HOUSH Schrme) Rrgu latlotu, 199 1

L.N. 171j of 19'J 1

If OM .. : OW NEKSIIIP (ENCOU RAGEM": NT) ACT. 1988

(ACT NO. XXVIII 0 )0' 1988)

Home Ownr rship (Encouragement) (Purchase of Government Dwelllng-

HOUSH Schrme) Rrgu latlotu, 199 1

IN exercise of the powen conferred by section 3 of [he Home

Ownership (Enoouragement) Act. 1988, tile Chairman of tllc Ho using

Authority. with the approval of the Parliamen tary Secretary in the

Ministry for Social Policy with responsibi lity for Housing, has made the

following regulations

I. These regulations may be cited as the Home Ownenhip

(Encouragement) (Pun:h ase of Gove rnment Dwelling-Houses

Scheme) Regulations. 1991.

Dawn ir·regolamenti jislghu jissejhu r· Rcgolamenli la ' 1· 1991

biu ihajru Persun i jsiru Sid Darhom (Skema ghax-Xi ri ta ' Djar la'

Abitaujoni lal·Gvcm) ,

(Regulalion 2)

Purchase of Go....:rnmenl Dwelling- Houses Sche me, 1991

(Sche me G)

I. This Scheme may be ciled as Ihe Purchase of Gove rnment

Dwell ing-Houses Scheme. 1991 (Scheme G) and shall apply 10

appl ical ions for the purchase of dwelling-houses which are Ihe prope rly

of the Government by persons to wllom Ihis Sche me applies.

2. In this Scheme. unless Ihe conlelU ot he rwise requires:-

-the AcC with reference 10 clause 12 o f this Scheme has Ihe

same meaning assigned to il in that clause;

Maggregate annual inoome M lIas Ihe same meaning assigned 10

it in sub-clause (3) of clause 5 of Ihis Scheme;

Mapplicanl" means a person who applies for the purchase of a

Government dwelling-house under Ihis Sche me ;

"the AUlhorily~ means the Housing Authority established by

se"ion 3 of the Housing Aulhorily Act. 1976;

"basic year" means the year immediately preceding the year in

which an application under this Schc m ~ is made and with re ference

to sub-clause (5) of clause 8 it means the year immediately

preceding the year in which a revision under tha t sub· clause is due

"beneficiary" has the same meaning assigned to it in section 2

of the pri ncipal Act ;

"dwelling-house" has the same meaning assigned 10 il in

~tion 2 of the princip~1 Act;

"Government" means the Govern ment of Malta;

"ordinary residence" does nOI include a summer residence;

"prescribed" means prescribed by the AlIIhority;

"the principa l Act" mean s

the

Home

Ownership

( Encouragement) Act. 1988;

"recognised tenant"' means a person holding a Government

dwelling-house under a title of lease from the Government and

recognised as such by the Government.

3. (I) Any pe rson qua lified to do so under this Scheme may

make an application on the prescribed form to the Authoritv reQuestin~

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

tenant and which is occupied by him as his ordinary residence.

(2) A person shall qua hfy to make an application under this

Scheme where. on the date of the application

(a) the applicant o r, in the case of a married couple. the

applicant's spouse. is a citizen o f Malta; and

(b) the applicant and the applicant's spouse or fiandelfiand

are residents of Malta and have been so resident conti nuously for

not less than twelve co Jlsecutive months immediately prece ding the

date of the application.

(3) A person shall not qualify to make aJl application under

this Scheme if the applicant or the applicaJlt's spouse has al ready

benefited under

(a) aJlY of the schemes published by Government Notices

Numbers 11 and 12 in the Govemment Gazette of the 6th January.

1987; or

(b) the scheme publ ished by GovernmeJlt Notice Number

138 in the Governmen t Gazelle of the 20th February, 1987; or

(c) any o f the schemes publi$hed by Governme nt Notices

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

Gazelle of lhe l6Ih February, 1988; o r

(d) any o f Ihe sche mes published by Legal NOlices 137, 138,

139 and 140 in Ihe supplemenl o f the Government Gazene of Ihe

71h Seple mber , 1990; or

(e) any HssiSlance undcr what used to be known as the

"Ho me Ownership Scheme" or any othe r assistance for the

encouragement of home ownership by the Depart me nt of Social

Housing or by the Land Department or by the Authority or by any

of them jointly.

(4) A person shall aba not quali fy 10 make an application

under this Sche me if he has acquired land from the Gove rnment which

had been e:<propriated by virtue of the provisions of lhe Buildinj "" . of 1\1113

Development Are as Act. 1983.

