Rent-to-own scheme for poor

The state government has embarked on a rent-to-own scheme for B40 folk to own Rumah Selangorku homes. — Filepic

Developers’ contra units being offered under new home ownership incentive

Selangor Housing and Property Board (LPHS) is finalising a new rent-to-own scheme (SeMiSel) by offering contra units obtained free from developers.

State housing and culture committee chairman Borhan Aman Shah said the free units were the result of a state incentive to encourage the construction of affordable homes under Rumah Selangorku Harapan and Rumah MBI schemes.

Under the incentive, the developer needs to hand over free units to the state government in return for an exemption on the number of Rumah Selangorku Type A units that should be built.

These contra units will then be used to implement programmes to help the B40 group.

“A total of 1,576 units are available under the SeMiSel scheme.

“Of this number, 707 units are ready to be rented out, while 869 units are either still under construction or in the process of having fans, lights, grilles and other necessities installed,” said Borhan.

He urged those interested to be part of the scheme, especially from the rural areas, to apply through the LPHS system.

He was replying to Dr Mohd Zamri Mohd Zainuldin (PN-Sungai Burong) who asked, at the state assembly sitting, about the scheme in rural areas.

Borhan said the state had previously launched such schemes but all had failed to take off.

In 2016, there was the Danasel scheme to help the B40 group, squatter dwellers and those who were unable to obtain financing.

This was done through a pilot project at Kem Rimba Apartments in Shah Alam but a majority of residents failed to settle their monthly payments.

“In 2017, the Smart Sewa scheme was launched,” said Borhan.

“This time we offered participants a 30% return after either two or five years if they wanted to buy a house. This return was to be used as a deposit.

“Unlike the pilot scheme, this one was a success,” he said.

On a question by Ong Chun Wei (PH-Balakong) on abandoned housing and how the state intended to assist affected buyers in terms of legal aid and financing, Borhan said it was imperative for victims to take the matter to court.

“This is because the project developer had breached the contract of their sales and purchase agreement,” he said.

LPHS, he said, was still taking a proactive stand to help victims by forming a special committee to look into reviving abandoned projects.

Similar units have also been formed at local council level.

“These committees have come up with solutions where buyers are given the option to either top up the cost to complete their units, have them handed over to rescue developers with refunds or be transferred to another area,” said Borhan.

LPHS also provided abandoned project certification to help victims renegotiate, restructure or reduce monthly instalments with loan financing parties and banks, he added.