KUALA LUMPUR: The proposal to use the special guarantee fund to restore sick or abandoned projects, announced in the recent Budget 2024, will be submitted to the Finance Ministry.
Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir said, among the points in the proposal, was to use the fund for affordable housing projects under RM300,000, and for projects with at least 80 per cent progress status.
"Apart from that, we are also looking at housing programmes under federal government agencies and state authorities, especially affordable housing projects which are at risk of becoming sick projects," he said, during a question and answer session in the Dewan Rakyat, today.
He said this in his reply to a supplementary question from Zahir Hassan (PH-Wangsa Maju) regarding the method implemented by the government to resolve the issue of housing projects classified as sick or abandoned projects.
Akmal, in his reply to Zahir's original question regarding the Housing Development Account (HDA) for housing projects, said that, thus far, the Local Government Development Ministry has frozen 20 HDA accounts for projects categorised as sick or problematic.
He said the move was based on an investigation that showed the developers were neglecting their responsibilities and could affect the interests of buyers.
"In addition, developers can also be compounded up to a maximum of RM50,000 if they fail to fulfil their obligations as stipulated under Act 118 (Housing Development (Control and Licensing) Act 1966) and its regulations.
"A total of 284 compounds have been issued for offences under section 7 (e) of Act 118 in 2022 and 2023.
He added that the ministry, through the National Housing Department , always ensures that licensed housing developers comply with HDA-related provisions, including conducting HDA management audits of licensed housing developers; monitoring housing developers' financial progress reports and blocking applications for withdrawals from HDA if they do not comply with Act 118 and its regulations.
He said this in his reply to Zahir's original question regarding how HDA can control the problem of sick and abandoned housing projects as well as compliance or non-compliance with the use of HDA accounts among developers.-- BERNAMA