Penang Housing Committee Chairman Jagdeep Singh Deo said all state-sanctioned low-cost homebuyers have signed a sworn declaration that their declared finances were correct at the time of application.
He said the statutory declaration also stipulated that successful applicants adhere to a 10-year moratorium on sale or rent of the units, or risk repossession by the state government.
Jagdeep reiterated that the government’s selection committee’s vetting procedure was airtight and it would not tolerate those who had abused the process.
“It is clear from the get go that such ‘affordable homes’ cannot be rented out.
“It is also clearly stated that an applicant must have an income limit of not more than RM2,500 for Affordable Housing Type A (RM42,000) and RM3,500 for Type B (RM72,500).
“I have requested the state legal adviser’s office to furnish me with a legal opinion of our rights and powers to take action against these errant individuals,” he told a press conference at Komtar here today.
Jagdeep also called on federal lawmakers to improve laws related to affordable housing so that the local authorities may act against those who abused the system.
Jagdeep said he had previously relayed his concerns to former federal Housing and Local Government Minister Abdul Rahman Dahlan, and had also asked for a workshop for state housing Excos on the matter to be held, but said he had yet to receive a response from the ministry.
He also pointed out that cases of affordable home abuse were not only found in Penang, but existed in other states as well.
Yesterday, Parti Cinta Malaysia revealed that low-medium-cost apartments valued at RM72,500 in Gelugor were largely occupied by those from the upper-middle income group.
It was also revealed that the apartments’ occupants were driving luxury cars and high-powered motorcycles.
On the issue of vehicles, Jagdeep said the state government’s housing applicants’ selection committee, called the Selection Process Enhancement Committee (SPEC), was unable to track vehicle ownership of potential house buyers, as transport regulators had refused to cooperate.
“I have announced before that SPEC is looking into how we can ascertain in a clearer manner the actual financial position (of the applicants) and one of the measures was to enquire or check on their car ownership.
“But we are having issues obtaining such information from the Road Transport Department (RTD). I will refer this to SPEC and officially communicate with RTD if they can give us the details we need.
“My view is, if you are within the household income of RM3,500 a month, technically speaking, you cannot afford such cars or motorcycles.
“By right you cannot even own a car. The issue of a car is one thing, by implication this person is earning more.”
Jagdeep also welcomed those with information about affordable home owners who had abused the system to make it easier for the state to take action.
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