(5) A person who , on the com ing into force of tllis Sclleme,

lIas an appli cation pending under any of th e se hemes publislled by

Government Notices Numbers 127 and 128 in tile Government Gllelle

of the 16th February, 1988 andlor by Legal No tices 139 and 140

publislled in the supplemen l of the Gove rnment Gazene o f tile 7th

September, 1990 may , unless he hu ente red into a prom ise of sale

agreement wilh the Authority in respect of that application, renounce

Iha l applicat ion and make an application under this Scheme upon

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

cha rge 511all nol be refundable.

(6) NOlwithstanding the provisions of sub-clause (3) of this

clause, a person who bene fits , or qualifies to benefit, unde r tltis Schem e

shall not be disqualified for that rea!KJn alo ne from benefiting. after th e

coming into force o f tllese regulations, under Ihe scheme published by

Govern ment Notice Numbe r 124 in Ihe Governme nt Gazetle of Ihe

16th February, 1988 or under any other scheme su}>st ituting il.

(7) Saving Ihe provisions o f sub-clause ( I) of clause 13, an y

e:<penses incurred by the applicant in oon ne.:lion with his application

shall not be rcwverable by th e applicant whether or not his application

is successful.

The Scheme entitled Purchase of Governme ll1 Dwelling-

Ho uses Scheme. 1991 (Scheme G) in the Schedule to these regulations

sllall have effect from tile date of the coming into force of these

regulations for the encouragement of home ownenhip in Malta and

sha ll lapse onc year after [hat date.

The Home Ownersllip (Enco uragement) ( Purchase of A""~I .... ,,( '"

Government Dwelling- Houses Schem e) Regulations. 1990. are by this L.N. I:I9.

annulled.

An applica nt who is legally se parated from his spouse shall

produce a copy o f the final judgement of the competent cou rt

pronouncing separation o r a copy of the public deed effecting

separation by mutual consent o f the spouses wilh the aUl hority of the

competent court .

(I) For the purposes of this Scheme the income of the

applicant shall include: -

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

orvocation;

(b)

gross gains or profits from any employment or office;

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

or from the carrying on or carrying out of any profit-ma king

undertaking or scheme;

(d)

dividends, intnests or discoums;

(e)

any pe nsion. cha rge, annuity or annual payment;

(0 rent s. royalties. premiums and any other profits arising

from property;

(g) the value of any produce receivable in respect of the use

of capital. property. seed or stock for the purpose of husbandry o r

any share of profits receivable in respect of such use;

(h)

any social benefit or allowancc

(i) allY gains or profits falling under the description s in the

foregoing paragraphs of this sub-clause other than those in

paragraphs (a) and (b). made by the applicant's spouse or fianceel

fiance;

m fifty perccnt (50%) of the gains or profits falling unde r

~ny o f the descriptions in paragrap hs (a) and (b) of this sub-clause

made by the applicant's spouse or fiancee/fiance;

( k)

a ny other gains or profits.

(2) Wh ere the applicant. and in the case of a married or en-

gaged couple. Ihe applicant or his spouse or fianceelfiancc. or both. was

or were gainfully occupied as provided in paragraphs (a) and (b) o f sub-

clau>c (I) of this clause during only a pa rt ortlle basic year. the gains or

profits from such gainful occupation for Ihe who le basic year shall be

caleulated by projecting the gains or profits made from such gainful oc-

cupation during lhe said part of the basic year by the applicant and/or lIis

spouse or fiancec/fiance. or by both. as the case may be. for the wllol e

basic year.

(3) The aggregate annual income of the applicant shall be the

income of the applicant determined in acco rdance with th e foregoing

sub-clauses from which the sum of one thousand Maltese liri (Lm 1.000)

sllall be ded ucted.

6 . (I) The applicant shall give all tllat information regarding his

financial me ans as he may be required to give by the Autllority and for

this purpose the applicant shall autllorise the Commissioner of Inland

Revenue. the Di rector of Social Security and any othe r person as may

be necessary. to give the Authority any information concerning the

applicant's income during tile basic year.

(2) The Authority may require the applicant to sign any

declaration it may consider necessa ry for the c.arryingoulofth isScheme

and th e applicant shall allow the Authority to inspect his ordinary

residence and any othe r tenement he ld by him as the Authori ty may

requi re.

(I) L-applikanl ghundu jaghli duk iHaghrif kOllu dwar il -

mcui finanzjarji tieghu skond ki f jisla' jigi millub li jaghti mill-A wlOrilll

U ghal dan il·ghan I-applikanl gha ndu jawto rizza !ill-Kumm is!hIrju tal-

Taui Inlerni, lid· Dircllur tas-Sigurt il SoCjali u lil kull persuna ohm

skond kif ikun mehlieg. bicK jaghlu l ill -Awl ori t~ kull laghri' dwar 1-

income fa 'l-applikant malu l is-sena bati.

