Officials want the premier to invoke Section 44 to speed development of low-income
The National Housing Authority (NHA) will ask Prime Minister Prayut Chan-o-cha to use special powers under Section 44 to enable low-income housing development on land owned by the Mass Rapid Transit Authority of Thailand (MRTA).
NHA governor Tachaphol Kanjanakul said the NHAMRTA partnership on residential housing for low-income earners near mass transit lines is mired in a deadlock following the two parties signing a memorandum of understanding.
“MRTA is not allowed to use its land plots expropriated for construction of mass transit lines for other purposes such as commercial, only for utilities or for public use, according to the Expropriation Act,” Mr Tachaphol said.
Invoking Section 44 will reduce the amount of time needed to amend the law and allow NHA-MRTA to start joint development as soon as possible, he said.
The partners plan to develop residential projects for rent on plots owned by the MRTA at mass transit depots. The first two locations are plots at the Purple Line’s Khlong Bang Phai station in Nonthaburi and the Light Green Line’s Bang Ping station in Samut Prakan.
“This will help low-income earners buy a home close to a mass transit station at an affordable price,” said Mr Tachaphol. “Now only middle- or upper-income people can afford units as developers rush to buy plots near mass transit lines.”
He said residential development on MRTA plots will be a mix of condos and shophouses, which can reduce development costs as the condos will be for low-income earners while shophouses will be sold at a higher price.
The NHA plans to launch two freehold condo projects on its plots near mass transit lines, including a plot in the Prachaniwet 3 area near the Pink Line linking Khae Rai and Min Buri, and in Lam Luk Ka Khlong 2 near the Light Green Line linking Mo Chit, Saphan Mai and Ku Kot. The projects are to offer 556 and 820 units, respectively.
These projects will be submitted for cabinet approval this month before launching in the first half. Unit prices will start from 1 million baht.
To date the NHA has around 19,000 unsold completed units nationwide. Of this amount, 16,000 units are ready to transfer while the rest need renovation or are involved in a legal conflict with contractors.
Most of the 19,000 units were developed under the Baan Eua Arthorn low-cost housing programme initiated by ousted prime minister Thaksin Shinawatra before it was suspended a few years ago and changed to Baan Pracha Rat.
From October 2016 to January 2017, the NHA recorded sales of 4,353 units. It aims to have 10,470 completed units sold worth a combined 7 billion baht in the fiscal year ending on Sept 30, 2017, Mr Tachaphol said.
The NHA, which celebrated its 44th anniversary last week, has developed more than 700,000 residential units in 680 communities nationwide. It plans to spend 215 million baht to renovate units in 100 of the communities this year, starting with Bon Kai community.