LAW AND REALTY: GATED AND GUARDED COMMUNITIES

GATED and guarded community (‘GACOS’) housing schemes are getting more popular. In some areas, residents have even taken to restricting access to public roads, providing guard posts to try to reduce crime. In other cases, developers see profit in selling exclusivity and security by GACOS and readily exhort the virtues of a gated and guarded community lifestyle in their glossy advertising.

Whatever the social impact of GACOS, this trend is on the rise and there is a growing market for it.
For our purposes, a reference to GACOS or gated communities means the particular development, its facilities and services including the infrastructure (roads, drains, etc) within the development are privately managed and owned. Usually some form of physical barrier surrounds the boundaries to the development. 

Essentially, it is a “privatisation” of public spaces or spaces that would normally be managed by public authorities. By contrast, guarded communities refer to communities where residents employ private security to provide security services to an area which includes public spaces. This often involves an attempt to restrict or regulate public spaces privately. This would include the erection of barriers on public roads, guardhouses, etc.

We will now examine the legality of these schemes:-

Guarded Communities

It is unlawful to privately attempt to restrict or regulate public spaces without the approval of the relevant authority. In the case of an attempt to close, barricade or restrict the access of a public road, drain or space, there may be a contravention of Sections 46 (1) of Street Drainage and Building Act 1974, Section 80 of the Road Transport Act 1987 and Section(s) 62 and 136 of the National Land Code 1965. 

In addition, provisions of the Town and Country Planning Act 1976 may also be violated where guard houses are built in the public land or road shoulders. For example, Section 46 (1) of the Street Drainage and Building Act 1974 provides that any person who:-

a. builds, erects, set up to maintain or permit to be built, erected or set up or maintained any wall, fence, rail, or any accumulation of any substance, or other obstruction, in any public place;

b. without the prior written permission of the local authority, covers over or obstructs any open drain or aqueduct along the side of any street;

shall be guilty of causing an obstruction and may be arrested without warrant by any police officer or any officer of the local authority authorised in writing in that behalf by local authority and taken before a Magistrate’s Court and shall be liable on conviction to a fine not exceeding RM500, and in the case of a second or subsequent conviction to a fine not exceeding RM1,000.

There is no problem with private security patrolling public roads in a housing scheme under the employment of the residents’ associations. Nevertheless, the local authority and the relevant OCPD should be consulted first. It has to be noted that erecting structures to restrict access to public roads or guardhouses is another matter and would violate the law unless the relevant authority gives its approval to do so.

In recognition of a growing problem of security, various local authorities and state governments have issued guidelines for guarded communities. These guidelines do allow erection of guard houses and the employment of private security based on 85% consent by the residents in the area affected. 

For example, in Selangor, the Selangor Housing and Property Board and the local authorities allow guard houses to be built on the following guidelines:-

i. Applications made through Resident Association (RA) only;
ii. Consent by 85% of the residents;
iii. Agreement must be made between RA and Local Authority;
iv. Guard house without barrier are allowed and the location should not obstruct traffic (situated at road shoulder only);
v. The size of the guard house should not exceed 6ft x 8ft or other sizes that the Local Authority thinks fit and suitable;
vi. The location and design of the guard house must be approved by the Local Authority;
vii. A written consent from Local Authority and Land Administrator (LA) for the construction of guard house on reserved road/vacant land must first be obtained;
viii. Appointed security guards must be registered with Ministry of Home Affairs or with other relevant agencies;
ix. Not to prevent/obstruct passing vehicles from entering the guarded area; and
x. LA and other utility companies are free to conduct their maintenance work in the guarded area.
The authorities do sometimes “turn a blind eye” to allow some form of limited barriers as long as they do not deny access nor unduly obstruct traffic and have the overwhelming support of local residents.

Gated Communities

The recent amendments to the Strata Titles Act 1985 (with effect from April 12, 2007) by the Strata Titles (Amendment) Act 2007 now allows a GACOS to be statutorily created and regulated more effectively like other types of strata schemes. As such, land parcels with buildings are now be governed by the Strata Titles Act, in the same way as a high-rise building, if a developer chooses to do so. 

