‘RM99,000 a unit is not low cost housing’

Buyers of the stalled housing project in PJS 1 say some of them earn only RM1,000 a month and the Selangor government's offer is beyond their reach.

PETALING JAYA: Buyers of the stalled Block E low cost flat units in PJS 1 are livid over Selangor state government’s offer of affordable housing units at a discounted price of RM99,000.

In a meeting with over 200 buyers on Saturday, Selangor mentri besar Abdul Khalid Ibrahim gave the following options to the 276 buyers :

two affordable housing project would be started, at the land near Taman Kanagapuram and near the longhouses, with the units being sold to the Block E buyers at RM99,000, from the original price of RM160,000.

free Projek Perumahan Rakyat Termiskin (PPR) flat at Lembah Subang 2 for the buyers and a cash payment of RM20,000 once all units of the affordable housing project are sold.

buyers can choose any PPR flat units in Selangor for free and a cash payment of RM13,000 once all units of the affordable housing project are sold off.

However, Block E residents action committee chairman M Sugumaran said some of the residents were furious saying they would not be able to purchase a house worth RM 99,000.

“Most of them are low income earners who get below RM1,000 a month. How could they possibly afford a house worth RM99,000?” asked Sugumaran.

If the project continues as planned, Sugumaran said the affordable housing units would only attract property investors who has the means to purchase the units.

“And we, who had lived here for three generations, would be driven out from the place we were born and bred,” he said.

He also said that many were also unhappy over the free Lembah Subang PPR flat offer, saying it was the same thing that they had fought against over the years.

“If we wanted the flats, we would have taken it years ago when the offer was made when our squatter houses were demolished years ago,” said Sugumaran.

Sugumaran said the MB should not be too proud of his free PPR flat offer, saying that he could make such pledge as no one wanted to stay in a PPR flat.

“Nobody wants to buy PPR flats. That’s why he can give it for free as even in Lembah Subang, there are many vacant units.

“And by dishing out the cash payments only after the affordable housing units are sold, they seem to forget that we are the victims here,” said Sugumaran.

Stalled project

The 276 buyers, formerly squatter residents, found themselves left in the doldrums when developer Peter Brickworks Sdn Bhd reneged on its promise in 2003 to build low cost flats for them.

The residents had paid deposit for the units and some are still paying instalment for the project which has stalled for the past eight years.

Some of the residents are living in Lembah Subang and about 40 families are living in longhouses erected by the developer at PJS 1.

Threatened with eviction, Khalid stepped in and promised the residents in June that the state itself would build their homes.

Sugumaran said that Khalid also failed to address their woes with the bank, who had pressed many of the residents to pay up their outstanding interest and instalments for Block E.

“And what about liquidated and ascertained damages (LAD)? Khalid did not address it in the meeting,” he said.

LAD is a clause that compels a developer to provide remedy to house buyers when a certain project is delayed or stalled.

Two weeks to decide

When contacted, Petaling Jaya City Hall councillor, Latheefa Koya dismissed the argument that it was bad offer and claimed many residents were keen to consider the free PPR flat offer.

“About 150 of them who are already living in Lembah Subang are considering the offer. Just the remaining balance who are still iving in PJS 1 are still sceptical about it,” said Latheefa who was present at the meeting.

She said the flats, although worth RM35,000, can fetch up to RM70,000 if they sell it later on.

Latheefa, who is also PKR supreme council member, said Khalid had never forced the offer down the residents’ throats and gave the buyers two weeks to decide on it.

“He told the residents that he will revert to building the RM35,000 worth of housing as per their contract with the developer at PJS 1 should they collectively disagree on the proposal,” said Latheefa, who added that Khalid had promised to resolve their payment issues with the bank.