GEORGE TOWN, Nov 27 (Bernama) -- Penang Development Corporation (PDC) urged the federal government to provide financial aid for housing projects under Rent-To-Own (RTO) scheme.
In the National Budget announcement for 2020, nearly RM10 billion has been allocated for housing projects under the RTO scheme.
State Housing, Local Government and Town and Country Planning Exco Jagdeep Singh Deo today said one of the uses for the funding was to help sell out 647 unsold housing units completed by PDC.
He said that due to the high loan rejection rate from banks, first-time home buyers in Penang faced difficulties accessing loans to purchase the affordable housing.
“While the first-time home buyers were unable to buy affordable housing, they can still rent it under the RTO scheme and we hope that the Federal Government would give priority for allocation of funds to assist the first-time home buyers here in Penang,” he said in a press conference here.
JAGDEEP-RTO 2 (LAST) GEORGE TOWN
He also said that another issue which required the funding would be allocated for building affordable housing units in five different plots in Penang, with a total land size of 72.3 acres (29.26 hectares).
According to him, the five plots were initially identified to build houses under the People's Housing Project (PPR) scheme, but was later planned to construct more affordable housing units which would be sold under the RTO scheme.
“Hopefully, a formal letter from the PDC would be sent out to the Ministry by the end of the week,” he added.