The government has launched the National Rental Assistance Scheme (NRAS) to support qualified citizens to rent accommodation in the country. The scheme, which is the fulfillment of the 2020 manifesto of the ruling New Patriotic Party (NPP) is also to effectively protect potential tenets from exploitation and burdensome rent advance payments.
The government launched the scheme Tuesday, January 31, 2023 two years after beginning its second term, whose campaign saw the promise of the scheme.
The Scheme, which adds to the plethora of social interventions rolled by this government is expected to provide low-to-middle income earners with a mechanism to pay low monthly rent.
This effectively removes the need for rent advance payment and ultimately improves the quality of rental accommodation, especially in the urban cities, the idea behind the scheme.
FORMAL AND INFORMAL SECTOR
Launching the Scheme yesterday in Accra, the Vice President, H.E Alhaji Dr. Mahamudu Bawumia indicated that the Scheme will target individuals, both in the formal and informal sectors with identifiable and regular income, adding that the rent advance loans will be paid directly into the bank accounts of landlords.
“I am aware of the series of engagements that have gone on between key stakeholders on the operationalisation of the Scheme and I look forward to the enormous relief that the Scheme will bring to its beneficiaries and the good people of Ghana”.
He added that it ultimately enhance the creditworthiness of potential tenants in their search for residential rental accommodation.
The Vice-President further explained the introduction of the Scheme, is part of measures to reduce the need for huge rent advance payment requests by landlords.
SOME STATISTICS
Rental accommodation has been a significant share of shelter services in the country, especially in urban areas, catering for 34.6% of households; out of which 46% is in urban areas and 17.1% in rural areas.
Research further reveals that only 5% of Ghana’s population can acquire their own homes without any form of assistance, with 60% requiring support that is facilitated by the state to access housing whilst 35% will require additional direct support before they can have access to housing.
The sector Minister, Francis Asenso-Boakye stated that the urgent need to improve opportunities for people especially the youth to access the minimum standard of decent rental accommodation stems from the nonexistent mechanism by which deserving households can be supported and protect them from undue exploitation.
Asenso-Boakye disclosed that Government has made a commitment of up to GH¢30million to implement the initial phase of the Scheme which will cover the Greater Accra, Ashanti, Northern, Western, Eastern and Bono East Regions, adding that these regions, according to the Rent Control Department, are predominantly noted for rent advance payments.
“The objective of government is to operationalise the Scheme throughout the country, through various rental assistance solutions for the improvement of the rental housing market in Ghana.”
GH¢30M INITIAL MONEY
The Minister for Works and Housing, Francis Asenso-Boakye, revealed government’s commitment of GH¢30m towards the initial implementation of the Scheme.
Speaking at the launch, the sector Minister explained that the initial implementation will cover Six (6) regions namely; Greater Accra, Ashanti, Eastern, Western, Bono East and Northern Regions, due to their peculiar rent advance payments challenges.
“The objective of government is to operationalise the Scheme throughout the country through the various rental assistance solutions to ultimately improve the rental housing market in the country,” The minister added.
Mr Asenso-Boakye appealed to the media to disseminate and inform the general public on the Scheme to ensure that it serves its intended purpose, adding that the Project Management Committee of the Scheme will “welcome feedback and constructive critiques in fine-tuning this important national intervention.”
REQUIREMENTS
To be eligible for the Scheme, the applicant must show proof of the following minimum requirements; be a Ghanaian, possess a valid Ghana Card, must be an adult of eighteen (18) years and above, verifiable employment and earned income, must have a verifiable bank statement or mobile money statement, rent payable must not exceed 30 percent of the household income.
APPLICATION PROCESS
The qualified person is expected to identify a property of their preference and notify the NRAS of same through a formal online application. (www.nras.gov.gh)
Applicant must show proof of employment (3 months’ pay slips) and proof of income (3 months bank statements), 2 forms of IDs and pay GH100 application processing fee.
In just 5-10 business days, the Scheme will verify your application and supporting documents, determine your affordability and the ability to pay back.
After applicant has been approved, the Scheme will contact the chosen landlord, inspect the rental property, sign all tenancy documentations and pay the rent advance directly to the landlord.
Tenant takes possession of the rental property thereafter and rent payment is always due on the 1st of each month.
