Penang Moots New Affordable Housing Scheme

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Jagdeep Singh Deo says the new scheme will enable more people to own homes.GEORGE TOWN: The Penang government is looking at introducing a new affordable housing category where the units will remain government properties under a leasehold plan that will allow low-income earners to own homes and upgrade to larger units in the future
State executive councillor Jagdeep Singh Deo (DAP-Dato Keramat) said under the scheme, the housing options on offer are not just limited to low or low-medium cost units, but also larger homes under the “affordable homes” category
He said the scheme would allow owners to upgrade from the smallest unit to bigger units in a staggered fashion
Jagdeep said by doing this, it would ensure that low and low-medium cost homes would always be available to meet rising demands
“This will benefit applicants wanting to own an affordable home, especially on the island side
“We will form a special committee to further deliberate on the mechanism to be used in implementing this policy, including the financing options
“After that, we will bring it up to the relevant authorities for approval,” Jagdeep said in his winding-up speech at the state assembly
Currently, the capped prices of properties under the “affordable homes” category on the island are (depending on sizes): RM150,000 (750 sq ft); RM250,000 (800 sq ft); and RM300,000 (900 sq ft)
On mainland Seberang Perai, the prices are capped at: RM150,000 (750 sq ft); RM 200,000 (800 sq ft); and RM250,000 (900 sq ft)
As for the low-cost and low-medium-cost categories, the prices of homes are set at RM42,000 (650 sq ft) and RM72,500 (700 sq ft)
Source: Penang government.Outside the assembly, Jagdeep revealed that as of October, there are currently 30,726 people on the waiting list to buy low and low-medium cost units and 12,326 for other categories, with a majority of them on the island
Jagdeep stressed that the new scheme was merely a proposal and would only be implemented if agreed by the state executive council
H’ng Mooi Lye (DAP-Jawi) had earlier asked Jagdeep if he would do the same for unsold or abandoned units, which could also be potential homes for the needy
Jagdeep said the idea could be considered and the state could also look into taking over the units belonging to those who failed to pay assessment fees
He said the current issue on low-cost and low-medium cost homes was unscrupulous owners who sold their properties at higher prices or rent them out to foreigners
“We want to stop this abuse of affordable homes and through our lease and buy back plan, we might help the poor get a home,” he said
Urban redevelopmentJagdeep said the suggestion by Jason Ong (PKR-Kebun Bunga) for the 49-year-old Rifle Range flats to be torn down and rebuilt was good but it would require the cooperation of all residents
He said Penang would follow the example set by Singapore’s Urban Redevelopment Authority in tearing down old flats and replacing them with new ones
Jagdeep said since the flats were mostly privately owned, it would require a certain percentage of residents to agree with the move
He said Malaysian laws were silent on urban redevelopment and the matter would be brought to the state legal adviser for deliberation
Ong had suggested moving all residents at Rifle Range to the adjacent Federal Reserve Unit 3 base. He said the base could be acquired by the government to build temporary units to house the Rifle Range residents
Jagdeep also revealed that since 2010, a total of RM7.69 million was spent for maintenance at the flats. Next year, he said, a total of RM1.37 million has been allocated
“With the flats being almost 50 years old, their conditions have worsened. The reticulation system and wiring have aged. Water supply cuts are also common and lift outages have become a nuisance
“However, over the years, we have been repairing and maintaining the flats.”Rifle Range flats, better known as “Pat Cheng Por” to the locals, are the country’s first low-cost high-rise flats. They were built in 1969. There are currently 3,675 home units and 65 shop lots, with two blocks owned by the Penang government

There are nine blocks in total comprising 16 and 17 storeys. Located in Air Itam, the flats derived their name from the fact that the area was once an open space used as a shooting range by the police and military. - FMT

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