Government has commenced the roll out of the National Rental Assistance Scheme (NRAS) to support deserving households to access decent rental accommodation, and effectively protect them from exploitation and burdensome rent advance payments.
Launching the Scheme yesterday in Accra, Vice-President Mahamudu Bawumia said an amount of GH₵30m had been earmarked towards the initial implementation of the Scheme.
The Scheme, which is a key intervention by government, is aimed at providing low-to-middle income earners with a mechanism to pay low monthly rent, which effectively removes the need for rent advance payment, and ultimately improves the quality of rental accommodation, especially in the urban cities.
The Vice-President added that the Scheme is in fulfillment of Government’s manifesto promise to facilitate accessibility and affordability of safe, secure, decent rental accommodation, and ultimately protect these targeted people from unfair burden of multiyear rent advance payments.
He further explained 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 operationalization 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 stated.
Rental accommodation
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.
With potential beneficiaries requiring the Ghana Card as one of the prerequisite requirements to access the Scheme, Dr. Bawumia said the criteria support the call to synchronize all platforms with the National Identification System.
He, however, indicated that “the data produced from the implementation of the Scheme will facilitate government efforts at expanding our revenue stream through the improved collection of Rent Tax.”
The Minister of Works and Housing, Francis Asenso-Boakye, stressed the 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.
He disclosed that Government had 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. He added that these regions, according to the Rent Control Department, are predominantly noted for rent advance payments.
“The objective of government is to operationalize the Scheme throughout the country, through various rental assistance solutions for the improvement of the rental housing market in Ghana,” he added.
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, and must be an adult of 18 years and above
Additionally, the applicant must be in verifiable employment and earned income; must have a verifiable bank statement or mobile money statement, and rent payable must not exceed 30 percent of the household income.
The qualified persons are 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 applications and supporting documents, determine one’s 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.
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