This means that for the purposes of the Strata Titles Act 1985, land parcels with buildings can in certain circumstances be treated like a multi-storey building lying down on its side. There are several important qualifications though.

The effect of section 5(h) of the Strata Titles (Amendment) Act 2007, is that only buildings of not more than four storeys may be erected on the land parcels intended to be subdivided and held under separate strata titles, or an accessory parcel.

Furthermore, any Deed of Mutual Covenants entered into between the developer and a purchaser of a parcel in a GACOS scheme agreement can be now easily enforced as bylaws under the Strata Titles Act 1985.

The enforcement and management can now also be carried out under the Building and Common Property (Maintenance and Management) Act 2007, when the Management Corporation has not come into existence. This is a huge step forward from the past practice which was problematic to say the least.

Reference:
The Malaysian Bar
The Sun
by Derek Fernandez
Friday, 29 June 2007

The writer is a member of the Conveyancing Practice Committee, Bar Council, Malaysia www.malaysianbar.org.my
Note: This column is brought to you by the Malaysian Bar Council for your information only.
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Guidelines for Gated Community & Guarded Neighbourhood

The Ministry of Housing and Local Government, through the Town and Country Planning Department, has come up with a guideline for Gated Community and Guarded Neighborhood.

This guideline, approved by the Cabinet and the Majlis Negara bagi Kerajaan Tempatan on 28 July and 2 September 2010 respectively, will be tabled at individual State Planning Committee for adoption and implementation at the state level.

The table below is a summary of the differences between a Gated Community (GC) and Guarded Neighborhood (GN).

Gated Community (With Strata Title)
Definition:
A group of residents or community living within a gated and guarded residential area, be it high-rise property such as apartment, condominium or townhouses or landed property such as bungalows, terrace, link or semi-detached houses with strata titles.

Limited to urban areas.
Size of the scheme is between 1ha and 10ha, or 200-500 units.
Schemes larger than 10ha needs to be broken into smaller schemes.
Cannot build embankment that separates GC and non GC completely.
Social impact assessment must be done.
Allocate space for interaction in the environmental design.
Managed by a Management Corporation.
Prepare two entrance-exit points, one as main entrance and the other for emergency.
Perimeter fencing of height not more than 9 feet, with at least 50% visible.
Entrance equipped by CCTV and road humps.
Boom gate cannot be erected on public roads.
Guardhouse size of 1.8m x 2.4m is allowed to be built within the GC.
The houses cannot be more than 4 levels (18.5 meters) from basement.
Visitor’s parking must be allocated.
Provision of common facilities.


Guarded Neighbourhood (w/ Individual Title)
Definition:
A partially or fully controlled area in existing or new housing schemes with individual land titles. The schemes provide security with or without guardhouses. Cannot place physical obstacles on the roads and stop residents and the public from exiting and entering the areas.

Limited to urban areas, in particular, areas with high crime rate.
Local councils can control the number of units in a scheme to ensure proper control and effective management.
Not allowed in neighbourhood with public facilities, or part of public bus route.
Establishment of GN needs to be proposed by registered Residents Association and
supported by majority of the residents and submitted to local councils.
Perimeter fencing is not allowed.
Temporary physical obstacles, such as manual boom gate, cones, etc, can be considered
provided guards are stationed at the locations 24 hours.
Closing of backlanes and sidelines is prohibited.
Guardhouse size not bigger than 1.8m x 2.4m is allowed.
If permanent guardhouse is to be erected on road shoulders, a Temporary Occupation
License (TOL) must be obtained from the land office.
Guards need to registered with Home Ministry.


Source: The Starmetro,
Thursday 14th Oct 2010
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Law regulating gated and guarded communities

Indeed there is currently no law regulating gated and guarded communities unless they are landed strata developments, as verified by prominent legal expert on strata title properties, Lee Kim Noor.

When it comes to gated communities with landed strata titles, the collection of service charges is mandated by the Strata Management Act. When it comes to guarded neighbourhoods with individual titles however, there is no federal law. 

There is a state government gazette in Selangor which approves and regulates gated and guarded developments, while the Ministry of Housing has released guidelines on what can be described as gated and guarded.

