Law No. (4) of 2011
Concerning the
Mohammed bin Rashid Housing
Establishment[1]
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We, Mohammed bin Rashid Al Maktoum, Ruler
of Dubai,
After perusal of:
Law No. (3) of 2003 Establishing the Executive Council of
the Emirate of Dubai;
Law No. (20) of 2006 Establishing the Mohammed bin Rashid
Housing Establishment and its amendments;
Law No. (27) of 2006 Concerning Management of the
Government of Dubai Human Resources and its amendments; and
Law No. (35) of 2009 Concerning Management of the Public
Funds of the Government of Dubai,
Do hereby issue this Law.
This Law will be cited as “Law No. (4) of 2011
Concerning the Mohammed bin Rashid Housing Establishment”.
The following words and expressions, wherever
mentioned in this Law, will have the meaning indicated opposite each of them unless the context implies otherwise:
|
Emirate: |
The Emirate of
Dubai. |
|
Ruler: |
His Highness the
Ruler of Dubai. |
|
Government: |
The Government
of Dubai. |
|
Executive
Council: |
The Executive
Council of the Emirate of Dubai. |
|
MRHE: |
The Mohammed bin
Rashid Housing Establishment. |
|
Board of
Directors: |
The board of
directors of the MRHE. |
|
Chairman: |
The chairman of
the Board of Directors. |
|
CEO: |
The chief
executive officer of the MRHE. |
|
Housing
Services: |
The various
housing solutions provided by the MRHE. This includes granting land plots;
constructing dwellings; giving loans or financial grants for the purpose of
constructing dwellings, covering the costs of their maintenance, or
reconstructing or extending existing dwellings; allocating move-in ready
dwellings located within the residential compounds owned by the MRHE; renting
out dwellings; and providing any other housing solutions determined by the
Board of Directors. |
|
Beneficiary: |
A person who
receives a Housing Service pursuant to this Law. |
The provisions of this Law will apply to the
Mohammed bin Rashid Housing Establishment established pursuant to Law No. (20)
of 2006 as a public corporation having legal personality, and the capacity
required to undertake all acts and dispositions that ensure the achievement of
its objectives.
The head office of the MRHE will be located in
the city of Dubai.
The MRHE aims to contribute to providing
eligible Beneficiaries with Housing Services based on the established
priorities and in line
with the Beneficiaries' needs in order
to guarantee them a decent living, and to maintain the characteristics and features of the residential compounds the MRHE builds.
For the purpose of achieving its objectives,
the MRHE will have the duties and powers to:
1. grant
residential land plots to Beneficiaries;
2. construct
dwellings and residential compounds and allocate them to Beneficiaries;
3. rent
out dwellings to Beneficiaries;
4. provide
soft loans and financial grants for the purpose of constructing or buying
dwellings; covering the costs of
their maintenance; or extending or reconstructing
existing dwellings;
5. refurbish
the dwellings of UAE nationals located in old areas of the Emirate in order to
encourage residents
to settle in such areas and
improve Housing Services therein;
and perform any act it deems appropriate in these areas, including buying, owning,
reconstructing, or restoring dwellings,
in coordination with the competent Government Entities;
6. own, build, lease, and
rent out land plots and other real property;
7. design
and construct, by itself or through corporations and companies contracted for
this purpose, residential units and compounds to accommodate Beneficiaries; and design and
implement the utility works
related to
these residential units and compounds in coordination with the competent
Government Entities;
8. establish
corporations and companies that support the MRHE in achieving its objectives,
including those related to dwelling construction, maintenance, and restoration;
9. manage
the financial operations
related to housing loans by itself or through any financial or banking
institutions contracted for this purpose; and
10. provide
any other Housing Services the Board of Directors deems conducive to achieving
the objectives of the MRHE.
The MRHE will have a capital of twelve billion
Dirhams (AED 12,000,000,000.00) paid up by the Government.
The MRHE will be supervised by a Board of
Directors comprised of a Chairman, a vice chairman, and a number of members
appointed for a renewable period of three (3) years pursuant to a decree of the
Ruler.
