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 Rules & Regulations

Index

1 Rationale
2 Objectives
3 Title, Scope and Commencement
4 Definition
5 Rules of Construction
6 Administration
7 Application for Housing
8 Eligibility
9 Shopping and Office Complex
10 Procedure for Management
11 Rental Charges and Revision
12 Subletting
13 Mutual Transfer
14 Occupancy on Transfer
15 Obligation of Tenant
16 Security Deposit for Rental & Damage
17 Inspection and Damages
18 Handing Over of Housing Unit Upon Allotment
19 Vacation of Housing Units/Shops/Office
20 Payment of Rent
21 Duties of the NPPF
22 Powers to Amend and Make the Rules

Rationale

1 There is a need for judicious, transparent and efficient management of the National Pension and Provident Fund (NPPF) housing facilities on account of the following:
1.1 There is a tremendous requirement for housing unit due to acute housing shortage.
1.2 The benefit of the NPPF housing unit shall be given to the NPPF members.

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Objectives

2 The objectives of the National Pension and Provident Fund Housing Management Rules and Regulations shall be to:
2.1 Facilitate in providing decent housing accommodation to the NPPFP members.
2.2 Enhance returns on the investment of National Pension and Provident Fund.
2.3 Promote a fair, judicious and transparent system of management of housing unit to the members.
2.4 Ensure efficient management of the NPPF housing facilities.

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Title, Scope and Commencement

3 These rules and regulations shall:
3.1 Be called the “National Pension and Provident Fund Housing Management Rules and Regulations 2003”.
3.2 Cover the tenants occupying the NPPF Housing units, wherever applicable.
3.3 Be in force with effect from 2003.

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Definition

4 In these rules and regulations unless the context indicates otherwise, the words, phrases and acronyms are defined as follows:
4.1 NPPF means the National Pension and Provident Fund, its branches, departments, divisions and sections as the case may be.
4.2 NPPFP means the National Pension and Provident Fund Plan.
4.3 Chairman means chairperson of the NPPF Housing Management Committee.
4.4 Tenant means the person one who holds or possesses a rental unit for rent, and includes dependants and authorized agent.
4.5 Illegal Tenant means any person who has taken the possession of the NPPF housing unit or commercial complex/office without the prior approval of the NPPF.
4.6 Sublet means a tenant of the NPPF without prior permission of the NPPF allows another person to occupy the whole or the portion of any of the housing unit allotted to the tenant.
4.7 Dependants include the spouse, parents, legitimate children, adopted children, a minor brother/sister and/or any member of the family.
4.8 Rent means a stipulated amount fixed from time to time by the NPPF required to be paid by the tenant for use or occupancy of property/unit.
4.9 Utility Charges means the charges for the services such as telephone, television, electricity, water, sewerage, etc.
4.10 Defaulter means any tenant who does not pay the rent and utility charges on time.
4.11 Penalty means any appropriate penalties imposed on a tenant by the NPPF for breaching the tenancy agreement and NPPF housing management rules & regulations 2003.
4.12 Tenancy means the possession and occupancy of a rental unit or leased land in consideration for rent over a certain period under the tenancy agreement drawn between the NPPF and a tenant.
4.13 Tenancy Agreement means a written agreement executed between the NPPF the owner or lessor and the tenant or lessee that lays down the terms and conditions of the Tenancy.
4.14 A NPPFP member means a member who participates in the National Pension and Provident Fund Plan.
4.15 A Non-NPPFP member means a pensioner.
4.16 Security Deposit means amount equivalent to two months rent for the category of flat collected from the tenant who is not a NPPFP Member.

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Rules of Construction

5 In these rules and regulations, unless the context indicates otherwise, the singular shall include plural and the masculine gender shall include the feminine gender.

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Administration

6 The National Pension and Provident Fund shall:
6.1 Enforce these rules and regulations in respect of management of NPPF housing units in all locations where the NPPF owns housing properties.
6.2 Constitute an internal NPPF housing management committee headed by the Director or his authorized representative in all matters relating to management of housing unit.
6.3 The NPPF may constitute a special committee for mass allotment of housing units with additional members from the RCSC and the DUDH.