(2) L-Awlori lA tisla ' ti llob liII-~pplikant bicx jiffinna kull

dikjarazzjoni li hija li5la' Iqis mch licga gha l-Iwc uiq la' din I-Iskema u 1_

appl ikanl ghandu jippennclti lill-A .... ·toritA lispeujona r- residenu

ordinarja lieghll u kull food ic!\or mitmum min nu skond kif l-AwtorilA

lisla' lillob.

(1) Where the aggregate annu al income of the applica nt in

the bask year does not exceed six thousand Ma lt ese liri (Lm6,OOO). the

purchase price for the abwlute ownership of a Govern me nt dwelling-

house shall be tile frce mar ket value o f thal dwelling-house as

determin ed b~ the Authorit~ reduced as shown in the second column of

Table A annexed to this Schem e in proportion to the aggregate annual

income of the appl ica nt as shown in the fi rst colum n o f the said Table.

subject to sub-cla use (l) of this clause.

(2) Where the aggregate annual income o f the a pplicant in

the bask yea r exeeedssix thousand Mal tese liri (Lm 6,OOO) . the purchase

determined by the Authorit y red uced. where applicable, and up to the

first fourtee n thousand Maltese liri (Lm 14.(00) of the said value. by one

percent (1 %) the reof for eve ry whol e ~ear that the applicant has been

recogn ised as tile tena nt o f the dwelling-house up to a maximum of

twenty (20) years.

(l) l be reduced purchase price shown in the second colum n

o f Ta ble A annc.ed to this Scheme shall also be further reduce d by one

percent ( 1%) thereof for every whole year tha t the applicant has been

recognised as tenant of the dwelli ng·house up to a maximum of twenty

(20) years.

(4) Where the free marke t value of Ihe dwelling-house IU

de te rmined by the Authority exceeds fourteen thousand Maltese liri

(LmI4 ,OOO) the excess shall be payable without any reduction as

provided in th e foregoing sub-clauses of this clause .

(I ) Ten pe rce nt (10% ) of the purchase price determined in

accorda ~ce ~ith the provisi~Jns of this Scheme shall be paid on account

of th e said pnce by the apphcant o n the promise of sale agreement wit h

the Authority but the amoun l so paid shall nOI be recoverable by the

applicant sho uld he fail, for any reason. to conclude the deed of sa le

with the Authority.

(2) The ba lance of the purchasc price shall be paid on the

deed of sale e nl ered inlo between th e applica nt and the Authorit y.

Where an appl icant does not ma ke use of hi s righllo borrow pan of the

purchase price as provided in sub-clause (3) of this clause len percent

(10%) sha ll be deducted from the purchase price dete rmined in

accordance with the provisions of this Scheme and such a deduction

shall be made from Ihe purchase price as reduced in accordance with the

provisions of sub-clau5e$ (2) and (3) of clause 7 of this Scheme.

(3) The applicam ma~ borrow part o f the purcha se price

fro m a financial insti tution approved by the Authority but the amount of

the loan shall not exceed Ihe limit laid down in the fo urth column of

Table B annexed to th is Sche me, according to Ihe aggregate annual

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

and shall be repayable in monthly instal ments withi n a maximum period

o f twenty-five (25) years from the dale of the deed o f sale or not la ler

than the date on which he becomes sixty·five (65) years of age,

whichever is the earl ier.

(4) Where an applica nt has obtained a loa n in acoordance

wit h sub·clau ~ (3) of thi s clause, the Authorit y sha ll subsidise the

interests payable on the loan so Ihal the inlerests payable by th e

appli canl shall be at the rate shown in the third co lum n of Table B

annexed to this Sc heme. No subsidy shall be payable wh ere the

aggregate ann ual income of the applicant for the basic year exceeds five

toollsand Maltese liri ( Lm5.000).

(5) lbe rate o f int erest payabl e by the applicant as afon::sai d

shall be revisc;d by the Authority every two (2) yea~on the basis of the

aggrega te annual incorm! for the basic yea r and the amollnt of th e

subsidy payable by the Authority shall also be revi$ed aa;ordi ngly. The

fi~1 revision shall be dlle on lhe 1st of July 1993.

(6) The Authority sha ll ensure that where the aggregate

annual income of the purchaser in anyone year is less than onc thousand

seven hundred Maltese liri (Lm l,700) the payment of mont hly

in stalments due in re payme nt of any loan as aforesaid shall be

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

further periods of three months prov ided that th e purchaser sha ll

continue to pay the rate of intc rest payable by him under this Sche me.

