GEORGE TOWN, Dec 20 ―  Owners of low- and low-medium-cost homes will be kicked out of their units if they are found to have rented them out, or advertised for tenants.

State housing, town and country planning committee chairman Jagdeep Singh Deo said it was clearly stated in the PN1 application form for such houses that they must be occupied by only the owner.

“Clearly these units are intended to be owner-occupied and cannot be rented out which is consistent with the underlying rationale of housing the needy and deserving. The applicant cannot reject the condition in the form," he said.

Jagdeep said the PN1 form stipulates: “I also agree that my family and I will occupy the unit allocated. If it is discovered that my family and I do not occupy the said unit allocated without any reasonable explanation or is rented/occupied by others, the Housing Department of the State Secretary Office has the right to revoke the offer and repossess the unit has been allocated without payment of any compensation”.

He viewed the issue seriously and had brought the matter to the attention of the Malaysian Institute of Estate Agents (MIEA) Penang Chapter.

“I have consulted with MIEA and they have agreed to assist the state government by instructing their agents not to advertise such units.

“I hope this will help prevent such advertising for the units from being rented out."

Jagdeep said he was also in discussion with the state legal adviser on the measures that could be taken, including repossession of the unit by the state.

As at November 10, the waiting list at the Penang housing department for low- and low-medium-cost units was 25,065 and 24,283 respectively.

Jagdeep said the state government together with Penang Development Corporation (PDC) had 12 projects which would deliver 850 low-cost units, 7,874 low-medium-cost units and 13,851 affordable homes.

“The eligibility criterion for low-cost and low-medium-cost housing is that the applicant must not own a property and must have a net household income not exceeding RM2,500 and RM3,500 respectively.

“The affordable housing units are also subjected to a 10-year moratorium during whichthe owners are not allowed to sell their properties,” he said.

Jagdeep said any applicant found giving false information could be charged under Section 420 of the Penal Code for cheating and dishonestly inducing delivery of property.