“The bottom line is there is no law governing the collection of service charges for this type of project except by a contract between the developer and the first purchaser,” says Lee. “After sub sale, the enforcement will be a problem. Without money all the facilities would not be able to be maintained.”

According to the Peninsular Malaysia Town and Country Planning Department, a gated community focuses on a community which lives in landed properties with strata titles.

Guarded neighbourhoods are houses with individual land titles, where the “guarded” factor is not based on the provisions of any law or regulation but exists only on an ‘ad-hoc’ basis with the agreement of residents in a neighbourhood.

Officially, common services such as security and rubbish disposal would be handled by the police and the municipal authorities, since the roads within the development are still public road reserves, unless the residents’ association opts to implement a joint private contract.

Therefore, it would be misleading to market a development with individual titles as a gated community, or “gated and guarded”. It is especially misleading when a developer offers such security services for a certain amount of time only for this precedent not to be followed upon.

Of course, it seems that insult is added to injury when the developer still owns several units and refuses to pay for the shares of these units. The developer would imaginably suffer in the long run, however, as if the development suffers, the value of the developer’s units would also fall.

It would seem as if individually titled developments must be clear about their developments not being “gated and guarded” developments, as well as not promise private security services.

References:
http://www.starproperty.my/
Posted on January 15, 2018  | 12476 views |  Topic : Home & Living, News & Articles, Property News.
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Legality of Gated and Guarded Communities

It is unlawful to privately attempt to restrict or regulate public spaces without the approval of the relevant authority.


Any attempt to close, barricade or restrict the access of a public road, drain or space, there may be a contravention of Sections 46(1) of Street Drainage and Building Act 1974, Section 80 of the Road Transport Act 1987 and Section(s) 62 and 136 of the National Land Code 1965.

In addition, provisions of the Town and Country Planning Act 1976 may also be violated where guard houses are built in the public land or road shoulders. For example, Section 46(1) of the Street Drainage and Building Act 1974 provides that any person can be held liable if he:-

a. builds, erects, set up to maintain or permit to be built, erected or set up or maintained any wall,
fence, rail, or any accumulation of any substance, or other obstruction, in any public place;
b. without the prior written permission of the local authority, covers over or obstructs any open drain
or aqueduct along the side of any street;

There is no problem with private security patrolling public roads in a housing scheme under the employment of the residents’ associations. Nevertheless, the local authority and the police should be consulted first.

It has to be noted that erecting structures to restrict access to public roads or guardhouses is another matter and would violate the law unless the relevant authority gives its approval to do so.

In recognition of a growing problem of security, various local authorities and state governments have issued guidelines for guarded communities. These guidelines do allow erection of guard houses and the employment of private security based on the consent by the residents in the area affected.

For example, in Selangor, the Housing and Property Board and the local authorities allow guard houses to be built based on certain guidelines amongst which include:-
· Applications made through the Resident Association (RA) only;
· Consent by 85% of the residents;
· Agreement must be made between RA and local authority;
· Guard house without a barrier are allowed and the location should not obstruct traffic (situated at road shoulder only);
· A written consent from Local Authority and Land Administrator (LA) for the construction of guard
house on reserved road/vacant land must first be obtained;
· Appointed security guards must be registered with Ministry of Home Affairs or with other relevant agencies;

The authorities do sometimes “turn a blind eye” to allow some form of limited barriers so long as it is backed by an overwhelming support of the local residents and it does not deny access nor unduly obstruct traffic.

Planning Requirements

A developer may elect to proceed with subdivision of land under the National Land Code 1965, or subdivision of land into land parcels to be held under strata titles, under the Strata Titles Act 1985.
Even if a developer chooses to subdivide the land under the Strata Titles Act 1985, it does not necessary mean that the developer can develop a gated and guarded scheme.

Planning law requirements as well as the State Authority have set out strict guidelines for approving gated and guarded schemes. These guidelines also take into account socio-economic factors in determining whether to allow gated and guarded schemes.

Recent Amendment to the Law

The law governing development of land involving the construction of a building having two or more storey on alienated land held under one lot is governed by the Strata Titles Act 1985. This is probably the reason why a few property developers have adopted the Strata Title Act for their development of the gated community scheme.

