Penang Gerakan Youth is questioning the state government's policy to ensure the construction of low-medium cost houses in two development projects.

The wing's legal and public complaints bureau chief Jason Loo said in the first project - 98 Nibong Residence - 30 percent of the 107 units the developer was supposed to build should be low-medium cost (LMC) units.

"But where are these LMC houses? Did the developer pay a contribution in lieu of LMC units that were to be built?" Loo asked at a press conference today.

He said this in reference to the statement by the state executive councillor in charge of housing, Jagdeep Singh Deo, that the project was approved before the implementation of Affordable Home Scheme in August last year.

The previous guidelines stipulated that in any project where more than 100 housing units are to be built, the developer is required to build 30 percent of the units as LMC houses.

"Now, where are these LMC houses?" Loo ( on the left ) asked.

If the developer failed to built the LMC units, he said, it should fork out a compensation of RM120,000 for each unit it failed to build, he added.

"At 30 percent of 107 units, it will mean 32 LMC units and that will mean the total compensation the developer should pay will be RM3.84 million," he said.

Loo pointed out to another project with 7,658 units of affordable houses in Paya Terubong.

If this project was approved before the implementation of the Affordable Home Scheme, he said, the developer also has the obligation to build 30 percent LMC units, which works out to 2,298 units.

"Likewise, if there was failure to build the LMC units, the developer should fork out RM275.76 million as compensation to the state government," Loo said.

"Has the developer built the LMC units or paid the compensation in lieu? If compensation was paid, where is the money?" he asked.

"We will continue to monitor the implementation of these housing projects, and will seek to obtain copies of the agreements on these projects from the state government via the channel of the Freedom of Information (FOI) Enactment.

"We will then make further analysis. Hopefully, the state authority will not lock the agreements in their office at Level 28 of Komtar and bar us from purchase of the said

agreements," Loo added.