KPKT to help secure financing for developer of Residensi Hektar Gombak ‘sick’ project

KUALA LUMPUR, Jan 23: The Housing and Local Government Ministry will continue to assist the developer of Hektar Gombak Residency here in securing financing to complete the affordable housing project that has since fallen under the ‘sick’ category.

Its deputy minister Datuk Aiman Athirah Sabu said that the developer must, however, comply with the conditions set by financial institutions to ensure that the loan is approved.

“The progress status of the project is delayed due to financial issues faced by the developer,” she said in a statement.

According to Aiman Athirah, the Hektar Gombak Residency is classified as a ‘sick’ project due to delays compared to the work schedule set in the Sale and Purchase Agreement (SPA) and the failure to complete it within the SPA period.

“The actual progress status on-site remains at 84.75 per cent, and work on-site is minimal and not showing significant progress,” she said.

She also said that the Task Force on Private Housing and Abandoned Projects (TFST) had conducted several engagement sessions with the developer and visited the project site as a mitigation step by the MADANI Government.

“TFST has successfully facilitated the resolution of technical issues involving the Installation of Main Pipes Under the Integrated Water Supply Scheme (IWSS), Sewage Treatment Plant (STP), and pipe installation of Greater KL (GKL),” she said.

Meanwhile, she said KPKT is ready to look into the best alternatives to help recover sick housing projects, especially for affordable homes, for the benefit of homebuyers who have to bear housing financing costs in addition to renting existing homes.

“KPKT through TFST is committed to continuing the national agenda in assisting troubled private housing projects, whether categorised as delayed, sick or abandoned, to ensure the interests of homebuyers are protected, thereby reducing the burden on the people to ensure the sustainability of the affordable housing industry as a whole,” she said.

The Hektar Gombak Residency project is a mixed development consisting of five 46-storey apartment blocks, involving 2,400 housing units in Jalan Gombak, Setapak.

Unit buyers were reported to have expressed their frustration due to the ongoing delay in the project’s completion.