The Housing Developers (Control & Licensing) Ordinance, 1993 was enacted in November 1993. The Ordinance provides legislation to control and regulate housing development in the whole state of Sarawak and implemented since 1st January 1999.

OBJECTIVES

1. To. ensure that housing developers will build, complete and deliver the houses to the buyers within the stipulated time frames.

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 orderly and healthy growth of the housing industry in the state.

4. To. instill and maintain the confidence of house buyers in the housing industry.

APPLICATIONS

1. The Ordinance applies to:
a) Housing developers who carry out housing development involving more than eight units of housing accommodation (i.e. buildings intended either fully or partly for human habitation).

b) Landowners who want to sell more titan eight units of housing lots for the purpose of construction housing accommodation.

2. Exemption is given to:
a) Statutory bodies either State or Federal owned. established by statute and is engaged in housing development. However. subsidiaries, which are set tip by statutory bodies under the Companies Act 1965 to undertake housing development. are excluded from this exemption.

b ) Any housing developer as decided by the Minister.

PROVISIONS

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 use the words " H ousing Developer" only when he is 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 License can be granted to a housing developer who:

a) Is financially sound and honest, and is not an undischarged bankrupt.

b ) Is in possession of a development plan w hich has, been approved by the local planning authority.

c) Has lodged with the Controller a deposit. either in cash or in the form of a bank guarantee. for the sum of RM100,000 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:

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

b) Keep a proper account of all transactions with regards to the housing development.

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

d) Inform the Controller if he is likely to fall into difficulties.

HOUSING DEVELOPMENT ACCOUNT
Under situation (d) 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 this account.