Addis Ababa Condominium and Commercial Property Transfer Directive No. 66-2013

Condominium and Commercial Property Transfer Directive No. 66-2013 Download

I. Introduction and Background

The Addis Ababa City Administration, through its Housing Development and Administration Bureau (hereinafter referred to as “the Bureau”), issued Directive No. 66-2013 in Sene 2011 E.C. (June 2019 Gregorian Calendar). This directive was promulgated to establish a comprehensive, transparent, reliable, and accountable framework for the transfer of condominium residential and commercial units to their rightful beneficiaries within the city. It acknowledges the city administration’s continuous commitment to expanding housing development programs and recognizes the imperative for an updated procedural guideline. This need arose particularly after the reorganization of executive bodies under Proclamation No. 64/2011, which led to the merger of the Addis Ababa Saving Houses Development Enterprise and the Housing Development Project Office, culminating in the formation of the Housing Development Corporation (hereinafter referred to as “the Corporation”).

The overarching aims of this directive are multifaceted:

To refine and enhance previous procedures that exhibited operational deficiencies.
To forge a unified and consistent guideline for property transfer, aligning with the provisions of Proclamation No. 64/2011.
To clearly delineate the entire process, from property handover to title transfer and loan repayment, ensuring the involvement and clarity for all pertinent stakeholders.
To meticulously specify the preconditions that successful applicants must satisfy to qualify for unit allocation.
To systematically address and resolve public grievances that may arise during the property transfer process.
To unequivocally establish the responsibilities and accountabilities of all implementing bodies involved in the housing transfer scheme.

II. Key Definitions

For clarity and consistency, the directive provides precise definitions for several key terms:

City: Refers to Addis Ababa City.
Administration: Denotes the Addis Ababa City Administration.
Bureau: Specifically means the Addis Ababa City Administration Housing Development and Administration Bureau.
Corporation: Refers to the Addis Ababa City Administration Housing Development Corporation.
Housing Development Program: Encompasses condominium houses developed under various schemes, including 10/90, 20/80, 40/60, and other similar initiatives.
House: A unit within a common building, intended for either residential or commercial occupancy.
Common Use: Designates areas outside individually held units that are designated for the collective benefit and use of residents.
Accessible House: A residential unit situated on the ground floor or a relatively lower floor, designed for ease of access.
Commercial House: Units constructed on lower floors of 20/80, 40/60, and other residential programs, specifically for commercial purposes, and typically sold through auction.
Proclamation: Refers to the Addis Ababa City Administration Executive Bodies Reorganization and Powers and Duties Determination Proclamation No. 64/2011.
Person: Denotes a natural person or a legally recognized entity.
Bank: Refers specifically to the Commercial Bank of Ethiopia.
Eligible Houses for Transfer: Signifies completed houses that have obtained the necessary occupancy permits.

III. Scope of Application and Guiding Principles

A. Scope of Application

This directive’s provisions extend to all condominium residential houses constructed under the 10/90, 20/80, 40/60, and other housing development programs within Addis Ababa. This includes units that have already been built or are slated for future construction by the Corporation and are designated for transfer by the Administration.

B. Guiding Principles

The transfer of condominium and commercial units under this directive is underpinned by several fundamental principles designed to ensure fairness, transparency, and public trust:

Information Access: Ensuring that applicants have clear and comprehensive access to information regarding the lottery process and its various stages.
Modern Information System: Organizing prepared houses with a modern information system to guarantee a reliable and equitable lottery and transfer process.
Accountability: Upholding clarity in decisions, actions, responsibilities, and accountability across all levels of implementation.
Participatory and Trustworthy Operation: Operating in a manner that encourages public participation and fosters trust among the citizenry.

IV. Objectives

The primary objectives of Directive No. 66-2013 are to enhance previous procedures, establish a unified guideline, and guarantee a fair and transparent process for the transfer of condominium houses, built under various programs, to their rightful beneficiaries.

