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Housing Developer's (Control & Licensing) Ordinance 1993 Cetak Housing Developer's (Control & Licensing) Ordinance 1993

HOUSING DEVELOPER'S (CONTROL AND LICENSING) ORDINANCE 1993

INTRODUCTION

 

The Housing Developer's (Control & Licensing) Ordinance 1993 was enacted in 1993. The Ordinance provides legislation to control and regulate housing developments in the state of Sarawak and has been enforced since 1st January 1999. 

In 2009, the Ordinance was amended and is now known as Housing Developer's (Control & Licensing) Ordinance (Admenment) 2009

 


OBJECTIVES

1. To ensure that the Housing Industry will build, complete and deliver the houses to the buyers with the stipulated time frame.

2. To weed out the 'bad hats' in the Housing Industry and hence safeguard the interests and image of the bona fide developers.

3. To enhance the orderlyand healthy growth of the Housing Industry in the state.

4. To instill and maintain the confidence of the house buyers in the Housing Industry.


 

APPLICATIONS

The Ordinance applies to:-

1. Housing developers who carry out housing development involving more than eight (8) units of housing accomodation (i.e. building intended either fully or partly for human inhabitation)

2. Land owner(s) who want to sell more than eight (8) units of housing lots for the purpose of construction of housing accomodation.

3. A license is required for each housing development and where the development is carried out in phases, a licence is required for each phase.

 

Exemption is given to:-

1. Statutory bodies, either State or Federal owned, established by statue and are engaged in housing development. however, subsidiries which are set up by statutory bodies under the Compabies Act 1965 to undertake housing development are excluded from the exemption.

2. Any housing development as decided by the Minister.


 

 

PROVISION

 

1. The Minister can make regulations with regards to the Control And Licensing of Housing Developers.

2. A Controller of Housing has been appointed to execute the implementation of the Ordinance

3. A housing developer can be use the words "Housing Developer" only when he is a licensed.

4. The Minister can direct the Controller to investigate into the affairs or accounting records of a Housing Developer.

5. The Minister can appoint a new and capable Housing Developer to take over and complete a housing project which has been abandoned or left incomplete.

6. A Housing Developer's Licence can be granted to a housing developer who:

  • Is financially sound and honest, and is not an undischarged bankrupt.
  • Is in possesion of a development plan which has been approved by the local planning authority.
  • Has lodged with the Controller a deposit, either in cash or in the form of a bank guarantee, for the sum of RM100,000.00 or 5% of the work value, whichever is lesser, unless waived or varied by the Minister.

 

DUTIES OF A HOUSING DEVELOPER

A Housing Developer must :

1. Exhibit at all times his company's latest audited balance sheets with regard to the housing development at his office and branch office.

2. Exhibit at all times the names of the Board of Directors.

3. Display a copy of the Housing Developer Licence and Advertisement and Sale Permit at his office.

4. Keep a proper account of all transaction with regards to the housing development.

5. Submit to the Controller twice yearly the statement of the housing development, not later than 21st January and 21st July.

6. Inform the Controller if he likely to fall into difficulties.


HOUSING DEVELOPMENT ACCOUNT (HDA)

Under situation (6) above, or in cases where the Controller has reason to believe that the developer is likely to fall into difficulties when carrying out the housing development, the Controller shall direct the developer to open a Housing Development Account (HDA) with a bank or a finance company and deposit all monies due to the housing developer into his account. The developer will have to comply with the order within 14 days and submit a certificate from the bank or finance company that the Account has been opened to the Controller.


PENALTIES AND OFFENCES RELATING TO THE HOUSING DEVELOPERS (CONTROL & LICENSING) ORDINANCE 1993

Offences Penalty Law
Relating to the use of
monies in the Housing
Development Account
under Section 8
A fine of not more than
RM100,000 and 3 years
imprisonment
Section 8(8)
Relating to a Housing
Developer licence under
Section 5
A fine of not less than
RM10,000 but not more than RM100,000 and 5
years imprisonment
Section 18
Relating to Section 7,9,10(3),11 or 12 RM10,000 and 3 years
imprisonment plus
RM500 daily
Section 19
Offences by director, manager or secretary under Section 15 RM15,000 and 2 years imprisonment Section 20
Offences not otherwise provided for RM20,000 and 5 years imprisonment Section 21
Liability of director, manager and other officials fofr offences committed by company and liability of a person RM15,000 and 2 years imprisonment Section 22
Failure to comply with Regulations RM5,000 and 3 years imprisonment Regulation 27

 

HOUSING DEVELOPER'S (CONTROL AND LICENSING) REGULATIONS 1998

INTRODUCTION


The Housing Developers (Control & Licensing) Regulations, 1998 set out procedures on how to apply for a developer's licence as well as advertising and sales permit, on the form of sales contract to be used, on the administration of the Housing Development Account plus penalties for offenders.

 

HOUSING DEVELOPER'S LICENCE

A licence is required for:

  • Housing developers who can carry out housing development involving more than eight (8) units of housing accommodation (i.e building intended either fully or partly for human habitation).
  • Land owners who wants to sell more than eight units of housing lots for the purpose of constructing housing accommodation.
  • A licence is required for each housing development and where the development is carried out in phases, a licence is required for each phase.

