Banks offer 3 options to purchasers of troubled Borneo Samariang Garden houses — Dr Sim
THE state government has negotiated with Public Sector Housing Financing Board (LPPSA) and Borneo Mortgage Financing Berhad to address the plight of purchasers of the troubled Borneo Samariang Garden housing project, says Deputy Premier Dato Sri Dr Sim Kui Hian.
Dr Sim, who is also Minister of Public Health, Housing and Local Government, said a special meeting was held with two financial institutions on June 14.
“Subsequent to the meeting, both financial institutions agreed to offer three options to the loan takers,” he said during his ministerial winding-up yesterday.
He said the first option is a loan moratorium for a period of six months to 12 months. The moratorium application will close on Dec 31 this year.
“The second option is a loan restructuring for a maximum period of two years or until the completion of the housing project, while the third option
Subsequent to the meeting, both financial institutions agreed to offer three options to the loan takers.
Dato Sri Dr Sim Kui Hian
is to cancel the housing loan. The details of all these options are available to all the affected house buyers from their respective financial institutions,” he informed.
Dr Sim said the private developer of the housing project, Sentoria Borneo Land Sdn Bhd, had appointed a new main contractor to complete Phase 5 of the project which is expected by September next year.
He reiterated the state government and the relevant ministries are committed to help the private developer to complete the project and for the purchasers to get their houses soonest.
“For the information of this august House, the latest facilitation that has been rendered by my ministry to the developer of Borneo Samariang Garden is to ensure its application for re-planning of the said project be given due consideration and approval from the State Planning Authority (SPA).”
Dr Sim said 275 units of the Rumah Spektra Medium 2 at Block 5 would be relocated to Block 18(c) to assist the developer in saving substantial infrastructure costs and improve their cash flow.
“My ministry has managed to secure the undertaking from this developer that the relocation of the site will not affect the house purchaser’s right for the liquidated ascertained damages (LAD) for late delivery of their houses.”
Meanwhile, Chong Chieng Jen (DAP-Padungan) said the private developer requiring an additional of 10 months to complete the project was not justifiable to the home buyers.
“Also, to my understanding, when the loan moratorium is imposed, interest will continue to be charged on the loans and this is unfair to the home purchasers because at the end of the day, it will lengthen the period of repayment,” he said.
Chong hoped the government would do more to assist the home purchasers, who still cannot move into their houses after the project’s completion was unreasonably delayed.