Revive or stay blacklisted

The Star 4/3/2006

KUALA LUMPUR: Developers of 150 abandoned projects in the country will remain blacklisted until they revive the projects.

Housing and Local Government Ministry monitoring and enforcement director Dr G. Parameswaran said the abandoned housing schemes involved both landed property and high-rise units.

“Of the 150 abandoned projects, 87 were taken over by other developers while six were revived by the National Housing Company Bhd (SPNB),” he told a press conference yesterday, and added that the ministry had monitored about 10,000 projects between 1999 and 2005.

“Usually, a project is abandoned when the developer faces financial and other problems,” he said, adding that problems included sales of units, technical matters, management and squatter issues.

Landed properties, he said, had to be completed within 24 months and high-rise projects within 36 months.

“A project is considered abandoned if it goes beyond the time frame and there is no activity over the subsequent six months,” he said.

He cited the case of the Desa Kundang project in Rawang. The project first started in October 2003 and should have been completed by October 2005.

However, buyers had yet to receive the Certificate of Fitness (CF) for their single-storey terrace houses.

Following complaints, the ministry wrote to the developer and the Selayang Municipal Council which confirmed they had not received Form E or the CF application form from the developer.

Dr Parameswaran added that a visit to the area showed that electricity and water meters had been installed and some buyers had already moved in.

“The developer has been asked to solve the CF problem immediately. We will discuss the matter with the council and developer,” he said, adding that they might take legal action against the developer.