(I ) Any dwell ing·ho use purchased under thi s Scheme shall

not be transfe rred under any ti tle. OIher than CIl USIl mortis. by the

beneficiary IInless he com pl ies with the following provision s of this

cla use.

(2) Where the transfe r is to ta ke place within te n yea~ from

the date of the deed of sale concl uded wit h the Authority the beneficiary

shall. before the transfe r is effected. pay 10 the Authori ty aod the

financial institutio n approved by il unde r this Scheme. as the case may

be, the whole or part of the value of any subsidy and of a ny amount

deducted from the free market value of the dwe lling-house under this

Scheme as laid down in the second col umn of T able C annex ed to Ihis

Scheme.

(3) Whe re the Inlnsfer of the dwelling-house purchased

under this Sche me is to take place after te n ye ars from the datc of the

publ ication of the deed o f sale concluded with the Authority, the

be ne ficiary shall not make any payme nt as provided in sub-cla use (2) of

this cla use but shall give the Authority onc month's notice o f his

intention to transfe r the said dwelling-house and the Authority shH Il

the reupon te rm inate any arra ngeme nt for the subsidy under tllis

Scheme of any inte rests payable by the bene ficiary .

Relief as provided in paragraph (b) o f section 3 o f the

principal Act is he reby granted on the death of the be neficia ry , and

where tile benerlciary is married at tile lime of lhe acquisit ion of the

dwelling-house, a.Iso on the death of the beneficiary'sspoust, in respect of

any dwelli ng-house pun::hascd by 11 benerlciary under Ihis Scheme and

the provisions of section 6 of that Act shall the refore apply the re to

Provided that the aforesaid relief shall only apply in respect of

the first seven thousand Maltese ]ir; (Lm 7,OOO) of the val ue of Ihe

dwelli ng-house .

The right is he reby granted 10 re gister under the Housi ng

( Decont rol) Ordinance a dwelling-house purchased by a beneficiary

under th is Scheme and the provisio ns of section 7 of the principal Act

shallthercfo re apply therelO.

The tran der of a dwelling-house to a beneficiary under this Rel.,ffrom

Scheme shall be exemp t from th e following d ut ies unde r the Dut y on du,yon

Documents Act , 1981 hereinafter in thi s clause refe rred to as "the

Acl" : -

(a) th e duty under Ti tle III of Part III of the Act in respect of

any amount deducted in accordance with th is Scheme from the free

market vaJ ue of the transferred dwelling-house;

(b) the dUl y underTille IV of Part III ofthe Act in respect of

any appraiseme nt or valuation of the dwelling-house made by or on

behalf of the Authority for the purposes of thi s Scheme.

(I) Any application under th is Scheme sh all be lodged Ad""n;" ... ,i,,,

personally or by registered mail by the applicant with the Authority and ."ndoned

th at applicatio n shall not be accepted unl ess accompanied by the sum of "PPh"".,....

twenty Maltese liri (Lm20) as an adminislrati ve charge which . savi ng

the provisions of sub-clause (5) of cla use 3 and subject to sub-clause (2 )

o f this clause, shall be refunded to the a pplicant on the deed of sa le.

(2) Where any applicant under thi s Scheme fail s to appearon

Ihe promise of sale agreeme nl oron the deed o f sale , as the case may be.

when called upon to do so by th e Authori ty. hi s application shall be

dee med to have been abandoned and the admi nistrative charge

mentioned in sub-clause (I) of thi s clause shall nOI be recoverable by the

applicant.

14 . (]) If at any time il resulls that the applican t has mad e a fa lse

declaration for the purpose s of any application made by him under the

provisions of Ibis Scbeme tbe applicant, witbo ut prej udice 10 a ny

punishment for wh ich he may have become liable under any other law,

shall be liable to the payment 10 the Authority of a penalty equivalent to

the sum total of any subsidy and of any amou nt ded ucted from the free

market value of the rlwelling-house under the provisions of this Scheme.

(2) Any person whd has made a fal se declaration as provided

in sub-clause (I ) of thi s cla use shall be disqualified for a period of five (5)

years from benefit ing fro m any scheme made with the approval of the

Parliamentary Sccrela ry respo nsible for housing.

The Auth ority shall not agree 10 the sale under tbisSchemeof

a dwelli ng-house which, on the advice of the Mi niste r responsib le for

cult ure , shou ld not be sold in the public interest on account of its

an tiq ui ty.

Hi. Notw ith standing anything conta ined in the foregoing

provisions of this Scheme, the Autho rity shall havc the right to re fuse

a ny application.