The Board of Directors is the highest authority
of the MRHE. In this capacity, the Board of Directors will have the authority
to:
1. set,
and oversee the implementation of, the general policy of the MRHE;
2. consider
Housing Service applications and issue the relevant resolutions;
3. approve
the grant, withdrawal, and recovery of Housing Services in the cases prescribed
in this Law and the resolutions issued in pursuance hereof;
4. approve
the draft annual budget and financial statements of the MRHE;
5. determine
the amounts
of loans and financial grants provided by the MRHE;
6. contract
companies, corporations, and other entities for the purpose of implementing
housing projects or managing the financing of such projects;
7. form
permanent or temporary sub-committees that will assist it in performing its
duties, and determine their duties and powers. The resolutions of such
sub-committees will be enforceable only upon their approval by the Board of
Directors;
8. issue
the resolutions and regulations that are required to regulate the work and
services of the MRHE;
9. delegate
any of its
powers to the CEO; and
10. exercise
any other duties or powers related to the MRHE objectives.
a. The Board of Directors will convene at the invitation of the Chairman at least
once every two (2) months or where necessary. Meetings of the Board of
Directors will be valid if attended by the majority of its members, provided that the Chairman or vice chairman is in attendance.
Resolutions of the Board of Directors will be passed by majority vote of
attending members, and in the event of a tie, the chair of the meeting will
have a casting vote.
b. The
minutes of meetings of the Board of Directors will be entered in records
signed by the chairs
of the meetings
and attending members.
c. The
Board of Directors may, as it deems appropriate, invite experts and specialists
to attend its meetings, but they will have no vote.
a. The
MRHE will be managed by a CEO,
who will be appointed pursuant to a resolution of the Chairman of the Executive
Council.
b. The
CEO will have the duties and powers to:
1. propose
the
strategic plans of the MRHE and submit the same to the Board of Directors for
approval;
2.
implement
the approved general policy and the resolutions issued by the Board of
Directors;
3.
prepare
the draft annual budget and financial statements of the MRHE, and submit the
same to the Board of Directors for approval;
4.
propose
the implementing bylaw of this Law, and submit the same to the Board of
Directors for approval;
5.
propose
the initiatives, programmes, and projects pertaining to the work and activities
of the MRHE;
6.
appoint
and supervise the employees of the MRHE and issue the decisions related to
them;
7.
represent
the MRHE before third parties;
8.
take
the necessary action to manage the daily work of the MRHE; and
9.
exercise
any other functions delegated to him by the Board of Directors.
c. With
the exception of the powers delegated to him by the Board of Directors, the CEO
may, as he deems appropriate, delegate any of his powers under this Law to any
of the MRHE employees.
The MRHE must register a first ranking mortgage
in its favour in respect of the land plots and other real
property subject of the Housing Services it finances and in respect of the
dwellings whose purchase it finances. The MRHE may also take any other legal
action it deems appropriate to preserve its rights.
a. The
implementing bylaw of this Law will prescribe the requirements for availing of
the Housing Services.
b. Pursuant
to a resolution of the Ruler or the Chairman of the Executive Council, a person
may be exempted from meeting any requirements for availing of the Housing
Services.
Applications for Housing Services will be submitted
to the MRHE on the forms prescribed for this
purpose. These
applications must meet the prescribed requirements and include the required information. The
MRHE may request any documents it deems necessary to validate the information
included in the applications. The applications will be
considered and determined in accordance with the provisions of the implementing
bylaw of this Law.
a. Neither
a Beneficiary nor his heirs after his death may dispose of any granted dwelling
or land plot in any manner that involves transfer of ownership without
obtaining the approval of the Ruler.
b. A
Beneficiary or his heirs after his death may dispose of any granted dwelling or
land plot in any manner that relates to its use or utilisation in accordance
with the implementing bylaw of this Law.
c. Any
disposition undertaken or any agreement made in breach of the
provisions of this Article will be void and may not be registered or have any
legal effect against the MRHE or third parties.
A
financial loan will be provided to a
Beneficiary pursuant to a contract concluded between him and the MRHE. This
contract will state the amount and purpose of the loan, as well as the
collection method, instalments, term, and guarantees of
the loan, and any other conditions the MRHE
deems appropriate.
