Housing Development Corporation Ordinance, 2002

a bank or any financial institution licensed under the Banking and Financial Institutions Act 1989 [Act 372];

an Islamic bank licensed under the Islamic

Banking Act 1983 [Act 276]; or

a licensed offshore bank, licensed under the

Offshore Banking Act 1990 [Act 443], or any modification or substitution of those Acts for the time being in force;

“flat” means a horizontal stratum of any building or part thereof, whether such stratum or part is on one or more levels or is partially or wholly below the surface of the ground, and includes a parcel within a building subdivided or intended to be subdivided under the Strata Titles Ordinance, 1995 [Cap. 18];

“Fund” means the Housing Development Fund established under section 22(1);

“Government” means the Government of the State of

Sarawak;

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“house” means any building, premises or structure used for living accommodation or human occupation, and includes a flat;

“housing accommodation” shall have the same meaning as assigned to it in the Housing Development (Control and

Licensing) Ordinance, 2013 [Cap. 69];

“housing developer” shall have the same meaning as assigned to it in the Housing Development (Control and

Licensing) Ordinance, 2013 [Cap. 69];

[Sub. Cap. A159/2013]

“housing estate” means—

any area developed to provide housing accommodation, with amenities and facilities for the enjoyment or convenience of residents or occupiers of houses within such area;

any area having basic infrastructures, services and facilities provided by the Corporation for the development of housing accommodation; and

any area approved by the Government as a site for re-settlement of persons affected by any project or scheme initiated by the Government or any federal authority;

“local authority” means any local authority constituted under or named in the First Schedule to the Local Authorities

Ordinance, 1996 [Cap. 20];

“member” means any member of the Board of Directors appointed under section 5(2) and (3), and includes the Chairman, the Deputy Chairman, a temporary Chairman, and an alternate member, nominated under section 5(5);

“Minister” means the Minister for the time being charged with the responsibility for housing in the Government;

“Registrar” shall have the same meaning as assigned to it in the Land Code [Cap. 81 (1958 Ed.)];

“repealed Ordinance” means the Housing and Development

Ordinance, 1971 [Ord. No. 17/71];

“Secretary” means the Secretary of the Board of Directors appointed under section 9(1), and includes any person appointed by the Board to discharge temporarily the functions of the

Secretary;

“shophouse” means any premises used wholly or partly for trade, business or commerce, and includes any building used partly for those purposes and partly as living accommodation;

“State land” shall have the same meaning assigned to that expression in the Land Code [Cap. 81 (1958 Ed.)].

References in this Ordinance to a flat, house or other living accommodation shall be construed to include references to the land appurtenant to such flat, house or other living accommodation.

suing and being sued;

entering into contracts, and acquiring, owing, holding, leasing, dealing or disposing of property, both movable and immovable; and

doing and suffering such other acts or things as bodies corporate may lawfully do and suffer.

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The Corporation shall have a corporate seal and such seal may from time to time be broken, changed, altered and made anew as to the Corporation seems fit, and, until a seal is provided under this section, a stamp bearing the inscription “Housing Development

Corporation” may be used as the corporate seal.

The Corporation shall, for the purposes of any written law relating to land, be deemed to be a native.

Any contract, deed or instrument which, if entered into or executed by a person not being a body corporate, would not be required to be under seal, may be entered into or executed on behalf of the Corporation by any person generally or specifically authorized by the Board of Directors for that purpose subject to such restriction or limit as to value or otherwise as may be imposed in such authorization.

The Board of Directors shall comprise the following:

The Chairman and the ordinary members referred to in subsection (2)(c) shall be appointed by the Majlis Mesyuarat Kerajaan

Negeri.

The members of the Board of Directors, other than ex officio members, shall hold office for a term not exceeding three years, and may be eligible for re-appointment.

A member of the Board, other than the Chairman or

Deputy Chairman or an ex officio member may, with the approval of the Minister, nominate an alternate member, who in the absence or incapacity of the member, may attend any meeting of the Board and shall have all the powers and duties conferred by this Ordinance.

The Majlis Mesyuarat Kerajaan Negeri may, at any time and without assigning any reason, revoke or terminate the appointment of any member of the Board other than an ex officio member.

