The Penang government is determined to embark on its "cheap housing policy" to cater for the needs of the state's lower income group despite reservations expressed by developers.

State Housing, Culture, Arts and Heritage Committee chairman Syed Ameruddin Syed Ahmad said the government would press on private developers to fulfill their obligations of 20 percent each of low-cost and low-medium cost house quotas in each housing project that exceeds 150 units in urban areas and 100 units in rural places.

As for the northeast district, which largely encompasses George Town city, developers will be given an option to either build 30 percent low-cost houses or 40 percent low-medium cost houses.

The option has been given due to exorbitant land cost in the northeast district.

"However, the state government will not waive its low-cost or low-medium cost housing policy under any circumstances.

"Our policy is to ensure that the lower income can either afford to buy or rent their homes throughout the state," Syed Ameruddin told malaysiakini recently.

Until today, a total 99,075 cheap houses had been built in the state, comprising 34,166 units built by various government agencies, especially the Penang Development Corporation, and 64,909 units by private developers.

Of the government houses, 31,013 units had been sold and 3,153 were rented out, while all privately developed units had been sold. Private lower cost housing development has, however, virtually stopped since the 1997 financial crisis. Many private projects were also abandoned.

Three sites identified

The state government is now exploring ways to revive and complete these projects with the help of several local banks and developers.

At present the state government has identified three sites to be developed under the low-rental housing scheme for the hardcore poor.

Construction of these units at two sites - Ampang Jajar in Seberang Perai which will have 1010 units, and Jalan Thamby Kechil in George Town, 382 units - will commence next year.

Another 320 units have already been built on a plot of state land located between Lorong Selamat and Jalan Zainal Abidin in George Town.

The Penang Island Municipal Council is expected to issue occupational certificates early next year for these units.

On calls made by several Barisan Nasional state assemblypersons that the state government should give priority to residents affected by the Rent Control (Repeal) Act 1997, Syed Ameruddin said it can be done provided the effected parties fulfill certain criteria.

Among them are that the effected residents do not own a house; their household income does not exceed RM1,500 per month and they are Malaysian citizens and reside permanently in Penang.

He said that priorities would be given to single mothers, widows of servicemen and people with special needs.

"We will screen and scrutinise every application to ensure that only deserving applicants enjoy the state government's cheap housing policy," assured Syed Ameruddin.

ATHI VEERANGGAN is malaysiakini 's Penang-based stringer.