Review quota for low-cost housing

An assemblyman has asked the state government to review its existing requirements for developers to build low-cost or low medium-cost houses, to compel them to build more of such units.

Jason Ong Khan Lee (PKR-Kebun Bunga) said the current requirement was that developers build 30% of low or low-medium cost houses when they undertake projects to construct over 150 units in the medium to high-cost range.

“The 150 units should be reset to 100,” he said.

Ong added that developers also had another option to not build the houses by paying a premium of between RM30,000 and RM40,000 for each unit.

“The amount should also be reviewed, and the location of the projects taken into consideration as the cost per square feet differs. A new formula is needed,” he said.

He also suggested that a public housing fund be established where premiums collected could be channelled to help those who could not afford to own a house.

“It can either provide subsidy, loan with low interest rate or even interest-free to the needy,” he said.

He added that RM27.51mil was set aside in the state’s 2012 budget for 11 public low-cost housing projects.

“It would be good if the state also set an allocation for the purpose of the fund and provide poorer people the opportunity to own a house,” he said. - By The Star

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