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A member of the Board may resign his position by notice in writing addressed to the Majlis Mesyuarat Kerajaan Negeri.

Members of the Board may be paid such remuneration, allowances or granted such benefits or privileges as the Chief Minister may determine from time to time.

if he has been convicted by a court of law of—

any offence involving fraud or dishonesty;

if he is an undischarged bankrupt; or

if he is of unsound mind or is otherwise incapable of performing his duties.

The seat of a member other than a Deputy Chairman or an ex officio member, shall become vacant—

Where any member ceases to be a member by reason of any of the provisions of this Ordinance, a person may be appointed by the Majlis Mesyuarat Kerajaan Negeri in his place for the residue of the term for which such person might have held office if he had not ceased to be a member.

No meetings of the Board of Directors shall be held or conducted unless a quorum comprising not less than five members, including the Chairman or Deputy Chairman, is present.

The Board may act or proceed with the discharge of its functions notwithstanding any vacancy in its membership.

The Board may establish or form any committee, comprising any of the members or officers or employees of the

Corporation and such other persons as the Board may deem fit, and may delegate to such committee such functions and powers as the

Board considers fit and proper:

Provided that no delegation hereunder shall preclude the Board itself from performing at any time any of the functions or powers so delegated.

Subject to the approval of the Minister, the Board of

Directors may make standing orders to regulate its own procedures or the procedures of any committee established under subsection (4), and in particular, the holding and conduct of its meetings, the notice to be given of such meetings, the proceedings thereat, the keeping of minutes and the production and inspection thereof by members or other persons.

Disclosure of interest in contract by member of the Board of

Directors

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The Secretary shall keep all minutes and records of meetings of the Board and any of its committees and shall have custody of the corporate seal of the Corporation.

The Secretary may attend meetings of the Board, but shall have no right of voting on any issue, matter or resolution before, or under consideration, by the Board.

If the Secretary is temporarily absent from Sarawak, or is temporarily unable to perform his duties by reason of illness or otherwise, another person may be appointed by the Board to act in the place of the Secretary during any such period of absence from duty.

to develop, build, erect and complete houses for sale or sublease to such categories of persons and at such locations in

Sarawak, as may be approved by the Minister;

to develop or provide sites, with adequate infrastructures, services and facilities, for the building of houses or housing accommodation by such categories of persons as may be approved by the Minister;

to build or erect, for sale, sublease or exchange, shophouses in any housing estates, to cater for the needs and convenience of residents or persons living or working within such housing estates;

to execute, carry out or implement, such plans or schemes for the development of housing estates, prepared or drawn up by the Government or any other governmental authority in Malaysia;

to improve, renovate, repair or upgrade, upon such terms and conditions as the Board may determine, any houses or flats previously built or constructed by the Corporation or the

Commission, or to improve, upgrade or repair facilities or amenities in housing estates developed by the Corporation or the

Commission;

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to acquire, purchase, sell, sublease, rent or license any buildings built, owned or acquired by the Corporation at such price, rent or fees as may be approved by the Board in consultation with the Minister;

to undertake such studies, surveys, investigations or research as may be necessary to enable the Corporation to carry out or discharge any of its functions;

subject to the approval of the Minister, to draw up and implement schemes to provide loans or other forms of financial assistance, to purchasers of houses or property built, developed or owned by the Corporation;

subject to the approval of the Minister, to grant loan or financial assistance on terms and conditions to be determined by the

Corporation, for the building, repair, renovation, improvement of houses to be built, or built or situated on such locality or area as the Minister may determine;

to manage, preserve, repair, renovate or administer any building or property wholly or partly belonging to or owned by the Corporation;

to prepare, draw up, or determine standards, quality, criteria of design, workmanship or engineering works for various categories of buildings or houses to be built, erected, completed or acquired by the Corporation;

to make, manufacture or design any materials, tools or equipment needed for the building or construction of houses or infrastructure, amenities or facilities in any housing development undertaken by the Corporation; and

to do all such other matters and things as are necessary for the exercise or performance of all or any of the functions and responsibilities of the Corporation.

In addition to the functions and responsibilities stipulated in subsection (1), the Corporation may undertake such other functions as the Majlis Mesyuarat Kerajaan Negeri may, by direction published in the Gazette, assign.

