MPs push to scrap BD900 cap on pre2004 housing alternatives

TDT | Manama

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A move to scrap the BD900 salary cap on alternative housing options for pre-2004 applicants is heading to Parliament after a key committee ruled the limit unfair.

The proposal — submitted by MPs Hamad Al Doy, Abdulwahid Qarata, Bader Al Tamimi, Jameel Mulla Hassan and Mohammed Al Ma’arafi — calls for the income ceiling to be removed from the substitute schemes offered to people whose applications date back to 2004 and earlier. Supporters argue the cap prevents long-waiting families from choosing the most suitable option once their income rises above the threshold.

The Public Utilities and Environment Committee has recommended approval, saying the change would place older applicants on equal footing and give them wider choice among the alternatives already available.

In its written response, the Ministry of Housing and Urban Planning said it has begun rolling out a set of options for applicants from 2004 and earlier under directives from the Crown Prince and Prime Minister. Three routes are currently offered. For households earning under BD900, the first is a subsidised housing plot funded through Tas’heel at BD40,000, with the housing allowance continuing for two years. The second is a flat with a BD3,000 grant and a two-year waiver of shared-area fees. For applicants earning BD900 and above, the third option is Tas’heel financing of BD70,000 supported by a non-refundable BD10,000 grant. Applicants who decline these alternatives may remain on the original waiting list until housing becomes available.

Mr Al Doy said the salary ceiling contradicts the purpose of the alternative plan. “The Crown Prince’s instructions were clear — find solutions for old applications without setting a salary cap,” he said. He added that the Land and Loan option should be open to all pre-2004 applicants, while preserving the BD70,000 financing with the BD10,000 grant for those who prefer it.

The MP also argued that the BD900 limit applies only to new applications, not to the allocation stage now affecting families who have waited more than two decades. Many applicants, he noted, are over 45 and nearing retirement, making long repayment terms harder to sustain once income drops. He added that some now exceed BD900 purely due to gradual pay rises over 20 years, while living costs, inflation and property prices have surged far beyond what earlier housing-finance levels were designed to meet.