GEORGE TOWN: Penang government is planning to re-introduce the Rent-to-Own (RTO) scheme to assist the low income group to own houses in the state.
Chief Minister Chow Kon Yeow said the matter has been raised in the first state executive council's meeting recently and three housing projects have been identified as "suitable" for the RTO conversion.
He said there were cases of people still unable to afford houses sold at RM42,000 and RM72,500 under the low cost and low-medium cost categories respectively.
"We want to take a new approach (to address this) and we are looking at the RTO scheme.
"For instance, tenants can pay their rentals, say between 20 and 25 years, and that will be taken into account as installment payment before owning the house.
“However, they must pay the rentals promptly during the period," he said during a working visit to the Penang Island City Council (MBPP) flats in Lebuh Ah Quee here today.
Asked about the projects under the RTO scheme, Chow said one of them was located at Mak Mandin, on the mainland.
He said the state housing department would outline the criteria and mechanism to implement the RTO scheme.
Chow said the units to be offered under the RTO scheme would be projects implemented under the purview of state housing department and Penang Development Corporation (PDC).
"Once the new policy has been implemented, the state government will assist with the conversion process.
"If developers can sell us the units at cost price, then the state will be able to offer it to the people under the (RTO scheme) policy," said Chow.
On his visit, Chow said the council was planning to replace the roofs of the two blocks of flats there costing about RM500,000.