V. Property Management and Transfer Mechanism

A. Verification and Organization of Property Information

The Corporation bears the responsibility for receiving, organizing (in both hard and soft copies), and meticulously verifying information concerning properties ready for transfer from developers. This includes assessing the construction stage and confirming eligibility for transfer. A crucial precondition is that occupancy permits must be secured before any eligible house can be transferred. Furthermore, key infrastructure, such as roads, site work, electricity, water, and sewage systems, must be verified as complete. The Corporation is tasked with organizing property data comprehensively by sub-city, site, block, floor, size, bedroom type, and service type, assigning unique identification numbers to each unit. The Corporation is also responsible for the safeguarding of these properties until their official transfer.

B. Property Transfer Price

The transfer price for residential units is determined based on direct and indirect construction costs, differentiated by typology, block, and house type. The initial transfer price for residential units and the starting bid price for commercial units are proposed by the Corporation to the Bureau for Board approval, following thorough studies. Once approved, these transfer prices remain in effect, with applicable bank interest calculated periodically until a new price determination.

C. Down Payment Amounts

The directive specifies the minimum down payment percentages required before the signing of a contract:

10/90 program: 10% of the total transfer price.
20/80 residential: 20% of the total transfer price.
40/60 residential: 40% of the total transfer price.
20/80 & 40/60 commercial: 50% (subject to revision by the Board as needed).
Other programs: Down payments determined by the Board periodically.

D. Remaining Payment and Grace Period

The repayment period for the remaining balance, following the bank’s grace period (which commences the next working day after its expiry), is structured as follows:

20/80 Residential & Commercial:
- 10/90, Studio, 1-bedroom: Up to 20 years.
- 2-bedroom: Up to 15 years.
- 3-bedroom: Up to 10 years.
- Commercial: 5 years.
40/60 Residential & Commercial:
- 1-bedroom: 10 years.
- 2-bedroom: Up to 12 years.
- 3-bedroom: Up to 17 years.
- Commercial: 5 years.

E. Condominium Transfer System

After accounting for units reserved for development-induced displacements, the remaining residential units are allocated through a lottery system. Commercial units, conversely, are exclusively transferred through open auctions. The City Mayor holds the authority to approve direct sales of condominium units under special circumstances and can also authorize the transfer of commercial units at their current initial price. The Board may also grant special authorization for the transfer of commercial units at the current initial price to government institutions and unemployed individuals organized in associations. Commercial units that remain unsold after auctions may be offered for rent, based on a rental rate proposed by the Corporation and approved by the Board, with periodic reviews of the rental rate. The Board determines the number of residential units to be held in reserve for development-induced displacements to expedite urban development, with the Bureau having the discretion to increase this number if evacuees exceed the reserve. The allocation of replacement houses for evacuees under the 40/60 program is implemented based on periodic Board decisions. The Corporation may propose to the Board to convert commercial units to residential units at the current transfer price under compelling circumstances and with convincing reasons.

VI. Beneficiary Identification and Lottery Process

A. Verification and Preparation of Residential Beneficiary Data for Lottery

The Bureau is responsible for organizing the data of registered home seekers by program and bedroom type, verifying its completeness, and submitting the data of eligible applicants to the Corporation prior to the lottery. The Bureau also verifies that home seekers have correctly deposited the required savings in the Commercial Bank of Ethiopia before the lottery. The Corporation is mandated to properly organize and safeguard the data of eligible registrants received from the Bureau, using it solely for its intended purpose. The Bureau periodically receives and updates saver information from the bank.

B. Identification of Special Beneficiaries

The Bureau maintains and verifies gender-disaggregated data, with a priority allocation of 30% of beneficiaries for female registrants. Based on government decisions, 20% of beneficiaries are prioritized from government employees registered as home seekers, with their employment status verified by the Bureau. Furthermore, based on special decisions of the City Administration, 5% of beneficiaries are prioritized for persons with disabilities, with their data organized, completeness verified, and updated based on medical evidence if disability occurs after registration.

C. Lottery Implementation

Existing registrants of the 20/80 program are granted priority rights until their numbers are exhausted, after which new registrants are considered. Government employees are processed within the existing and new registrant categories according to their registration order. Registrants of the 40/60 program become eligible for the lottery if they have saved 40% or more of the required amount.