TA BLE A

(Clause: 7)

Finl Colum n

Scoond Col umn

""_Priceol

AA"''''' ..... ,.u.II """"'"

<>I Al'Plk:>.' I. ",.11 ... Uri

l).,.<llinJ"1oo>c

, ....

,-", "

>.>00

1.1"0111",..1 ...

.10'lIo 01:, ... •• 1 ""

".,

"'"

.15'01""",,,

,-",

"Il'lo 0/ .... VIII ...

'M

..

. , ..... "'"

."01' ...... ""

'""

U"

50'%01' ...... 1 ..

~

$J"oI ' ..... , ...

Ul,ll

"""'01' ..... , ..

00,

7Il'1001' ..... , ...

.. "'" ...

'""

,-",

lI0'II.01:' ..... 1 ...

TABLE B

(Cla use 8)

Fi n;1

Second

Third

Fourth

Column

Column

Column

Column

In .. , .... P .~

~-

...... ~",.Iooa"in

AW'p,. Aow",,",

, ..

IIOCOm< in M.ke>< Lori

1>1>11""" .... ri

"" A",*",'"

,

• ,

,

,~

,~

....

,

.. .

,~

UOI

, .....

, ....

2.000 1

"'"

,

U"

l.ool

m

~

Hlll

TABLE C

(Clause 9)

Second Co lumn

Firsl Column

I'<riod" 'loan aft .. 0. .. 01: o-d

lI.poy ..... 'ofS.Ooid_.

ofSoolt ai<~"" AWooncy

[led .... _

• • "'.

,

_,~'"

• Of lOO'" bu, le .. ,ha. S

'Of m,," .. : bu, I ... ,h.n ~

6 Of"",,,, bu, Ieso ,h. n 7

,IIa. 8

7 or ....... bII, Ieoooo

I Of " " " " bu, .... 'M. 9

9 or """. but .... , ..... 10

,_n.

Do, •• "'_ '" l.,fi>o,,_"'"

IPI"''''''ihl ",0I.1);1"''';mc:., la' 1.)nfartoUljo<ti ", ... iIja

""M.W", ....

Prim"" ,.,. ...

"'ltbll&JI n·ht . ml"'"ja .. I.() .. m P';~INJ .. ,'" Gt>",~_

Minkcjja kul1 hoga li tin sab fid·dispoiizzjoniiet la ' qabel la' on" .. '

din 1·lskcma, I· A wtoritta jkoll ha d·drin li tirrifjuta k ull applikazzjoni.

. '"

TA BELLA A

( Kl~wiola 7)

L-Ewwel Kolo rlna

It· Ticni Kolonna

'"rom-'T""i; r ... s ...

"·I.Appl i~ .n' r .... n /oI.llin

10" Ah,nzj<>oM

,~

25"' .. '·~ ...

"

''''

,~,

.J(IlI,u1 . ........

,-""

JS'" ,000 .. h"

,..

2.1101

_

....... Iul

,~,

.... .""

...... , ...

BOO

~ ~ "'

HIOI

,~,

5O'J:. ' .. ·.·.Iul

ss", ' .. · .. ,ur

~_1lI1

,.'"

,u,

toO"Io I ......

. ~,

"'.)1

M"IIo , .. • • • I~r

' '''''

.00>

~1.1-v. ,u ,

!.SOI

TABELLA B

( Klawt ola 8)

Ir- Ra ba'

L-Ewwel

It -Tidet

It -Tien i

Kolorma

Kolonna

Kolon na

Kolonna

,_""ali

,u

,...,... ~JilJlallai

U ..

~-

.. i ...... pplik ....

r-""fUn

to' $cif

M ... ;'

fllriM.'tI"

, ,

.. ""

, .~

"

'''''

' .00>

I,SOI

U llO

,~

'.00>

C

'.00>

,~

Lool

.. ,.'" ""

'.00>

" ,

3.001

4.5%

'.00>

.~

4.1101

TABE LLA C

( Klawiola 9)

L -Ewwel Kolonna

It -Tieni Kolon na

z..... fi s.,;..w><.(\.O",""

m.. liar ... • s.-i<Iji .

,.«<

T __

("An .. · IkJdl .... ·'.,ho'oritJo

'''''''' ""nn ' ......... _ ....... .

• ""' iljod i1dI """" """" ,

, ,.., Iij<d iMI u""" min. b

b,....1li<d iZda ''''1'' m,nn 7

''"l''

"W

minn ~

iljed;;d:o

8 i<" i1j<J ita. i ..... min. 9

9 /<'" jtj<d ihl> i ...... min" 10