ASSIGNMENT 1AFFORDABE HOUSING

NAME: NOOR SHAFANIS BT ABDUL MANAP

MATRIC NO: 1212104

LECTURER NAME:PROFESSOR DATO’DR.ALIAS ABDULLAHMR.MUHAMMAD FARIS BIN ABDULLAH

COURSE: AUP3155 (PLANNING AND DECISION SUPPORT SYSTEM)

CONTENTS

1 INTRODUCTION........................................................................................................................2

1.1 AFFORDABLE HOUSING......................................................................................................2

1.1.1 THE SCENARIO OF AFFORDABLE HOUSING PLANNING AND DEVELOPMENT

IN KUALA LUMPUR................................................................................................................3

1.1.2 OVERVIEW OF CURRENT AFFORDABLE HOUSING SCENARIO IN KUALA LUMPUR..3

1.1.3 ISSUES ON CURRENT AFFORDABLE HOUSING IN KUALA LUMPUR................4

1.1.4 SIGNIFICANCE THE ISSUE ON MALAYSIA CITIES.................................................5

1.1.5 URBAN PLANNER CODE OF CONDUCT TO SOLVE THE AFFORDABLE

HOUSING ISSUES.........................................................................................................................5

1.2 AFFORDABLE HOUSING POLICY IN MALAYSIA...........................................................6

1.3 BEST PRACTICE OF AFFORDABLE HOUSING POLICY.................................................8

1.4 BEST PRACTICES OF THE ARCHITECTURE OF AFFORDABLE HOUSING..............10

1.5 THE ARCHITECTURE OF AFFORDABLE HOUSING IN KL..........................................11

1.6 CONCLUSION........................................................................................................................11

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1 INTRODUCTION

Housing is a building or structures that individuals and their family may live in that meet certain

federal regulations. Different housing situations vary for individuals and may depend on age,

family, and geographic location. For example, a recent university graduate in an urban

environment in the US may live in a rented apartment whereas a middle-aged entrepreneur may

live in a house with or without a mortgage. Furthermore, housing is a microcosm of culture and

civilization because the primary elements of society, individuals organized along with the family

lines, are born, raised and educated in them. Housing is the strength of the institutions of the

family and house is the strength of a society and the spirit of its cultural and civilization.

Similarly, failure in the institutions of the family and house denote failure in a society and in its

cultural and civilization.

1.1 AFFORDABLE HOUSING

Affordable housing commonly known as low-cost housing. Housing is considered affordable if it

costs not more than thirty percent of the monthly household income for rent and utilities (NPH).

Affordable housing receives direct and indirect “financial assistance and developed outside

market-rate private system” (NPH). The types of affordable housing can be ownership or rental,

a single duplex or the size of many market-rate apartment complexes. It may include a range of

housing types and sizes, including single or multi-bedroom units or houses, as well as studio

apartments. Affordable housing is only available in some locations and eligibility criteria apply.

Although affordable housing is sometimes available for purchase, it is most commonly available

for rent.

Dr. Azila Ahmad Sarkawi (10 August 2012)

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1.1.1 The Scenario of Affordable Housing Planning and Development in Kuala Lumpur

In 1996, the Zero Squatter by 2005 policy was implemented in the whole Malaysia. Further to

the economic recession in the late 1997, a pricing system on PPR schemes in cities and major

town for the resettlement of squatters has been implemented in order to ensure its citizen,

particularly lower income groups to continue enjoying the benefits of adequate, affordable and

quality housing. However, it is important to ensure that the provisions of housing are able to

create a harmonious society and promoting a sustainable living environment. To enhance the

quality of life of the urban population, the provision of more systematic and well organized

urban services programmes will emphasize on sustainable development, promoting greater

community participation and social integration of the population. Moreover, affordable homes

built through the planning system account for less than 12% of total new housing output but for

over 50% of all new affordable homes. There are many homeless people in Kuala Lumpur,

including those who have jobs but do not earn enough to rent a room or house. They sleep on the

streets of popular areas in the city.

(http://allmalaysia.info/2010/07/19/homeless-in-kl/)

1.1.2 OVERVIEW OF CURRENT AFFORDABLE HOUSING SCENARIO IN KUALA LUMPUR

The special policies for low cost housing in Federal Territory of Kuala Lumpur are:

i. Every housing project of more than 5 acres should allocate 30% of the area for low cost

housing.

ii. The minimum size per unit of low cost house is 550 sq ft, it has 3 bedrooms and selling

price of RM25 000 per unit.

iii. Low cost houses should be sold through the Housing Management Department, DBKL.

iv. The construction of the low cost houses should be started at the middle stage of the

project. The developers are not allowed to slow down to build the low cost units.

