The authorities have frozen 20 housing development accounts (HDA) due to issues with “sick” housing projects, according to Akmal Nasrullah Mohd Nasir, the Deputy Local Government Development Minister. The decision to freeze the accounts was made after investigations revealed that the developers had neglected their responsibilities, which could potentially harm the interests of buyers. Developers may face fines of up to RM50,000 if they fail to fulfill their obligations as required under the Housing Development (Control and Licensing) Act 1966 and its regulations.
Zahir Hassan (PH-Wangsa Maju) inquired about the effectiveness of using HDAs to address the problem of abandoned and sick housing projects, prompting Akmal Nasrullah to explain that a total of 284 fines were issued for violations under Section 7 (e) of the Act between last year and the present. He also stated that the National Housing Department has consistently ensured that licensed housing developers comply with all existing regulations.
Regarding Budget 2024, Akmal Nasrullah mentioned that a proposal for a special guarantee fund to revive stalled projects will be presented to the Finance Ministry. This proposal includes utilizing the fund for affordable housing projects below RM300,000 and for projects that have already reached an 80% completion rate. He further stated that the government is also exploring housing programs under federal agencies and state authorities, particularly for affordable housing projects that are at risk of stalling or becoming sick.
In response to Zahir’s question about the government’s approach to resolving distressed or stalled housing projects, it was revealed that RM2.47bil has been allocated under Budget 2024 for people’s housing projects (PPR). This allocation includes a special RM1bil guarantee fund designed to incentivize responsible developers to revive abandoned projects.
