RM30,000 subsidy for low-cost housing

PUTRAJAYA: The Private Affordable Ownership Housing Scheme (MyHome) programme, which provides a subsidy of up to RM30,000 per low-cost house, will be launched in April.

Prime Minister Datuk Seri Najib Tun Razak said under the programme, the Government would bear the difference between the selling price and the cost of the unit.

“For instance, if the price of low-cost houses is set at RM40,000 a unit by a state government and the developers have to sell them at RM70,000 each, qualified buyers will pay only RM40,000.

“The balance of RM30,000 will be paid by the Government,” he told a press conference after chairing the National Housing Council (NHC) inaugural meeting here yesterday.

Also at the meeting were Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan and his deputy Datuk Halimah Mohamad Saddique.

The MyHome programme, an­­nounced in Budget 2014, is meant to help those in the low-income group own houses at affordable prices as well as boost the housing industry.

Najib said the quantum of subsidy would depend on the location and the respective state government’s definition on the cost of a low-cost house.

“Some states say RM35,000 and some put it at RM42,000, so it is difficult for us (the Federal Government) to make a (standard) ruling. This is why we are leaving it to the states to determine it,” he said.

To qualify for the subsidy, he said the developers must apply to the Urban Wellbeing, Housing and Local Government Ministry. Once approved, they would need to advertise the units.

“Members of the public who are eligible would then apply to purchase the units. When this is approved, the subsidy will be paid directly to the developer’s account.

“The purchasers will not need to come up with the down-payment anymore, which will make it easier for them to obtain a bank loan,” he said.

Najib said the programme was only for first-time buyers with a monthly household income of RM3,000. The house could not be sold within 10 years.

He said RM300mil had been allocated for the programme, which applies to new projects and those still under construction.

On another matter, Najib said the Government would develop MyHome Exchange, a comprehensive database on the housing sector.

He said the database would be useful for the NHC to obtain accurate and comprehensive information in determining the development of the housing sector, besides the supply and demand.

Abdul Rahman said MyHome Exchange, which would be launched within three or four months, would act as a one-stop information centre on housing projects.

“It will have a comprehensive database, including the status of a housing project, whether it is 30% or 50% complete,” he said.

He said it would also have a database on private developers and government housing initiatives such as PR1MA, SPNB, 1MDB, and the National Housing Department.

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