KUALA LUMPUR: The bill to introduce the Urban Renewal Act (URA), aimed at rejuvenating ageing buildings and underutilised spaces has been tabled for first reading in the Dewan Rakyat.
Housing and Local Development Minister Nga Kor Ming tabled the Urban Renewal Bill at the Dewan Rakyat on Thursday (Aug 21).
The Bill contains 31 clauses and seeks to provide for urban renewal in town planning.
Under the proposed law, an urban renewal project may involve urban redevelopment, urban regeneration, or urban revitalisation.
The Bill provides for the establishment of the Federal Executive Committee (FEC), which can appoint a body to supervise urban renewal projects.
Clauses 10 to 15 provide for the establishment of a State Executive Committee (SEC) and its functions for state urban renewal projects.
Clause 13 states the SEC must consult the FEC, including the approved developer, for state projects.
Clause 15 requires the SEC to submit a proposal report to the FEC for advice and prepare a progress report as directed.
Clause 19 sets out the consent thresholds for urban renewal projects.
A unanimous consent threshold is required if a proprietor voluntarily applies for an urban renewal project.
If the FEC or SEC undertakes the project, a building less than 30 years old requires 80% consent.
A building over 30 years old requires 75% consent, while an abandoned building needs 51%.
For a building with a visual inspection report by a Professional Engineer with Practising Certificate, the consent threshold is 51%.
Clause 20 allows qualifying developers to apply to the SEC or FEC to participate in urban renewal projects, with an application including a project viability report and business plan.
The SEC and FEC may approve or reject applications from qualifying developers.
The Minister in the Prime Minister’s Department (Federal Territories) may declare areas within Kuala Lumpur, Putrajaya, and Labuan as urban renewal areas.
For state projects carried out by the FEC, the Minister may declare any area as an urban area.
Upon declaration, the approved developer must commence the project within 24 months, with the option to apply for an extension.
The Bill also provides for the establishment of a Federal Urban Renewal Mediation Committee (FURMC) to protect stakeholders’ interests.
The FURMC will include two members from the Board of Town Planners Malaysia and at least three members with experience in law, project management, sociology or economics.
Members serve a term of up to three years and may be reappointed, but not for more than two consecutive terms.
An allowance, determined by the Minister after consulting the Finance Ministry, will be paid to FURMC members.
Clauses 27 and 28 provide for the State Urban Renewal Mediation Committee (SURMC) to address state-level matters.
All SURMC and FURMC members must disclose interests in urban renewal projects or lose their membership.
Clause 29 allows the Minister to make rules on fees, incentives and other matters.
The Urban Renewal Bill is expected to be tabled for a second reading on August 27 before the end of the current meeting on August 28.
