My Community

Housing issues: is there light at the end of the tunnel?

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.”

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.

PHOTO: DE WAAL STEYN

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.

After visiting Zwelihle, the Minister also addressed residents at public meetings in Mount Pleasant and Hawston.

PHOTO: DE WAAL STEYN

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.

Some of the structures that were erected at the Marikana site over the weekend, with corrugated iron sheets taken from the rubble of the gutted Zwelihle swimming pool building.

PHOTO: DE WAAL STEYN

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