Urban Renewal Bill To Ensure Fair Redevelopment And Benefits To Property Owners
PUTRAJAYA, Feb 22 (Bernama) -- The Urban Renewal Bill (URB) which is currently being drafted is aimed at ensuring redevelopment is implemented fairly and benefits property owners while contributing to the country's economic growth.
The director-general of Town and Country Planning Department (PLANMalaysia) at the Ministry of Housing and Local Government (KPKT), Datuk Dr Alias ​​Rameli, said the bill was needed to address the issue of dilapidated buildings, especially in major cities such as Kuala Lumpur, Johor Bahru and Penang.
"We cannot allow buildings that are more than 30 or 50 years old to remain in dilapidated state in the city centre. Therefore, KPKT through PLANMalaysia is drafting specific legislation for urban renewal," he told Bernama.
He said previously, redevelopment guidelines had been introduced, but their implementation did not have legal force and depended on local authorities and relevant agencies.
Therefore, a clear source of authority is needed to coordinate urban redevelopment efforts more systematically.
According to him, a special briefing on the bill was held in Parliament on Feb 18 and was attended by more than 150 Members of Parliament.
Alias ​​stressed that the bill is not intended to arbitrarily take over the owners' properties.
"We do not intend to make this act a 'house seizure act'. On the contrary, the main goal is to ensure that urban redevelopment is carried out with the consent of the owners, as well as to add value to their properties," he said.
Based on records, there are 534 old buildings identified nationwide (excluding Sabah and Sarawak), including 139 sites in Kuala Lumpur which have been listed in the 2040 Structure Plan.
"The estimated gross development value (GDV) for these 139 sites could reach RM355.3 billion, which will contribute to the national economy," he said.
Alias ​​said the URB is based on three main principles, namely the consent of the owner, the rights of the original owner, and a clear development period.
He said the consent of the owner is the main basis before a redevelopment project is implemented.
“If there is no consent, development cannot proceed. Currently, Section 57 of the Strata Titles Act 1985 (Act 318) stipulates that 100 per cent consent is required for the termination of strata title, but this is difficult to achieve,” he said.
Therefore, the proposed Bill will set a new consent threshold based on the age of the building, where 75 per cent consent is required for buildings over 30 years old, 80 per cent consent for buildings less than 30 years old and 51 per cent consent for buildings that are unsafe to occupy or are abandoned and derelict.
“The second principle is to ensure that the original owner gets a fair return. For example, in Residensi Kerinchi, the original 400 sq ft unit worth around RM70,000 was replaced with a new 800 sq ft unit worth RM450,000.
“The third principle is to ensure a clear development period. The maximum construction period for strata houses is 36 months ...therefore, owners involved in the redevelopment must be given comfortable and conducive temporary accommodation,” he said.
The bill also introduces a mechanism for owners who do not agree to the redevelopment.
“If the owners refuse to accept the offer, there are three options: the developer can buy their unit, the government can take the land under the Land Acquisition Act 1960 with appropriate compensation, or they can seek compensation in court,” he said.
Alias ​​said the government would ensure a fair offer element to landowners, based on the concept of ‘one-to-one’ or ‘not less favourable’, meaning the owner must accept a new unit that is better than the original unit. In addition, developers are not allowed to engage in preliminary negotiations.
Development for economic or public interest purposes is the right of the government to implement, but the right to compensation remains guaranteed under the Constitution and is provided for in the Land Acquisition Act, he said.
“Previously, owners were often approached by various developers offering various packages, which could cause confusion. Through this Bill, the government will play a facilitating role to ensure that owners are not affected,” he said.
Asked about the relocation guarantee, Alias ​​said that for temporary relocation, there are developers of calibre and strength in the industry who may have unsold vacant buildings.
“In such cases, developers will relocate temporary owners to locations that are not too far from the original project.
“However, if the adjacent placement cannot be met because their development is not located near an existing project, the developer remains responsible for providing an alternative solution,” he said, adding that there are developers who allow owners to rent temporary houses in certain locations, where the rental fee will be borne by the developer.
Alias ​​stressed that if this situation does not occur, it is the responsibility of the executive committee at the federal and state levels to ensure that the project is implemented in accordance with the offer that has been agreed upon by the government.
Therefore, despite the possibility that such issues may arise, there is a regulatory mechanism to ensure that the interests of all parties are protected. The government also has anticipatory measures to deal with such cases effectively.
-- BERNAMA
