Car cap for low-cost housing applicants

GEORGE TOWN (Jan 19, 2014): Those owning many cars may not be eligible to apply for low-cost and low medium-cost housing if Penang enforces such a ruling.
The state is mulling the idea of placing this restriction on those applying for such dwellings as those who can afford to own many vehicles should not be allowed to have houses reserved for the poor.
State housing committee chairman Jagdeep Singh Deo said the idea came about after it was discovered that an applicant for a low-cost flat possessed three vehicles totalling about RM200,000 in value.
He said the committee aims to ensure the mechanism is efficient so that such residential units would go to those who need them.
"The state wants to ensure low-cost and low medium-cost homes go to those who deserve them," he told a press conference today with Jelutong MP Jeff Ooi after attending a charity luncheon.
Currently, a household in Penang earning RM2,500 or less per month can apply for a low-cost unit while a household earning RM3,500 and below can apply for a low-medium cost unit, as long as they do not already own any property.
In the affordable price range, which begins at RM200,000 and tops at RM400,000, households earning less than RM6,000 a month qualify for a RM200,000 unit, households earning less than RM8,000 can apply for a RM300,000 unit while those earning RM10,000 a month are eligible for a RM400,000 unit.
Jagdeep added there was no need for people to reapply if the requirement comes into force as he said the system could be linked to the Road Transport Department (RTD) for checks.
He said the present system was linked to the Penang Land Office and the two municipal councils so the committee could check on eligibility.
"If this goes through, the system can be connected to the RTD to check on vehicle ownership," he said.