Twenty-eight developers blacklisted by Johor for failure to build low cost houses

The Johor state government has blacklisted 28 developers to date for their failure to build more than 30,000 units of low cost houses in the Iskandar Region.

Menteri Besar Datuk Seri Mohamed Khaled Nordin said the companies are now barred from undertaking or planning any new projects in the absence of further discussions with the state government on the issue of building the houses concerned.

"They were to have built the houses in two years after receiving the planning permission. If they still fail to do so, the state government will take back the land in question.

"This is one of the measures to be taken by the state government," he told reporters after the ground breaking ceremony for the Tanjung Senibong affordable homes project here, Saturday.

Khaled said those developers who refuse to build low cost houses as promised will also be fined RM40,000 for each unit and RM7,000 per unit in the case of those wanting to change the construction status from low cost to affordable homes.

To overcome the problem, the state government has formed the Johor Housing Board which will be given the power to take over abandoned low cost housing projects.

"The enactment related to this will be tabled in the state assembly in June.

"Among the responsibilities of the board is to identify the land on which developers have failed to undertake the low cost housing as well as land acquisition to plan and construct affordable homes," Khaled said.

The state government had previously resolved to build 28,000 affordable homes over five years for those in the lower income group.

Meanwhile, the affordable homes to be built in Tanjung Senibong by Crescendo Land Sdn Bhd, covers 222 acres of mixed residential development near Permas Jaya.

The project has 1,088 units of affordable homes to be built over three phases.

The first phase with 222 units is expected to be launched at the end of the year.