T
he lack of solid rental income from the People’s Housing Project (PPR) is taking a toll on efforts by the Ministry of Housing and Local Government (KPKT) to provide the best facilities for its tenants.
This means that initiatives aimed at providing liveable homes at the PPR schemes have to take a back seat. This article, the last of a two-part series, highlights emerging issues as well as steps undertaken by the KPKT to address the problem.
Failure of tenants at the People’s Housing Project (PPR) schemes to settle their dues are taking a toll on efforts to provide comfortable and liveable homes for the people.
Due to high rental arrears involving the PPR tenants, the agency providing these affordable homes, are indirectly saddled with higher costs for renovation works toward the schemes.
With little or no action by the authorities, some of these tenants were stuck in their comfort zone by continuing to stay at their PPR units for free.
Earlier, the government through the KPKT has allocated RM50 million for the maintenance and replacement of outdated lifts at PPR and public housing schemes to create a more conducive living environment and enhance the comfort of residents.
Prime Minister Datuk Seri Anwar Ibrahim said that to expedite the project implementation, the quotation threshold for the procurement of maintenance and repair works for lifts will be increased to RM1.2 million from RM500,000 previously.
Towards this end, the ministry said it is committed to adopting a more proactive approach in addressing the issue.
INCURRING COSTS
KPKT in a written reply to Bernama said that errant defaulters and the longstanding issue of high arrears involving the PPR tenants have resulted in financial implications on the government.
In the 2023 Budget, the government allocated RM50 million through the Housing and Local Government Development Ministry to provide a safe environment in PPRs nationwide.
Under the 12th Malaysia Plan (12MP), a total of RM500 million has been allocated towards maintenance and repairs of strata public housing nationwide covering PPR schemes for implementation from 2021 to 2025 through the Public Private Partnership (PPP) initiative.
However, the PPP allocation does not cover strata public housing in the Klang Valley, which is under the jurisdiction of the Kuala Lumpur City Hall (DBKL).
“In principle, the PPR aims to provide comfortable homes for low-income groups. As such, this housing programme offers minimum rentals while rates provided by other housing schemes are much higher.
‘’…and saddled with rental arrears, the government is forced to fork out separate funds for maintenance of the housing schemes, including lift repairs and this situation will also impact the government’s revenue,” it added.
According to KPKT, as of December last year, 161 PPR projects had been completed across the nation and of the total, 21 projects were wholly-managed by the ministry.
“Out of the 21 PPR projects managed by KPKT, only two are offered under the rental scheme while the rest are for home ownership.
“Based on rental collection data from these two PPR, rental arrears to date have accumulated to about RM12 million involving PPR schemes in Pasir Mas Kelantan and Lembah Subang 1,” said the ministry.
The PPR rental scheme was introduced in February 2002 aimed at relocating squatters and fulfilling the housing needs of low income groups. Specifications and designs for the housing schemes are based on the National Housing Standards for Low-Cost Residential Flats (CIS2).
ACTION AGAINST DEFAULTERS
According to KPKT, action will be taken against errant PPR tenants or those who failed to settle their dues by terminating their lease agreement.
“For tenancy agreements under KPKT management, the terms involving tenants’ obligations as well as lease termination are clearly stated whereby if the tenant fails to pay his or her rent for three consecutive months or at a given time, the KPKT has to serve a notice and subsequently if the tenant still fails to settle within the specified period, the tenancy agreement will be terminated,” it added.
“However, any drastic action taken that could have negative effects on the tenants will be reviewed carefully given that the PPR residents are vulnerable groups, majority of whom with low financial resilience,” the KPKT said.
Meanwhile, KPKT is also studying the possibility of incorporating the scope for public housing including PPR in the formulation of the Rental Tenancy Act (RTA) to provide protection for house tenants and owners.
“KPKT will continue with engagement sessions with the relevant authorities to finalise the Act especially from the implementation and administrative aspects.
“Feedback and views received from the engagement will be taken into account to improve the draft to ensure all quarters will be protected,” said the ministry.
Minister of Housing and Local Government Nga Kor Ming has earlier said the Residential Tenancy Act would be neutral, with the rental of any premises being subject to agreement by the parties involved.
“It will also define the rights and obligations for premise owners and renters, alongside preparing a mechanism to resolve any conflicts when it comes to renting,” he added.
The Act will protect the interests and rights of housing tenants and owners which at present are only protected under the Contracts Act 1950. The Contracts Act is however general in nature and is not comprehensive.
NATIONAL COMMUNITY POLICY
Besides the firm or legal action, the government has also carried out various intervention programmes that are designed for PPR residents.
They include empowering the community in health and safety aspects, instilling a sense of ownership, good-neighbourliness and respect for each other.
“Others include implementing the National Community Policy (DKomN) aimed at addressing the housing issues at the local community level especially in strata housing areas nationwide.
“Under such programmes last year, all potential PPR tenants are required to attend civic awareness courses aimed at creating civic consciousness among residents, increasing responsibilities in aspects of environment cleanliness, maintenance and shared use of property at the PPR,” said KPKT.
Meanwhile, the ministry also urged residents to take responsibility in ensuring their monthly rentals are settled within the stipulated period.
KPKT said PPR tenants should comply with the terms that have been agreed upon in the tenancy agreement.
“Every tenant should realise that they are the main beneficiaries of the initiative with a large amount of subsidies allocated by the government to develop this housing sector,” it added.
Translated by Salbiah Said
-- BERNAMA
