HOME OWNERSHIP (ENCOURAGEMENT) (SUBSIDY ON ADAPTATION WORKS SCHEME) REGULATIONS

SUBSIDIARY LEGISLATION 328.01

HOME OWNERSHIP (ENCOURAGEMENT)

(SUBSIDY ON ADAPTATION WORKS SCHEME)

REGULATIONS

7th September, 1990

LEGAL NOTICE 137 of 1990, as amended by Legal Notices 215 of 1990,

98 of 1991, 10 of 1992 and 424 of 2007.

The title of these regulations is the Home Ownership

( E n c o u r a g e m e n t ) ( S u b s i d y o n A d a p t a t i o n Wo r k s S c h e m e )

Regulations.

(Regulation 2)

Subsidy on Adaptation Works Scheme, 1990 (Scheme SHD 15)

1. The title of this Scheme is the Subsidy on Adaptation

Wo r k s S c h e m e , 1 9 9 0 ( S c h e m e S H D 1 5 ) a n d s h a l l a p p l y t o

applications for assistance in the adaptation and improvement of

owner occupied dwelling-houses by persons to whom this Scheme

applies.

2. In this Scheme unless the context otherwise requires

"applicant" means a person who applies for assistance under this

Scheme for the carrying out by him of adaptation or improvement

works in a dwelling-house of which he is the owner and occupied

by him as his ordinary residence;

"the Authority" means the Housing Authority established by

article 3 of the Housing Authority Act;

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

which an application under this Scheme is made;

"beneficiary" has the same meaning assigned to it in article 2 of

the principal Act;

"the Director" means the Director of Social Housing and includes

any person authorised to act in his behalf;

"dwelling-house" has the same meaning assigned to it in article 2

of the principal Act;

"Government" means the Government of Malta;

"ordinary residence" does not include a summer residence;

"owner" includes a co-owner and a person holding a dwelling

house under a title of perpetual emphyteusis;

"prescribed" means prescribed by the Director;

"the principal Act" means the Home Ownership

(Encouragement) Act.

3. (1) Any person qualified to do so under this Scheme may,

not later than the 31st July, 1992, make an application on the

prescribed form to the Director requesting assistance for adaptation

or improvement works, or for both, of the kind specified in clause

7, in a dwelling-house occupied by him as his ordinary residence

and of which he is the owner.

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

Scheme where, on the date of the application

(a) the applicant or, in the case of a married couple, the

applicant’s spouse, is a citizen of Malta; and

(b) the applicant is a resident of Malta and has been so

resident continuously for not less than twelve

consecutive months immediately preceding the date of

the application; and

(c) the annual income of the applicant assessed in

accordance with the provisions of clause 5 does not

exceed six thousand and nine hundred and eighty-eight

euros and twelve cents (€6,988.12) for the basic year.

(3) Subject to the provisions of sub-clause (2), an application

by persons engaged to each other shall be made in their joint names

and both must be over eighteen years of age. In such a case they

shall be jointly and severally liable for the carrying out of all the

conditions laid down in this Scheme.

(4) Saving the provisions of sub-clause (5), a person shall not

qualify to make an application under this Scheme where

(a) the applicant or the applicant’s spouse has already

benefited from any assistance under what used to be

known as the "Home Ownership Scheme", or from the

Scheme published by Government Notice 124 in the

Government Gazette of the 16th February, 1988, or

from any other assistance for the encouragement of

home ownership by the Department of Social Housing

or by the Land Department or by the Authority or by

any of them jointly;

(b) assistance under this Scheme has already been granted

in respect of works to be carried out in the same

dwelling-house to which the application refers.

