First 12,675 tenants of City Hall flats eligible for special loan scheme

KUALA LUMPUR (Feb 3, 2012): Some 12,675 tenants of the National Economic Action Council (NEAC)’s People Housing Programme (PPR) and KL City Hall public housing units will be among the first to be eligible to receive the special loan scheme to purchase low cost houses.

Federal Territory and Urban Well-being Minister Datuk Raja Nong Chik said the City Hall will help identify and facilitate its tenants to participate in the scheme.

“It is prioritised for tenants with good track records and has no outstanding rental payments. The loans will be given out in stages and the EPF’s first disbursement is RM300 million,” he told a press conference after the NEAC’s briefing at City Hall here yesterday.

Those interested can check their eligibility at the project implementation and public housing maintenance department.

Raja Nong said the scheme would enabled people from the low income group to own houses in the city.

The RM1.5 billion fund by EPF will be disbursed in stages by the Syarikat Perumahan Wilayah Persekutuan, which is a special purpose vehicle set up under the Federal Territory Foundation. The company is expected to start operations March 1.

“The scheme is prepared to help those qualified to obtain an easy financial source to purchase City Hall public housing units,” Nong Chik said.

Among the features of the scheme are buyers who must be 18 and above will receive 100 % financing. No deposit will be needed while the loan period of up to 25 years is available to allow lower monthly repayment.

Payments for insurance, transfer of ownership and legal service related to purchase in the period of financing can be included as part of the total financing and the exemption of duty stamp also given to every agreement involving the purchaser.

Since buyers can also rent out the houses, Nong Chik said City Hall will ensure that the houses are not rented out to foreigners.

FT Foundation executive director Datuk Mohd Idris Mohd Isa said it was a good move by EPF to invest in the programme and it's profit is 5.5% per annum.

“The houses that are financed will be secured to EPF and the value of the units are twice the amount financed.

“City Hall also guarantees to repurchase the houses if buyers fail to settle repayment within the given period at the original price or the balance finance amount,” he said during the briefing session.

A roadshow will be held in March to explain to the people and by May the first batch of loans would be given out.

The special funding scheme for public housing loans which was announced by Prime Minister Datuk Seri Najib Abdul Razak on Saturday.

Those who are eligible will be given a full loan of up to RM35,000 per unit,
to be repaid over 15 to 25 years.

ENDS