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Application for Housing

7 An application for the NPPF quarter, office and shopping complex shall be addressed to the Director, NPPF, Thimphu.

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Eligibility

8 An active NPPFP member is eligible for the National Pension and Provident Fund housing units based on the following:
8.1 An active NPPFP member shall have applied for the NPPF housing unit and the application must be registered with the NPPF.
8.2 An applicant shall have made at least 12 monthly NPPFP contributions to the National Pension and Provident Fund.
8.3 A member who has been transferred to the places where the National Pension and Provident Fund has housing facilities shall not qualify for allotment of NPPF housing unit immediately upon arrival. He shall submit a fresh application and follow the normal procedures.
8.4 A non-PF member already occupying the NPPF housing unit shall be given reasonable time to vacate the housing unit not exceeding one year from the date of notification.
8.5 In the event any housing unit needs to be converted to any other utility of the Royal Government/NPPF, the affected tenant shall be provided with substitute quarter, subject to its availability.
8.6 An employee on contract, consolidated salary or daily wage shall not be entitled to National Pension and Provident Fund housing unit, unless the situation so demands.
8.7 The personnel of the RBA, RBG and RBP shall not qualify for NPPF housing unit. However, those personnel seconded/deputed to these organizations of armed forces from civil service shall be entitled to housing unit, subject to its availability.
8.8 The management of the NPPF housing unit shall make the allotment of the housing unit, subject to availability of the same.

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Shopping and Office Complex

9 Shopping and office premises shall be leased/rented to the Non-NPPFP members only, subject to the production of valid trade licence.

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Procedure for Management

10 The NPPF shall:
10.1 Allot the housing units based on the principle of “First Come First Serve Basis”. However, the committee may also allot a vacant housing unit based on exigencies.
10.2 Allot shopping and office complex as per procedures set by the NPPF.
10.3 Execute the tenancy agreement with the agency/individual tenant concerned. Both the NPPF and the tenant shall also sign a list of inventory, fixtures, electrical and sanitary items.

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Rental Charges and Revision

11 The NPPF shall:
11.1 Fix the rent in accordance with the type of housing units, shops and offices occupied by the tenant concerned.
11.2 Revise the rent as per the provision of the Tendency Act of the kingdom of Bhutan.
11.3 Intimate the revision of the rent to the tenant concerned in advance.

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Subletting

12 A tenant of the NPPF housing unit shall:
12.1 Not be allowed to sublet the housing unit either in part or the whole to any party/individual, including dependants.
12.2 Occupy the allotted housing unit. If he does not occupy, the same shall be considered as having been sub-let and the tenancy agreement shall be deemed terminated.
12.3 Vacate the flat immediately on receiving the notice from the NPPF if he is found to have sublet the housing unit.
12.4 In case of non-compliance with the provisions of these rules and regulations, the eviction shall be enforced through the court of law.

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Mutual Transfer

13 The NPPF shall:
13.1 Not allow the tenant for informal and mutual transfer of housing unit/shop/office.
13.2 Consider such informal and mutual transfer, as a breach of the agreement and shall deem to have been terminated. The tenant and the unauthorised occupant shall vacate the housing unit immediately on receiving the notice from the NPPF.
13.3 Enforce eviction through the court of law in case of non-compliance with the provisions of these rules and regulations.

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Occupancy on Transfer

14 A member occupying the National Pension and Provident Fund housing unit shall:
14.1 Surrender the same upon transfer from the station for duration beyond six months.
14.2 Be allowed to continue the occupancy of the housing unit if the duration of transfer is six months or less, subject to a written certification from the Head of the agency/department. The certification shall indicate that he is transferred on a temporary basis for a fixed period.
14.3 The violation of the above rule and regulations shall render the occupant of the housing unit as illegal occupant and the agreement shall deem to have been terminated.
14.4 In the case of non-compliance with the provisions of these rules and regulations enforce eviction through the court of law.

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Obligation of Tenant

15 A tenant shall:
15.1 Be responsible for payment of rent, utility and service charges to the authority concerned.
15.2 Not be allowed to build unauthorized structure, disfigure the house or in any way compromise the aesthetic and structural integrity of the building.
15.3 Not be allowed to occupy common utility areas by constructing additional structures such as garages, stores, extensions, etc.
15.4 Not store anything in the passage, staircase and other areas of the buildings.
15.5 Keep the common residential areas and commercial properties of the housing units in good and clean condition.
15.6 Not rear or keep any cattle, pigs, dogs and poultry and other animals at any part of the premises. The pets if at all reared shall be kept indoor and tied in order to avoid littering in the building/premises. In the event of complaint against a tenant for rearing of pets, the National Pension and Provident Fund shall reserve the right to serve notice to vacate the housing unit.
15.7 Stop from causing nuisance or annoyance to neighbours or other tenants or use the premises for immoral or illegal activities.
15.8 Vacate the housing unit upon violation of clauses No. 15.1 to 15.7 as such actions tantamount to the breach of the tenancy agreement.
15.9 A tenant shall be evicted through the court of law in case of non-compliance with the provisions of these rules and regulations.