(5)

A person who has already benefited under -

(a) any scheme for the subsidisation of rent; or

(b) any of the schemes published by Government Notices

Numbers 125, 127, 128, 129, and 130 in the

Government Gazette of the 16th February, 1988; or

(c) the Subsidy on Interest on House Loans (Private

Sector) Scheme, 1990 (Scheme SHD 16); or

(d) the Purchase of Government

Dwelling-Houses

Scheme, 1990 (Scheme E); or

(e) the Purchase of Private Dwelling-Houses Scheme,

1990 (Scheme F);

shall not for that reason alone be disqualified from making an

application under this Scheme

Provided that any person who has already benefited from

the Scheme mentioned in paragraph (c) shall not qualify to benefit

under clause 9.

(6) 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.

The Scheme entitled Subsidy on Adaptation Works

Scheme, 1990 (Scheme SHD 15) in the Schedule shall have effect

from the coming into force of these regulations for the

encouragement of home ownership in Malta and shall substitute the

scheme mentioned in the following regulation.

The scheme entitled Subsidy on Adaptation Works in

Owner Occupied Dwellings, Scheme HD 12, published by

Government Notice 124 in the Government Gazette of the 16th

February, 1988, is hereby revoked.

An applicant who is legally separated from his spouse shall

produce a copy of the final judgement of the competent court

pronouncing separation or a copy of the public deed effecting

separation by mutual consent of the spouses with the authority of

the competent court.

(1) For the purposes of this Scheme, the income of the

applicant shall include

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

profession or vocation excluding social insurance

contributions;

(b) gross gains or profits from any employment or office

excluding social insurance contributions and any

earnings from working overtime;

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

property or from the carrying on or carrying out of any

profit-making undertaking or scheme;

(d) dividends, interests or discounts;

(e) any pension, charge, annuity or annual payment;

(f)

rents, 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 or any share of profits receivable in

respect of such use;

(h) any social benefit or allowance excluding any

Children’s Allowance, Special Allowance, Parental

Allowance and Handicapped Child Allowance payable

under the Social Security Act;

(i)

any gains or profits falling under the descriptions in

the foregoing paragraphs made by the applicant’s

spouse or fiancée/ fiancé;

(j)

any other gains or profits.

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

engaged couple, the applicant or his spouse or fiancée/fiancé, or

both, were gainfully occupied during only a part of the basic year,

the gains or profits from such occupation shall be projected pro

rata for the whole basic year provided that the applicant, spouse or

fiancée/fiancé, as the case may be, is gainfully occupied on the date

the Director receives the application.

(1) The applicant and any member of the applicant’s

family shall give all that information regarding their financial

means as they may be required to give by the Director and for this

purpose they shall authorise the Commissioner of Inland Revenue,

the Director of Social Security and any other person as may be

necessary, to give the Director any information concerning their

income during the basic year.

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

declaration he may consider necessary for the carrying out of this

Scheme and the applicant shall allow the Director to inspect his

ordinary residence and any other tenement held by him as the

Director may require.

The adaptation and improvement works to which this

Scheme applies are

(a) repairs to dangerous structures;

(b) the replacement

of

old

water

and

electricity

installations;

(c) improvement works in bathrooms below an acceptable

standard;

(d) the construction of additional rooms for the

improvement of accommodation in accordance with

the needs of the size of the applicant’s family;

(e) the construction of wells;

(f)

the substitution of worn floor tiles

(g) repairs to an old drainage system or its substitution;

(h) the replacement of doors or apertures or both, as the

case may be, which are below an acceptable standard

Provided that the provisions of this Scheme shall not apply

to any works commenced or carried out before the approval by the

Director of the application made in respect of those works.

(1) Where the dwelling-house was constructed and ready

for habitation before the 1st January, 1960, the Director may grant

any person qualified to make an application under this Scheme an

amount of money in cash as assistance for the carrying out in the

said dwelling house of the works referred to in the application in

accordance with the following provisions of this clause.

(2) Where the applicant was already the owner and was

already living in the dwelling-house on the date of the coming into

force of this Scheme, the cash grant which may be paid by the

Director shall not exceed one thousand and one hundred and sixty-

four euros and sixty-nine cents (€1,164.69) and in any case shall

not exceed 60% of the total cost of the works to be carried out and

approved by the Director

Provided that where the works to be carried out fall under

clause 7(c) the cash grant shall not exceed eight hundred and

fifteen euros and twenty-eight cents (€815.28).