(http://allmalaysia.info/2010/07/19/homeless-in-kl/)

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1.1.3 Issues on Current Affordable Housing in Kuala Lumpur

The population of Malaysia has increased from 21.3 million in 2000 to 30 million people in 2013

with a growth rate of 1.6%. The birth and death rate have decreased over the years with an

increase in the life expectancy from 71 years to higher than 73 years. The problem is the

housing prices have also increased by a record margin. In the last 5 years, the prices have

increased by 12.3% annually all over the country. The Department of Statistics Housing Income

Survey 2013 states that 80% Malaysians earn less than RM 6,900 per month and cannot afford

houses priced at higher than RM 300,000 There are many issues regarding on affordable housing

in Kuala Lumpur. Some of the issue that has been highlight is:

i. The factors in determining a quality low-cost flat arranged in descending degrees of

importance are house safety, provision of public amenities, unit internal environment,

maintenance and surrounding environment, location, sanitary fittings, unit size, type of

house, material used, unit internal layout, quality of workmanship, structure of the house

and appearance.

ii. There are no specific planning and design guidelines for low medium cost housing

compared to low cost housing. The conditions imposed by local authorities are different

from one project to another. This in consistencies creates confusion among the private

developers.

iii. The Draft Kuala Lumpur Structure Plan 2020 does not included low medium cost

housing category in the projection of houses unit to be built by year 2020. Although the

emphasis of Structure Plan is to provide more houses in medium cost range (including

low medium cost), specific policies and projection for low medium cost housing category

were not clearly stated.

4 | P a g e Figure 1 : Homeless working poor in KL (allmalaysia.info)

1.1.4 Significance the issue on Malaysia cities

Not too many middle class Malaysians can afford owning a roof above their heads. Property

prices are now sky-high and the middle-income wage workers are compelled to go for rented

homes or choose a place at the outskirts of the city. The issue of affordable housing has their

own significance on Malaysia cities. Government or authority will take an action to solve the

issue of affordable housing. Malaysia cities will get benefit from affordable housing such as:-

.

i. Providing housing for the local workforce, especially lower wage earners.

ii. Can promote economic and social integration.

iii. Can prevent unnecessary, costly public expenditures by providing stable living situations

for the homeless and people with special needs. Subsidized housing is the best protection

against returning to a shelter (Vera).

iv. Revitalizes distressed areas by directing economic benefits to the local community, such

as increased jobs and sales taxes.

1.1.5 Urban Planner Code of Conduct to Solve the Affordable Housing Issues

The lack of adequate number of affordable housing projects in Malaysia has been an acute

problem for a very long time. It’s a positive notion that new projects on developing affordable

houses are being undertaken in the recent times, but the number of affordable houses is still way

low compared to the massive public demand. Thus, urban planner code of conduct needs to solve

the issue of affordable housing such as:

i. Formulate and outline specific guidelines for affordable housing design and specification

in the Structure Plan and Local Plan preparation.

ii. Preparing master plan of new housing scheme with the good approach.

iii. Translate the Local Authority’s minimum requirement and guidelines creatively into

conducive housing scheme that consists of mix-types of houses.

iv. Always plan at the right time for the right place and people.

v. Promote sustainable development approach in housing scheme.

vi. Proposing clear standards and guidelines to provide better, decent affordable housing to

avoid confusion among the developers.

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1.2 AFFORDABLE HOUSING POLICY IN MALAYSIA

From the issue of deficiency of affordable housing in Malaysia, government needs to do

something to increase the number of affordable housing. For example create a policy that

required a developer to build more affordable housing and not to focus for build high cost

housing to get a higher profit. Thus, affordable housing policy is important to observe the issue

regard to planning and development in Malaysia.

Housing policies can be grouped into 3 categories:

Before 1970

1970s to 1990

After 1990s

The government’s commitment towards low-cost housing started during the First Malaysia Plan

(1966 –1970) while the private sector’s involvement was in the Second Malaysia Plan (1971 –

1975) when the government realized the need and importance of the role of the private sector in

ensuring an adequate supply of low cost housing for the country.

(Ghani & Lee, 1997).

Federal Policy

The federal government’s policy with regard to low cost housing by the private

Sector can be summarized as follows:

i. 30% Low Cost Component

The policy requires all private housing developers of projects above a certain threshold to

construct at least 30% low cost housing units. The threshold or minimum size of development

which must provide the low cost component varies between states, each taking into account

demand (or the lack of it) as well as lack of land in major urban areas.

ii. RM25 000 Selling Price Ceiling

Houses constructed under the low cost component can be sold only at a price not exceeding RM

25 000. This ceiling, set in 1982, has been a contentious issue for developers and consumers

alike because the cost of construction of the low cost houses is typically higher than its selling

price.

