SHAH ALAM, 15 July 2011 : Selangor is mulling the legal viability of two rules to prevent profiteering from its affordable home schemes.
They include restricting the transfer of ownership within the first five years and only allowing the homes to be resold to the state with a limited profit margin.
"If the owner wants to sell his or her affordable home, he or she can only sell it back to the state government," said executive councillor Iskandar Samad on Tuesday.
He added that the state's affordable homes (Rumah Mampu Milik), priced below RM100,000 for an apartment unit of 750 to 850 sq feet, are targeted at middle-class buyers with a monthly income of between RM2,500 and RM5,000.
Iskandar pointed out that affordable homes are different from low-cost houses as the latter are cheaper, usually priced at RM42,000, and smaller at 650 sq feet. But only those with who earn less than RM2,500 a month can buy low-cost houses.
"Our affordable homes are also different from federal government projects, where houses are sold at RM100,000 to RM220,000 to those with a monthly income of between RM3,000 and RM6,000," said Iskandar.
He pointed out that first-time buyers are given priority to purchase Selangor's affordable homes, with 40% of the units reserved for buyers under 35 years of age.
Senior citizens and people with disabilities will be allocated specific ground-floor units as well.
The Selangor Housing and Property Board (LHPS) will vet all applications to ensure only qualified applicants are accepted.
Selangor Development Corporation's (PKNS) first affordable apartment project comprising 124 units was launched in Bandar Baru Bangi last month.
"PKNS plans to build 11,001 units of affordable homes in the next 10 years, but the state also encourages private developers to build such homes for the people in Selangor," said Iskandar.
The state investment arm will build another 480 apartment units in Kampung Seri Temenggong in Gombak and 242 units in Shah Alam this year. Five more similar projects totalling 1,056 units are also expected to be launched in Kota Puteri this year.
Between 2012 and 2021, PKNS will be launching eight more projects in Shah Alam U12, Bukit Cerakah U10, Antara Gapi, Bernam Jaya and Selangor Science Park 2.
As for private developers, Iskandar said two projects are ongoing: one in Sungai Long, Hulu Langat, is being constructed (136 units), while another in Shah Alam U10 (536 units) is in the midst of getting state approval to convert the low-cost houses to affordable homes.
He urged other interested private developers to approach the state.
