Zarmizan Puji, director of PLANMalaysia’s legal and regulatory division, said its engagement sessions revealed that some homeowners faced hurdles such as unresolved mortgages, outstanding housing loans, and joint ownership disputes.
“Some properties are mortgaged to the bank, so when we offer redevelopment, the owners want to agree to it but say, ‘I have an issue with the bank.’ Others are still paying off loans from years ago.
“In cases of multiple owners, one proprietor may agree while another refuses,” he said during a media briefing on the bill.
Zarmizan added that difficulties also arose when heirs were missing or deceased.
“For example, if I pass away and my child cannot be found, or I have no children at all, then how can consent be given?” he said.
However, Zarmizan said many of these owners had indicated that they would agree to the redevelopment once their ownership issues were resolved.
He added that these homeowners would receive a settlement and be included in the redevelopment, although compensation might vary.
“For instance, while most residents might receive a new three-bedroom unit of 1,500 sq ft, those with unresolved issues such as mortgage encumbrances might end up with a smaller unit, say 1,000 sq ft,” he said.
Where owners cannot be located at all, Zarmizan said the Land Acquisition Act could be enforced, and the rights would then be transferred to the statutory body or developer.
Currently, urban renewal projects under Section 57 of the Strata Titles Act 1985 require unanimous consent from all property owners.
The Urban Renewal Bill, tabled for its first reading today, proposes a tiered consent system: 75% for buildings over 30 years, 80% for those under 30 years and 51% for buildings deemed abandoned or unsafe.
Explaining the 30-year threshold for building age, Zarmizan said the issue was not only structural lifespan.
“The Construction Industry Development Board says buildings here can last 50 to 60 years.
“But lifespan is not only about structure. After 30 years, critical infrastructure like electrical, water, sewerage, and drainage systems begin to fail. That’s why we set 30 years, not 60,” he said.