of the Minister responsible for .... ;"11.

CUlture , should not be sold in the public interest on account of its ""bIio inl.mt.

antiquity.

Notwithstanding anything con tained in the foregoing

provisions of th is Scheme, the Authority shall have the righl to refuse

any application .

T AB L E A

(Oause 7)

Fi rsl Col um n

Second Column

A ggregate AnnuallnC(lm e

Purchase Price of

of Applican t in Maltese UTi

Dwe lling-House

o

35% of the free market val ue

1.500

1,501

40% of the free market value

2,000

2,500

2,001

45% of t he free market val ue

2.501

3,000

50% of the free market value

3.soo

55% of the free mark et val ue

3.001

3,501

60% of the free market v~lue

4,000

4.500

4.001

65 % of the free mark et value

5,000

4,50 1

70% of th e free mark et value

5,001

80% o(the free market va lue

',500

5.501

6,000

90% of the rree market value

TABL E B

(Oause 8)

St<>Oo>d u.umn

' ", .. c.::oumn

Thirdc..-.

... .,.poe ..........

"'""'"

In.....".. ""pbIe

,....,.... .. Moll .... un

by ApP;c:o'"

A

-

1,500

' 0%

R

I.S01 -

2,000

2 0%

C

2.001 -

3.lXlO

3.'"

3.001 -

4,000

D

4S,.

E

4.001 -

5,000

6.0%

TA BL EC

(Cla use 9)

firM Column

Second Column

Period in Years After Daleof~w

Repayment of Subsidies.

Deductions,elc.

of Sale with the

Authority

IcSSlha n2

20rmor.:bulleliS lhan 3 ., ................................. .

30r mo.-e bulless Ihan 4

4 or mo.-e bUlletS than,';

S Of mor~ bUlk" Ihan 6

6 or more butleu than 7

7 or more but less Iha n S

S or more but IcSl> Ihan 9 ................................... .

9ormorebullesslhan 10 ............... ___ .............. .

0"...,,,,,,,,,, Pm",.., of'

I ~k" mid.Oipo .. ;fI><ftl u' 1·1 ft r .... "'IOUi'''';

K .. "I i' _ ".l>Iul",d by I~' I""""""~I

M"oo,h n-I", .. ",,"io uI·Gv<rn _

""',~r.d 011'"