HOME OWNERSHIP (ENCOURAGEMENT) (PURCHASE OF GOVERNMENT DWELLING- HOUSES SCHEME) REGULATIONS

SUBSIDIARY LEGISLATION 328.03

HOME OWNERSHIP (ENCOURAGEMENT)

(PURCHASE OF GOVERNMENT DWELLING-

HOUSES SCHEME) REGULATIONS

26th November, 1991

LEGAL NOTICE 179 of 1991, as amended by Legal Notice 424 of 2007.

The title of these regulations is the Home Ownership

(Encouragement) (Purchase of Government Dwelling-Houses

Scheme) Regulations.

(Regulation 2)

Purchase of Government Dwelling-Houses Scheme, 1991

(Scheme G)

1. The title of this Scheme is the Purchase of Government

Dwelling-Houses Scheme, 1991 (Scheme G) and shall apply to

applications for the purchase of dwelling-houses which are the

property of the Government by persons to whom this Scheme

applies.

2. In this Scheme, unless the context otherwise requires

"the Act" with reference to clause 12 has the same meaning

assigned to it in that clause;

"aggregate annual income" has the same meaning assigned to it

in clause 5(3);

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

Government dwelling-house under this Scheme;

"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 and with reference

to clause 8(5) it means the year immediately preceding the year in

which a revision under that sub-clause is due;

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

the principal Act;

"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;

"prescribed" means prescribed by the Authority;

"the principal Act" means the Home Ownership

(Encouragement) Act;

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

make an application on the prescribed form to the Authority

requesting 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 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 and the applicant’s spouse or fiancée/

fiancé are residents of Malta and have been so resident

continuously for not less than twelve consecutive

months immediately preceding the date of the

application.

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

this Scheme if the applicant or the applicant’s spouse has already

benefited under

(a) any of the schemes published by Government Notices

Numbers 11 and 12 in the Government Gazette of the

6th January, 1987; or

(b) the scheme published by Government Notice Number

138 in the Government Gazette of the 20th February,

1987; or

(c) any of the schemes published by Government Notices

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

Government Gazette of the 16th February, 1988; or

(d) any of the schemes published by Legal Notices 137,

138, 139 and 140 in the supplement of the Government

Gazette of the 7th September, 1990; or

(e) any assistance under what used to be known as the

"Home Ownership Scheme" or 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.

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

under this Scheme if he has acquired land from the Government

which had been expropriated by virtue of the provisions of the

Building Development Areas Act.

(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 Numbers 127 and 128 in the Government

Gazette of the 16th February, 1988 and/or by Legal Notices 139

and 140 published in the supplement of the Government Gazette of

the 7th September, 1990 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 charge shall not be refundable.

(6) Notwithstanding the provisions of sub-clause (3), 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 Gazette of the

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

(7) Saving the provisions of clause 13(1), 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 Purchase of Government Dwelling-

Houses Scheme, 1991 (Scheme G) in the Schedule to these

regulations shall have effect from the date of the coming into force

of these regulations for the encouragement of home ownership in

Malta and shall lapse one year after that date.

The Home Ownership (Encouragement) (Purchase of

Government Dwelling-Houses Scheme) Regulations are by this

annulled.

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;

(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 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;

(i)

any gains or profits falling under the descriptions in

the foregoing paragraphs of this sub-clause other than

those in paragraphs (a) and (b), made by the

applicant’s spouse or fiancée/fiancé;

(j)

fifty percent (50%) of the gains or profits falling under

any of the descriptions in paragraphs (a) and (b) made

by the applicant’s spouse or fiancée/fiancé;

(k) 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, was or were gainfully occupied as provided in sub-clause

(1)(a) and (b) during only a part of the basic year, the gains or

profits from such gainful occupation for the whole basic year shall

be calculated by projecting the gains or profits made from such

gainful occupation during the said part of the basic year by the

applicant and/or his spouse or fiancée/fiancé, or by both, as the

case may be, for the whole basic year.

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

incom e of the applicant determined in accordance with the

foregoing sub-clauses from which the sum of two thousand and

three hundred and twenty-nine euros and thirty-seven cents

(€2,329.37) shall be deducted.

(1) The applicant shall give all that information regarding

his financial means as he may be required to give by the Authority

and for this purpose the applicant shall authorise the Commissioner

of Inland Revenue, the Director of Social Security and any other

person as may be necessary, to give the Authority any information

concerning the applicant’s income during the basic year.