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Security Deposit for Rental & Damage

16 These rules and regulations shall require:
16.1 The non-NPPFP members occupying the NPPF accommodations to deposit two months rent for the housing unit and the shopping complex towards rental and damage security deposit and the amount collected shall not earn any interest.
16.2 Refunding of the security deposit at the time of vacation of the housing unit/shop, subject to adjustment of damages and recovery of dues, if any.
16.3 The NPPF to mark a lien on the Provident Fund Balance of the members in lieu of the rental and damage security deposit.

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Inspection and Damages

17 A tenant shall:
17.1 Permit the officials concerned of the NPPF to enter the housing unit for inspection, as and when required.
17.2 Pay for damage of any fixtures (electrical and sanitary) caused due to his negligence, the security deposit/PF balance shall be utilized for maintenance. The tenant shall be required to make further security deposit. However, the cost of damage due to normal wear and tear shall be borne by the NPPF.

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Handing Over of Housing Unit Upon Allotment

18 Upon issuing the allotment order by the National Pension and Provident Fund, the housing unit shall be handed over to the tenant concerned with the signing of a tenancy agreement as per the conditions of this rule along with a signed schedule of inventory of all the fixtures including electrical and sanitary fittings.

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Vacation of Housing Units/Shops/Office

19 The NPPF shall:
19.1 Require respective organization to notify the transfer, retirement or termination of a member to the National Pension and Provident Fund for proper implementation of the rule.
19.2 Require the tenant to produce No Objection Certificate from utility authority concerned and physically hand over the housing unit upon resignation/retirement from service.
19.3 Allow the tenants to retain the housing unit upon specific request for a period of not more than three months to complete the formalities like collection of his retirement benefits, arrangement of transport facilities, etc. The housing units shall be taken over by the NPPF on completion of the grace period after collection of all the dues.
19.4 Terminate the tenancy agreement from the date of demise during tenancy period. However, the family of the deceased may be allowed a grace period of two months on specific written request by the kin and the housing unit shall be surrendered to the NPPF on expiry of the grace period. The possession of the housing units shall be taken over by the NPPF on completion of the grace period after collection of all the dues.
19.5 Enforce eviction through the court of law in case of non-compliance with the provisions of these rules and regulations.

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Payment of Rent

20 A tenant of the NPPF housing unit is required to pay rent as per the norms prescribed by the NPPF from time to time. He is required to pay the rent directly to the designated branch of Bank of Bhutan/Bhutan National Bank indicated in the tenancy agreement by using the pre-printed/pre-numbered rent invoices supplied by the NPPF. In the case of institutional/departmental tenants, the institution/department shall deduct the rent from the salary and deposit to NPPF Real Estate Account at the designated banks.
20.1 Refuses to abide by the rules, and/or to vacate the housing unit upon transfer or as required by the NPPF, it shall tantamount to breach of the tenancy agreement and it shall be deemed terminated with immediate effect without any notice. The tenant concerned shall be treated as an illegal tenant and shall be forced to vacate the housing unit with the help of appropriate authorities.
20.2 Fails to pay the rent on time, a penalty of 3% per month on the rental dues shall be levied.
20.3 Fails to abide by the terms of the allotment/tenancy agreement, the matter shall be referred to the Royal Court of Justice.

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Duties of the NPPF

21The NPPF shall:
21.1 Keep the premises fit for decent living.
21.2 Enter the rental unit only with the prior consent of the tenant except in emergency.
21.3 Not evict the tenant during the existence of tenancy agreement without just and sufficient cause.
21.4 Inform and hand over the property left behind by the vacating tenant.
21.5 Not discontinue or withhold any services and facilities enjoyed by the tenant without a just and sufficient cause.
21.6 Notify the tenant on the sale of the rental unit and disclose the name and address of the purchaser and other necessary information for the purpose of tenancy.

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Powers to Amend and Make the Rules

22 The National Pension Board shall have the power to make and amend rules and regulations, as when required.

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