KUALA LUMPUR: The Local Government Development Ministry is fine-tuning amendments to the Housing Development (Control and Licensing) Act 1966.
Its Deputy Minister Akmal Nasrullah Nasir said the amendments aim to strengthen administration and management of the housing sector, ensure the rights and interests of homeowners are protected and to ensure the sustainability of the housing sector.
He said the proposed amendments would also entail clearer a definition of what constitutes a "sick project".
"At this juncture, the definition of an 'abandoned project' is quite loose," he said, adding that a clearer definition would enable more effective enforcement.
He said the ministry was also studying proposals to ensure that developers have good financial standing and to blacklist developers who fail to deliver their projects.
It is also looking into adding an "option to purchase" clause in the pre-sale agreement.
"This option in the contract allows developers and house buyers the space to exit the (contract) without financial implications if the development can not be continued if developers fail to hit their sales target within a set period," he said.
Datuk Shamshulkahar Mohd Deli (BN-Jempol) had asked if there would be amendments to the Act to overcome the issue of sick projects and improve the efficiency of housing development.
During a supplementary question in the Dewan Rakyat on Wednesday (Oct 18), Shamsulkahar mooted an insurance scheme to protect home buyers against incomplete housing projects.
Akmal said he personally is in favour of the idea and would study a proposal.