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

declaration it may consider necessary for the carrying out of this

Scheme and the applicant shall allow the Authority to inspect his

ordinary residence and any other tenement held by him as the

Authority may require.

(1) Where the aggregate annual income of the applicant in

the basic year does not exceed thirteen thousand and nine hundred

and seventy-six euros and twenty-four cents (€13,976.24), the

purchase price for the absolute ownership of a Government

dwelling house shall be the free market value of that dwelling-

house as determined by the Authority reduced as shown in the

second column of Table A annexed to this Scheme in proportion to

the aggregate annual income of the applicant as shown in the first

column of the said Table, subject to sub-clause (3).

(2) Where the aggregate annual income of the applicant in the

basic year exceeds thirteen thousand and nine hundred and seventy-

six euros and twenty-four cents (€13,976.24), the purchase price of

the dwelling-house shall be the free market value thereof as

determined by the Authority reduced, where applicable, and up to

the first thirty-two thousand and six hundred and eleven euros and

twenty-three cents (€32,611.23) of the said value, by one percent

(1%) thereof for every whole year that the applicant has been

recognised as the tenant of the dwelling-house up to a maximum of

twenty (20) years.

(3)

The reduced purchase price shown in the second column of

Table A annexed to this Scheme shall also be further reduced by

one percent (1%) thereof for every whole year that the applicant

has been recognised as tenant of the dwelling-house up to a

maximum of twenty (20) years.

(4) Where the free market value of the dwelling-house as

determined by the Authority exceeds thirty-two thousand and six

hundred and eleven euros and twenty-three cents (€32,611.23) the

excess shall be payable without any reduction as provided in the

foregoing sub-clauses of this clause.

(1) Ten percent (10%) of the purchase price determined in

accordance with the provisions of this Scheme shall be paid on

account of the said price by the applicant on the promise of sale

agreement with the Authority but the amount so paid shall not be

recoverable by the applicant should he fail, for any reason, to

conclude the deed of sale with the Authority.

(2) The balance of the purchase price shall be paid on the deed

of sale entered into between the applicant and the Authority. Where

an applicant does not make use of his right to borrow part of the

purchase price as provided in sub-clause (3) ten percent (10%) shall

be deducted from the purchase price determined in accordance with

the provisions of this Scheme and such a deduction shall be made

from the purchase price as reduced in accordance with the

provisions of clause 7(2) and (3).

(3) The applicant may borrow part of the purchase price from a

financial institution approved by the Authority but the amount of

the loan shall not exceed the limit laid down in the fourth column

of Table B annexed to this Scheme, according to the aggregate

annual income of the applicant as shown in the second column of

the said Table, and shall be repayable in monthly instalments

within a maximum period of twenty-five (25) years from the date of

the deed of sale or not later than the date on which he becomes

sixty-five (65) years of age, whichever is the earlier.

(4) Where an applicant has obtained a loan in accordance with

sub-clause (3), the Authority shall subsidise the interests payable

on the loan so that the interests payable by the applicant shall be at

the rate shown in the third column of Table B annexed to this

Scheme. No subsidy shall be payable where the aggregate annual

income of the applicant for the basic year exceeds eleven thousand

and six hundred and forty-six euros and eighty-seven cents

(€11,646.87).

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

shall be revised by the Authority every two (2) years on the basis of

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

th e sub sid y p aya bl e by t he A ut ho r it y sh all also be rev ised

accordingly. The first revision shall be due on the 1st of July 1993.

(6) The Authority shall ensure that where the aggregate annual

income of the purchaser in any one year is less than three thousand

and nine hundred and fifty-nine euros and ninety-three cents

(€3,959.93) the payment of monthly instalments due in repayment

of any loan as aforesaid shall be suspended for a period of up to

three months which may be extended by further periods of three

months provided that the purchaser shall continue to pay the rate of

interest payable by him under this Scheme.

(1) Any dwelling-house purchased under this Scheme 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 ten years from

the date of the deed of sale concluded with the Authority the

beneficiary shall, before the transfer is effected, pay to the

Authority and the financial institution approved by it under this

Scheme, as the case may be, the whole or part of the value of any

subsidy and of any amount deducted from the free market value of

the dwelling-house under this Scheme as laid down in the second

column of Table C annexed to this Scheme.