Loans will be collected in monthly instalments
whose amounts are determined in accordance with the rules and
standards stipulated in the implementing bylaw
of this Law. In determining the amounts of these instalments, the monthly
income of the Beneficiary will be taken into consideration, and the term of the loan must
not exceed twenty-five (25) years.
a. In
case of death or partial or complete disability of the borrower which led to a
decrease in his income, or in case of compelling circumstances that render him
incapable of paying the loan instalments, the Board of Directors may, upon the
request of the borrower or his heirs, as the case may be, cease or defer the monthly deduction of loan instalments or
decrease their amounts.
b. The
MRHE may, in accordance with the requirements of the public interest, insure
the loans it provides to Beneficiaries to cover any risks that may arise as a
result of failure by Beneficiaries to repay loans in whole or in part.
c. A
Beneficiary may be exempted from paying his loan instalments in whole or in
part pursuant to a resolution of the Ruler.
Where a Beneficiary fails to settle three (3)
consecutive payable instalments, the loan provided to the Beneficiary, or any
outstanding balance thereof, will become immediately due for payment. Where no
settlement is reached with the Beneficiary, the MRHE may, pursuant to a
resolution of the Board of Directors, proceed with the execution on his
property to recover the outstanding amount of the loan or payable instalments. The resolution of the Board of Directors in this
respect will be deemed a writ of execution which is enforceable
through the Execution Department of the Dubai Courts. The decisions of the Execution
Judge in this respect will be final, and will not be subject to any form of
appeal or challenge of execution by the Beneficiary.
a. In
addition to claiming from the Beneficiary any financial liabilities owed by him
to the MRHE, the Board of Directors may withdraw a Housing Service from the
Beneficiary in any of the following cases:
1. where
he provides
false information, commits fraud, or submits forged documents when applying for
a Housing Service;
2.
where
he commits any act or undertakes any legal disposition stipulated in Article
(15) of this Law; or
3.
where
he ceases to meet any of the requirements for availing of the Housing Service.
b. A
violating Beneficiary must surrender
the property subject of the obtained Housing Service
within thirty (30) days from the issue date of the withdrawal decision, failing
which the decision will be executed through the Execution Department of the
Dubai Courts as a writ of execution. The decisions of the Execution Judge in
this respect will be final and will not be subject to any form of appeal or
challenge of execution
by the Beneficiary.
c. A
Beneficiary whose Housing Service is withdrawn will forfeit his eligibility for other Housing Services for a period of three (3)
years from the issue date of the withdrawal decision.
Without prejudice to any stricter penalty
stipulated in any other legislation, a contractor, an engineering
consultant, or any other person who is proven to have colluded with a
Beneficiary for the purpose of unlawfully
obtaining a Housing Service or using such
service for other than its intended purpose will be punished by imprisonment
for not less than one (1) year and not more than two (2) years and a fine of
not less than fifty thousand Dirhams (AED 50,000.00) and not more than one
hundred thousand Dirhams (AED 100,000.00), or either of these penalties.
The MRHE employees nominated by the CEO will
have the capacity of law enforcement officers to record the acts committed in
breach of the provisions of this Law and the resolutions issued in pursuance
hereof. In this capacity, they may issue the necessary violation reports.
The Government will not be liable for any debts
or obligations arising from the operations of the MRHE or from the exercise by
the MRHE of the powers and duties stipulated in this Law or its implementing
bylaw.
The MRHE property is deemed public property and
any debts owed to the MRHE will be deemed preferential debts that have priority over any mortgage or security interest, and must therefore be collected before the payment of any other entitlements, except judicial fees.
The financial resources of the MRHE will consist of:
1. the support provided by the Government in the form of moveable and immoveable
property;
2. the
revenue generated from its activities; and
3. the
gifts, donations, and any other resources approved by the Executive Council.
In regulating its accounts and records, the MRHE will apply
the rules and principles of commercial accounting. The financial year of the
MRHE will commence on 1 January and will end on 31 December of each year.
The Chairman of the Executive Council will issue the
resolutions required for the implementation of the provisions of this Law.
a. This Law supersedes Law No. (20) of 2006 Establishing the Mohammed bin Rashid
Housing Establishment and its amendments.
b. Any
provision in any other legislation will be repealed to the extent that it
contradicts the provisions of this Law.
c. The
bylaws and resolutions that are relevant to the MRHE and applicable before the
effective date of this Law will remain enforceable, to the extent that they do
not contradict the provisions hereof, until new superseding bylaws and
resolutions are issued.
This Law will be published in the Official Gazette and will
come into force on the day on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler
of Dubai
Issued in Dubai on 24 February 2011
Corresponding to 21 Rabi al-Awwal 1432 A.H.
©2019 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict, the Arabic text will prevail.