Housing Development Corporation (HDC)
The Housing Development Corporation (HDC) operates as a corporate body under the purview of the Ministry of Housing and Urban Development. It runs several housing programmes.
Rumah Mampu Milik (RMM)
RMM involves the development of low- and medium-cost housing for sale to the low-income earners in Sarawak.
- Affordable Housing costing RM40,000 to RM47,000
- House Size: 650 to 700 square feet with three bedrooms
- Affordable Housing costing RM80,000 to RM100,000
- House Size: 850 square feet with three bedrooms
Rumah Mesra Rakyat (RMR)
This is a Federal Government programme implemented in Sarawak through Syarikat Perumahan Negara Berhad (a company formed by the Federal Ministry of Finance Inc) and HDC.
It aims to assist poor farmers, fishermen and villagers with no proper housing.
There are two designs available -- detached house (on the ground) and detached house on stilts of eight feet -- costing between RM57,000 and RM65,000 depending on the area.
The programme can be implemented for individual applicants who have land, but no means to build proper homes on their own land or for those with consent to build on family land.
It can also be part of the Kampung (Village) Extension Scheme -- implemented on government allocated land based on the areas identified through the State Land and Survey Department.
The monthly repayment is for the building cost only, as 1/3 of the development cost is subsidised by the government.
Program Perumahan Rakyat (PPR) - Rental
This is a Federal Government programme undertaken by the National Housing Department.
The flats are handed over to the State Government through HDC upon completion for distribution and management, with the aim to function as Transit Housing to achieve the target of Zero Squatters.
The monthly rental is RM150 for a 700-square foot flat with three bedrooms.
It is limited to Sarawakians with families (married), who do not own any house or land in the area and a monthly household income of RM650 to RM2,500.
Priority is given to squatters and there is no age limit.
Program Perseorangan Rumah Panjang (PPRP)
The Longhouse Loan Scheme is a special loan given to natives residing in longhouses for the renovation of individual units or for the purpose of building new longhouses (especially in the case of fire).
This scheme has been implemented by HDC since 1976.
Loans are in the form of building materials amounting RM10,000 per unit or family.
The longhouse must not be less than 10 ‘bilik’ (units) or built on government land, while the household income of the applicant is not less than RM350 per month.
Ministry of Housing and Urban Development Guidelines
Guidelines for House Buyers
Before you decide to buy a house, ensure that the housing developer has a valid Housing Developer's Licence for the housing project and a valid Advertisement and Sale Permit for the housing project.
Obtain the following information from the housing developer:
- free project brochure,
- building material specification,
- sample of Sales and Purchase Agreement (S&P),
- size of building,
- expected date of completion,
- texture of land whether hilly, swampy etc.,
- reference number of the approved building plan from the local authorities.
Determine the Type of House and Date of Completion:
* Ensure that the expected date of completion for the house is mentioned in the Sales and Purchase Agreement. For landed property such as bungalows, semi-detached houses and terraced house, the expected date of completion is 24 months from the date of the signing of the Sales and Purchase Agreement. For subdivided buildings like condominiums, flats, and apartments, the expected date of completion is 36 months from the date of the signing of the Sales and Purchase Agreement.
Make sure that the land belongs to the developer. If not, ensure that the developer has already made an agreement with the landowner, whereby the landowner has agreed to sell the land for the purpose of the housing development and that the landowner is the other party in the contract of sale.
Examine whether individual title is granted or not and suits the conditions as requested by the financial institution. Also check whether the land is charged or registered with the Land and Survey Department or the authority concerned.
Check whether the Status of the Land is Perpetuity or 60 years, and whether it is Native Land or Mixed Zone Land.
Sales & Purchase Agreement
The Sales and Purchase Agreement (S&P) must use the standard Form G and Form H as specified in the Housing Developers (Control and Licensing) Regulations, 1998.
Upon signing the S&P, the buyer must pay the first payment of 5 per cent of the price of the house to the developer. Make sure that the date of the signing of the S&P and the date of the first payment are the same.
If the buyer fails to make the progressive payment or interest charged on the late payment for a period of over 14 days, the developer has the right to cancel the S&P. The developer has to give a registered written notice of not less than 14 days to the buyer on the intention to cancel the S&P.
Buyers must make sure that whatever payment or instalment to the developer is supported by a certificate that is duly signed by the Architect or Engineer.
Interest on Late Payment
If the buyer or end financier for the buyer fails to pay the developer the progressive payment or instalment within 14 days from the date of the written notice from the developer, the buyer will be charged 10 per cent interest per annum on a day-to-day basis on the instalment that is not paid.
Payment for Service Rendered
Buyers have to pay for services like collection of rubbish, cleaning of public drains, cutting of grass by the roadside etc. effective vacant possession of the landed property and sub-divided building until strata title is obtained and a Management Corporation is formed.
Payment for Land Assessment, Taxes and Others
As from the date of execution of the memorandum of transfer of property or handing over of vacant possession (whichever is earlier), the buyer is responsible for payment of land assessment, rates, taxes and other charges in connection with the property purchased.
Vacant possession of the building completed with water and electricity supply that is ready for connection has to be handed over to the purchasers within 24 calendar months from the date of signing of the S&P for landed property and 36 calendar months for sub-divided buildings.
Possession or Occupation of Property
Upon the issuance of the Certificate of Fitness for Occupation (CFO) from the appropriate authorities, the purchaser shall then occupy the said property. Any modification or renovation can only be done after obtaining the CFO and approval of the building plan from the appropriate authorities.
Payment by Developer in default of Handing Over of Vacant Possession
If the developer fails to hand over vacant possession of the building within 24 calendar months from the date of executing the S&P for the landed property, the developer is to pay the buyer:
(a) Single-Storey -- RM300 per month
(b) Double-Storey -- RM400 per month
(c) Others -- RM400 per month
2. Semi Detached
(a) Single-Storey -- RM400 per month
(b) Double-Storey -- RM500 per month
(c) Others -- RM500 per month
(a) Single-Storey RM600 per month
(b) Double-Storey RM800 per month
(c) Others -- RM800 per month
In the case of the sub-divided building whereby the developer fails to hand over the vacant possession within 36 calendar months, the developer is to pay the buyer a sum based on day-by-day basis at a rate of 10 per cent per annum of the selling price of the property.
Defect Liability Period
If any defects, shrinkage or other faults occur within the period of 12 calendar months after the date when the buyer takes possession of the property, the buyer can request the developer to repair or make good without making any payment to the developer.
Setting Up the Management Corporation for the Sub-Divided Building
A Management Corporation will be referred by the buyers upon handing over and transfer of the Individual Strata Title for each Parcel to the buyers.
In addition to the functions as spelt out in the Form H, the Management Corporation is also responsible for the insurance and maintenance of the building.