Cabinet Decision No. 48 dated 07/11/2017

Federal Law No. 10 dated 18/07/1999

In the implementation of the provisions hereof, the following terms and phrases shall have the meanings assigned for each of them unless the context requires otherwise:

State: The United Arab Emirates State.

Program: Sheikh Zayed Housing Program.

Chairman: The Chairman of the Board of Directors of the Program.

Board: The Board of Directors of the Program.

Director: The Director General of the Program.

Housing Aid: The aid granted by the Program as governmental residence or financial aid.

Governmental Residence: The adequate residential unit established or purchased by the Program in order to house a UAE family, whether such is an independent house or an apartment.

Financial Aid: Aid provided by the Program as non-refundable financial grant or loan without interests.

Owner: Whoever obtains the property of the governmental residence in accordance with the restrictions set forth herein.

Beneficiary: The person in the benefit of whom a decision to grant them the housing aid is issued.

Sheikh Zayed Housing Program shall remain applicable by virtue of the provisions hereof. It shall report to the Cabinet, and shall have an independent juridical personality and a complete legal capacity to carry out works and actions guaranteeing the achievement thereby of the objectives thereof.

The headquarters of the Program shall be located in the city of Dubai. Branches thereof may be established in all regions of the State by virtue of a Board decision.

The Program shall aim at contributing in the fulfillment of the current and foreseen housing needs of citizens, and such on a decent level and with the required speed as per the provisions of the present Law and the Implementing Regulation thereof.

The Program shall manage its own funds, and shall set a mechanism for the payment of the installments, and such in accordance with the restrictions set by the Board in this regard.

The Program shall be managed by a Board of Directors established by virtue of a cabinet Decision. It shall be constituted of five members at least, including the chairman and vice-chairman. The Director General shall be the rapporteur of the council.

The membership in the council shall be for three renewable years. The Implementing Regulation hereof shall regulate all provisions related to the work statute in the council, including the manner of decision Taking.

The Board shall have the following jurisdictions:

1- Draw the general policy of the Program.

2- Prepare a strategy to house earning citizen on State-level, and review same periodically.

3- Practice necessary jurisdictions for planning and overseeing the program's works.

4- Study applications for the obtainment of housing aid, and issue decisions in this concern.

5- Determine the type of housing aid and the sum of the financial aid granted to the applicant for aid.

6- Consent to the retrieval of the housing aid in cases set forth herein.

7- Issue necessary regulations in order to organize work in the Program.

8- Approve financial programs and restrictions governing same.

9- Appoint an auditor and determine the fees thereof.

10- Consent to the draft budget and final account of the Program, and file them to the Cabinet for approval.

The Program may constitute sub-committees for assistance in the tasks thereof. Such sub-committees may include members from outside the Program. The decision of establishment of sub-committees shall determine their jurisdictions and capacities regarding the object for which they were established.

The Board of Directors shall determine the remuneration of the president and members of sub-committees.

The Program shall have a Director General appointed by virtue of a Federal Decree upon the proposal of the president. The Director General shall undertake the administrative and financial affairs of the Program in accordance with the Law and regulation of the Program and the decisions of the Board.

1- The Program shall provide the following housing aid:

a- Governmental Residences.

b- Financial Aid.

2- The ceiling of the financial aid and of the annual income of the beneficiary to whom the financial aid is granted shall be set by virtue of a decision issued by the Cabinet in accordance with the economic situation, the prices of goods and services and inflation in the State.

3- The Board may exempt certain cases from ceilings set by the Cabinet, and such in accordance with the restrictions set by the Implementing Regulation hereof.

The obtainment of a housing aid shall be subject to the fulfillment by the applicants of the following conditions:

1- They shall be a citizen.

2- They shall provide for a family. Shall be exempt from this condition:

a- People with special needs.

b- Elderly.

c- Orphans.

and such in accordance with the provisions set forth in the Implementing Regulation hereof.

3- They shall not own an adequate family residence.

4- They shall not have already obtained a housing aid from any governmental entity, with the exception of the case where the house thereof is inappropriate for residence and for family needs, provided that fifteen years have elapsed from the date of receiving the housing aid.

The text of Clause (5) of Article (11) was amended by virtue of Article (1) of Cabinet Decision No. 48 dated 07/11/2017 to read as follows:

5-They shall not have already transferred the ownership of an adequate residence, unless at least 15 years have lapsed from the date of such transfer, except where the residence upon transfer was uninhabitable or inappropriate for the family needs indicated in the Implementing Regulation of the present Law.

6- The sum of their income and properties shall not allow them to own an adequate residence or make the necessary addition or complete the construction of a new residence, and such in accordance with the restrictions set forth by the Implementing Regulation hereof.

The Cabinet may amend such conditions in accordance with the requirements of the workflow of the Program.

Subject to the provisions of Article 11 hereof, female citizens shall be entitled to a housing aid in accordance with the Law and in the following cases:

1- Widows having custody of their children.

2- Divorced women having custody of their children, should the father thereof be incapable of providing residence for their children.

3- Orphans without legal providers.

4- Unmarried orphans having reached 30 years of age.

