In a statement, PSM chairman Dr Michael Jeyakumar Devaraj said while the proposed legislation provides compensation for property owners who are forced to sell their property, it ignores the fact that a significant number of residents in rundown housing units do not own the units. 

“They are poor families which have sought out residences with low rentals because they cannot afford rental elsewhere,” he said.

“The URA talks about compensating the owners of these properties but is silent about the housing needs of the impoverished families that are renting units. This omission must be rectified.” 

Last month, an aide to Prime Minister Anwar Ibrahim assured homeowners who would have to sell their properties under the URA that they would receive fair compensation to enable them to purchase their redeveloped homes.

In his statement today, Jeyakumar also criticised the act’s proposed mediation mechanism, which he said could be vulnerable to bias.

He said the Urban Renewal Mediation Committee set up under Section 14(2) of the draft URA was “defective” as it would be set up by the state government as it wished. He said it could not be discounted that state governments might have a “special relationship” with developers.

“It must be an independent mediation committee composed perhaps of retired judges, senior lawyers and NGO activists to provide a proper platform for residents who are not happy with the terms of the alternative housing or compensation offered to them,” he said.

“This committee must have the power to send the proposed plans to compensate the residents back to the drawing board, if necessary.”

Adding that the government should address these two issues and alter the bill appropriately, he said the legislation must stand the test of time by having built-in safeguards that would enable affected residents – both owners and tenants – to push back effectively against offers and actions that are against their interests.

The proposed legislation, which is expected to be tabled in Parliament by June or July, has been touted as necessary to replace outdated laws and regulations governing the redevelopment of dilapidated urban areas.

However, opponents argue that it will displace poorer citizens who may be unable to continue living in the area after it is redeveloped, with the most contentious issue in the draft bill related to the lower “consent threshold” required for redevelopment.

While the Strata Titles Act 1985 presently requires a unanimous resolution of owners before strata titles issued in respect of a subdivided building can be terminated, the URA seeks to lower the threshold of strata owners’ consent to 80% for properties under 30 years old, 75% for those over 30 years old, and 51% for abandoned buildings.

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