'Penang's fed agencies planned affordable houses'

Penang Federal Action Council chairperson Zainal Abidin Osman has denied that two Putrajaya-funded agencies plan to profit from the sale of affordable homes, by tagging the units beyond the ceiling price fixed by the state government.

 

Zainal Abidin said that since 2012, 15 applications (12 in Seberang Perai and three on the island) for permission to plan for 9,444 units by Perda (Penang Federal Development Authority) and JKP Sdn Bhd have yet to be approved by the local government.

 

This includes the development of 2,447 units of low cost homes (terrace houses and flats) priced at RM35,000 and RM42,000, he said.

 

Penang no longer offers low cost homes at RM42,000 per unit for the low income group and Penangites are disappointed, he added.

 

"The cheapest affordable homes offered by the state government are flats costing RM72,000," Zainal Abidin said.

 

He was referring to the statement by Penang executive councillor on housing Jagdeep Singh Deo who urged Zainal Abidin to explain the reason for selling some units beyond RM400,000, with some having a price tag of RM1.8 million.

 

Jagdeep had alleged that the two federal agencies via the 15 projects would be gaining RM148,989.16 from the sale of the proposed home.

 

Jagdeep (right) also wanted to know details of the land on which the units would be built - whether they are for public or commercial use.

 

Zainal Abidin pointed out that 48.1% of the 9,444 units proposed by Perda and JKP are priced lower than  RM250,000 (on the mainland) and 16.1% are at RM400,000 (island).

 

Those with price tags higher than the ceiling price are "landed properties" and not flats like the ones offered by the state government, he added.

 

"The percentage of homes proposed at a price over RM500,000 is rather small compared to 2,447 units of low cost homes offered by the two agencies,” said Zainal Abidin. 

 

He said that the other types of homes offered by Perda and JKP are to be sold at a price that is 20-30 percent lower that the same type of houses offered by private developers," Zainal Abidin claimed.

 

"The average estimated profits by the two agencies are only about 10% (Perda) and 7% (JKP). Profits derived are kept as "rolling capital" to buy new plots, for example.

 

"Perda and JKP do not big on profit - about RM1-RM2 million a year- from these projects as portrayed by Jagdeep, and this can be verified by the annual financial accounts of the two agencies," said Zainal Abidin.

 

He also said that Perda and JKP cannot merely offer low and medium or affordable homes to the Penang Bumiputera community as there are also requests from Bumiputeras for bigger and more comfortable homes.

 

He added that the proposal to build several bungalows in two of the 15 projects is to cater to local Bumiputera demand who can afford to purchase and own those units.

 

Zainal Abidin pointed out that the state government also approves mixed development projects for state-owned Penang Development Corporation.

 

He deemed as "unfair" if the state government limit Perda and JKP's plan to building affordable homes but do not apply the same conditions to PDC.

 

"According to the One-Stop-Centre of the local authority, application for the permission to plan will be processed and responded to in six months. We have yet to obtain a respond to our application since Sept 2012.

 

"Potential home buyers of the said projects view this as a deliberate move by the state government to withold approval of the applications for permission to plan submitted by Perda and JKP and this is not acceptable.

 

"I have sent a letter to Chief Minister Lim Guan Eng on Aug 18 requesting to meet him face to face, to brief him about the housing projects but we have yet to receive a response," he lamented.