THE government’s proposed Urban Renewal Bill (PSB) has come under scrutiny from legal experts and housing advocates, who caution that its current provisions may leave property owners vulnerable to losing their investments should redevelopment projects collapse.
Adriana Abu, a practising advocate and solicitor, told reporters that developers who take over properties often pledge the land titles to banks to secure financing.
“If the developer fails to repay the loan or becomes insolvent, the bank can auction the property to recover its funds,” Adriana said.
“There is nothing in this Bill that safeguards the rights of owners whose properties have been mortgaged. Essentially, it hands complete control to parties over which we have no oversight.”
She added that the Housing Development (Control and Licensing) Act 1966 does not apply under the scheme, as these are not standard residential property transactions, leaving homeowners without existing legal protections.
“The Bill is actually unnecessary because existing laws, such as the Strata Management Act 2013 and the National Land Code, are already sufficient,” she said.
“It seems designed primarily to protect the financial interests of third parties such as developers and liquidators. If it were truly for the people, why have regulations governing land acquisition not been made public already?”
Adriana warned that without robust safeguards, the legislation would mainly benefit parties seeking profit, while ordinary homeowners could bear the brunt of failed projects.
Datuk Chang Kim Loong, Honorary Secretary-General of the National Homebuyers Association (HBA), also voiced concern that the Bill’s definition of urban renewal areas is overly broad and subjective. He said it could classify even mature and functional housing as underutilised, paving the way for redevelopment projects that disproportionately favour third-party investors.
Chang further criticised proposals to lower the consent threshold for redevelopment as unconstitutional, arguing that it infringes on the rights of homeowners who refuse to sell and violates property rights guaranteed under Article 13 of the Federal Constitution.
“The Bill not only targets ageing flats or strata schemes, but extends to landed properties, putting many owners at risk,” he said, urging lawmakers to reconsider its provisions to ensure meaningful protection for homebuyers.
The Urban Renewal Bill is expected to be tabled in the Dewan Rakyat on January 19, marking the start of parliamentary debate on its potential impact on homeowners and the property sector. - January 9, 2025
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