General UAE Legal Questions LawCabinet Resolution No. (61) of 2021 Regarding the Conditions and Controls for the Provision of Housing Assistance

Article (1) Definitions For the purposes of implementing the provisions of this Resolution, the following terms and expressions shall have the meanings assigned to each of them, unless the context requires otherwise: State : United Arab Emirates. Ministry : Ministry of Energy and Infrastructure. Minister : Minister of Energy and Infrastructure. Program : Sheikh Zayed Housing Program, as the housing sector within the Ministry of Energy and Infrastructure. Bank : Emirates Development Bank. Housing Assistance : The support provided by the Ministry, through the Program, on behalf of the Federal Government to eligible citizens according to the types and purposes of housing as specified in this Re…

Article (2) Objectives of the Resolution This Resolution aims to strengthen family stability and achieve an adequate standard of living by contributing to the fulfilment of citizens’ housing needs, as follows: 1. Establishing the conditions and controls for obtaining housing assistance provided by the Ministry, specifying its types, purposes, and eligible categories. 2. Outlining the application procedures for obtaining housing assistance and the required documents and supporting materials.

Article (3) Types of Housing Assistance 1. Housing assistance shall be of the following types: a. Housing Grants, which are divided into:

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Cabinet Resolution of 2021 Regarding the Conditions and Controls for the Provision of Housing Assistance 3 1. Government Housing. 2. Non-repayable Financial Grant. b. Financial Loans, which are divided into: 1. Housing loan within a residential complex constructed by the Ministry. 2. Financial Loan. c. Benefit Housing. 2. In the event of increased demand for housing assistance, the Minister shall submit to the Cabinet a proposal to decide on the allocation of a percentage of the total assistance to each Emirate according to actual needs and…

Article (4) Value of Housing Assistance and Monthly Income Limit for Eligible Recipients First) Value of Housing Assistance: 1. The maximum value of housing assistance, whether as a grant or a loan, shall be AED 800,000 (eight hundred thousand Dirhams). 2. The maximum value of housing assistance for a beneficiary of government housing or a housing loan within a residential complex shall be the construction cost of the house, not exceeding AED 800,000 (eight hundred thousand Dirhams). Second) Monthly Income Limit for Eligible Recipients: A housing grant shall be granted to those whose average monthly income is less than AED 15,000 (fifteen thousand Dirhams). Third) The Cabinet may, upon the p…

Article (5) Conditions for Obtaining Housing Assistance The following conditions shall be met to obtain housing assistance: 1. The applicant shall be a UAE citizen holding a valid family book and Emirates ID.

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Cabinet Resolution of 2021 Regarding the Conditions and Controls for the Provision of Housing Assistance 4 2. The applicant shall be the head of a UAE citizen family, with children and a wife who are UAE citizens. If the wife is not a UAE citizen, she must either have children with the applicant or have been married to the applicant for not less than seven (7) years from the date of marriage. 3. The applicant shall not own suitable housing. The housing shall be considere…

Article (6) Eligibility of Certain Categories for Housing Assistance By way of exception to Clause (2) of Article (5) of this Resolution, the following categories of citizens shall be eligible for housing assistance, provided they meet the conditions specified for each category, in addition to the conditions in Article (5): 1. People of Determination (Persons with Disabilities): To obtain housing assistance, the following conditions shall apply: a. The applicant shall hold a valid People of Determination card issued by the competent authorities. b. The applicant shall be male. c. The applicant shall be over twenty-one (21) Gregorian years of age. d. The Minister or their delegate may exempt…

Article (7) Procedures for Submitting a Housing Assistance Request 1. The housing assistance request shall be submitted to the Ministry, any of its branches, or through approved electronic means, using the designated form and accompanied by the following valid documents. If a document does not have a validity period, it shall not be older than six (6) months from the date of issuance: a. A copy of the family book, passport, and Emirates ID.

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Cabinet Resolution of 2021 Regarding the Conditions and Controls for the Provision of Housing Assistance 8 b. Property ownership certificate issued by the competent authority in the Emirate. c. Commercial licenses certificate issued by the…

Article (8) Refund of Housing Assistance Amount During the Execution Phase 1. A person who refunds the disbursed amount of housing assistance in accordance with the following controls shall not be considered a beneficiary: a. The refund request must be submitted for valid and acceptable reasons, and approval must be issued by the Minister or their delegate. b. The completion rate of the house shall not exceed seventy-five percent (75%). c. The full amount must be refunded in a single payment, whether it is a loan or a financial grant. 2. A person who has previously refunded the housing assistance amount may submit a new request, provided that at least five (5) years have elapsed since the am…

Article (9) If the applicant for housing assistance dies before a decision is made on the request, priority for eligibility shall be given to the family members who were dependents at the time of death, provided they meet the necessary conditions, and they shall submit a new housing assistance request with all required documents.

