GEORGE TOWN: The state government has asked a federal agency building affordable housing in Penang to resubmit applications for the development of such projects, while telling another to justify breaches in the pricing limit.
State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said Penang Regional Development Authority (Perda) and JKP Sdn Bhd were required to submit their official requests before Jan 15.
Jagdeep said, during a meeting between him and the Penang Federal Action Council chairman Datuk Zainal Abidin Osman on Wednesday, that 15 projects, seven submitted by Perda and eight by JKP, were discussed.
He noted that during the meeting, the state’s stand was made clear, that the Penang government was prepared to consider the two agencies’ applications if the projects were for low- and low medium cost housing, where land for the projects had been acquired.
“The state is prepared to consider their applications if the price of the housing units does not breach the RM400,000 ceiling for those on the island, and RM250,000 on the mainland.
“It should be noted that from their applications, it was discovered that the units for the island were priced as high as RM1.85 million and for those on the mainland, as high as RM800,000.
“Out of the seven applications by Perda, they have said they would resubmit four to comply with the conditions stipulated,” said Jagdeep, adding that one project did not involve the State Planning Committee (SPC), with Perda requesting leniency for the remaining two applications, of which they have been asked to put in an official request with justification.
On the eight applications by JKP, Jagdeep said three were not before the SPC and were pending technical clearance by the Seberang Prai Municipal Council (MPSP), while two were pending settlement of certain monies due to the Penang Island Municipal Council (MPPP), and another pending the settlement of squatters.
He stated that for the remaining two and all others that had issues of overpricing, JKP was asked to put in an official request with justification.
“It is hoped that this will clarify all allegations that the state government is delaying the applications of these federal agencies, whom it is hoped will understand the conditions set by the state government as it is in the interest of the people to have access to affordable housing,” added Jagdeep.
Meanwhile, Zainal Abidin, in a statement yesterday, said the meeting clarified several issues in dispute, namely, on the plots of land for the projects as well as the proposed housing prices by Perda and JKP.
“Even though the land had been procured by the government through public acquisition, Perda and JKP have paid back in full the costs to the Finance Ministry, which the state government was not aware of.
“For some of the projects, Perda and JKP will put forward the justification of the proposed pricing to the state government.
“As for the other projects, Perda and JKP will amend the development plans to fulfil the conditions set by the state government,” he added.
Zainal Abidin had previously claimed that the council had submitted plans to build close to 10,000 affordable housing units since 2011, but the state planning committee failed to approve the plans.
He alleged that these projects, both on the island and the mainland, could not proceed as the state government had delayed the approvals for the projects. By Melissa Darlyne Chow