5- Women married to non-citizens provided that they have children residing in the State should the father of the children be incapable of providing adequate residence to the family.

The Implementing Regulation hereof shall set the necessary restrictions for the implementation of the present Article.

Application for the said residential aid shall be submitted to the Program in accordance with the form set for this purpose, in which the data set forth therein are fulfilled, provided that corroborative documents thereof shall be submitted upon request.

The Program shall coordinate with the competent authorities in the emirate where the applicant resides or with any other emirate in order to verify the genuineness of the data of the application.

Should the applicant for the residential aid pass away prior to the settlement of the application thereof, all or some members of his family thereof depending thereon prior to his death shall replace him depending on the fulfillment of the necessary conditions therein.

The Chairman, subsequent to the consent of the Board, shall issue a decision regarding the obtainment by the applicant to the housing aid of a governmental residence. The minutes of the delivery of the governmental residence signed by the beneficiary shall determine the number of the residence allocated thereby.

The Program may build governmental residences on a land owned by the applicant in accordance with the restrictions set by the Implementing Regulation hereof.

Every beneficiary in whose favor a decision regarding the obtainment of a governmental residence is issued, and refuses to receive same or a period of 90 days elapsed from the date of receipt thereof in accordance with the delivery minutes without being occupied by the beneficiary without acceptable reason, his right therein shall abate. Should he desire to obtain a housing aid, he must submit a new application.

1- The beneficiary having obtained a governmental residence shall not dispose thereof by way of sale, trade or grant, and shall not assign same to a third party, or cause any original or subordinate rights in real. Furthermore, he shall not use the governmental residence for other than residency, and shall exercise due diligence in the use and preservation thereof. The Program shall take the procedures set by the Implementing Regulation hereof should the obtainer of the residence breach such commitments.

2- The beneficiary may rent his governmental residence upon the consent of the Board and in accordance with the restrictions set by the Implementing Regulation hereof. The consent of the Board is required should it be proven that the beneficiary is employed abroad.

3- The actions of the beneficiary or inheritors thereof breaching the provisions hereof shall be void. No legal effect shall result thereof, whether among contractors or third parties, and such action may not be registered.

In the event of death of the beneficiary having obtained the governmental residence prior to the obtainment of the title deed of the residence, the Program shall allocate such residence to the members of the family thereof dependent thereon when still alive, and who fulfill the conditions of entitlement to the housing aid.

Should the beneficiary of a governmental residence be a group of members of one family, any thereof may submit a private request to obtain a housing aid, and such whenever he becomes a family provider an fulfills in an independent manner the conditions of entitlement to the aid, set forth herein.

The competent authorities in the UAE shall issue a title deed of the residence without fees upon the decision issued by the Chairman to give ownership of the residence, after the elapse of one year from the date of delivery of the residence to the beneficiary.

The financial aid shall be granted to the beneficiary in order to carry out one of the following:

1- Build a new residence or complete a residence which building has already started.

2- Maintain and/or expand a residence.

3- Purchase a residence or residential apartment adequate to the family.

4- Settle the amount of a loan taken by the applicant from another party for residence, provided that three years has not elapsed since the payment of the first installment of the loan taken from said party.

The beneficiary having obtained a financial aid may use the sum of such aid in maintaining, expanding, building, or purchasing more than one residence should his familial circumstances so require, and such in accordance with the restrictions set forth in the Implementing Regulation hereof.

The financial aid may not be used for maintenance or expansion should the residence, subject of such activities, is inadequate for residence.

In certain cases, the Program may build a residence for the beneficiary having obtained a financial aid, and such on a land owned thereby, provided that the beneficiary pays any sums exceeding the sum of the financial aid, and such in accordance with the restrictions set forth in the Implementing Regulation hereof.

Should the financial aid be for the purchase of a residence, such residence must be already built, adequate for residence, and ready for delivery on the date of consent to the financial aid. The residence intended to be purchased may be under construction in accordance with the restrictions set forth in the Implementing Regulation hereof.

Should the price of the residence intended to be built or purchased exceed the amount of the financial aid, the applicant for such aid shall commit to provide the exceeding amount.

The Chairman shall issue a decision of obtainment of the financial aid subsequent to the consent of the Board.

Every beneficiary in the benefit of whom a decision of obtainment of a financial aid is issued, and failed to start the procedures to benefit therefrom within one year from the date of publication of the decision in the media, his right to the financial aid shall abate. Should he desire thereafter to obtain a financial aid, he must submit a new application in accordance with the provisions of the present Law and the Implementing Regulation thereof.

The beneficiary may rent the residence thereof funded by a financial aid in accordance with the restriction set forth in the Implementing Regulation hereof.

Should the beneficiary of a financial aid be a group of members of one family, any thereof may submit a private request to obtain a financial aid, and such whenever he becomes a family provider an fulfills in an independent manner the conditions of entitlement to the aid, set forth herein.

The priority in benefiting from a financial aid shall be in accordance with the restrictions set forth in the Implementing Regulation hereof.

