Friday 29 Mar 2024
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KUALA LUMPUR: Penang executive councillor for housing, town and country planning Jagdeep Singh Deo has denied claims made in a news report entitled “Cheaper homes out of reach — locals upset with state’s rejection of applications for affordable houses”.

He expressed regret that the newspaper had not contacted him for comment or to verify the claims in the report.

“Be fair [when] reporting on these issues because it will affect Penangites who are in need of a roof over their head, if not provided with accurate information.”

Sunday’s report claimed that many applicants under the state government’s affordable housing scheme had their applications rejected on grounds they felt were unreasonable.

Referring to two applicants in the report who claimed that their applications were rejected on grounds that they were not working or studying in Penang, Jadeep said an applicant must show proof of being employed in Penang over the past five years and be a registered voter in the state.

Furthermore, applicants who are not Penangites but who have been working in Penang for the past five years, subject to all other criteria, will also have their applications considered.

Jagdeep added that even those who fall under the “talent and skill” category, who are gainfully employed in any particular industry in Penang as vouched for by their employer, subject to all other criteria, will be considered.

One applicant in the report said it was unfair for the state to take gross income as a criterion for the application. It ruled her out because her combined household income was RM8,800, which exceeded the RM8,000 cap to apply for a RM300,000 unit.

Yet, she claimed that her nett combined household income was only RM6,500 after deducting income tax, EPF and Socso contributions.

In urging her to contact the housing board over her claims, Jagdeep said the cap for total household income was RM6,000, RM8,000 and RM10,000 for the RM200,000, RM300,000 and RM400,000 units respectively.

“The total household income cap is the net and not gross income. EPF, Socso, mandatory insurance premiums and income tax deductions are taken into account.”

“Even if the total household net income exceeds the imposed cap, an applicant is entitled to appeal, especially when the excess is minimal. This has been done for many cases and we will continue to consider these appeals,” Jagdeep said.

He also said that the application criteria were clear, with the state government giving priority to Penangites contributing to Penang first.

“The selection committee meets on a monthly basis to scrutinise the details of every applicant. I’m willing to meet with unsuccessful applicants if they wish to appeal personally.”

The new category of affordable housing was introduced in January 2014, aimed at enabling first-time house buyers to get on the property ladder. — The Malaysian Insider

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This article first appeared in The Edge Financial Daily, on July 15, 2015.

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