PUTRAJAYA, Sept 8 — Weaknesses in the monitoring and management of the Housing Development Account (HDA) contribute to problematic housing projects, said Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir.
He said under the Housing Development Act 1966, it is required that licensed housing developers open and maintain HDAs with banks for each project undertaken.
“The HDA is specific to each project, but what happened was that one HDA was used for several projects, and even the financial institution’s bridging loan with the developer was not included in the HDA. The HDA (requirements) were clearly stipulated in the act, but the implementation was vague,” he said.
Developers use HDAs to deposit savings to obtain licences and financial loans for construction, and to regulate projects to avoid abandonment.
Speaking at a press conference regarding the development of the status of ailing and abandoned housing projects here today, Akmal Nasrullah said the Local Government Development Ministry wants HDA monitoring to be improved and coordinated between the ministry and the banks.
Akmal Nasrullah said the task force for ailing and abandoned private housing projects has forwarded improvement recommendations to financial and banking institutions so the intent of the act is achieved.
He said several other weaknesses were also identified, including developers’ project management and financial capabilities; on-site management involving main contractors; and contract disputes between developers and land owners.
He said until July 31, the task force had detected and monitored 118 delayed projects (13,039 units), 490 ailing projects (79,278 units) and 114 abandoned projects (24,262 units).
Akmal Nasrullah said 222 private housing projects (24,422 units) have been successfully restored, to the point of receiving a certificate of completion and compliance.
“The gross development value (GDV) of the successfully restored projects stands at RM20.61 billion. Of that amount, 44 projects, or 3,496 units, were successfully restored from July 1 to July 31, with a GDV of RM3.14 billion,” he said.
— Bernama