Article (10) Government Housing and Benefit Housing 1. The Ministry may construct or purchase houses to be allocated to eligible recipients of financial grants in the following forms: a. Government Housing

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Cabinet Resolution of 2021 Regarding the Conditions and Controls for the Provision of Housing Assistance 10 b. Benefit Housing 2. The Minister shall issue a decision specifying the cases in which the beneficiary is entitled to government housing or benefit housing. 3. The allocation of government housing or benefit housing shall be made by decision of the Minister upon the recommendation of the competent department within the Ministry. 4. In all cases, the cost of the housi…

Article (11) Recovery of Benefit Housing Benefit housing allocated for the purpose of housing shall remain the property of the Ministry and may be reclaimed in the following cases: 1. The death of the beneficiary with no eligible heirs for housing assistance. 2. It is proven that the beneficiary no longer needs the house. 3. The beneficiary violates their obligations under this Resolution or any other regulatory decision issued by the Ministry in this regard.

Article (12) Construction of Government Housing on Beneficiary-Owned Land The Ministry may construct government housing on land owned by the beneficiary or allocated to them by the Emirate, provided it is free of mortgage. The beneficiary may be a co- owner of the land with their spouse or any of their dependent children only.

Article (13) Obligations of the Recipient of Government Housing or Benefit Housing The beneficiary of government housing or benefit housing shall: 1. Not dispose of the house by sale, exchange, gift, assignment to others, or create any original or accessory real rights thereon. 2. Use the house solely for residential purposes. 3. Exercise due care in its use, preservation, and maintenance.

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Cabinet Resolution of 2021 Regarding the Conditions and Controls for the Provision of Housing Assistance 11 4. Not make any substantial alterations that would change the external or internal design without prior approval of the Ministry.

Article (14) Procedures in Case of Breach of Obligations If the beneficiary breaches any of the obligations stipulated in this Resolution, the Ministry may undertake the following procedures: 1. Issue a written warning requiring the rectification of the violation within a period not exceeding ninety (90) days. 2. If the violation is not rectified within the specified period in clause (1) of this Article, the Ministry, in coordination with the competent authority in the relevant Emirate, may take appropriate action to rectify the violation. 3. Reclaim the house from the beneficiary if it is used for purposes other than residential use, and require compensation to restore the house to its orig…

Article (15) Nullity of Dispositions Made in Breach of Obligations Any disposition by the beneficiary or their heirs in violation of the obligations stipulated in this Resolution shall be null and void and shall have no legal effect, nor may it be registered. The Ministry may undertake all necessary legal procedures to cancel such dispositions and reclaim the house, in addition to claiming compensation, if applicable.

Article (16) Death of the Beneficiary Allocated a House 1. In the event of the death of a beneficiary who has received government housing and has been issued a title deed, or the house was constructed on land owned or allocated to them by a government entity, the house shall pass to the heirs without intervention from the Ministry. 2. If the land is still registered in the name of the Ministry or the house is benefit housing, the following shall apply:

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Cabinet Resolution of 2021 Regarding the Conditions and Controls for the Provision of Housing Assistance 12 a. The house shall be allocated to the family members of the deceased beneficiary who were dependents at the time of d…

Article (17) Leasing of Government Housing The beneficiary may lease government housing upon approval of the Minister or their delegate, subject to the following conditions: 1. Submission of acceptable reasons for leasing the house. 2. The lease period shall not exceed two (2) years, and the beneficiary shall provide suitable alternative housing for their family. 3. The lessee shall be a family; if the house is within a residential complex, the lessee shall be a UAE national family. 4. The beneficiary remains bound by all obligations under this Resolution throughout the lease period. 5. The lease contract shall be considered null and void if the beneficiary fails to comply with all provision…

Article (18) Eligibility of Individuals Previously Included in Family Government Housing If the beneficiary of government housing or benefit housing is a group of individuals from the same family, each may apply for housing assistance request when they independently meet the eligibility conditions.

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Article (19) Transfer of Ownership of Government Housing 1. After one (1) year from the date of handover of the house to the beneficiary, the Minister shall issue a decision to transfer ownership, upon which the competent authorities in the Emirate shall issue a title deed free of charge, with an annotation prohibiting disposal of the house except with the Ministry’s approval. 2. The beneficiary may not submit a request to dispose of the house except after twenty (20) years from the date of receipt or after full repayment of the housing assistance.

