NATIONAL HOUSING DEVELOPMENT CORPORATION LIMITED THIMPHU : BHUTAN

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NATIONAL HOUSING DEVELOPMENT CORPORATION LIMITED THIMPHU : BHUTAN ALLOTMENT RULES & REGULATIONS -2014 (RESIDENTIAL QUARTERS) REAL ESTATE MANAGEMENT DIVISION

TABLE OF CONTENTS SL. No Contents Page No 1.0 2.0 3.0 3 3 3 4.0 5.0 6.0 7.0 8.0 RATIONALE TITLE AND SCOPE AUTHORITY OF INTERPRETATION AND AMENDMENT CLASSIFICATION OF QUARTERS PROCEDURE FOR APPLICATION ALLOTMENT CRITERIA CONDITION OF ALLOTMENT VACATION OF QUARTER 4 5 6 7 8 2

1.0 RATIONALE The allotment of quarters shall have the following objectives: 1.1 To provide affordable and safe housing to civil servants, particularly to those without access to alternative housing facility. 1.2 To provide decent housing facilities to civil servants based on the eligibility of their posts and status. 1.3 To facilitate effective mobility of civil servants through access to ready and affordable housing during service transfers. 1.4 To stabilize/balance housing supply stock in the market. 2.0 TITLE AND SCOPE 2.1 The Allotment Rule shall be called National Housing Development Corporation Ltd. Housing Allotment Rule. 2.2 The Rule shall come into effect from 1 st January 2014 2.3 The Rule shall apply for allotment of NHDCL quarters throughout the country. 2.4 The Rule inter-alia shall bear their legal provisions from the Tenancy Act and the Tenancy Agreement drawn up between the allottee (s) and NHDCL. 2.5 All allotment of NHDCL quarters shall be based on the provisions of these Rules. 3.0 AUTHORITY OF INTERPRETATION AND AMENDMENT 3.1 The NHDCL under the provision of these Rules shall be responsible for administration and allotment of these quarters. 3

3.2 The NHDCL as deem necessary from time to time shall affect the amendment of these rules by way of addition, variation or repeal. 4.0 CLASSIFICATION OF QUARTERS 4.1 The entitlement criteria for the type of quarters shall be as follows: Eligibility grade against classification of quarters: Classifications Eligibility RCSC Grades Specifications Floor Area (sq.ft.) Class 1S* 1 & 2 1 LR, 1 DR, 5 BR,1K,3T, 2,001-2,400 Garage Class 1A 3 & 4 1 LR, 1 DR, 4 BR,1K,2T, 1,501-2,000 Garage Class 1B 5, 6 & 7 1 LR, 3BR,1K,2T 1,201-1,500 Class II 8 & 9 1 LR, 2 BR,1K,2T 801-1,200 Cass III 10, 11, 12, 1 LR, 2 BR,1K,1T/2T 351-800 13,14,15,16 & 17 Class IV GSC I & II and ESP 1 LR, 1 BR,1K,1T 350 (LR-Living Room, DR-Dining Room, BR-Bed Room, K-Kitchen,T-Toilet) * Preference shall be given to Government Secretaries. a. For classification of Units, If the number of rooms is not fulfilled then total area of rooms will govern.. b. Lower class unit with exclusive compound can be classified to higher class of quarter. 4.2 The classification of the quarters shall be used only for the purpose of determining the entitlements of an applicant. However, rental fixation shall be on actual floor area. 4.3 The above minimum entitlements shall only be applicable in the development and allotment of new and re-classification of existing quarters. Provision of the minimum facilities shall not be claimed as a matter of right by those applicants already allotted with quarters or where allotment of existing quarters are considered. Subject to technical and 4

financial consideration, NHDCL may however consider providing some of such essential facilities as found feasible. 4.4 Chargeable rental payment for the units shall be deposited to NHDCL by the occupants or appropriately compensated by the agency concerned, if rental charges to these posts are exempted. 5.0 PROCEDURE FOR APPLICATION 5.1 All civil servants and staff of NHDCL are eligible to apply for the houses. 5.2 Civil servants can apply for housing in the place of duty station only; but chronology of the date of application shall carry over to the new place of posting upon launching of online applications. 5.3 Registrations of applications are on first come first serve basis. 5.4 All applications for housing must have the CID number and submitted with latest pay-slip attested/authenticated by the concerned offices. False information shall be viewed seriously with the concerned agencies/applicants held accountable for the consequences, leading to debarment of the individual(s) from future housing allotment. 5.5 The applications shall be scrutinized based on the eligibility criteria. 5.6 Online applications shall be accepted for the quarters upon setting up of online system in NHDCL. However, scrutiny for authentication of applicants shall be carried out during the time of allotment. 5.7 Application shall be recognized as an important factor for allotment, no claims shall be entertained for consideration of applications which have not been formally recorded or authenticated by NHDCL. 5.8 Application registration can be transferred to spouse provided the fulfillment of eligibility criteria as per classification of quarters and upon submission of relevant documents. 5

