PUTRAJAYA: A new corporation has been set up to oversee maintenance of low-cost homes in a move to address persistent problems at People's Housing Project (PPR) homes.

Prime Minister Datuk Seri Najib Tun Razak said the new National Public Housing Management Corporation would take over the maintenance of some 101,000 existing PPRs from local authorities.

'At present, the maintenance of low-cost homes is seen as poor, due to financial constraints of district or municipal councils.

'Under the new corporation, the Government is confident that maintenance of PPR homes will be handled better. The Government will also be able to refurbish them from time to time.

'And in future, if need be, we could even redevelop the project,' Najib said after chairing a meeting with the National Housing Council at Perdana Putra yesterday.

Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan said maintenance of PPRs would be more efficient under the Federal Government.

The National Housing Department, which is a regulatory body, is also tasked with looking into the development of these houses and this had slowed down the process, he said.

'For this reason, we want to separate the functions. The corporation will liaise with developers,' he said at a separate press conference after his keynote address at the 18th National Housing and Property Summit 2015.

On another matter, Najib said the National Housing Council had agreed that subsidy payment under the MyHome affordable home scheme should be given before the signing of the sales and purchase agreement.

'At present, the subsidy is given after the S&P is signed, and this affects the buyer and the developer in terms of cash flow. We have agreed in principle that the subsidy be given up front, with the condition that the developer provides a guarantee bond,' he said.