Without prejudice to the generality of subsection (1), the powers of the Corporation shall include the power—

Any company incorporated or established by the

Corporation may be wholly owned by the Corporation or may be a subsidiary or related or associated company of the Corporation.

The Corporation shall furnish the Minister with such returns, accounts and other information as he may, from time to time, require.

Where no appointment of the Chief Executive Officer is made under subsection (1) or the Chief Executive Officer is absent from the State or unable, through illness or any other cause, to discharge his duties, the Deputy Chief Executive Officer or any other officer of the Corporation shall, under the authority and direction of the Board, exercise the duties of the Chief Executive Officer, and be paid such remuneration or allowances as may be determined by the

Board.

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The Chief Executive Officer shall be responsible for—

The Chief Executive Officer shall also perform such other duties as the Board may, from time to time, direct.

The Board may appoint and employ such consultants and agents to transact any business or to do any act required to be transacted or done in the discharge of its functions or for the better carrying into effect the purposes of this Ordinance.

The regulations made under this section may include provisions for—

The regulations made under this section shall create and classify the disciplinary offences and provide for such disciplinary punishments as the Board may deem appropriate, and the punishment so provided may extend to dismissal or reduction in rank.

The regulations made under this section may, in prescribing the procedure for disciplinary proceedings, provide for an opportunity for representations to be made by the person against whom the disciplinary proceedings are taken before a decision is arrived at by the Board on the disciplinary charge laid against such person.

An order, ruling or direction made or given by any committee established by the Board to conduct disciplinary proceedings shall be treated as an order, ruling or direction of the

Board and have the same force or effect as if it had been made or given by the Board pursuant to the authority vested in the Board under this Ordinance.

is or was responsible for any improper payment of moneys from the Fund or for any payment of such moneys which is not duly vouched;

is or was responsible for any deficiency in, or for the destruction of, any moneys, securities, stores or other property of the Corporation;

being or having been an accounting officer, fails or has failed to keep proper accounts or records; or

has failed to make any payment, or is or was responsible for any delay in the payment, of moneys from the

Corporation to any person to whom such payment is due under any contract, agreement or arrangement entered into between that person and the Corporation, and if a satisfactory explanation is not furnished to the Board within a period specified by the Board, with regard to the failure to collect, improper payment, payment not duly vouched, deficiency or destruction, or failure to keep proper accounts or records, or failure to make payment, or delay in making payment, the Board may surcharge against the said person a sum not exceeding the amount of any such amount not collected, such payment, deficiency, or loss or the value of the property destroyed, as the case may be; and with regard to the failure to keep proper accounts or records, or the failure to make payment, or the delay in making payment, the Board may surcharge against the said person such sum as the Board may think fit.

The Board shall notify the person surcharged of its decision made under subsection (1).

The Board may at any time withdraw any surcharge in respect of which a satisfactory explanation has been received or if it otherwise appears that no surcharge should have been made, and notify the person concerned accordingly.

The amount of any surcharge imposed under subsection (1)

and not withdrawn under subsection (3) shall be a debt due to the

Corporation from the person against whom the surcharge is imposed and may be sued for and recovered in any court at the suit of the

Corporation and may also be recovered by deduction—

The Fund of the Corporation shall consist of—

Before the beginning of each year, the Corporation shall submit to the Majlis Mesyuarat Kerajaan Negeri an estimate of the expenditure for the following year in such form and containing such particulars as the Majlis may direct, and the Majlis shall, before the beginning of that following year, notify the Corporation through the

Minister of the amount authorized for expenditure generally or of the amounts authorized for each description of expenditure.

The Corporation may at any time submit to the Majlis

Mesyuarat Kerajaan Negeri a supplementary estimate for any one financial year as the Majlis may allow.

The Corporation shall not provide guarantee or security to secure the debt or liabilities of any company formed or established under section 12, or for any other person or party, without the prior approval of the Majlis Mesyuarat Kerajaan Negeri.

