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5 September 2018
Housing issues: is there light at the end of the tunnel? De Waal Steyn
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e are finalising the deal with regard to buying back the Schulphoek land from the current owner and we are confident that we will be able to start as soon as possible with the final planning for the development of housing opportunities there.” This was the message from Western Cape Minister of Human Settlements, Bonginkosi Madikizela, to residents of Zwelihle, Mount Pleasant and Hawston during separate meetings on Sunday 2 September. According to Madikizela the provincial government does not have the available budget to pay the owner what he wants for the Schulphoek land. “Therefore, we have made him an offer similar to the amount that he initially paid for and subsequently invested in the land. We feel that this is an equitable offer and I am confident that the deal will be finalised soon.” The minister said that the Schulphoek land will be used for mixed housing opportunities for the communities of Zwelihle, Mount Pleasant and Hawston as these are the communities in greatest need of housing. He said that the housing task team consisting of members of the provincial and municipal housing departments have been hard at work during the last few months and have identified several pieces of land that can be used for mixed housing developments. “At this stage I do not feel comfortable identifying these pockets of land as all over our country we are seeing landgrabs and we want to prevent that from happening in Hermanus. As soon as we are ready with the final plans we will inform the communities,” said Madikizela. He went on to say that government has identified several shortcomings in its housing policy and the criteria that is used for the allocation of land and houses. “At the moment there are three types of assistance that are offered. The first is for
those earning less than R3 500 per month. If these people qualify in terms of the criteria such as being South African citizens, having dependants and being older than 40 years, they qualify for a free house. The second is for people earning between R3 500 and R7 000 per month. If you qualify in terms of the criteria you will receive a serviced plot that will be transferred into your name and you are responsible for building your own dwelling. “The third category is for those earning between R7 000 and R15 000 per month. For them the Finance Linked Individual Subsidy Programme (FLISP) was developed. This enables first-time home owners to enter the housing market through subsidies. But individuals in these salary bands generally find it hard to qualify for housing finance; their income is regarded as low for mortgage finance, but too high to qualify for the free-house subsidy scheme. This has created much unhappiness and we have had to find a mechanism that will enable people in this bracket to either be able to afford a house or obtain financing. “To this end I am happy to announce that we will now offer FLISP to residents earning between R3 500 and R15 000 to buy a fully serviced plot at the cost of servicing the land. In other words, we have identified pockets of land where the municipality will install services and those who qualify for FLISP will be able to buy the plots at only the cost of installing the services. You do not pay for the land. The average cost of these plots will be between R43 000 and R50 000 and owners will then only need to pay back the balance of the cost of the plot minus the amount of subsidy they qualify for. Owners can then build their own houses on these plots,” the minister said to loud applause. The issue of land and housing has seen Hermanus reel from a number of strikes and protests and is still the most hotly-contested issue in the region. The long and short, however, is that more than 8 000 people in the Greater Hermanus area alone are in dire need of housing and no sphere of government will be able to meet the demand. The needs of the
ABOVE: Children were playing in the empty swimming pool in Zwelihle while the Minister of Human Settlements, Bonginkosi Madikizela gave feedback to the community about the housing plans for the area. BELOW LEFT: After visiting Zwelihle, the Minister also addressed residents at public meetings in Mount Pleasant and Hawston. PHOTOS: De Waal Steyn various communities also differ widely from one another and each has its own unique requirements as to what type of housing is needed. Currently in most suburbs of the town there are very few properties available under R1 million, placing pressure on rental properties that in many instances have become too expensive for many local employees to afford. The continuous increase in not only land prices but also building costs has a detrimental effect on the ability of government to supply housing. In the Overstrand there are 9 low-cost housing projects, 10 restructuring zones in 5 suburbs for social housing (rental property) and 4 affordable housing projects in 4 different suburbs. This equates to the delivery between 2015 and 2019 of 5 692 housing opportunities. In Zwelihle alone between October 2017 and September 2021 it is estimated that 838 houses will be delivered.
These are the issues relating to each of the communities: Zwelihle: Close on 7 000 so-called backyarders in the township need some form of housing. The needs range from serviced sites for the poorest of the poor to affordable housing developments. Because there is very little land available for development in the township, the municipality and Zwelihle Renewal (ZR) reached an agreement in June on a short-term solution to accommodate 150 of the most desperate families on serviced plots on a piece of land behind the municipal swimming pool, named Marikana. This site is located on an unused berm where household waste was dumped. It recently came to light that the area was filled with plastic waste and can therefore not be used for housing. The municipality however decided to rather use the site where the transfer station stood to accommodate the 150 plots. The transfer station was destroyed by a fire during the unrest at the end of July. The plots, which will be situated on the Swartdam Road side of the site, will be ready by the end of September. At the weekend several structures were erected by the Zwelihle community on the Marikana site and Minster Bonginkosi Madikizela reiterated that the site is a health risk and that the structures need to be removed. Many of the structures were built with corrugated iron removed from the swimming pool offices and cloakrooms that were destroyed during the unrest. According to the minister there is an urgent need to normalise the situation in Zwehilhe and that the leadership of ZR needs to become part of the solution to the housing need in the area. In a 2017 report by social research company Soreaso titled A study into the needs and demand of affordable housing in the Overstrand Municipality, authors Ilse Eigelaar-Meets, Cornie Groenewald, and Wynand Louw made startling findings with regards to housing delivery in the area. Continues on P 5