D. Pre-Lottery and Lottery Procedures

The Corporation is authorized to conduct lotteries for condominium units at any stage of construction, though sales contracts are only executed after fulfilling the preconditions outlined in Articles 7 and 8. A technical committee, comprising experts from relevant institutions and the Corporation, is formed to oversee the lottery system. This committee ensures the accurate uploading of eligible registrant data into the lottery software before the lottery date and verifies the precise loading of both eligible registrant and prepared house data into the software. The lottery software’s functionality is rigorously tested at least three times in the committee’s presence, with test results verified and securely saved to ensure transparency and accountability. Following successful testing, the computer and associated equipment containing the lottery data are sealed in a room under the signatures of the technical committee members until the official lottery ceremony commences.

The lottery date, time, and location, along with the number and type of houses and their transfer prices, are publicly announced through media at least two days in advance. Invitations are extended to various bodies and public representatives to attend the ceremony. On the lottery day, the sealed package is opened in the presence of those who sealed it. The lottery is conducted publicly with live media coverage. The list of successful home beneficiaries is verified and signed by selected observers, then submitted to the Bureau and the Corporation, and subsequently published in a newspaper by the Corporation. Both soft and hard copies are distributed to relevant bodies, and the Corporation is required to maintain a backup of data for both successful and unsuccessful registrants.

E. Priority Rights from Lottery-Prepared Houses

The allocation of houses from the lottery prioritizes specific groups:

Women: 30%
Government Employees: 20%
Persons with Disabilities: 5%

The remaining 45% of houses are allocated through a lottery involving all eligible registrants who did not win under the priority categories. Registrants with health conditions causing disability, upon submitting a legal medical board decision from a recognized hospital after the sales contract but before the bank loan agreement, are facilitated to obtain accessible houses. This right extends to those with a disabled spouse or child. Requests for accessible houses must be submitted with supporting documents during the contract signing period before its completion. Requests after this date are not accepted, except for valid reasons, in which case they must be submitted before the bank loan agreement. If an accessible house is not available at the allotted site, the Corporation can allocate a replacement house at other sites with available units.

F. Notification to Successful Applicants

The list of successful applicants, along with required preconditions and deadlines for contract signing, is publicized through various media channels and on the websites of the Bureau and the Corporation. The list is also displayed by sub-city, site, block, and house type at the housing administration offices of each sub-city and woreda. Any request for site changes by an individual who received a condominium through the lottery is not accepted, except when an accessible house is allocated due to disability or infirmity and is not available at the original site.

G. Preparation of Necessary Forms for Successful Applicants

The directive mandates that the content of specific forms be attached as appendices, including:

Payment order form (Form 03): To notify the bank for full payment by the successful applicant based on the current transfer price, or for deduction from savings and any excess prepayment from the remaining 80% or 60%.
House sales contract (Form 09): Including a declaration by the beneficiary (and spouse) that they do not own a residential house or building plot in Addis Ababa or have not transferred a house received under the city administration’s housing development program (since 1997 E.C.) through sale or gift to a third party.
Notification form for house lottery winners: Acknowledging receipt of the condominium keys.

H. Preconditions to be Met by Successful Applicants

Successful applicants must meet a detailed set of preconditions:

Present the home seeker registration confirmation card and printout, or a police confirmation letter if documents are lost.
For 40/60 program registrants, provide a letter from the bank confirming registration and savings.
Present a current and renewed residence identity card.
Provide a marriage certificate or confirmation of marital status (single).
Declare that they (and their spouse) do not own a residential house or building plot, or have not transferred a house received since 1997 E.C. through sale or gift. If living in a government-rented house, they must provide evidence of commitment to hand over the house to the administration upon receiving the lottery-won house.
Notwithstanding the above, individuals who previously owned a private residential house that was sold due to foreclosure, with proceeds fully transferred to the lending institution, and registered for the condominium after the sale, may be eligible as they did not benefit from the sold house.
Provide four passport-size photographs taken at the time of the house contract.
If represented, provide a legal and renewed power of attorney, the representative’s renewed identification, and proof of the representative’s identity and residence from their woreda. If a guardian, provide court-issued guardianship confirmation.
Ethiopian home lottery winners under the 20/80 program living abroad will be processed with a renewed passport after their citizenship non-change is confirmed by the Ethiopian embassy in their country of residence.
Ethiopian or foreign citizens of Ethiopian origin registered under the 40/60 program living abroad can be processed based on their renewed passport and related supporting documents.
If a husband and wife jointly registered under the 20/80 program and the spouse of the lottery winner has changed citizenship, the lottery winner will be processed. Additionally, if the main registrant has changed citizenship but the spouse has not, the spouse with unchanged citizenship will be processed.
A government employee who won the lottery must provide evidence of their permanent employment in a government institution at the time of registration.
A lottery winner who was not a government employee at registration but later became one will be processed based on evidence of their current employment from their government institution.
Government employees at the time of registration who have since retired or been honorably discharged (or due to injury) from the military will be processed upon presenting complete evidence from their former institution.
Employees of government institutions who were transferred to government development organizations based on government decisions will be treated as any other government employee upon presenting evidence from their institution.
A lottery winner who is a beneficiary of jointly owned property acquired through inheritance or gift can still be a lottery beneficiary as the property does not show sole ownership and is common property. However, if the house inheritance makes the lottery winner the sole heir, they cannot be a beneficiary of the condominium lottery.

VII. Contract Execution and Property Handover

A. Activities for Executing House Sales Contracts

Before executing sales contracts, the Corporation must transmit hard and soft copies of the building floor plan, the proportional area of each house, and the site plan to the Land Administration Office. Prior to the execution of the house sales contract, the Corporation must also send a payment instruction to the bank for the successful applicant to pay the down payment (10% for 10/90, 20% for 20/80 residential, 40% for 40/60, and as per current decisions for other programs) or more, or the full payment, using the prepared form. The successful applicant must then provide confirmation from the bank or a payment receipt for the down payment or full payment as per the sent form. Upon confirming the fulfillment of the requirements, the Corporation will execute the house sales contract and send copies of the beneficiary’s house sales contract, renewed residence identity card, and marriage certificate to the Land Administration Office for title preparation.

B. Time Limit for House Sales Contract

After the full name of the successful applicant is published in the gazette and the Corporation issues a call through various media for contract signing, the applicant must appear and conclude the contract within 60 consecutive working days. If the last day falls on a holiday, the next working day will be considered the deadline. However, if the home beneficiary took the payment form on the last day, an additional 5 working days will be added to complete the process. Notwithstanding this, beneficiaries who missed the deadline due to being on duty, maternity leave, or serious illness may be granted an additional 30 working days by the Corporation upon presenting concrete evidence from the relevant authority.

Furthermore, members of the defense forces on duty, upon providing evidence from the Ministry of Defense or the Police Commission, will be allowed to conclude the contract for the lottery-won house if it has not been transferred in another round or to a development evacuee. If the house has been transferred to another beneficiary, a replacement house will be allocated. If cases are pending in court at the time of the lottery and cannot be processed, the applicants must provide evidence of the ongoing legal process. Upon completion of the legal process and receipt of a decision, confirmed by the senior official of the Corporation, they will be allowed to conclude the contract for the lottery-won house if it has not been transferred in another round or to a development evacuee. If the house has been transferred, a replacement house will be allocated. A successful applicant who does not appear to sign the contract within the specified time limits will be considered to have voluntarily relinquished their right to the condominium unit, and the house will be re-allocated through a new lottery or transferred to a development evacuee. The Corporation or its legally authorized representative will be responsible for properly safeguarding houses not transferred to beneficiaries after the lottery until they are transferred.

C. Allocation of Replacement Housing Due to Urban Redevelopment, Natural/Man-made Disasters, or Special Circumstances

Residents displaced from their private holdings and legal Kebele (Woreda) houses due to development will have their replacement housing allocation processed by the Corporation through the Housing Development and Administration Bureau based on verified requests from the Land Development and Management Bureau. If there is no shortage of houses, all evacuees will be accommodated through a lottery based on their preference. However, if a housing shortage occurs, they will be accommodated based on the available housing supply. When the Bureau determines and provides a list of victims affected by natural or man-made disasters or other reasons, along with the type of house required, the Corporation will allocate condominium houses based on the decision.

