Chapter 3 - Report of the Research and Policy Development Group 2. Formulate a policy that will allow flexibility by way of staggered repayment of loans to enable the poor to own a house, as well as carry out a review of the interest rate; and 3. Consider alternative solutions such as the lease of low-cost units to the poor. (b) Shortage of Affordable Units Several agencies are involved in supplying houses under the Affordable Public Housing scheme. However, the number of units for the low- and middle-income groups, including people with special needs, senior citizens, single mothers and squatters, remains insufficient. The Commission agrees with the proposal under the National Housing Policy (NHP)8 that the roles of, and collaboration among, agencies involved in constructing and distributing affordable houses must be strengthened toward more effective delivery. (c) Inefficient Low-cost Housing Distribution System Inefficient distribution of low-cost units was identified as another reason why target groups are unable to gain access to affordable housing. Allegedly, this inefficiency often arises because lists of eligible buyers, which are managed by the Government, are outdated. In most cases, only 10-20% of potential purchasers listed take up the low-cost units offered in a housing project. In response, the Government stressed that selection of applicants eligible for low-cost units is based on their monthly income, which must fall below RM2,500, and also on information derived via the E-Kasih data system. The Commission recommended that the relevant authorities monitor the mechanisms and update the lists of eligible buyers more frequently. (d) National Legislation and Regulations (i) Weaknesses in the control, monitoring and enforcement mechanisms House buyers cited problems like shoddy workmanship, failure to rectify defects and abandonment of housing projects. Under the NHP, the Government has outlined efforts to improve the quality of housing development by encouraging the use of skilled and accredited workers, and quality local building materials. The Commission recommended effective supervision of projects to ensure the quality of houses and protection of the rights of buyers. (ii) Complex system of policies, laws, regulations and guidelines The housing industry is highly regulated and involves the jurisdiction of many agencies. The need to comply with the many laws and regulations has resulted in bureaucracy, and may have contributed to the high cost of housing development. At the same time, the lack of standardised rules and regulations may have had an impact on the quality of the houses. 8 Refer to ‘Issues and Challenges’ in the NHP 96