5.9 Upon promotion, the applicant s position on list shall change according to his/her entitlement for types of quarters. 6.0 ALLOTMENT CRITERIA 6.1 Eligibility a) Civil servants and the staff of National Housing Development Corporation Ltd are eligible for the housing. b) Allotment shall be done on first come first serve basis of application registration. c) The allotment of the types of quarters shall be as per the classifications of quarter and based on the grade eligibility of an applicant at the time of allotment. d) Applicants or their spouse owning house at the place of allotment shall not be eligible for allotment of NHDCL quarter. 6.2 One allotment per Household In this rule the members in Household are Allottee and the spouse only. There shall be only one allotment per household. Allottee or spouse availing other public quarters shall not be eligible. Allottee/spouse allotted with more than one quarter shall immediately surrender the additional quarter. This requirement shall also include those individuals allotted with separate quarters but who at a later date have formed a combined household through marriage, adoption etc. Non surrender of the additional quarter(s) by the concerned households shall require the NHDCL to withdraw all of the allotted quarter(s) from the households involved and the applicants barred for future allotment thereafter in all Dzongkhags. 6.3 Area of Posting Civil servants shall be eligible for the allotment of NHDCL housing only in the areas of their duty stations. An allottee on transfer to other area of 6

duty station shall surrender the quarters allotted to him/her before leaving for his/her new place of posting within 2 months from the date of issuance of transfer/relieving order. 7.0 CONDITION OF ALLOTMENT Individuals allotted with Government quarters shall observe the following conditions; 7.1 Allotment order All applicants who have been successful for allotment of NHDCL quarters shall be issued with an allotment order. 7.2 Tenancy Agreement The applicant shall sign the tenancy agreement prior to the issuance of the allotment order. No individual shall enter or use the units and its facility without the completion of the agreement formalities. The tenancy agreement shall be for 2 years and could be renewed every two (2) years, up to maximum of 4 times, subject to clause no. 8.1(II), after which the quarter shall be taken over by NHDCL after 2 months notice. 7.3 Rental and other fees Rental charges shall be made effective as per the date mentioned in the allotment order. A penalty @ 24% per annum shall be chargeable for late payment of rent. A periodic revision/refixation of rental charges may be determined and levied by the NHDCL based on the provision of Tenancy Act. In addition to the rental charges, the NHDCL may also levy other charges. 7.4 Security Deposit Based on the provisions of the Tenancy Act, all applicants allotted with NHDCL houses shall be required to make a security deposit as determined by NHDCL from time to time. The amount shall be deposited prior to signing of tenancy agreement. 7

7.5 Measurement of rental areas and use of common spaces For the purpose of rental calculation, all usable areas within the building unit (floor area including the balcony, garage & servants quarter) shall be included. In multi-unit buildings, the total areas of useful common spaces within the building block i.e. common rooms, common toilets and other facilities etc. shall be divided among the number of units within the building for the purpose of rent calculation. No allottee shall store materials, erect fence or property boundaries etc., over common areas both within and outside the building units for their specific uses. NHDCL shall have the right to remove, caution and penalize those allottees resorting to such practices. 7.6 Tenureship of occupation In order to have equity in distribution of NHDCL houses, the tenants can occupy the quarters for a maximum period of 10 years per household in same duty station. Upon completion of this period, he/she shall vacate the quarter. 7.7 Conversion of the use of units No allottee shall alter/extend/convert the use of the allotted unit other than the purpose leased for. Unauthorized alteration/conversion of the use of such unit shall lead to immediate cancellation/withdrawal of the facility and render the applicant ineligible for NHDCL housing allotment in future. 7.8 Allotment criteria upon promotion In the case of current allottees, who are promoted beyond the grade level permissible for the allotment of the unit occupied by him/her, the allottees shall have the choice to retain the unit or apply for units commensurate with his grade. However no special provision shall be given for upgradation of quarter unless otherwise the unit is readily available. 7.9 Absence of allottees Allottees on study leave shall be permitted to retain the quarters for the leave period as per officially approved by competent authority (on 8