A previous registrant of condominium home seekers who is currently renting a condominium under special circumstances, and wins a house of the same number of rooms in the lottery, may choose to relinquish the lottery-won house and have the rented house transferred to them at the current transfer price. However, the house sales contract will be executed according to the provisions listed in Articles 19 and 20 of this directive. A previous registrant of condominium home seekers who is currently renting a condominium, and wins a house of the same number of rooms in the lottery, must hand over the rented house to the institution within 30 days from the date of signing the contract for the lottery-won house. Exchange of different house types and subsequent sales contract agreements are not allowed, except as specified in clauses 3 and 4.

VIII. Commercial Unit Transfer

A. Procedures for Transferring Commercial Units Built with Condominium Buildings

Commercial units constructed on various floors within condominium buildings and designated for commercial use are transferred to users according to Article 12, sub-articles 1 and 2 of this directive.

B. Conditions for Transferring Commercial Units Sold by Auction

The Corporation organizes previously auctioned but unsold commercial units and newly built ones by site, block, house number, and square meter. The Corporation conducts auctions for the identified commercial units based on its prepared auction guidelines, ensuring the process adheres to financial auction guidelines.

C. Pre-Auction Preparations

Before putting commercial units up for auction, the Corporation must:

Properly organize the information of the commercial units to be auctioned.
Establish an auction committee and an auction grievance hearing committee.
If necessary, the formed auction committee will physically inspect and verify the commercial units.
Ensure that a starting auction price approved by the Board is prepared.
Prepare a commercial unit sales auction announcement and bidder’s guideline document.
Prepare an auction box and other necessary materials.
Publicize the auction to the public through various mass media outlets.
Make the auction document available for sale at accessible centers.
Receive bid price submission documents and other necessary documents from bidders as per the auction announcement and guidelines.
Undertake necessary pre-arrangements to conduct the auction.

D. Content of Commercial Unit Sales Auction Document

The content of the auction document, to be attached as appendices to this directive, primarily includes:

Auction announcement number.
Instructions for bidders.
Price submission form.
Sample commercial unit sales contract.
List of commercial units offered for auction, including site, building number, area, house number, and other necessary information.

E. Appointment of Commercial Unit Sales Auction Committee

A 7-member auction committee for the sale of commercial units in condominium buildings is formed by the senior official of the Corporation, with members selected from relevant work units. The senior official of the Corporation may increase the number of committee members if deemed necessary due to the scope of the work.

F. Functions and Responsibilities of the Commercial Unit Sales Auction Committee

The auction committee, through its chairperson, prepares and submits to the senior official of the Corporation for approval a work plan that includes the action program for the auction execution and the additional human resources and other expenses required for the work. According to the prepared schedule, it ensures that the necessary office arrangements, documents, and essential work materials for the auction process are prepared. It receives the sample bidding document for the commercial units to be auctioned and the published auction announcement from the relevant work unit and makes preparations. It physically inspects and verifies the commercial units ready for auction as necessary and ensures that corrections are made. To ensure the credibility of the auction process, it ensures that the auction boxes are properly prepared and sealed at the bid submission locations in the presence of its members at the appropriate time.

Upon completion of the bid submission deadline, it ensures that the box and the office where the box is placed are sealed. It makes hall arrangements to announce the prices submitted by the bidders to the bidders who came to open the auction boxes. It officially selects 5 members from the bidders who came to participate as observers and ensures their participation and signatures in the auction process. It opens the auction box in the presence of the participants, records and compares the price offered for each house and verifies compliance with other requirements stated in the directive. It identifies the winning bidder from the bidders, prepares a list of winners, authenticates the document with signatures, submits the prepared list of winners to the senior official of the Corporation for approval, and ensures its publication in the newspaper. Bidders’ bid bonds (CPOs) must be collected from the institution within two months from the date the auction result is officially announced in the newspaper, or the institution may deposit the bid bond into the individual’s account.

