Q 1: I am a laborer living in a government-owned house. In 1982, the Ministry of Housing issued a decree stating that if anyone would like
to buy the houses where they live,
they are permitted to do so. However, my wage does not exceed two hundred Algerian Dinars per month, and I provide for my wife, three children, my grandmother, my aunt, her two sons and her husband who is more than eighty- five years old. The governmental decree states that if the dweller fails to pay the total price of the house within a five-year period - which is 5900 Algerian Dinars - there will be a forty-five percent increment, i.e. Interest, over the price, and as you are fully aware, there is a housing problem, therefore, I am very confused what to do.
If the case is as mentioned in the question, it is impermissible for you (Part No. 13; Page No. 333) to involve yourself in such a transaction, because it includes Riba (usury/ interest).
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.