(3) Subject to the provisions of sub-clause (4) and saving the

provisions of sub-clause (6), where the applicant became the owner

of the dwelling-house after the date of the coming into force of this

Scheme

(a) where the said dwelling-house was constructed and

ready for habitation before the 1st January, 1939, the

cash grant which may be paid by the Director shall not

exceed three thousand and four hundred and ninety-

four euros and six cents (€3,494.06) and in any case

shall not exceed 80% of the total cost of the works to

be carried out and approved by the Director;

(b) where the said dwelling-house was constructed and

ready for habitation on or after the 1st January, 1939,

the cash grant which may be paid by the Director shall

not exceed two thousand and three hundred and

twenty-nine euros and thirty-seven cents (€2,329.37)

and in any case shall not exceed 80% of the total cost

of the works to be carried out and approved by the

Director

Provided that where the works to be carried out fall under

clause 7(c) the cash grant shall not exceed eight hundred and

fifteen euros and twenty-eight cents (€815.28)

Provided also that any person whose application in

accordance with the provisions of this sub-clause has been

approved by the Director shall be required to enter into a public

deed with the Director and should that person fail to appear on the

deed when called upon to do so by the Director his application shall

be deemed to have been abandoned and any approval by the

Director of the said application shall be without any effect.

(4) Where the applicant became the owner of the dwelling

house after the coming into force of this Scheme by virtue of being

a beneficiary under -

(a) any of the schemes published by Government Notices

Numbers 127, 128, 129, and 130 in the Government

Gazette of the 16th February, 1988; or

(b) the Purchase of Government

Dwelling-Houses

Scheme, 1990 (Scheme E); or

(c) the Purchase of Private Dwelling-Houses Scheme,

1990 (Scheme F);

the provisions of sub-clause (2) shall apply as if the applicant was

already the owner and was already living in the dwelling house on

the date of the coming into force of this Scheme.

(5) The works approved by the Director shall be completed

within six months from the date of such approval and, saving the

provisions of sub-clause (6), any grant under this clause is payable

when the Director has determined that the said works have been

carried out as approved by him.

(6) Where the application is made under the provisions of sub-

clause (3) and the applicant cannot occupy the dwelling-house

before the works have been carried out

(a) in the case of a married applicant the cash grant shall

not be paid before the applicant occupies the dwelling-

house;

(b) in the case of an application by persons engaged to

each other the applicants shall occupy the dwelling-

house within 18 months from the date of the approval

of the cash grant.

(7) The Director may also approve the subsidisation of a loan

as provided in clause 9 saving the provisions of sub-clause (3) of

that clause.

(1) Where the dwelling-house was constructed and ready

for habitation on or after the 1st January, 1960 the Director may

approve the subsidisation of a loan agreed to between an applicant

qualified to make an application under this Scheme and a financial

institution approved by the Director in which case the provisions of

sub-clause (2) shall apply.

(2) The amount of any loan which may attract a subsidy under

the provisions of sub-clause (1) shall not exceed four thousand and

six hundred and fifty-eight euros and seventy-five cents

(€4,658.75) and the subsidy shall be such that the interest payable

by the applicant shall not at any time exceed 3%.

(3) The foregoing provisions of this clause shall not apply to

any applicant who is a beneficiary under the Subsidy on Interest on

House Loans (Private Sector) Scheme, 1990 (Scheme SHD 16).

(1) Any dwelling-house whose owner is a beneficiary

under clause 8(3)(a) or (b) shall not be transferred under any title,

other than causa mortis, by the beneficiary unless he complies with

the following provisions of this clause.

(2) Where the transfer is to take place within the period of ten

years from the date of the grant of any assistance under this

Scheme, as shown in the first column of the Table annexed to the

same Scheme, the beneficiary shall, before the transfer is effected,

refund to the Director the whole or part of the value of any grant

and subsidy made under this Scheme as laid down in the second

column of the said Table.

