THOUSANDS of errant property owners in the lowcost (LC) and low-medium-cost (LMC) categories have violated housing ruling and rent their units out.
State Town, Country Planning and Housing Committee chairman Jagdeep Singh Deo said the state housing department had received complaints that LC and LMC owners had resorted to advertising to rent their properties, especially to immigrant workers.
“This non-adherence is in breach of the condition as stipulated in the declaration forms signed by the house owners.
“I view the non-compliance seriously as the waiting list at the Penang housing department for LC and LMC units are 25,065 applicants and 24,283 applicants, respectively, as at Nov 10,” Jagdeep told a press conference recently.
He said the state housing committee had consulted the Malaysian Institute of Estate Agents (MIEA), Penang Chapter to seek help in tackling the violation.
“MIEA has agreed to assist the Penang State Government to address this issue by instructing their agents to not advertise LC and LMC units for rent.
This will also be extended to affordable housing projects once they are completed.
“It is hoped that this measure will help to prevent such advertising which will in turn prevent such low- and low-medium-cost units being rented out in the future, as they are meant to be owner occupied.”
Jagdeep reiterated that the state government and the private sector had vigorously planned to build LC, LMC and affordable housing projects and stressed that the units which must ultimately be delivered to the needy and deserving applicants.
“The Penang government has prioritised the provision of houses to Penangites.
“The Selection Process Enhancement Committee (Spec), that I am chairman of, meticulously selects eligible Penangites who are deserving and in need of such housing.”
The state government has in the pipeline 12 projects which will deliver 22,545 units of LC (850 units), LMC (7,874 units) and affordable housing (13,851 units).
The private sector through public-private partnership is set to match or exceed this number in terms of the provision of LC, LMC and affordable housing units.
The eligibility criterion for LC and LMC housing is that the applicant must not have owned a property and must have a nett household income not exceeding RM2,500 and RM3,500, respectively. These properties are subject to a 10-year moratorium whereby in this period the owners are not allowed to sell the said property.
For the new category of affordable housing units of RM200,000, RM300,000 and RM400,000 and below, the applicant must have a nett household income not exceeding RM6,000, RM8,000 and RM10,000, respectively.
Jagdeep said errant houseowners who rented out their LC and LMC units would be punishable under Section 420 of the Penal Code for cheating, which shall be punished with up to 10 years of jail and whipping.
Since the inception of Spec in August 2013, Jagdeep said Penang had selected 7,291 applicants to be designated as LC, LMC and affordable housing units.
Present at the press conference was MIEA Penang chairman Mark Saw.
He vowed that MIEA would do its part in the clampdown of errant house owners who rented out their properties to foreign workers.
“The renting out of LC and LMC houses is a nationwide problem and Penang will lead the charge to weed out errant property owners.
“We have issued directives to our registered property agents and negotiators to not take up rent advertising in the LC and LMC house units,” he said.
There are about 1,300 MIEA registered property agents and negotiators in Penang.