The problem that would however arise is when the land development of the gated community scheme involves the construction of buildings that are not feasible to be sub-divided into parcels as provided in the Strata Title Act. For instances bungalow houses, semi-detached houses, double and single storey houses.

The recent amendments to the Strata Titles Act 1985 (with effect from April 12th , 2007) by the Strata Titles (Amendment) Act 2007 now allows a gated and guarded communities to be statutorily created and regulated more effectively like other types of strata schemes.

As such, land parcels with buildings are no longer needed to be governed by the Strata Titles Act, in the same way as a high-rise building if a developer chooses to do so. This means that for the purposes of the Strata Titles Act 1985, land parcels with buildings can in certain circumstances be treated like a multi-storey building lying down on its side. There are several important qualifications though.

The effect of the Strata Titles (Amendment) Act 2007, is that only buildings of not more than four storey may be erected on the land parcels intended to be subdivided and held under separate strata titles, or an accessory parcel.

Furthermore, any DMC entered into between the developer and a purchaser of a parcel in a gated and guarded community scheme agreement can be now easily enforced by the bylaws under the Strata Titles Act 1985.

The enforcement and management can now also be carried out under the Building and Common Property (Maintenance and Management) Act 2007, when the Management Corporation has not come into existence. This is a huge step forward from the past practice which was problematic to say the least.

Conclusion

The development of gated and guarded community schemes in Malaysia now seems to be part of the features of the housing industry. It is undoubtful that most of these schemes are of the high cost residential types that will be attractive to developers due to higher returns and the increasing demand from the market, especially in the urban areas like Kuala Lumpur, Shah Alam, Penang and Johore Bahru.

Finally, it must be understood and appreciated that all purchasers of houses in a gated and guarded community will have to pay considerably higher charges for the maintenance, sinking fund, security fees, electricity and water and other services because the cost of all facilities within the boundary of gated and guarded community will have to be borne by them in addition to the usual quit rent and assessment rates levied by the local authorities.

References:
https://www.hg.org/
By: Jayadeep Hari & Jamil

ABOUT THE AUTHOR: Stanley Gabriel
The author is the Head of the Conveyancing Department in Messrs Jayadeep Hari & Jamil. Having been in legal practice for over 12 years, he has vast experience in matters concerning real estate and probate. Copyright Jayadeep Hari & Jamil
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What is a Gated & Guarded Community?

In Malaysia, a gated and guarded community (‘GACOS’) or gated community housing scheme refers to a cluster of houses or buildings where its facilities and services including the infrastructure (roads, drains, etc.) within the premises are privately managed and owned.

Usually, the premises are surrounded by walls or fences on a perimeter with the entry of the premises controlled by certain security restrictions such as security guards, boom gates or barriers which normally includes 24 hours security, guard patrols, central monitoring systems and CCTVs. The Strata Titles (Amendment) Act 2007 has allowed a gated and guarded community to be statutorily created and regulated more effectively like other types of strata schemes.

On the other hand, a guarded community refers to a community via their Resident Association (RA) that (after obtaining the consensus from the local Authority and the relevant Officer in Command Police District, OCPD) has engaged private security patrolling public the roads in their housing area. Under the law, it is not allowed to privately attempt to close, barricade or restrict the access of a public road, drain or space without the approval of the relevant Authority.

In recognition of a growing problem of security, various local authorities and state governments have issued guidelines for guarded communities. These guidelines do allow erection of guard houses and the employment of private security based on 85% consent by the residents in the area affected. For example, in Selangor, the Selangor Housing and Property Board and the local authorities allow guard houses to be built on the following guidelines:

Applications made through RA only;

Consent by 85% of the residents; (New ruling 100% consent w.e.f. Mar 2017)

Agreement must be made between RA and Local Authority;

Guard house without barrier are allowed and the location should not obstruct traffic (situated at road shoulder only);

The size of the guard house should not exceed 6ft x 8ft or other sizes that the Local Authority thinks fit and suitable;

The location and design of the guard house must be approved by the Local Authority;

A written consent from Local Authority and Land Administrator (LA) for the construction of guard house on reserved road/vacant land must first be obtained;

Appointed security guards must be registered with Ministry of Home Affairs or with other relevant agencies;

Not to prevent/obstruct passing vehicles from entering the guarded area; and

LA and other utility companies are free to conduct their maintenance work in the guarded area.

