After several delays, buyers of PR1MA housing units dealt new blow

 

The Tebrau Residence in Johor Bahru had originally been scheduled for completion in January 2020. (MS Drone Photography Enterprise pic)

PETALING JAYA: Several buyers of flats at Tebrau Residence in Johor Bahru were shocked to find out that they may not be compensated for the late delivery of their homes as promised.

The project under the 1Malaysia People’s Housing Programme (PR1MA), which started in 2014, was originally scheduled for completion in January 2020 but has been delayed several times, partly because of the movement control order (MCO).

The buyers were told their units would be ready by October last year, and then January, March and now April.

Among those who received compensation for late delivery of their homes as per their sale and purchase agreements in the form of Liquidated Ascertained Damage (LAD) was a 34-year-old buyer, who was paid about RM7,200 on Nov 5.

He is owed a further RM20,000 to be paid after Vacant Possession (VP), when the property is completed but not yet fit for occupation.

However, a letter from PR1MA last week sighted by FMT said the developer has successfully received approval for LAD exemption from the housing and local government ministry.

The exemption is allowed by law under the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020 for the period from March 18 to Aug 31.

The letter said PR1MA is appealing for an extension of the exemption until Dec 31.

“This is very disappointing, we’re finished if we cannot get the LAD,” the civil servant told FMT.

“The morale of the buyers is low and we feel as if there is no hope for us.”

The man, who asked not to be named, said the public housing project has become a “nightmare” for the buyers, and called on PR1MA and the ministry to explain why no proper monitoring of the project was carried out before the Covid-19 pandemic.

FMT reported previously that many buyers are in financial trouble after having to fork out about RM2,000 each month to cover loan repayments for their Tebrau Residence units and to rent houses while waiting to move in.

PR1MA chief executive Mohd Nazri Md Shariff was reported to have said on Feb 22 last year that LAD would be paid out to the buyers after the keys had been handed over to them. In May, he was again quoted as saying the agency had allocated RM28 million to compensate buyers of all late PR1MA projects.

The Covid-19 Act states that the period from March 31 to Aug 31 shall be excluded from the calculation of LAD if the developer fails to deliver vacant possession of a housing accommodation, with the housing and local government minister allowed to grant an extension from Sept 1 to Dec 31.

Another buyer, Mohamad Isamuddin Isa, told FMT he received a letter from PR1MA stating that the developer’s application for LAD exemption under the Act was approved on Nov 25 last year.

“This is the first time we have found out that PR1MA has received an exemption,” said Isamuddin, who has received about RM5,000 so far and is owed another RM20,000.

“Nov 25 has been more than two months ago, and they never told us until now. They told us to wait (for the project’s completion), we waited. The completion date was extended several times, we waited for that, too.

“We were patient over the delays as we thought we would get the compensation. But now, they don’t want to pay us … that’s just too much.”

Another buyer, who wanted to be known as Yazid, urged PR1MA to fulfil its promise to the buyers. “They promised to pay last time. Now they’re using Covid-19 as an excuse,” he said, adding he saw a copy of the PR1MA letter in a WhatsApp chat group for owners.

The owners have been sharing their frustration on social media, with a recent poll on Facebook showing 58% (167 respondents) wanting a face-to-face meeting with officials from PR1MA and the ministry if they were to hold back on the LAD payments.

Another 28% (82 respondents) said they want to bring PR1MA to court.

Built on 4.3ha of Malay reserve land, the Tebrau Residence consists of 1,284 units with three types of floor plans ranging from 757 sq ft to 1,053 sq ft. It is one of PR1MA’s five projects in Johor.

FMT has reached out to PR1MA for comment. - FMT