Article (20) Forfeiture of Right to the House 1. If a beneficiary who has been allocated government housing or benefit housing refuses to sign the receipt report within the specified period, their right to the property is forfeited. 2. The house shall be reclaimed from the beneficiary if ninety (90) days have elapsed from the date of signing the receipt report without occupation, unless a valid excuse is provided. In both cases, the housing assistance decision shall be cancelled, and the beneficiary shall submit a new request if they wish to reapply.

Article (21) Purposes of Financial Assistance Financial assistance shall be provided to the beneficiary, within the limits set by this Resolution, for any of the following purposes: 1. Construction of a new house or completion of a house under construction. 2. Financing a house within a residential complex constructed by the Ministry. 3. Maintenance or expansion of a house, or both. 4. Purchase a suitable house or apartment for the family. 5. Repayment of a loan previously obtained by the applicant from another entity, subject to the following controls: a. The loan shall be for the purpose of constructing a house. b. The loan shall be from a national bank operating in the State.

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Article (22) Use of a Single Financial Assistance for More Than One House A beneficiary who has received financial assistance may use its value for more than one house if their family circumstances require it, subject to the following conditions: 1. The beneficiary has more than one wife, or supports children from a deceased or divorced wife and be married to another. 2. The houses for which the assistance is used must be allocated for the residence of the beneficiary’s family and dependent children.

Article (23) Prohibitions on Benefiting from Financial Assistance Financial assistance may not be used for maintenance or expansion in the following cases: 1. The house is used for non-residential purposes or is unfit for habitation due to its structural condition or the surrounding environment, as established by engineering reports from the Ministry or a competent government authority. 2. The beneficiary does not reside in the house to be maintained or expanded. 3. The beneficiary has co-owners in the house, except for the spouse and dependent children. 4. The house is owned by heirs not mentioned in the assistance decision, except in cases where the Minister decides to allow the beneficiar…

Article (24) Construction of a House for a Beneficiary of Financial Assistance The Ministry may construct a house for a beneficiary who has received financial assistance, whether a loan or a grant, on land owned by or allocated to them by a government entity in

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Cabinet Resolution of 2021 Regarding the Conditions and Controls for the Provision of Housing Assistance 15 the Emirate, within the approved assistance limit. The land may be registered jointly in the name of their spouse or dependent children only, subject to the following conditions: 1. The beneficiary shall submit a request for approval to construct the house. 2. The beneficiary shall deposit with the Ministry any…

Article (25) Conditions for Purchase of a House The Ministry may use the financial assistance to purchase a house for a citizen, subject to the following conditions: 1. The house shall be existing, suitable for habitation, and suitable for the family’s residence at the time of purchase. 2. Its structural condition shall be good, as established by an engineering report prepared by the Ministry. 3. The house may be under construction, in which case:

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Cabinet Resolution of 2021 Regarding the Conditions and Controls for the Provision of Housing Assistance 16 a. The value of the house at purchase and the cost to complete the remaining works shall be determined (purchase contract a…

Article (26) Decision on Financial Assistance 1. The Ministry shall issue annual approvals for housing assistance within the limits of the approved budget for the housing program, taking into account commitments arising from previous approvals that are still being funded. 2. The Minister shall issue e a decision granting financial assistance in the name of the applicant, and the name of the spouse or children may be added in some cases to preserve the family, with the decision specifying the date of entitlement.

Article (27) 1. The Ministry may issue financial assistance decisions as conditional grants, subject to review of eligibility conditions at the time of actual handover. 2. If the Ministry determines that the beneficiary does not meet the grant conditions at the time of handover, the grant may be converted into a loan, if loan eligibility conditions are met. In all cases, the review provided for in this Article may not be conducted if more than five (5) years have elapsed between the approval decision and actual handover, nor may any cash balances be allocated, reserved, or carried forward to match financial assistance provided in this Article.

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Cabinet Resolution of 2021 Rega…

Article (28) Forfeiture of Right to Financial Assistance 1. The financial assistance decision shall lapse if twelve (12) months have elapsed from the date of entitlement without the beneficiary initiating the execution process by opening an execution file, except for beneficiaries granted government housing, benefit housing, or a house within a residential complex. A person whose decision lapses may submit a new request. 2. The financial assistance decision shall be cancelled after opening an execution file in the following cases: a. Twelve (12) months have elapsed from the date of opening the execution file without commencement of construction works. b. Thirty-six (36) months have elapsed f…

Article (29) Leasing of Financed House Upon approval of the Minister, the beneficiary may lease their house, subject to the following conditions: 1. The beneficiary shall submit acceptable reasons for leasing. 2. The lease period shall not exceed two (2) years.

