Three groups of disgruntled residents met with Housing and Local Government Deputy Minister M Kayveas at his ministry in Kuala Lumpur today to air their woes

The first group, residents from Pearl Point Condominium in Kuala Lumpur, claimed that maintenance fees for their homes had been increased arbitrarily by the developer, Aikbee Timbers Sdn Bhd, since last year.

A spokesperson for the group, KY Cheong, said the 80 percent increase, from 0.10 sen to 0.18 sen per square foot was unjustifiable.

This unreasonable increase, affecting 418 units, is not acceptable unless the condominiums management is able to produce audited accounts for the past few years.

Such audited accounts should justify that the increase in maintenance charges is necessary because the management has been operating at a loss and the loss must not be caused by improper management, he said.

Despite several appeals since July last year, including a memorandum sent on July 12, their request has not met with any response, he added.

However in October, Aikbee issued a reply, saying the residents committee comprised less than 20 percent of the total residents . As such, it said the issues contained in the memorandum were raised by a minority and may not be the wishes of the majority.

Aikbee also clarified the increase in maintenance was due to an increase in operational cost such as security, cleaning, overhead cost, maintenance and contribution towards a sinking fund (a fund for building maintenance purposes).

Responding to this, Kayveas agreed that the 80 percent hike was done without proper reasoning.

He said the increase gave the impression that the country was suffering from an 80 percent inflation rate which was not true.

The minister added the developer should consult and negotiate with the residents on proper management fees instead of imposing their own figure. If owners decide to stop paying the maintenance altogether, then there would be a bigger issue, he said.

Golden egg

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The second complaint from residents of Bandar Baru Sri Petaling flats in Kuala Lumpur claimed their developer, Petaling Garden Bhd, did not inform them about their strata titles although it was approved by the housing and local government ministry two years ago.

Speaking on behalf of the residents, DAP Member of Parliament for Seputeh Teresa Kok told Kayveas the developer kept the matter a secret despite a CF (certificate of fitness) for the flat being issued in 1986.

Kok queried whether the ministry had provisions to penalise the developer for withholding the strata titles, which involve 296 units, from the rightful house owners.

Kayveas said there appears to be a golden egg situation where developers hold back strata titles in order to make money when transfer of ownerships were made.

He said the ministry should not be blamed for the matter and suggested that residents raise the issue with the developer.

The minister, however, also said the developer had no reason to hold back the titles and his ministry would issue them a letter regarding this.

The third complaint came from residents of Taman Nagamas in Salak South. The residents claimed their low-cost apartments have not been issued a CF although they have been residing there for 10 years.

Kok said the residents have been maintaining the apartments themselves and now face water and electricity problems as the developer, Metro ADC, has been under receivership since last year.

Responding to this, Kayveas said there should be a line drawn as to whether residents can move into apartments without such certification.

If we do not allow owners to move in they will complain as they have to pay house rent and service a loan as well. If we allow them to move in there will still be problems, he said.

Kayveas advised the residents to go to the Offical Assignees Office, since the company has wound-up, and discuss the matter with officers there as the matter was now in their hands.

He said his ministry will also raise the matter with the OA immediately to assist the residents.

New tribunal

On a related matter, Kayveas announced that the Housing Compensation Tribunal which was proposed under the Housing Development Act had been gazetted on Jan 31.

He said complainants with problems involving less than RM25,000 could now approach the tribunal located in the ministry building.

Explaining further, he said the tribunal could make immediate decisions and direct a party to award the complainant. Its judgement is enforceable by any court of law.

However, the tribunal has not received any complaints yet, he added.