1- The granting of a loan for building a residence shall be subject to the fulfillment of the following:

a- The applicant for the loan shall own the land where the residence shall be built. He shall submit documents corroborating that such land is registered under his own name and free of any mortgages, or that he has obtained same through a grant from any governmental authority. He may be partner in the ownership of the land with his spouse or any of his dependent children.

b- The applicant for the loan shall mortgage the entire land for the benefit of the Program until the payment of the amount of the loan, or until submitting any other collateral acceptable by the Program.

2- The debtor shall commit to the following:

a- To use to loan in full for the residence.

b- To pay up the loan as per the rules and provisions set forth in the Implementing Regulation hereof.

c- To carry out the procedures and activities prior to the purchase of the residence or the building thereof, and such in accordance with the provisions set forth in the Implementing Regulation hereof.

d- To use the loan in complete works sufficient to provide a residence in accordance with the restrictions set forth in the Implementing Regulation hereof.

3- The applicant for the loan shall be exempt from mortgage fees entitled to the competent authorities.

In case the debtor fail to pay four consecutive or non-consecutive monthly installments in any year of the debt years, the Board may take the procedures set forth in the Implementing Regulation hereof.

1- Upon the application submitted thereto by the debtor, the Board may postpone the payment of due installments, decrease the amount thereof or exempt the debtor from a part or the entire sum thereof, and such in case the total income of the debtor decreases due to circumstances estimated by the Board, and in accordance with the restrictions set forth in the Implementing Regulation hereof in this regard.

2- The debtor shall be exempt from the payment of 20% of the sum of the loan in case he settles the entire sum during the first ten years, and of 10% thereof in case he commits to the payment of the installments in their set due dates.

3- In the event of the death of the debtor, the Board may exempt the inheritors thereof from the settlement of the loan.

The financial resources of the Program shall constitute of:

1- Annual financial credits allocated thereto from the State budget, provided that they are not less than AED 640 million.

2- Revenues of activities offered by the Program.

3- Grants, donations, endowments, and aids granted to the Program and accepted by the Board.

4- Surplus achieved through the execution by the Board of the budget thereof for the previous fiscal years.

The fiscal year of the Program shall commence as of the first of January and end on the thirty first of December of every year.

The Program shall be exempt from the taxes and fees determined in the State.

The application for the obtainment of the housing aid shall be cancelled should the applicant intentionally submit wrong data, or uses deceit, or submits falsified deed, and such without prejudice to the right of the Program to take adequate legal action against the applicant.

In all cases, any application for the obtainment of a housing aid submitted by an applicant whose application is cancelled for the reasons set forth in the preceding paragraph shall be rejected, and such for a period of three years from the date of cancellation of the previous application.

1- Without prejudice to any severer sanction set forth in any other law, whoever obtains a housing aid in accordance with the provisions hereof through deceit, falsification or the intentional submission of wrong data shall be sentenced to imprisonment for a period of two years at least and a fine amounting to AED 100.000, or to either penalties.

2- The housing aid submitted to the beneficiary shall be retrieved in case he was indicted in a final judgment in accordance with the following conditions:

a- In case of loan, all unpaid installments shall be deemed payable in one installment.

b- In case of financial grant or in case the Program built a governmental residence on a land owned by the beneficiary in accordance with ha title deed, the sum of the financial aid shall be retrieved all at once or in accordance with the decision taken by the Board in this regard.

c- In case the governmental residence built on a land allocated for the government, the residence shall be evacuated and delivered to the Program. Any person from whom the residence was retrieved shall not be indemnified for any additions made to the residence, except for the cases deemed indemnifiable by the Board. The indemnification thereof shall then be estimated by a specialized committee in accordance with the provisions set forth in the Implementing Regulation thereof in this regard.

The person from whom the housing aid is retrieved shall bear all damaged incurred therefrom. The Program may claim any expenses made thereby, and any necessary indemnification, and may take all legal procedures deemed adequate thereby for the retrieval of the housing aid.

3- The Board shall retrieve the housing aid as per the retrieval conditions set forth in the previous clause, in case the beneficiary loses the nationality of the State or in case such nationality was withdrawn therefrom.

Without prejudice to any severer sanction set forth in any other law, every contractor or consultant whose conspiracy with the beneficiary of a financial aid in order that such aid is not used in full for the purpose for which it is granted is proven shall be sentenced to imprisonment for a period of one year at least, and to a fine amounting to AED 100.000, or to either penalty.

The Program shall take all necessary legal procedures against mentioned persons to retrieve unduly spent sums.

The Cabinet shall issue the Implementing Regulations and the necessary decisions for the implementation of the provisions hereof upon the recommendation of the Board.

Federal Law no. 10 of 1999 regarding Sheikh Zayed Housing Program shall be abrogated, without prejudice to any rights or commitments incurred thereby. All regulations and decisions issued in implementation of the provisions thereof shall remain in force until the issuance of the regulations and decisions in implementation of the provisions of the present Law, and such without contradicting the provisions hereof.

Furthermore, any provisions contradicting or contravening the provisions hereof shall be abrogated.

The present Law shall be issued in the Official Gazette, and shall come into force as of the day that follows the date of publication thereof.