The moneys of the Corporation shall be applied only in payment of discharge of the expenses, obligations and liabilities of the

Corporation and in making any payment that the Corporation is authorized or required to make.

by depositing in—

Bank Negara Malaysia; or

by investing in bonds, debentures, commercial notes, money market instruments, certificates of deposits and promissory notes and bills of exchange within the meaning of the

Bills of Exchange Act 1949 [Act 204];

by investing in accordance with the Trustee Act 1949

[Act 208]:

Provided however, where the Corporation invests in or upon titles to immovable property in Malaysia in accordance with section 4(1)(c)

of the Trustee Act 1949 [Act 208], such immovable property may or may not yield any income at the time of such investment.

The accounts of the Corporation shall be audited by the

Auditor-General or by a qualified auditor appointed annually by the

Corporation with the approval of the State Financial Authority, and the auditor shall make a report on the accounts examined by him.

As soon as the accounts of the Corporation have been audited in accordance with subsection (2), a copy of the statement of accounts together with a copy of any report made by the auditor shall be submitted to the Majlis Mesyuarat Kerajaan Negeri, for its examination and approval, and thereafter, the Chief Minister shall present to the Dewan Undangan Negeri a copy of every such statement and report.

Financial and accounting procedures

acquire or purchase land, including land lawfully held under native customary rights;

build or provide houses belonging to the Corporation in exchange for land required or suitable for the provision of housing accommodation or creation of housing estates; and

enter into joint venture with any housing developer for the development of land for the provision of housing accommodation.

Notwithstanding subsection (1), where any area or site has been designated or reserved by the State Planning Authority for housing accommodation as a condition for approval of subdivision or development of land under Part X of Land Code [Cap. 81 1958 Ed.]

to a housing developer—

The Registrar shall cause to be issued to the Corporation a document of title for any land vested in the Corporation pursuant to subsection (1) and shall stipulate in such document of title the conditions of such vesting.

Any caveat lodged by the Registrar pursuant to subsection

shall not be removed or withdrawn by the Registrar until and unless he receives from the State Financial Secretary, a statement stating that:

Where the Corporation is required by the Majlis Mesyuarat

Kerajaan Negeri to surrender any land to the Government, the

Corporation may be paid compensation for any improvements which the Corporation has made to the land since its vesting in or acquisition by, the Corporation. Such compensation shall be assessed by a valuer appointed by the Director of Lands and Surveys.

The Minister may make rules governing dealing of any land or subsidiary parcel referred to in subsection (1) and the Registrar shall give full effect and force to such rules, and in regard thereto, the

Registrar shall have authority to lodge a caveat against such land or subsidiary parcel to prevent any dealing which contravenes such rules or any restrictions or limitations imposed pursuant to subsection (1).

his spouse; or

any of his children who has the qualification or eligibility to purchase such property from the corporation:

Provided that on the date of such transfer or transmission, there is no debt or money lawfully due and owed by the estate of the deceased owner to the Corporation.

Any transfer or transmission referred to in subsection (1)

shall not be deemed as “dealing” of the house, subsidiary parcel or land under this Ordinance.

For the purpose of subsection (1), “spouse” shall mean any person who is lawfully married to the deceased owner at the time of his demise, and “children” shall include any adopted child or step child of the deceased owner.

the Housing and Development Ordinance, 1971 [Ord.

No. 17/71] shall cease to have effect; and

the Housing and Development Commission (in this

Part referred to as “the Commission”) being a body corporate established under the repealed Ordinance shall likewise cease to exist.

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Subject to this Ordinance and to any direction of the

Minister, all property and assets other than land which immediately before the appointed day were vested in the Commission or in any person on behalf of the Commission shall on that day vest in the

Corporation.

Any appeal brought or any leave to appeal applied on or after the appointed day against a decision given in any legal proceedings before that day may be brought by or against the

Corporation as it might have been brought by or against the

Commission as if this Ordinance had not been passed.

In this section, “modifications” include amendments, additions, deletions, substitutions, adaptations, variations, alterations and non-application of any provision of this Part.

Exemption

In particular and without prejudice to the generality of the foregoing power, the rules may—

The Rules made under this section may provide penalties for the contravention thereof:

Provided that such penalties shall not exceed a fine of five thousand ringgit or imprisonment of three years or fine and imprisonment not exceeding those limits.

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