Tenants slam NHCC price hike

May 17, 2009

UP to 64 families are facing eviction from the Bugolobi Flats belonging to the National Housing and Construction Corporation (NHCC).

By David Mugabe

UP to 64 families are facing eviction from the Bugolobi Flats belonging to the National Housing and Construction Corporation (NHCC).

The NHCC gave a two-week notice to tenants on blocks 31 and 32 on April 17 to either pay sh89m or vacate the premises.

Each block has 32 homes, meaning some 64 families would be affected if the eviction is implemented.

The move has sparked off a spirited fight from the tenants who claimed “foul play” in the revised prices of the flats that were last November sold to sitting tenants at sh47m.

Margaret Muhanga, a parliamentarian and one of the tenants, doubted how the market forces could have led to almost double the flats’ prices in just one year.

“They (NHCC) had set a precedent of increasing by between sh1m to sh3m but you cannot jump to sh89m.

“People got these flats at sh47m just last year,” explained Muhanga.
The tenants have petitioned NHCC and the lands and housing ministry. This has forced NHCC to extend the offer letter to May 25.

The tenants have also complained of the 14-day eviction notice, calling it short.
They also want an explanation on the determination of the sh89m price.

Keith Muhakanizi, the NHCC board chairman, said the price was arrived at by the corporation’s valuer. He ruled out the possibility of changing the price but only promised to look into the 14-day eviction notice.

“Inflation has risen. I have gone by the policy of evaluation.

“I am selling a public good and just doing my job,” argued Muhakanizi.

Last week, the tenants met Omara Atubo, the lands and housing minister, who advised the parties to renegotiate the matter.

Atubo pledged to take up the matter with the finance ministry under which privatised parastatals fall.

Eng. Aaron Kabirizi, the tenant’s spokesperson, disclosed out of the same meeting that NHCC agreed verbally to stay the execution of the eviction notice.

“The minister’s position gives us a bit of hope. “But as to what will come out, we are not sure,” said Kabirizi.

Under the Condominium Property Act 2001, NHCC has sold over 200 flats to sitting tenants in Kololo, Nakasero and Bugolobi. It also plans to sell an additional 1,300 flats in Bukoto, Bugolobi and Wandegeya.

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