Source:
http://realpropertyinmalaysia.blogspot.com/
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The Differences Between GC Scheme and GN Scheme

This website compiles all the related information and articles on Gated Community (GC) Scheme ... and Guarded Neighbourhood (GN) Scheme, for your information.

Know the difference between 'GATED COMMUNITY' (GC) ...and 'GUARDED NEIGHBOURHOOD' (GN) schemes in Malaysia.

Now let us go into the details. There are only 2 types of schemes available - Gated Community (GC) scheme ... and Guarded Neighbourhood (GN) scheme. A "Gated & Guarded" (GnG) Community scheme is basically a "Gated Community" (GC) scheme.

All "Strata" title developments will have to implement a "Gated Community" (GC) scheme to manage all its shared facilities, security and common areas under the Strata Title Act 2007. (An example here would be "Eco Ardence", which is also classified as a "private property" residence).

Normally, only Strata title developments (that comes with clubhouse, swimming pool, carpark and other shared facilities) which are categorized under "private property" can apply for a Gated Community (GC) scheme.

However, in a "non-strata" title development ("Individual" title) property/ residence, if the RA wants to implement a "Gated Community" (GC) scheme, then it has to apply from the Land Office to change its land status to "Strata" title first.

The implications here will be serious and detrimental to all its residents - all maintenance works (such as garbage collections, drains, roads, landscape, streetlights, etc) will stop, and no longer come under the responsibility of the local council MPKlang.

These facilities and services will then have to be privately funded and managed by the RA as if it is a "private property". (MPKlang will not render its services to "private property" residences.)

(All Sime Darby Bandar Bukit Raja double-storey link houses here are categorized as "Individual" title properties. They are also categorized as under "public property"). Therefore, no Gated Community" (GC) scheme can be implemented here legally.

In actual fact, all "Individual" title developments (like ours here in Bandar Bukit Raja) can only apply to implement a 'Guarded Neighbourhood' (GN) scheme via their RA obtaining the necessary consent and approvals from the Local Council and the District OCPD, to hire private guards to patrol their residence.

We hope that upon reading and digesting the contents here, you would be better informed and would make the right decisions for all your neighbours. Right now the residents concerned have very little awareness or knowledge on this issue. Know your rights. We have to put a stop to this unscrupulous practice right now.

Anyway, we are beginning to see that there are more residents who are rising up against this sort of scheme. They are beginning to realize and aware that this is nothing more than a money-making scam in the name of "neighbourhood security". There are more residents who are against these than you know.

Despite the ongoing schemes around the neighbourhood, crooks were still able to penetrate into the residences and break into houses. Stopping cars at the guardhouse won't prevent any thief (burgler/ burglers or robbers) ...from sneaking in on foot or climbing over the fence from multiple compromised locations!

Anyways, if you happened to be one of the unfortunate residents whose house being broken into and things stolen, the RA is not going to compensate you one sen even though you subscribe to their scheme. (In insurance, if you pay the premium you get to claim). Is this fraud or what?

To all home owners/residents of landed properties (Non-Strata title), do not be fooled by your RA into joining any of the above mentioned schemes blindly. They cannot force it upon you.

We shall be planning on taking further actions to request the Registrar of Societies (RoS) to audit the accounts of the RA that take in cash payments every month as the amount paid by each household to their RA far exceed the "Assessment Fees" and "Quit Rent" payable to their local council!

The implementation and the hiring of "security services" here is also questionable. Most of the rules and regulations provided by the Ministry of Home Affairs on the hiring of security guards by the RA are NOT followed. Also they did NOT comply to the guidelines and circulars as required by the State Housing Board. Know your rights! Say no to RA.