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iii. RM750 Household Income

Buyers of the low cost units must have a combined household income not exceeding RM 750 per

month. About 60% or urban households in Malaysia in1980 fell within this income group (i.e.

income less than or equal to RM750). The income level in Malaysia has however risen by about

3.1% per annum between1970 and 1990 and the current labor shortage in all sectors of the

economy has ensured that wages continue to enjoy an upward trend.

iv. Minimum Design Standards

The policy specifies that each low cost house must have a minimum built-up area of 550 to 600

sq. ft. comprising 2 bedrooms, a living room, a kitchen and a bathroom. The houses may be of

any type including flats, terrace or even detached houses. Generally, developers have to opt for

high density developments (such as flats or cluster houses) in order to achieve economist of scale

or to reduce the amount of land used for the low cost component

State Policy

Policies at the national level are general in nature and have to be translated into more detailed

policies and strategies. At the state level the policies are embedded in the Structure Plans for

each state. The plans are then translated into more detail in the Local Plans including specific

requirements by the Local Authorities. The process of translating from the more general policies

at the national level into detailed strategies and requirements at state and local authority levels is

however not uniform, with promised benefits not given or additional conditions burdening the

low cost housing industry at the local level. The local authorities may have adopted different

standards based on local conditions.

(Noraliah Idrus and HO Chin Siong, Affordable and Quality Housing Through The Low Cost Housing Provision in Malaysia, 2008.)

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1.3 BEST PRACTICE OF AFFORDABLE HOUSING POLICY

1.3.1 Norway

Cities in Norway enjoy one of the highest qualities of life in the world. It provide adequate

housing for the homeless has become a priority target, thus, the rate of homelessness in Norway

is low compared to many other countries in the world. Besides, rental housing is a central issue

in Norwegian housing policy because many vulnerable groups of people are dependent on rental

housing, including municipal housing throughout their lives. The policy seeks to provide

everybody with a good home at an affordable price. Public and private institutions and other

organizations work together.

Furthermore, they prevent evictions by making it compulsory for landlords to warn the public

social sector when the rent is not paid. Social sector offers housing solutions that are not

institutionalized or regular rental dwellings. This makes it possible to offer homeless people a

home and make it easier for the social sector to take action when the rental contract is breached.

Moreover, Landlord and Tenant Act that protect tenants from notice of termination. The act

forbids property owners from putting rents that is in unreasonable rate compared with the

standard market rent.

(Davis, Sam. The Architecture of Affordable Housing, June 25, 1997)

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1.3.2 New Jersey

Mix different types of housing - to integrate 30 percent of low-cost housing into middleclass

neighborhoods; not to demarcate clearly wealthy and poor neighborhoods. Facade of the low-

cost housing looks like a middle-cost housing.

Figure 2: Mixture of low-cost and middle-cost housing in Cliffside Park, New Jersey

1.3.3 Chicago

During the late 1990s the Clinton administration started tearing down high-rise public housing

units and “replacing them with mixed-income low-rise units”. About 100,000 public housing

units were demolished between 1994 and 2000 nationwide. Many of the most notorious high-

density projects, such as Chicago’s massive Cabrini-Green public housing project are replaced

with “an area of mixed working-class and low-income families” living in low-density units.

(Palen 240)

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Figure3: Cabrini green public housing project

(Palen, J. John. The Urban World. New York, 2005)

1.4 BEST PRACTICES OF THE ARCHITECTURE OF AFFORDABLE HOUSING

1.4.1 Colton Palms, California

Colton Palms, an affordable housing project in Colton, California that haswon the progressive

Architecture award in 1991 and National Honor Award in1993 utilized the “house”concept.

The“house” is actually a housing block thatis three stories high with four-dwellings oneach floor

and thus, totaling twelve units oneach housing block. Even though the housing are not

directlyscaled to the existing neighborhood of single-family houses, they are at least identifiable

as big houses that comprisesmaller ones and as “a series of attached dwellings, rather than large

apartment block”. (Davis, 1997)

In term of security issues, the public buildings in Colton Palms are designed to serve as

doorways for the community, while not making the project overly porous or inviting because

they are scattered around the perimeter of the housing project. These entryareas allow views into

the courtyard, making a visual connection between protected,semi-private space and the world

outside it. Half of the dwellings in Colton Palms face the street, “with very large windows and

projecting decks”. (Davis 132)

(Davis, Sam. The Architecture of Affordable Housing, June 25, 1997)

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Fig 4: One of the ways architects overcome the Ambivalence toward affordable housing is by designing medium-density apartments that look like “houses”.

Fig 5: The Colton Palms site plan reveals a small city, with a public plaza, background buildings and civic structures

1.5 THE ARCHITECTURE OF AFFORDABLE HOUSING IN KL

The most typical misconception of affordable housing is that its design “should not exceed the

minimum housing standard” in order to save the costs and thus, ensuringits affordability (Davis).

However, there are many alternatives to maintain a decenthousing standard while keeping up to a

given budget. Affordable housings should be designed to fit with the character of the

neighborhoodthat help prevent the alienation of the residents from the wider community.

1.6 CONCLUSION

To conclude, it does not mean that we as Muslim planners have to follow blindly foreign

affordable housing policy and architectural design. What this study intends to achieve is that to

apply concepts that are in line or tally with Islamic principles. Furthermore, to ensure the

housing developers to build more low medium cost housing, the incentive given to low cost

housing such as tax relief, lower land premium, faster approval, etc. should be extended to low

medium cost housing as well. The government also should set the appropriate quota of low

medium cost housing to be built by housing developers.

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