(3) Where the transfer is to take place after ten years from the

date of the grant of any assistance under this Scheme the

beneficiary shall give the Director one month’s notice of his

intention to transfer the said dwelling-house and the Director shall

thereupon terminate any arrangement for the subsidy under this

Scheme of any interests payable by the beneficiary.

(4) The provisions of sub-clauses (2) and (3) shall also apply

mutatis mutandis where the beneficiary does not continue to

occupy the dwelling-house as his ordinary residence.

(1) In the case of a joint application be engaged persons,

where the engagement is subsequently dissolved

(a) both applicants shall, within thirty days from the date

of such dissolution, give notice thereof to the Director;

(b) the Director shall immediately suspend any subsidy on

interests and any further withdrawals on any loan

account pending investigations and his final decision

thereon;

(c) the applicants shall, within thirty days from the date of

the notice mentioned in paragraph (a) and in

accordance with and subject to the conditions laid

down in the provisions of clause 10, jointly request in

writing authority to transfer under a title of sale or

perpetual emphyteusis the dwelling-house in respect of

which their application had been approved;

(d) the applicants shall, within three months from the date

of the approval of their request made according to

paragraph (c), transfer the said dwelling-house as

aforesaid

Provided that the Director may extend the mentioned

period of three months as he may deem fit.

(2) Where the applicants fail to comply with the provisions of

sub-clause (1)(a) the provisions of paragraph (b) of the same sub-

clause shall apply from the date that the Director becomes

otherwise aware of the dissolution of the engagement.

(3) Where, notwithstanding the efforts of the applicants to

comply with the provisions of sub-clause (1)(c) and (d), the transfer

of the dwelling-house cannot take place within the period laid

down in the said paragraph (d) because no purchaser or acquirer of

the dwelling-house comes forward to conclude the transfer, the

Director shall have the right to purchase or acquire the said

dwelling-house from the applicants at a price fixed by an architect

designated for the purpose by the Director or to require the

applicants to authorise him to transfer as aforesaid the same

dwelling-house on their behalf.

(4) Where the Director exercises his aforesaid right to

purchase or acquire the dwelling-house, from the price determined

in accordance with the provisions of sub-clause (3) the Director

shall deduct any grant or subsidies from which the applicants

benefited under this Scheme and all expenses and penalties as

determined by the Director and the remaining balance shall be the

amount payable to the applicants on the deed of transfer saving any

obligation s entered into by them in favour o f the fi nanci al

institution approved by the Director in respect of any loan

advanced to them.

(1) If at any time it results that the applicant has made a

false declaration for the purposes of any application made by him

under the provisions of this Scheme the applicant, without

prejudice to any punishment for which he may have become liable

under any other law, shall be liable to the payment to the Director

of a penalty equivalent to the amount of any grant and of any

subsidy received by the applicant under this Scheme.

(2) Any person who has made a false declaration as provided

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

from benefiting from any scheme made with the approval of the

Parliamentary Secretary responsible for housing.

(1) Any application under this Scheme shall be lodged

personally or by registered post by the applicant with the Director.

(2) Where any applicant, when called upon to do so by the

Director, fails to appear on the public deed mentioned in the second

proviso of clause 8(3) his application shall be deemed to have been

abandoned.

Notwithstanding anything contained in the foregoing

provisions of this Scheme the Director shall have the right to refuse

any application.

TABLE

(Clause 10)

First Column

Second Column

Period in Years After Date of Grant of

Repayment of

Assistance

Grant and

Subsidy

less than 4 ....................................................

100%

4 or more but less than 5 ..............................

85%

5 or more but less than 6 ..............................

70%

6 or more but less than 7 ..............................

55%

7 or more but less than 8 ..............................

40%

8 or more but less than 9 ..............................

25%

9 or more but less than 10 ............................

10%.