Ministry to help ailing project secure financing

Housing and Local Government Ministry (KPKT) will continue assisting the developer of Hektar Gombak Residency to secure financing to complete an affordable housing project.

Deputy Minister Datuk Aiman Athirah Sabu said the developer must, however, comply with the conditions set by financial institutions to ensure that the loan was approved, BK reported.

“The project’s progress is delayed due to financial issues faced by the developer,” she said in a statement.

She said the Hektar Gombak Residency was classified as a “sick” project because of delays in the work schedule set in the Sales and Purchase Agreement (SPA) and failure to complete it within the stipulated period.

“The actual progress status on-site remains at 84.75%.

“Work on-site is minimal and is not showing progress,” said Aiman.

She said the Private Housing and Abandoned Projects (TFST) Task Force had carried out several engagement sessions with the developer and visited the project site as a mitigation step by the government.

“TFST has successfully facilitated the resolution of technical issues involving the installation of main pipes under the Integrated Water Supply Scheme, Sewage Treatment Plant, and pipe installation in Greater Kuala Lumpur,” she said.

Aiman said the ministry was ready to look at best alternatives to help recover sick housing projects, especially for affordable homes, to reduce the burden on housebuyers.

“KPKT through TFST is committed to continuing the national agenda in assisting troubled private housing projects, whether categorised as delayed, sick or abandoned, to ensure the interests of homebuyers are protected.

“This will reduce the burden on the people to ensure the sustainability of the affordable housing industry as a whole,” she added.

The Hektar Gombak Residency project is a mixed development consisting of five 46-storey apartment blocks involving 2,400 housing units in Jalan Gombak, Setapak.

Unit buyers were reported to have expressed their frustration because of the ongoing delay in the project’s completion.