 

GUIDELINES FOR APPLICATION OF HOUSING DEVELOPER'S LICENCE


An application for a housing developer's licence has to be made using Form A (RM1.00 per form), purchased from Ministry of Housing Sarawak addressed at 5th Floor, Wisma Sultan Tengah, Taman Sukma, Jalan Sultan Tengah, Petra Jaya, 93050 Kuching. The fees charged per annum are as follows:

1. RM500.00 for a licence to develop between 9-20 housing units.

2. RM1,000.00 for a licence to develop more than 20 housing units.

 

LIST OF DOCUMENTS TO BE SUBMITTED TOGETHER WITH FORM A:

  • Company Resolution of Directors authorising the person dealing with the Ministry together latest colour photo with passport size (for limited Company only)
  • A copy of land title;
  • Latest copy of extract land title (within one (1) month from the date of submission);
  • A copy of an appproval for conversion of the lands for building purpose and for the sub-division
    • Letter of Land And Survey Department of Provisional and Formal Approval of AVTC & Subdivision and Approval Plan
    • Letter from Land And Survey Department of confirming validity od Planning Approval (if the planning approval has lapsed)
    • Approval phasing plan (if phasing project);
  • A copy of the agreement between the land-owner and the developer to develop the lands into housing development (if applicable);
  • A copy of the latest audited balance sheet (account statement);
  • A copy of a statutory declaration slating to the effect that the applicant has complied with all the condition or restrictions set out in section 5(4) and 6 of the Ordinance; sample of statutory declaration;
  • A copy of the particulars in Form 24 under the companies Act 1965 (for limited company only);
  • A copy of the Memorandum of Association and Articles of Association or the Certificate of Registration of Business and the partnership agreement, if any, or a copy of the rules/by-laws of the society or a copy of the agreement between or amongst persons persons forming the body; and
  • Deposit RM100,000.00 either in cash or in the form of a Banker's Guarantee; sample of Banker's Guarantee.

 

GUIDELINES FOR RENEWAL OF HOUSING DEVELOPER'S LICENCE

An application for renewal of a licence must be made using Form C(RM1.00 per form), purchased from Ministry of Housing Sarawak addressed at 5th Floor, Wisma Sultan Tengah, Taman Sukma, Jalan Sultan Tengah, Petra Jaya, 93050 Kuching. The fees for the renewal are similar to the fees charged for licence.


LISTS OF DOCUMENTS TO BE SUBMITTED TOGETHER WITH FORM C:

  • Company Resolution of Directors authorising the person dealing with the Ministry together latest colour photo with passport size (for limited Company only)
  • Copy of particulars in Form 49 under the Companies Act 1965 (if any change of office-beares);
  • A copy of particulars in Form 24 under the Companies Act 1965, (if any change of particulars of the capital of the company);
  • Statement under Section 7(d) of the Ordinance with the colour photos of the curent project;
  • Deposit of RM100,000.00 in the form of a Banker's Guarantee; and
  • Latest audited balance sheet (account statement).

 

ADVERTISEMENT AND SALE PERMIT

No advertisement or sale is allowed without an advertisement and sale permit from the Housing Controller. An advertisement and sale permit is required for each housing development or each phase of the development.

 

GUIDELINE FOR APPLICATION OF ADVERTISEMENT AND SALE PERMIT

An application for an advertisement and sale permit needs to be made using Form D (RM1.00 per form), purchased from Ministry of Housing Sarawak addressed at 5th Floor, Wisma Sultan Tengah, Taman Sukma, Jalan Sultan Tengah, Petra Jaya, 93050 Kuching. The fees charged per annum are as follows:

  1. RM150.00 for a housing project involving 9-20 housing units.
  2. RM250.00 for a housing project with more than 20 housing units.

 

LISTS OF DOCUMENTS TO BE SUBMITTED TOGETHER WITH FORM D

  • A copy of the approved building plan together with approval letter;
  • Two copies of each type of proposed advertisement;
  • A copy of an agreement to the effect that the land-owner(s) agree to abide by regulation 10 of the Housing Developers (Control and Licencing) Regulation 1998 (if applicable); and
  • A copy of the valuation report by a licenced valuer and particulars of the charge (if land is charged to person, body of persons, company or society other a bank licenced under the Banking and Financial Institution Act 1989 or the Islamic Banking Act 1983).

 

GUIDELINES FOR APPLICATION FOR RENEWAL OF ADVERTISEMENT AND SALE PERMIT

An application for an advertisement and sale permit needs to be made using Form D (RM1.00 per form), purchased from Ministry of Housing Sarawak addressed at 5th Floor, Wisma Sultan Tengah, Taman Sukma, Jalan Sultan Tengah, Petra Jaya, 93050 Kuching. The fees are similar to the fees charged for the Advertisement and Sale Permit.


LISTS OF DOCUMENTS TO BE SUBMITTED TOGETHER WITH FORM F:

Two copies of each type of proposed advertisement.

 
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