IX. Post-Transfer Regulations and Prohibitions

A. Non-Inheritability of Lottery Wins

Lottery winnings are personal and valid only while the beneficiary is alive. If the registration was in the name of a husband or wife and the lottery winner passes away or disappears, the living spouse has the right to be the beneficiary based on the registration form or evidence from a court. Notwithstanding the above, if the deceased lottery winner’s children were under 18 at the time of registration, they can become beneficiaries only upon confirming their inheritance in a regular court. Individuals confirmed as heirs by a court will become beneficiaries only if they meet the requirements listed in this directive. If the deceased’s children under 18 are living in a Kebele house, the children of the deceased who were over 18 at the time of registration cannot inherit the lottery win and will remain in the Kebele house according to Government Houses Administration Directive No. 5/2011. If a husband and wife jointly registered and divorce before receiving a house (before the lottery), the individual designated by the court decision will continue saving, and if a house is won in the lottery, it will be implemented according to the decision. However, if the preconditions are not met and the house is not received within the set timeframe, the lottery win will be cancelled. Successful applicants whose standard house sales contract period expires due to ongoing court cases must notify the Corporation in advance within the house transfer contract deadline that their case is in court. They can then appear in person within 10 consecutive working days after the court decision is received to be processed. Requests after this deadline will not be accepted.

B. Inheritance of Sold Houses

Inheritance claims for a house after a sales contract has been executed will only be processed with a court-issued confirmation of heirship. An heir presenting such confirmation will have the rights and obligations transferred to their name. However, if there are multiple heirs, the house sale and loan agreement will be implemented according to the court decision. If the lottery winner passes away after paying the down payment or after signing the sales contract, the process will be implemented according to the court decision. The transfer of ownership confirmation certificate will be carried out according to the procedures of the Land Administration Office. The Housing Development Corporation will monitor the debt and lien process related to the name transfer.

C. Transfer of Houses by Gift or Sale

Requests for transfer of a house by gift or sale after the execution of the administration’s house sales contract will only be processed after five years from the date of the contract, and only upon bank confirmation that the full price of the house has been paid. Notwithstanding the above, an owner of a condominium house whose transfer price has been fully paid and five years have passed since the contract can transfer their rights and obligations to a third party upon presenting the gift or sale contract. The transfer of the house ownership confirmation certificate will be carried out according to the procedures of the Land Administration Office.

D. Prohibited Actions

The directive explicitly prohibits several actions to ensure fairness and prevent misuse of the housing program:

Being registered in more than one housing development program or owning a residential house or building plot in their own or their spouse’s name, or having transferred a house received since 1997 E.C. through sale or gift, prohibits one from being a lottery beneficiary.
Discontinuing savings for 6 consecutive months or failing to meet the down payment requirements as per the registration directive disqualifies one from being a lottery beneficiary, unless the 6-month savings are paid in full at once.
Drawing a lottery for new 20/80 program registrants before the lottery for existing registrants is completed is prohibited.
Transferring a lottery-won house through sale or gift to another party within 5 years from the date of signing the house sales contract is prohibited.
Notwithstanding the above, houses older than 5 years can be transferred by sale or gift to a third party only after the bank confirms full payment of the house price.
Changing a house allocated through development displacement or lottery after signing the bank loan agreement is prohibited.
Transferring a house more than once during the lottery and handover process is prohibited.
Changing a house transferred through lottery outside the provisions of this directive is prohibited, although the Bureau’s management may decide otherwise as necessary.
Transferring a house outside the procedures of this directive is prohibited.
Changing a condominium residential house to a commercial house is prohibited.

X. Contract Termination and Refunds

A. Termination (Cancellation) of Condominium House Sales Contract

A house sales contract may be terminated (cancelled) under the following circumstances:

If it is confirmed that the beneficiary (or their spouse) owns a residential house or building plot in the city, or has transferred rights to a third party through sale or gift after 1997 E.C., or has previously benefited from a condominium lottery, or has purchased a condominium as a development evacuee.
If the beneficiary refuses to correct identified errors or defects as per the Corporation’s instructions.
If the beneficiary voluntarily requests the cancellation or termination of the contract.
If the beneficiary has a grievance regarding the type and size of the lottery-won house and refuses to accept the house after the provided correction and within the set handover timeframe.
If the beneficiary fails to sign the bank loan agreement after the title is prepared and within the set timeframe, having fulfilled the preconditions.
If the beneficiary fails to pay their monthly loan installments for three consecutive months or for a total of six months within a year.
If the beneficiary transfers the purchased residential house through sale or gift before five years and without completing full payment.
If the beneficiary fails to hand over a rented government house to the administering body within 60 working days of receiving the purchased house.
If the beneficiary uses the house purchased from the Corporation for purposes or services other than approved, or engages in activities that disrupt the common peace and security of residents and common living.
If the beneficiary has submitted false evidence and entered into a house sales contract by violating the obligations and prohibitions set forth in this directive, the contract will be terminated, the house will be returned, and they will be held liable under applicable law.

B. Refund of Money

If a successful lottery applicant who has paid a down payment or the full price of the house requests a refund, the following conditions apply, notwithstanding the provisions stipulated in the contract:

If the house sales contract is terminated because it is confirmed that the beneficiary (or their spouse) owns a residential house or building plot in the city, or has transferred rights after 1997 E.C., or has previously benefited from a condominium lottery, or has purchased a condominium as a development evacuee, or has committed prohibited acts under this directive, the remaining money will be refunded.
If, after signing the house sales and loan contract or taking possession of the house, the beneficiary states that they no longer want the house and requests a refund of the paid amount, the accrued bank interest will be calculated and refunded after the debt is paid.
In case of inheritance, if the heirs who have become beneficiaries of a condominium lottery due to inheritance have disagreements and do not wish to use the house jointly under their names and cannot agree, the matter will be resolved as per the court decision.
If a discrepancy in the size or area of the house is discovered and confirmed by the Corporation during the house sales contract and handover, and it is a reduction in size, the difference will be calculated and refunded to the buyer. If there is an increase in size, the buyer must pay the additional amount as stated in the sales contract. If a loan was disbursed based on an incorrect square meterage, the loan will be closed with the outstanding debt, and the sales contract, title confirmation map, and bank loan contract will be revised and re-executed.
When the Corporation takes back the house (as per sub-articles 1 to 3), the refund will be processed after deducting any outstanding bank loan and interest, the cost required for house renovation, and rent for the period of stay based on the Bureau’s monthly rental rate at the time, from the paid down payment or full price. The remaining amount, without interest, will be refunded according to the bank’s procedure. If a house sales contract was executed but the loan agreement was not signed on time, the full amount paid will be refunded. However, if the loan agreement was signed, the outstanding bank loan and interest will be deducted, and the remaining amount, without interest, will be refunded within one month according to the bank’s procedure.

XI. Grievance and Miscellaneous Provisions

Sections 41 through 45 of the directive meticulously detail the procedures for submitting grievances, the organization and process of the grievance review committee, established response mechanisms, and the fundamental right to appeal to the city’s regular court. These provisions underscore the directive’s commitment to ensuring a fair and accessible recourse for beneficiaries.

Sections 46 through 51 contain miscellaneous provisions that cover crucial administrative aspects. These include the delegation of authority, the obligation of all parties to cooperate, accountability measures for violating the directive’s stipulations, the possibility of amending the directive in the future, the explicit repeal of previous directives (No. 1/2008 and 2/2009), the superseding nature of this directive over any conflicting guidelines, and finally, the effective date of the directive (June 13, 2011 E.C.).

XII. Conclusion

Directive No. 66-2013 represents a pivotal regulatory instrument in the landscape of Addis Ababa’s housing development. Issued by the Addis Ababa City Administration’s Housing Development and Administration Bureau, it establishes a comprehensive and transparent framework for the transfer of condominium residential and commercial units. By clearly outlining procedures for property information management, pricing, payment structures, lottery implementation, and contract execution, the directive aims to streamline the process and enhance public trust. It also meticulously defines preconditions for beneficiaries, sets forth various prohibited actions, and details the circumstances under which contracts may be terminated and refunds processed. Furthermore, the inclusion of provisions for grievance resolution and a clear hierarchy of authority ensures accountability and fairness. This directive is essential for understanding the mechanisms governing property transfer in Addis Ababa’s dynamic urban development context, impacting both individual beneficiaries and the broader housing sector.