condition that lump sum rent is deposited personally or through legal representative) Allottees availing EOL for more than 12 months shall surrender their quarters to NHDCL. 7.10 Succeeding transfer of quarters The transfer of quarter shall be permitted only between the spouses provided the spouse fulfills the allotment criteria at the time of transfer and upon fulfilment of tenureship occupation criteria. 7.11 Subletting/hiring of NHDCL quarters An allottee of a NHDCL quarter shall reside in the unit allotted to him/her. No allottee shall be permitted to sublet or hire the allotted unit to a third party including his/her relatives. An allottee not residing in the allottee unit shall be considered as having sub-let or hired his/her allotted quarter. The process shall lead to immediate cancellation of the allotment order, eviction from the facility and render the applicant ineligible for NHDCL housing allotment in future in all Dzongkhags. 8.0 VACATION OF QUARTER 8.1 Vacation/Take-over of Quarters. 8.1(I) The concerned office is to provide to NHDCL the copy of relevant documents for transfer, retirement, resignation, demise, termination etc of their staff. 8.1(II)A total of two months period shall be granted to an allottee or his/her immediate dependents to vacate the quarter upon transfer, retirement, resignation, demise, termination etc. The two months would be effective from the date of relieving order from his/her office. However, on exceptional case, extension can be permitted beyond 2 months on submission of required documents. 8.1(III) Non surrendering of quarter shall lead to immediate cancellation of the allotment order, eviction from the facility and render the applicant ineligible for NHDCL housing allotment in future in all Dzongkhags. 9

8.2 Legal Provision In addition to the provisions of the Rules on Allotment of NHDCL Quarters and the requirements of tenancy agreement, NHDCL shall have the right to implement relevant legal provisions, Tenancy Act and other related regulations in force, including the right to withhold clearance certificate of those tenants who have not surrendered their quarters upon transfer, resignation, retirement, demise etc. 1. Penalty for non-surrender of quarter: within the provision of this Rule, NHDCL shall levy/impose penalty to the tenant who continues to occupy the rental unit even after the two (2) months period, as given below: a) No penalty during the usual two (2) months period of the vacation notice. b) From the 3rd month until the unit is surrendered, a fine equivalent to two (2) months rent (in addition to the usual rent) shall be levied per month and intervention of Court shall be sought for immediate eviction. II. Penalty for unlawful occupation: Above penalty shall apply from the date of occupation until takeover and intervention of Royal Bhutan Police shall be sought for immediate eviction. 8.3 Repossession of Quarters. The NHDCL shall have unilateral right to repossess the housing units from the allottees inter-alia, not limited, to the following conditions; i) Units occupying continually for10 years by a household in same work station. ii) Units not surrendered by a tenant upon his/her transfer to other duty stations iii) Genuine requirement of the allotted properties for other important development purposes iv) Allottees who have acquired the allotment of quarters through supply of false information v) Allottees causing serious and repeated social disorders/nuisance within the housing complex 10

vi) Allottees causing serious damages to the rented properties and other public facilities vii) Unauthorized subletting/conversion of the use of quarters viii) Non deposit of more than two months of consecutive rental charges ix) Other serious breach of the provisions of this Rule, lease agreement, Tenancy Act and other related regulations in force. x) For redevelopment purposes proposed by NHDCL or due to the Government order. xi) If kept vacant for more than 2 months continuously. xii) Using the unit for other than intended purpose. xiii) Operation of unlawful and illegal activities. ---THE END --- 11

NATIONAL HOUSING DEVELOPMENT CORPORATION LIMITED THIMPHU : BHUTAN ALLOTMENT RULES & REGULATIONS -2014 (COMMERCIAL UNITS) REAL ESTATE MANAGEMENT DIVISION 12

TABLE OF CONTENTS SL. No Contents Page No 1.0 2.0 3.0 4.0 5.0 6.0 RATIONALE TITLE AND SCOPE AUTHORITY OF INTERPRETATION AND AMENDMENT PROCEDURE FOR APPLICATION CONDITION OF ALLOTMENT VACATION OF UNITS 14 14 14 14 15 16 13

