low cost flat developer charges extra

June 22nd, 2011 by poobalan | View blog reactions Leave a reply »
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This is indeed surprising! As mentioned in the article, its low cost flats, and yet the developer want to charge for parking bays and also collect parking fees? As we all know, its very easy to buy a car, be it new one or from secondary market. In many cases, car purchase is necessitated due to unacceptable levels of public transport, location of the flats, and the job nature of the residents. However, to maintain a car is another story. You have to factor in fuel cost, parking cost, annual fees (road tax, license, insurance), car servicing cost, toll cost, and any parts replacement due to wear and tear.

Maybe because we can see many luxury or higher end cars at low cost apartments, we can say that the residents are not from low income group?

If this move is not nipped in the bud, then I’m afraid it will be used as a precedent by other developers impose more cost and fess to residents living in low cost apartments. This will defeat the purpose of providing affordable homes since the “extra” cost will be burdensome.

Maybe this is one way for developers to “reclaim” money from providing temporary accommodation or rental for the displaced people earlier.

More seriously, CFs were issued, but got complaints that no water supply and incomplete sewerage system??? What is this la?

Now the MBPJ need to act fast and clarify the issues before it becomes more serious.


RESIDENTS of Impian Seri Setia low-cost flats in Sungai Way, Petaling Jaya, are unhappy with the terms and services provided by the developer.

They are complaining that the flats are not fit for occupation, lacking in parking space and additional charges imposed that were not stated in their sales and purchase agreement.

Selangor MCA Public Complaints Bureau (BPA) deputy chairman Kelvin Chong, who was speaking on behalf of the residents, said the keys had been handed over to the residents over the past two weeks.

“However, the flats are not fit for occupation despite the issuance of Certificate of Fitness (CF), as there is no water supply and the sewerage system is not completed.

“There is also insufficient parking space. Under the council’s Planning Approval, it was stated that there would be one parking bay for every two flat units.”

As there are 476 units, Chong there should be 238 parking bays as well as an additional 10% bays for visitors, but the developer has only built 201 bays.

Bureau legal adviser Datuk C.K. Lim questioned the developer’s move to sell parking space at RM5,500 per bay, when they are not allowed to do so for low-cost flats.

“The developer will be imposing monthly collection charges. All these matters will lead to haphazard parking and inconvenience, which is a common problem in high-rise buildings,” he said.

Fellow bureau legal adviser KC Wan said the residents had to pay a monthly service charge of between RM66 and RM77 upon completion of their flats.

“However, special consideration should be given to them as these are housing for low-wage earners and the charges are too high,” he said.

Resident Oh Loke Hooi said only half their renovation deposit had been refunded, and that the flats’ management was forcing the residents to only engage the developer’s contractors for renovation work.

“The developer collected a RM500 deposit from each flat owner, but only refunded RM250 after carrying out the renovations, when we should have been refunded in full,” said the 48-year-old.

According to the residents, the land that Impian Seri Setia sits on was formerly a TOL (Temporary Occupation Land) land where they as squatters stayed.

They had to make way for a development project that included apartments and commercial units.

The affected 148 squatters were each given a concession of RM7,000 discount to buy a flat priced at RM42,000.

In the meantime, each squatter was given a RM124 monthly compensation until their flats were completed.

Chong said the bureau had sent a memorandum to Petaling Jaya mayor Datuk Mohamad Roslan Sakiman urging the Petaling Jaya City Council to clarify the matter with the residents, but the council had yet to respond.

“We also urge the developer to have a meeting with the MBPJ and the residents to sort out the issue,” he said, adding that the developer claimed to have fulfilled the contract.

The bureau will also be following up on the matter with the Housing and Local Government Ministry.

“We want to check on the quantum of charges imposed on the residents and why they are being charged maintenance fees despite the flats not being fit for occupation, and whether the developer is allowed to absorb the deposit without a valid reason,” said Wan.

“The developer cannot sell parking bays in low-cost flats as it is considered a facility and common property, or collect parking charges,” said Lim.

“We want to have these issues addressed because these could create a dangerous precedent and affect other similar projects.”

source: http://thestar.com.my/metro/story.asp?file=/2011/6/21/central/8936201&sec=central


Another version from with comments from the developer:

SOME house owners of Impian Seri Setia low cost flats in Sungai Way, Petaling Jaya are caught in a quandary with various issues surfacing after the completion of their units.

Selangor MCA Public Services and Complaints Department head Datuk Theng Book and its deputy chairman Kelvin Chong accompanied several house owners — former illegal squatter residents of Jalan SS98/4 who opted to purchase the units — to hand over a memorandum to Petaling Jaya mayor Datuk Roslan Sakiman to help settle their problems recently.

Chong said the complainants were asked to vacate their premises in 2008 for redevelopment and given the option of either staying in other low-cost flats at the expense of the developer Taipan Focus Sdn Bhd or receive an allowance of RM124 every month, for three years pending the completion of the flats.

“The developer has delayed the completion by about six months. They have submitted the application for the Certificate of Fitness (CF) to the Petaling Jaya City Council (MBPJ) on May 23.

The CF for the units were issued yesterday.

Other issues include high maintenance fees and allocation of parking spaces.

The maintenance fee was fixed at RM86.90 per month, almost double the amount compared with other similar low cost flats such as Pangsapuri Permai in Taman Medan (RM45) and Impian Baiduri in Jalan 226 (RM46.50).

“To make matters worse, there are 476 units but only about 200 car parking spaces. And each parking lot is on sale for RM5,500, a huge amount considering each hose only costs RM35,000,” said Chong.

Theng doubts the legality of selling parking spaces. He also expressed his dissatisfaction over the clause by the developer stating that any renovation done by external contractors will void the defect liability period of 18 months.

“The clause was not specified clearly, Basic renovations like installation of iron grilles and doors should be allowed and not subjected to the clause.

The purchasers also complained that the charges imposed by internal contractors are double the amount compared with others,” he said. [typical of developers]

When contacted, Taipan Focus vice-president Simon Ignatius said they have complied to all the regulation by the Selangor government.

“There has been a delay but we are already providing them with temporary housing at low-cost houses in Subang and absorbing the costs.

“Those who rent elsewhere rejected our offer and are receiving an allowance of RM124 every month without fail.

The maintenance fee is not the same for all low-cost houses but calculated accordingly by totaling the costs and dividing by the number of units. [divide by total cost? so this project cost is high, but house price and house size still same range?]

“Regarding the parking space allocation, the guideline set by Selangor government for low-cost houses when we got the approval in 2007 was to provide one car parking space for every two units thus the number. There are free open parking spaces outside and about 200 basement parking spaces which are charged,” he said, adding that they were also building a private tiered parking spaces nearby which the residents can utilise. [ so, basement parking is charged, while the private tiered parking should also be chargable ones ]

“Beautifying the house is not renovation. As long as the renovation does not interfere with the wiring, plumbing or the natural structure of the building, it is okay. Therefore, installation of grilles and doors are fine,” he added.

A purchaser Chang Mei Yong who is currently temporarily residing in a low-cost flats in Subang just want to move in to her new home.

“Living in Subang is very difficult for me especially since I rely on buses to go around. I just want to come back to my original place where I am comfortable,” she said.

Chong hopes the mayor would interfere and expedite the issuing of the CF and have a dialogue with the developer, city council and house owners to help solve their problems fast.

source: http://www.mca.org.my/en/flat-owners-want-mayor-to-help-settle-issues-with-developer/



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