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'If I were the Housing
Minister...'
09/12/08 NST By Chang Kim Loong
While the National House Buyers Association (HBA) is appreciative of the
housing industry's significant contributions to economic development, it is
also mindful that house buyers too play an important role as the industry's
customers.
For the industry to be sustainable, it strongly feels that the interests of
both the developers and house buyers need to be taken into account,
especially those of the latter who have only an inaudible voice in the
wilderness.
Here are 12 issues or areas which the HBA hopes the Minister of Housing and
Local Government would address:
1. Not becoming a tool for industry players
He should not be a publicity tool for housing developers to exploit during
the launching of their products and should only support developers who have
proven their sense of responsibility and who have impeccable track records.
2. Plight of victims of abandoned projects
He should seriously look at the plight and nightmares faced by thousands of
innocent and unwary house buyers who have lumbered themselves with problems
created by errant and unscrupulous developers, and ensure their legitimate
rights are not shortchanged. He should seek immediate solutions to resolve
such unsatisfactory state of affairs and not shirk his duty by exercising
and invoking the relevant sections of the legislation to protect the na�ve
and innocent buyers.
3. Critical situation justifies drastic measures
Further to issue 2, he should see to it that the path that leads to such a
pathetic situation is completely blocked. He should encourage measures,
including drastic ones (see issue 5), to be promptly executed to relieve the
sufferings of innocent house buyers who deserve governmental protection.
4. Adopt the 10:90 BTS variant
He should ensure the property industry adopts the 10:90 Build-Then-Sell
(BTS) variant − an intermediate variant that hybrids between the
Sell-Then-Build (STB) system and BTS that came into effect on Dec 1 last
year − although on an optional basis, the option being given solely to the
developers.
He should see to it that, on a progressive basis, the sales and purchase
system adopts the 10:90 BTS variant � the ultimate objective being the
complete exclusion of the present day STB (progressive payment) system.
He should draw a road map to attain this objective. Many countries in the
region have adopted the BTS concept so there is no reason why local
developers cannot do likewise.
Under the 10:90 system, developers may sell their products before they
commence construction when all the necessary approvals have been obtained.
Buyers sign the Sale and Purchase Agreement and pay a deposit of 10 per cent
of the selling price and make no more payments until the houses are
completed with Certificate of Completion and Compliance, water and
electricity available for tapping and running as well as vacant possession
with keys.
The risk of abandoned projects is thus totally removed. If construction of
the houses is disrupted or abandoned, developers will be the ones to bear
the brunt.
Quality of houses will also improve with the 10:90 system because developers
will have to execute greater care to ensure they are constructed in
accordance with specifications and proper workmanship so that the finished
products are saleable.
The risk faced by developers that the buyer may refuse to complete the sale
when the property's price has dropped at the time of handover will be
negated by forfeiting the initial 10 per cent deposit plus other possible
specific performance liabilities.
5. Forfeiture of land in abandoned projects
He should lobby for the state authorities to take drastic measures,
including forfeiture of land on which abandoned projects are sited so that
the projects can be revived and the completed homes delivered to their
rightful purchasers or owners. He should instruct his ministry to fast track
all revival applications to alleviate sufferings of affected buyers.
6. Close working relationship with state governments
He should see to it that his ministry work closely with the state
authorities so that problems related to housing can be jointly and speedily
resolved.
7. Enforcement of all housing legislations
He should embark on a campaign of vigorous enforcements to ensure offenders
will not get away scot-free. He should demonstrate to industry players that
the letter of the law will be enforced without fear or favour and that his
ministry means business.
Errant and unscrupulous developers who create havoc to the development of
the housing industry and tarnish the good name of those responsible ones
should be penalised and made examples of to deter would-be offenders.
8. Enforcement of Tribunal for Homebuyers awards
He should see to it that all awards meted out by the Tribunal for Homebuyers
are promptly complied with by the defaulting developers and that
recalcitrant developers will face criminal charges under Section 16AD of the
Housing Development (Control and Licensing) Act 1966.
Penalties include fines of RM5,000 to RM10,000 and a maximum two years'
imprisonment. This should ensure developers respect and promptly comply with
the ruling(s) of the Tribunal which was established to allow speedier legal
redress for aggrieved house buyers.
He should not spare the individual directors and shareholders of the
development company who should be serving jail sentences (for failure to
abide by the Tribunal awards) instead of their wage earners or employees.
9. Better support for NGOs
He should work closely with and provide the relevant non-governmental
organisations greater moral and financial support as they can become his
ministry's source of feedback and inputs for the rakyat's benefit.
10. Sufficient affordable housing for the people
His long term aspiration should be the total absence of squatters in the
country, which can only be achieved by concerted efforts of both the federal
and state governments. He should exert his influence to lobby.
11. Establishment of an ombudsman
He should lobby for the establishment of an ombudsman within the
governmental system so that any grievance against any government department
can be speedily and effectively attended to.
12. National Housing Policy
He should get his ministry to urgently draw up a comprehensive National
Housing Policy to provide a firm direction for matters on housing in
Malaysia. Factors such as environmental destructions and damage to resources
should be controlled.
Laws should be strictly enforced to ensure the wellbeing of the people and
future generations. It is vital that infrastructural, industrial, economic
and commercial developments are not at the cost of our health.
Chang Kim Loong is honorary secretary-general of the National House Buyers
Association. |
