61 housing projects stalled in
27/03/2006 The Malay Mail
SHAH ALAM: Banks have already issued them with letters of demand for loans
they took but the houses they have paid for, are still incomplete.
At the same time, the two buyers in the Port Villa housing project in Klang
have to pay the rent for the houses they now occupy.
Their problem was revealed by Selangor Housing and Real Estate Board
executive director Datin Paduka Alinah Ahmad during an interview.
She said Port Villa was among 61 housing projects in the State that had
stalled and became mosquito-breeding rounds and havens for drug addicts.
The Port Villa developer is Perkasa Indera Sdn Bhd and when it was
discontinued four years ago, only one per cent of the structure had been
built. Now, scrubs and bushes can been seen all over the site.
Alinah said the developer had not given any strong reason why the project
had been discontinued, nor had it been wound up.
However, there had been several misrepresentations by the developer about
the project like a claim that the Klang Municipal Council had approved of
it, she said.
She said the Selangor Government was concerned over the fate faced by the
buyers whose houses had not been completed.
About 18,000 house buyers had become victims of the 61 stalled projects, 23
of those had been discontinued for more than 10 years, “she said.
"There are no signs from the developers of their intention to restart the
projects," she said.
Besides the 61 housing projects, there were 22 commercial, two industrial
and six village expansion projects that had also stalled in Selangor, she
Alinah said the Selangor Housing and Real Estate Board had outlined several
ways to help the house buyers.
Among them are to bring the developers to court have private liquidators be
appointed to takeover the projects, ask Syarikat Perumahan Negara Bhd (SPNB)
to continue with the projects and find 'white knights' to save them.
Alinah said the board would engage lawyers to take the developers to court
on behalf of the buyers where there were strong grounds for it like if the
projects had stalled for over 10 years.
She also urged SPNB to be more active in rehabilitating stalled projects.
Among the projects that had been restored by SPNB in the State are Bandar
Pinggiran Subang, Taman Desaria Petaling, Taman Kantan Permai Kajang, Taman
Lingkaran Nur Kajang and Lembah Beringin.
The board has also outlined measures to be taken to avoid housing projects
from being discontinued.
Among them are for the project consultants to register themselves with the
board and submit their work schedule to enable the board and local
authorities to monitor the progress of the projects.
Banks should also check the status of the project before approving the
bridging loan or end financing, Alinah said - Bernama