THE Penang government may buy back low- and low-medium cost homes from owners who have improved their socio-economic status.

State housing exco Jagdeep Singh Deo told the state legislative assembly that such a move could ensure the state government had ready stock of affordable housing for deserving applicants as well as curb abuse through the sale and rent of these units for profit.

“It haunts me that we have many low-cost and medium-cost housing schemes that are occupied by foreign workers. Local residents have come to me with complaints about them.

“It is stated in our state housing regulations that such units can only be occupied by the owners. They are not allowed to rent them out. It is a violation of the regulations.

“It is possible that the owners are now in better financial situation than when they were applying for the units. We are studying how the state can buy the units from the owners,” he said in his winding-up speech to debate the state 2019 budget today.

Jagdeep said this was the first time he has brought up the idea and added he was serious about it as part of refining the state’s policy on housing.

“Owners who wants to sell their units can only sell them to the state government. This is practised in Singapore, too.”

However, issues to address, Jagdeep said, include how much the state government would pay for the units.

“If the owners had to take loans to buy the units, we will take the loans into consideration when we offer the price.

“If the owner had obtained the unit as compensation, then we will pay the usual price – RM42,000.

“It will be a win-win for everyone, except for those who are expecting to sell the units and get ‘durian runtuh’ (big profit),” he said.

The idea was mooted Chief Minister Chow Kon Yeow during a recent exco meeting, in which it was understood the state would make an announcement after the matter was studied and finalised. – November 15, 2018.