(3) Where the transfer of the dwelling-house purchased under

this Scheme is to take place after ten years from the date of the

publication of the deed of sale concluded with the Authority, the

beneficiary shall not make any payment as provided in sub-clause

(2) but shall give the Authority one month’s notice of his intention

to transfer the said dwelling-house and the Authority shall

thereupon terminate any arrangement for the subsidy under this

Scheme of any interests payable by the beneficiary.

Relief as provided in article 3(b) of the principal Act is

hereby granted on the death of the beneficiary, and where the

beneficiary is married at the time of the acquisition of the dwelling-

house, also on the death of the beneficiary’s spouse, in respect of

any dwelling-house purchased by a beneficiary under this Scheme

and the provisions of article 6 of that Act shall therefore apply

thereto

Provided that the aforesaid relief shall only apply in

respect of the first sixteen thousand and three hundred and five

euros and sixty-one cents (€16,305.61) of the value of the dwelling-

house.

The right is hereby granted to register under the Housing

(Decontrol) Ordinance a dwelling-house purchased by a

beneficiary under this Scheme and the provisions of article 7 of the

principal Act shall therefore apply thereto.

The transfer of a dwelling-house to a beneficiary under this

Scheme shall be exempt from the following duties under the Duty

on Documents and Transfers Act, hereinafter in this clause referred

to as "the Act"

(a) the duty under Title II of Part III of the Act in respect

of any amount deducted in accordance with this

Scheme from the free market value of the transferred

dwelling-house;

(b) the duty under Title II of Part III of the Act in respect

of any appraisement or valuation of the dwelling-

house made by or on behalf of the Authority for the

purposes of this Scheme.

(1) Any application under this Scheme shall be lodged

personally or by registered mail by the applicant with the Authority

and that application shall not be accepted unless accompanied by

the sum of forty-six euros and fifty-nine cents (€46.59) as an

administrative charge which, saving the provisions of clause 3(5)

and subject to sub-clause (2) of this clause, shall be refunded to the

applicant on the deed of sale.

(2) Where any applicant under this Scheme fails to appear on

the promise of sale agreement or on the deed of sale, as the case

may be, when called upon to do so by the Authority, his application

shall be deemed to have been abandoned and the administrative

charge mentioned in sub-clause (1) shall not be recoverable by the

applicant.

(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 Schem e 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 Authority

of a penalty equivalent 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 false declaration as provided

in sub-clause (1) shall be disqualified for a period of five (5) years

from benefiting from any scheme made with the approval of the

Parliamentary Secretary responsible for housing.

The Authority shall not agree to the sale under this Scheme

of a dwelling-house which, on the advice of the Minister

responsible for culture, should not be sold in the public interest on

account of its antiquity.

Notwithstanding anything contained in the foregoing

provisions of this Scheme, the Authority shall have the right to

refuse any application

TABLE A

(Clause 7)

First Column

Second Column

Aggregate Annual Income of

Purchase Price of

Applicant in Euros

Dwelling-House

0 - 1,500

25% of the value

1,501 - 2,000

30% of the value

2,001 - 2,500

35% of the value

2,501 - 3,000

40% of the value

3,001 - 3,500

45% of the value

3,501 - 4,000

50% of the value

4,001 - 4,500

55% of the value

4,501 - 5,000

60% of the value

HOME OWNERSHIP (ENCOURAGEMENT) (PURCHASE

OF GOVERNMENT DWELLING-HOUSES SCHEME)

5,001 - 5,500

70% of the value

5,501 - 6,000

80% of the value

TABLE B

(Clause 8)

First Column

Second Column

Third

Fourth

Column

Column

Category

Aggregate Annual

Interests

Limit of

Income in Euros

Payable by

loan in

Applicant

Euros

A

0 - 1,500

1.0%

4,000

B

1,501 - 2,000

2.0%

4,000

C

2,001 - 3,000

3.0%

4,000

D

3,001 - 4,000

4.5%

5,000

E

4,001 - 5,000

6.0%

5,000

TABLE C

(Clause 9)

First Column

Second Column

Period in Years after Date of Deed of Repayment of Subsidies,

Sale with the Authority

Deductions, etc.

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

100%

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

90%

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

80%

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

70%

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

50%

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

30%

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

10%