CAP acting president Mohideen Abdul Kader said the exploitation by the developers had gone unabated despite a flurry of complaints, which were brought to public attention by CAP last month.
CAP had arranged for first-time buyers to meet the media last month where they claimed they had to pay between RM120,000 and RM180,000 for their low-cost flats, as part of forced add-ons such as tiling and a car park lot.
At a press conference today, Mohideen said the state government should make sure that this did not happen.
He claimed the state government was trying to escape the blame by saying it was an issue between the buyer and the developer and that it had no say on the matter.
Mohideen said the state government was responsible because all buyers had to register with the state Housing Department, which would then give the name list of eligible applicants to developers.
He said the state’s “not my problem” stance was morally wrong, when thousands of low-income earners were forced to take up renovation and car park lots as part of a “package”, raising their purchase prices to RM120,000 or RM180,000.
“The Penang government is fully aware of this arm-twisting, going back as far as 2010.
“They claim they have given warnings to developers to stop this practice of forcing extras, such as renovation work and car parks, on buyers.
“But these warnings have fallen on deaf ears and this continues to be the norm.
“These greedy developers should be barred from building any more properties, as they are turning the state’s housing policy into a charade,” Mohideen said.
The Penang government requires all housing developers to sell 30% of their units as low-cost or affordable housing.
“Instead of helping the lower-income group, the 30% clause is helping developers to rip off buyers. Thus, the developers are the ones benefitting directly from this.
“Does it make sense that the car park and the so-called renovation are 40% to 70% of the purchase price?”
Mohideen said the Penang government must ensure that all sale and purchase agreements are signed at the Housing Department, parking lots have a standard pricing, and “ridiculous” renovation packages are made illegal.
At the same press conference, Hirman Mokhtar, 32, a medical assistant, said he was forced to take a “corner unit” flat at Tanjung Tokong together with a car park unit at the cost of RM180,000, when the price of the unit was only RM72,500.
Rosalind Yagambaram, 56, a former training manager, broke into tears talking about her ordeal in getting her RM42,000 low-cost flat unit in Sungai Ara.
She said she was forced to buy a carpark lot for RM35,000 and pay another RM34,000 for a “renovation” package which included wiring, tiling and other fittings.
Rosalind also claimed she had been given the run-around by the Penang Housing Department and that she was scolded by an aide to a politician for being “ungrateful” for getting her unit.
“I had to withdraw my entire life savings for this,” she said.
Letchemi Kozando, 45, a customer service executive, said her flat at Perak Road cost her RM162,000, when it was supposed to be just RM72,500.
“I have been forced to pay RM220 in maintenance fees for the past three months.”
FMT has contacted Penang Housing Committee chairman Jagdeep Singh Deo for comment and is awaiting his reply.