KPKT completes 27 abandoned private housing projects since 2013

KUALA LUMPUR: The Urban Wellbeing, Housing and Local Government Ministry has completed 27 abandoned private housing projects between 2013 and Oct this year.

Its minister Tan Sri Noh Omar (pix) said eight of these projects had been restored using government funds amounting to RM36.1 million for low and medium cost houses priced below RM70,000.

"For abandoned private housing projects exceeding RM70,000, the government uses private developers to solve the problem," he said at the Dewan Rakyat sitting here today.

He was replying to a question from Datuk Dr Nik Mazian Nik Mohamad (PAS-Pasir Puteh) who wanted to know about the number of abandoned houses from 2013 until now.

On the proposal to have additional security clauses to the insurer purchasing these houses as a condition for hosing loans, he said the ministry was looking at whether there is such a necessity as it would involve cost to the house buyer.

"At present there is only a fire insurance and Mortgage Reduced Term Assurance (MRTA) and this proposal will be considered, if this clause is introduced, it will become a choice for the buyers if a project is abandoned," he said.

Replying to a supplementary question from Datuk Dr Mohd Khairuddin Aman Razali (PAS-Kuala Nerus) on whether the ministry intends to impose higher penalties on abandoned project developers, Noh said the proposal needed to be studied in terms of existing legal aspects as it involved a sales and purchase agreement between developers and buyers. — Bernama