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Strict implementation of Housing Devt amendments urged

July 13th, 2012 · No Comments

Subsequent to the latest amendments made to the Housing and Development (Control and Licensing) Act 1966, stakeholders are asking authorities to implement the policies more strictly to completely resolve housing woes.

The National House Buyers Association (HBA) and Association for Abandoned Building Owners Malaysia (Victims) compelled the Housing and Local Government Ministry (KPKT) to use its power and discretion as protector of people’s rights.

Under an amendment to Subsection 16N(2), the Tribunal for Home Buyers’ Claims is now empowered  to hear cases such as Sale and Purchase agreements contracted  between unlicensed developers and buyers. Consequently, subsection 16AD (1) raise the penalty being imposed on developers who decline to recognize the tribunal’s award.

Chang Kim Loong, Secretary-General at HBA, contend that important parties that includes local government and banks had shown obvious ignorance by allowing projects even without following the proper procedures.

He also claimed that the said changes cover only new projects, therefore, do not have retrospective effects.

“If it had been retrospective, the number of developers who would be caught and face criminal prosecution would be high. Even the present RM200, 000 is flawed because it assumes a ‘one-size-fits-all’ formula where small developers are compelled to wear the ‘big size’ that does not fit them,” he added.

In the meantime, Dr Mohamed Rafick Khan Abdul Rahman, Chairman at Victims, is open to the government’s proposal of limiting the red-tape in granting development license. However, he noted that though it is a pro-business decision, enough public protection is vital in the approach method.

“The changes in the Act do not in any way protect the purchasers who are weak. The laws have been made equal instead of equitable. The Government increased the deposit from RM200, 000 to three percent of cost of building (not including land cost) and said that if the Malaysia property project is abandoned, then the money can be used to revive the abandoned project,” he explained.

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