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Cabinet Resolution of 2021 Regarding the Conditions and Controls for the Provision of Housing Assistance 18 3. The beneficiary remains bound by all obligations under this Resolution throughout the lease period. 4. If the beneficiary leases the house without prior approval, the Ministry may take any action it deems appropriate, including requiring repayment or refund of the full amount of financial assistance.

Article (30) Eligibility of Individuals Previously Included in Family Financial Assistance If the beneficiary of financial assistance is a group of individuals from the same family, each may submit a separate request for housing assistance when they independently meet the eligibility conditions.

Article (31) Obligations of Beneficiary Receiving of a Financial Grant The recipient of a financial grant shall: 1. Provide proof of ownership of the land on which the housing assistance is to be executed or that it has been allocated to them by a government entity in the Emirate. The land may be co-owned with their spouse or any dependent child. At the beneficiary’s request, the grant may be used to construct an addition to a relative’s house to accommodate the beneficiary if they require care. 2. Sign the approved contracts for execution of the housing assistance. 3. Use the grant amount in full for the purpose of implementing the housing assistance. 4. Use the grant for integrated works,…

Article (32) Obligations of the Beneficiary of a Financial Loan The recipient of a financial loan shall: 1. Provide proof of ownership of the land on which the housing support is to be executed or that it has been allocated to them by a government entity in the Emirate. The land may be co-owned with their spouse or any dependent child. 2. The land shall be free of mortgages or capable of being mortgaged in favor of the Ministry as a first-class mortgage. 3. Mortgage the entire land on which the assistance is to be executed in favor of the Ministry until the loan is repaid. The Minister may, for valid reasons, accept other guarantees provided by the beneficiary in lieu of a mortgage. 4. Use t…

Article (33) Controls for Repayment of Housing Assistance Loan The monthly installment amount for repayment of the housing assistance loan shall be determined by decision of the Minister, provided it does not exceed twenty percent (20%) of the total monthly income, and the loan shall be repaid in monthly installments according to the following controls: 1. After a period not exceeding one hundred and twenty (120) days from the date of disbursement of the first payment to the contractor. 2. From the beginning of the month following the date of signing the agreement to obtain a house within a residential complex. 3. From the beginning of the month following the date of disbursement of the assi…

Article (34) Disbursement and Collection of Loans 1. The Bank shall manage certain operations of the housing assistance portfolio in accordance with the controls and approvals issued by the Ministry and pursuant to a service agreement between the Ministry and the Bank, which shall specify the procedures and costs of services, including: a. Opening a file for the beneficiary and receiving the guarantees. b. Disbursing contractor payments based on payment vouchers approved by the Ministry. c. Collecting monthly installments from beneficiaries, following up with defaulters, and submitting periodic reports to the Ministry. d. Submitting periodic reports to the Ministry on the portfolio of housin…

Article (35) Exemption from Loan Repayment The Cabinet may exempt the borrower or their heirs from repayment of the remaining loan amount or part thereof, according to controls determined by the Cabinet upon the recommendation of the Ministry of Finance and based on the Ministry’s proposal.

Article (36) Recovery of Housing Assistance The Ministry may, in the event the beneficiary loses UAE nationality or it is withdrawn or revoked, or a final court judgment is issued convicting the beneficiary of fraud or forgery or deliberately providing false information to obtain housing assistance, or if it is proven that the beneficiary colluded with the consultant or contractor or both to use the financial assistance for purposes other than those for which it was granted, take the following actions: First) Against the Beneficiary: Recover the housing assistance granted, as follows: 1. In the case of a loan, all unpaid installments shall become immediately due. 2. In the case of a grant or…

Article (37) Investigation of Violations Related to Housing Assistance The Minister shall form a committee to investigate cases where there is suspicion that the beneficiary, contractor, or consultant has committed a violation resulting in the beneficiary obtaining assistance without legal basis or disbursing funds for purposes other than those for which they were granted. The decision shall specify the formation, procedures, and controls for the committee’s work, without prejudice to criminal proceedings or referral to the competent authorities if applicable.

Article (38) Executive Resolutions The Minister shall issue the necessary resolutions to implement the provisions of this Resolution and to approve the forms of housing assistance agreements required to be signed by beneficiaries.

Article (39) Repeals Any provision that contradicts or conflicts with the provisions of this Resolution shall be repealed.

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Article (40) Publication and Entry into Force This Resolution shall be published in the Official Gazette, and shall enter into force from the day following the date of its publication. Mohammed bin Rashid Al Maktoum Prime Minister Issued by Us: Dated: 21 Dhu al-Qi'dah 1442 A.H. Corresponding to: 1 July 2021 A.D

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