We will also be planning further actions here by getting the Ministry of Home Affairs (MoHA) or Kementerian Dalam Negeri (KDN) to investigate if the "security guards" here are licensed and hired according to the laws and regulations (SYARAT-SYARAT LESEN DI BAWAH SEKSYEN 3 AKTA NO. 27/71 UNTUK MENGURUS AGENSI PERSENDIRIAN KAWALAN)

In view of the multiple problems, complaints and the blatant breaking of laws, guidelines and regulations by the RA here, we want this RA to stop operating illegally here. Instead, we want our Polis DiRaja Malaysia (PDRM) back. It's time to leave these security matters back to our local police to do their jobs.

To all other home owners/residents of Bandar Bukit Raja, please DO NOT be fooled by your RA into joining the scheme as this entire development is NOT categorised as a "Gated and Guarded Community". Do not subscribe to illegal schemes!
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This is a non GC neighbourhood (non-Strata)

Please do not try to implement a Gated Community (GC) scheme in a non GC property neighbourhood.

Please do not implement illegal automated card access system which is prohibited by all local councils in Selangor (unless you have 100% consent from the residents).

Please do not consent or condone to such illegal gated community schemes. You cannot implement a GC scheme legally in a Non-Strata titled neighbourhood.

Please do not sign on any forms given by your RA - you are only giving them the licence to collect protection money from all the residents.

There have been far too many cases whereby residents were being coerced into paying monthly fees to their RA for illegal and unlawful "Gated Community" schemes using card access even though the local authorities have prohibited them. And yet most residents are gullible enough to fall prey to such scams so easily.

Even though stringent guidelines have been published by the relevant authorities, residents have been bullied or taken advantage of by some unscrupulous residents associations (RAs), many believed to be linked to syndicates. Providing "security services" seems to be very lucrative and easy money for these gangs.

This also looks like a classic case of unscrupulous people trying to take advantage of the situation or trying to profit from people's lack of information/knowledge.

Even though there are plenty of newspaper articles highlighting the problems of these gated and guarded community schemes, many are still unaware of the seriousness these schemes implemented by their RA can create for its community and country as a whole.

We are no longer under the old corrupt government - this is the new Malaysia Baru! We have changed for the better. And so we too have to change our ways. The old ways of doing things are no longer applicable.

Residents were being told to set up their own RA to implement Gated Community or Guarded Neighbourhood (GN) scheme even before checking with the local district police OCPD (PDRM) on whether their residence sits on a "high crime zone" or not. No consultation with the district OCPD was done prior to implementation.

The implementation of such schemes have been highly questionable including the laws and legality of it, guidelines, getting the consent and approval from the authorities, the monthly fees, the hiring of qualified licensed guards, using card access system which is prohibited, and the barring of non-paying residents from entering (harassing, bullying and coercing the non-paying residents into paying).

For those residents who feel insecure without having a gated community (GC) scheme in their neighbourhood, it is better that they move to a Strata-titled and proper "Gated & Guarded" (GnG) residence like "Eco Ardence" or "Eco Park".

They would feel much safer and secure in such "Strata title" properties which are also gazetted as Gated Community (GC) by the Local Authorities /Council.

Please do not try to apply from the Land Office to change our current land title from "Individual" title to "Strata". Because this will mean that all maintenance works (such as rubbish collections, drains, maintenance of roads, landscape, streetlights, etc) will no longer be handled by the local council.

Please do not consent or try to form a Residents' Association (RA) to implement a Gated Community (GC) scheme in a non-gazetted GC neighbourhood here.

Please do not set up any illegal barriers to block any public roads or access to any public parks or children's playground.

Please do not leave the security of our neighbourhood to "private security guards" hired by the RA. Please do not erect any guard house without proper consent and permission from the local authorities.

We rather trust our local police (PDRM) than the "security services" hired and implemented by the RA. The security and safety of our neighbourhood lies beyond the capability of any RA.

And for those residents who think that non-paying residents are like "parasites", then those who consented to these illegal schemes in the first place, are like "the biggest tumour any cancer has ever seen". (The tumour needs to be cut away and removed before the cancer spreads).

So you see, we are not the problem here. It is just that you might have a problem moving to or living in a Non Gated Community (GC) neighbourhood now.

And then, through your RA, you are trying to apply from the Local Authorities to convert our non GC neighbourhood to a GC scheme neighbourhood. Now this is the problem!

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