GEORGE TOWN: The Penang government have been told to put its foot down on backdoor practices that are hiking up the price of low-cost housing in the state.
Such practices, according to Penang Parti Rakyat Malaysia (PRM) vice-chairman Ravinder Singh, makes a mockery of the state government's low-cost housing scheme.
Explaining, he said, the state government offered houses at certain fixed prices (RM42,000 for two-room units, RM72,500 for three-room units and RM150,000 for bigger units).
He, however, claimed developers refused to sell at the offer prices.
Instead, he said, they called the shots by compelling purchasers to sign up for 'Renovation Packages' that cost as much as or even more than the offer price, charging extra for higher floors starting at around RM1,000 from 5th floor upwards and increasing by each floor and alsoc harging extra for corner units.
"Why are developers allowed to sell low-cost housing in this exploitative manner?
"It should be made illegal and any developer engaging in it should be blacklisted.
"This practice has been going on for a long time, and as such, it has to be stopped at all cost," he said today.
Elaborating, Ravinder said the state Housing Committee must not only issue offer letters stating the price of the units offered, but must also ensure the purchasers get the houses at that price.
He said the state Housing Department was fully aware of the issue and had been telling complainants that it was out of their jurisdiction, that it was a matter between the purchasers and the developers.
"This is not so. It is very much a matter for the state Housing Department to take up with the developers and ensure that they sell at the price stated in the offer letter.
"Not doing that is making a mockery of the low-cost or affordable housing schemes and failing the lower income groups by leaving them at the mercy of developers," he added, noting that such a practice resulted in some having to wait for years but could not buy any house.
Ravinder also proposed to state Housing and Environment Committee chairman Datuk Seri S. Sundarajoo to set up a Whatsapp complaints channel for arm-twisted purchasers to lodge complaints directly to him.
The New Straits Times has reached put to Sundarajoo for comments and are waiting for his response on the matter.