Fund for abandoned housing projects to be revived

The Star  20/07/2000 By Celeste Fong

PETALING JAYA: The Cabinet Wednesday approved a Housing and Local Government Ministry proposal to reactivate a fund to help revive abandoned private housing projects.

Housing and Local Government Minister Datuk Seri Ong Ka Ting said his office would work closely with Bank Negara to revive these housing projects.

With 157 private housing projects abandoned as at the end of last year, Ong said the Government would ensure those with potential were revived.

''Among the 157 projects, there are 46 projects involving 9,331 buyers and 13,855 units of houses costing approximately RM1.3 billion.

''These projects have the potential to be restored,'' he said. However, he added that there were 111 projects involving 18,845 units of houses with some level of difficulty to be restored.

Ong reasoned that problems like unsettled court cases between developers and land owners made the 111 projects comparatively more difficult to be restored and high cost was another cause for the abandoned projects.

''I am very concerned about the matter and have brought this up to the Cabinet,'' he said.

He hoped that after the fund for abandoned housing projects was reactivated, his ministry could work closely with the Finance Ministry on the revival of the abandoned projects.

''The Cabinet agreed yesterday (Wednesday) but the mechanism and other details will be discussed further,'' he said.

According to Ong, the Finance Minister admitted that there would be funds available but he did not know the exact amount involved.

'The amount will depend on the size and suitability of the projects,'' he told a press conference after opening a two-day National Conference on Housing and Urban Governance.

Asked whether it would cost approximately RM1.3 billion for the revival of 46 abandoned projects, Ong said the amount involved should not be measured by the value or number of projects as some cases could be resolved without the Government's aid.

Ong said only projects where construction work had stopped for more than six months continuously were classified as abandoned projects.

Among ways to solve the problems, Ong said other developers could take over the projects from the original developers who could also invite other developers to take over on their own initiative.