The initial rollout, with seed funding of Ghs30m, will take place in Greater Accra, Ashanti, Western, Eastern, Bono East and Northern Regions, where data from the Ghana Statistical Service shows tenants have the greatest challenges with rental accommodation.
“In partnership with the private sector, the Scheme will provide low-interest loans to eligible Ghanaians to enable them to pay rent in advance. The loan will be repaid monthly to match the tenor of the rent and will be insured to ensure sustainability.
“The scheme will target individuals in the formal and informal sectors with identifiable and regular income. The rental money loan will be paid directly into the bank account of the landlord, who must also be registered in the Scheme,” said Dr Bawumia at the launch, which was attended by others, the Minister of Labor and Labor Relations, Hon Ignatius Baffuor-Awuah, the Secretary General of the Trade Union Congress (TUC), Dr Anthony Yaw Baah, and the Secretary General of the National Tenants Union, Frederick Opoku.
Recounting the various measures that culminated in the Scheme as part of the NPP Manifesto 2020, Vice President Bawumia stressed that the interventions implemented by the Akufo-Addo Government since he assumed office in 2017, particularly the National Digital Property Address System (GhanaPost GPS), the ID system National and Mobile Money Interoperability has been able to roll out a plan where all parties are confident that their needs are met.
“As a people-focused Government, providing meaningful shelter to our citizens has been an important part of this Government’s development goals, and the measures taken to address issues related to the housing sector, particularly the rental housing sector, remain important to our development agenda..
“When I visited the Department of Rent Control in July 2020, I noted the importance of the entire rental housing market in our efforts to increase access to housing options. I reiterated the Government’s plan to make the Rent Control Department more effective and efficient, and also review the Laws governing rent management in the State to better match the evolving trends.
“More importantly, I also mentioned that regarding the payment of rental funds, the Government plans to introduce a new program to bridge the information and financial gap between tenants and landlords. These measures will increase tenant confidence and reduce the need for large rent requests by landlords.
“I am very happy to learn about the eligibility criteria that have been adopted in the selection of beneficiaries for the Scheme. It not only supports the call to synchronize all platforms with the National Identification System but also the data generated from the implementation of the Scheme will facilitate the government’s efforts to develop revenue streams through better collection of Rent Tax,” he said.
The Minister of Works and Housing, Hon Francis Asenso-Boakye, thanked all partners and stakeholders who, despite initial challenges, have worked together to overcome the short to medium term market failure in the tenant segment of the housing market.
Hon Asenso-Boakye called on the media and other stakeholders to assist the government in informing and educating the general public about this important Scheme, noting that “a public program like this may have its own operational challenges in implementation, but experience and lessons are reassuring will be studied to make the Scheme better across the country.
Applicants to the Scheme must be Ghanaians, possess a valid Ghana card, be at least 18 years old, have verifiable employment and earn income proven in bank or mobile money statements, and the rent payable does not exceed 30% of the household income neighbor. Parents can also vouch for their children.
The result or application status will be released in 5-10 days after the application is released, according to the Scheme manager, Rent Master. Additional information can be found at www.nras.gov.gh