NHC turns to ‘smart locks’ to deal with serial defaulters

National Housing Corporation (NHC) Relations and Communications Manager, Muungano Saguya talking to reporters in Dar es Salaam. Left is the Director of Property Management and Marketing. PHOTO | SAID KHAMIS

By Nasra Abdallah

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Dar es Salaam. The National Housing Corporation (NHC) is planning to adopt new technology which will have the landlord using smart locks to curb spiralling rent arrears.

Tenants of the state-run agency owe it Sh26 billion cumulatively. But, from January, it will install the new locks which will not open if the tenants have not paid, starting with habitual rent evaders.

This was stated yesterday by the agency’s public relations and communications manager, Mr Muungano Saguya, at a press conference aimed at outlining the agency’s activities for the year 2021, and its plans for the new year 2022.

Mr Saguya said that, due to chronic debtors, the organization has developed a new technology - smart locks - that will be installed in several model homes.

“The smart locks will help control chronic debtors and this is done due to the fact that some of our tenants do not pay their rent on time and thus depriving the corporation of revenue that could have helped to start other new projects,” he said.

He noted that, to-date, the corporation claims Sh26 billion in rent arrears from its tenants, money that if collected could build 450 new houses and reduce the housing crisis for Tanzanians.

“Already, NHC has begun reviewing the debts by verifying them, to identify each debtor and his whereabouts so that, in January the Corporation can begin a comprehensive campaign to collect the debts,” he said.

Tanzania’s housing demand (affordable housing) is estimated at 200,000 housing units per annum with an existing housing deficit of three million housing units. NHC is the leading housing developer, with projects for both high-end and low-cost houses across the country.

At the same time, Mr Saguya said that this year they have verified all tenants to determine their legitimacy and identified the presence of 30 illegal tenants who have been deprived of their eligibility.

Explaining the projects they were implementing in 2021, the acting director of Property Management and Marketing, Mr Elias Masese, said at the beginning of the year they had 26 affordable housing projects that had not yet been completed in Mtwara (Masasi), Katavi (Mlele), Tabora (Igunga) and Njombe (Makete).

However, Mr Masese said that, so far, all the projects have been completed with the other four major projects of Morocco Square, Kawe 711, Golden Premier Residence (GPR) and Plot 300 Regent Estate which has been stalled since 2017 due to financial constraints.

“In achieving the construction of these large buildings, the Corporation has been given prior approval by the government to borrow Sh44.7 billion to complete the Morocco Square and Plot 300 Regent Estate project and after that the other two remaining projects will follow,” he noted.

In support of the housing issue especially after the government moved to Dodoma, NHC has revealed it was building 1000 residential houses and the first phase of 404 houses has been completed.

In the Chamwino area (101 houses) that will be rented out to 30 people and 303 residential houses have been built in the Iyumbu area for sale to the people while the second phase of the implementation of this project 325 houses will be built, and the third phase will have 275 house numbers.

The director added that the agency has allocated Sh8.5 billion for this financial year to renovate its 350 buildings and has already started doing so in some regions including Kilimanjaro and Dar es Salaam.

“Repairs to homes and other buildings will cost more than Sh50 billion over the next five years. This is a major renovation that will involve replacing roofs, toilets and dilapidated windows,” he said.