Association: Unjust to penalise housebuyers

INNOCENT housebuyers should not be penalised for the inefficiency of state agencies in implementing the bumiputra housing policy, says the National House Buyers Association (HBA).

In a statement to StarMetro, HBA honorary secretary-general Datuk Chang Kim Loong pointed out that since land matters fell under the jurisdiction of the respective state governments, the Selangor Housing and Property Board (LPHS) and related agencies like the land office were responsible for ensuring the sale of bumiputra quota units were above board.

Selangor enforces a 40% bumiputra quota for housing, accompanied by a 7% bumiputra discount.

The bumiputra housing policy varies from state to state, with quotas ranging from 30% to 50% and discounts ranging from 7% to 10% for bumiputra buyers.

“The quotas may only be released through a strict bumiputra release mechanism that housing developers must adhere to before the units can be sold to non-bumiputra purchasers,” said Chang.

He was commenting on StarMetro’s frontpage report yesterday titled “Penalty Dilemma”, which highlighted cases of housing developers who had oversold bumiputra units to non-bumiputra buyers without going through the proper release mechanism process.

Selangor’s is outlined in the Selangor Bumiputera Quota Maintenance Mechanism 2.0 circular issued by LPHS.

“Somehow, the gatekeepers were caught off guard,’’ Chang said, referring to the issue of how a significant number of bumiputra units were sold.

“To make matters worse, the housing developers had the audacity to provide written confirmation to the affected buyers and their financiers/banks that the purchased units were not designated as bumiputra units.

“Now, with the developers winding up and declared insolvent, it is unjust for those who unwittingly purchased these units to bear the penalties imposed by the agencies.”

Chang said the affected buyers were now required to seek exemptions through private liquidators, incurring additional administrative fees that further burdened them.

“The absence of a ‘safety net’ and precautionary measures to ensure the compliance of bumiputra quotas by housing developers and land proprietors is worrying,” he added.

“How can innocent housebuyers be victimised by the state agencies?

“Why should they be made scapegoats?

“The LPHS should, instead, pursue legal action against the developers, even to the extent of filing a police report and initiating an investigation,” said Chang.