1.0 RATIONALE To provide space for commercial purpose to the private individuals/organizations as cross-subsidize measure. 2.0 TITLE AND SCOPE 2.1 The Allotment Rule shall be called National Housing Development Corporation Ltd. Commercial Unit Allotment Rule. 2.2 The Rule shall come into effect from 1 st January 2014. 2.3 The Rule shall apply for allotment of NHDCL commercial units throughout the country. 2.4 The Rule inter-alia shall bear their legal provisions in the Tenancy Act and the Tenancy Agreement drawn up between the allottee(s) and NHDCL. 3.0 AUTHORITY OF INTERPRETATION AND AMENDMENT. 3.1 The NHDCL under the provision of these rules shall be responsible for administration and allotment of the commercial units. 3.2 The NHDCL as deem necessary from time to time shall affect the amendment of these rules by way of addition, variation or repeal. 4.0 PROCEDURE FOR APPLICATION 4.1 Private individuals can apply for the commercial units. 4.2 Registrations of applications are on first come first serve basis. 4.3 All applications for commercial units must have the CID number and supporting documents. 4.4 The applications shall be scrutinized prior to allotment. 14

4.5 Application shall be recognized as an important factor for allotment, no claims shall be entertained for consideration of applications which have not been formally recorded or authenticated by NHDCL. 5.0 CONDITION OF ALLOTMENT Individuals allotted with NHDCL commercial units shall observe, not limited, to the following conditions; 5.1 Allotment order Successful applicants shall be issued with an allotment order. 5.2 Tenancy Agreement Accepted applicants shall sign the tenancy agreement prior to the issuance of the allotment order. No individual shall enter or use the units and its facility without the completion of the agreement formalities. The tenancy agreement shall be renewed every two (2) years. 5.3 Rental and other charges Rental charges shall be made effective as per the date mentioned in the allotment order. A late penalty charge @24% per annum shall be levied for late payment. A periodic revision/refixation of rental charges may be determined and levied by the NHDCL based on the provision of the Tenancy Act. In addition to the rental charges, the NHDCL may also levy other charges. 5.4 Security Deposit Based on the provisions of the Tenancy Act, all applicants allotted with NHDCL houses shall be required to make a security deposit as determined by NHDCL from time to time. The amount shall be deposited prior to signing of tenancy agreement. 5.5 Minimum Operation period Minimum period for operation of the commercial units is six (6) months. If the Allottee withdraws his/her business before six months, 15

the security deposit (i.e. two months rent) shall be forfeited, agreement cancelled immediately and the unit shall be awarded to another without any justification. 5.6 Conversion of the use of units No allottee shall alter/extend/convert the use of the allotted unit other than the purpose leased for. Unauthorized alteration/conversion of the use of such unit shall lead to immediate cancellation/withdrawal of the facility and render the applicant ineligible for NHDCL housing allotment in future. 5.7 Subletting/hiring of NHDCL commercial units An allottee of a NHDCL unit shall reside in the unit allotted to him/her. No allottee shall be permitted to sublet or hire the allotted unit to a third party including his/her relatives. An allottee not residing in the allottee unit shall be considered as having sub-let or hired his/her allotted quarter. The process shall lead to immediate cancellation of the allotment order, eviction from the facility and render the applicant ineligible for NHDCL housing allotment in future. 6.0 VACATION OF UNITS 6.1 Legal Provision In addition to the provisions of the Rules on the Allotment of NHDCL Houses and the requirements of tenancy agreement, the NHDCL shall have the right to implement the relevant legal provisions, Tenancy Act and other relevant regulations in force, including the right to withhold security deposit of the tenants who have not surrendered their quarters when asked to do so. 1. Penalty for non-surrender of quarter: within the provision of this Rule, NHDCL shall levy/impose penalty to the tenant who continues to occupy the rental unit even after the two (2) months period, as given below: a) No penalty during the usual two (2) months period of the vacation notice. b) From the 3rd month until the unit is surrendered, a fine equivalent to two (2) months rent (in addition to the usual rent) 16

shall be levied per month and intervention of Court shall be sought for immediate eviction. II. Penalty for unlawful occupation: Above penalty shall apply from the date of occupation until takeover and intervention of Royal Bhutan Police shall be sought for immediate eviction. 6.2 Repossession of Units. The NHDCL shall have unilateral right to repossess the housing units from the allottees inter-alia under the following conditions; i. Genuine requirement of the allotted properties for other important development purposes ii. Allottees who have acquired the allotment of quarters through supply of false information iii. Allottees causing serious and repeated social disorders/nuisance within the housing complex iv. Allottees causing serious damages to the rented properties and other public facilities v. Unauthorized subletting/conversion of the use of quarters vi. Non deposit of more than two months of consecutive rental charges vii. Other serious breach of the provisions of this Rule, lease agreement, other related regulations and Tenancy Act. viii. If kept vacant for more than 2 months continuously. ix. Using the unit for other than intended purpose. x. Sale of bar/alcohol products/contravene items/go-down/store within the NHDCL housing colony xi. Operation of unlawful and illegal activities. ----THE END--- 17