PENANG Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo has sought legal advice from the state Legal Advisor Office to find ways to buy back low-cost (LC) and low medium-cost (LMC) units from owners who have ‘upgraded’ and wanted to sell their units.
Jagdeep said although the sale of LC and LMC units are subjected to a 10-year moratorium, the owners were selling their units to normal buyers after the 10-year period, hence, defeating the purpose of providing LC and LMC homes for the needy.
“Currently, it is not compulsory for them to sell their units only to those eligible. They are not selling their units to eligible purchasers after the 10-year period but to ineligible buyers.
“The ineligible buyers purchase the units from the owners for investment and they are not subjected to the 10-year moratorium. It is not fair.
“I am happy for those who have managed to ‘upgrade’ themselves over the years, bought better homes and wanting to sell their LC or LMC units.
“But I feel they should sell their units to the state, not at an exorbitant price, so that we can offer those units to those eligible on the waiting list,” he told a press conference at the Pinang Emas low-cost flat today.
He said that the unit owners should sell their units back to the state at a ‘LC / LMC price’.
“I would say that they should give it back to us at the ‘LC / LMC price’. If at all we can top up the price to be fair to those who took bank loans and had paid the interest.
“We have received a few suggestions on the mechanism and I believe it can be done at the state level.
“Let us hear from the state Legal Advisor Office. We will be meeting them on April 25 to see how we can implement this suggestion,” he said.
Jagdeep said he had brought up the suggestion during the State Legislative Assembly last year.
“We can have more LC and LMC units in our stock and the burden on us to build LC and LMC units would be lifted if the suggestion is implemented.
“The Federal Government is also on the same page as the Penang government.
Jagdeep said that he planned to focus on LC and LMC units.
“I did not mention if my suggestion would be extended to affordable housing units.
“At the moment, my suggestion is for the new LC and LMC projects. However, I have also sought the advice from the state Legal Advisor Office to look into (whether we can include) old LC and LMC projects,” he added.
Story by Christopher Tan
Pix by Law Suun Ting