Concern is rising for residents of a Boeung Kak lake development that is putting at risk housing rights and the environment, a representative of the lake residents said Monday.

"It's affecting the rights to housing of the people, and it affects the environment," said Nerb Ly, a representative of the Housing Rights Task Force, as a guest on "Hello VOA."

Boeung Kak, on the northern end of the city, holds much of the flood water from rains in Phnom Penh, leading to worries of flooding once it is filled in, to become part of a 133-hectare development by Shukaku, Inc.

More than 1,000 families living around the lake have demanded proper compensation for moving out of the development area, claiming the $8,000 buyout offered by the city is far below current real estate market values.

A lack of transparency in the deal, which is being conducted under a 99-year lease worth $78 million, is also a concern, and the National Assembly has so far done nothing to alleviate potential problems, Nerb Ly said.