Part 1 No Affordable Housing, No Approvals
The Selangor state government has decided to withhold the necessary approvals for developers who do not meet its affordable housing quota, in a bid to rein in defiant ones who delay the construction of affordable units in their projects.
According to the state government, any developments approved by its local councils, such as the Shah Alam City Council or the Petaling Jaya City Council, are required to prioritise the construction of affordable units. This means such units are to be built in the first phase of the project’s development, or concurrently with other residential units. This is the condition imposed on developers upon the issuance of a development order by the local government.
“Failure to comply could result in punitive action by the respective local government, including the suspension of the development order, building plan approval and also the issuance of the certificate of fitness,” the state government said in an email response to questions from The Edge Financial Daily.
Selangor has fixed a ratio of between 15% and 40% of each development be made up of affordable housing — depending on the locality and size of development land — for affordable housing units priced below RM250,000.
Based on this, it has identified a few developments with a mismatch between the number of affordable and non-affordable units, and has issued notices to the developers to warn them to take the necessary steps to rectify the non-compliance.
“The latest housing policy (Dasar Rumah Selangorku) has been strengthened in order to enhance the approval process of residential developments in Selangor. The Selangor state government is optimistic about reducing the mismatch of supply and demand of affordable housing in the state,” it said.
Asked whether the punitive action was a new measure, the state government said the option has always been available, adding it is an action of “last resort”.
“If the developer is awaiting approval for a new project, we will hold their application until they have settled their [affordable housing] obligations for current property developments,” it said.
Continue reading Part 2 of this article