Residents hoping to move into the first of the 705 completed N2 Gateway units say they cannot afford the high rent.
After initially being told that it would cost less than R500 a month to rent a unit, former Joe Slovo and Langa shack-dwellers say they have been told by the national Department of Housing they must come up with R1,050.
A deputation of community leaders from these areas met Dan Plato, the city’s mayoral committee member for housing, on Thursday.
“They reckon (they were misled) and that the new rental structures exclude the poor,” said Plato.
A few families have moved into the housing project, almost two months after housing minister Lindiwe Hendricks handed over the first keys.
National housing spokesperson Monwabisi Maclean confirmed that the rent ranged from R500 upwards.
Only 705 units are available in the first phase, but the provincial and national housing departments received close to 7 000 applications.
Maclean said beneficiaries would move in “as and when” the screening process was completed. Successful applicants are required to attend a series of workshops before they receive their keys.
Plato said he had told the disgruntled shack-dwellers that “the city’s hands are tied”. The city was stripped of all responsibility for the N2 Gateway in June. Plato said he advised the delegation to contact the provincial government.
“But the city will look at providing erven for these people.”
Meanwhile, there has been a financial reprieve for the 27 500 tenants of council-owned properties who owe the city money for their home loans.
Plato announced on Thursday that the national Department of Housing had agreed to lower the fixed interest rate on municipal home loans from 13.5% to the external mortgage rate.
This rate is currently 11 percent.
“Previously it was a bit higher than the normal rate. Now this will assist the poorest of the poor.” Loans ranged from R16 500 to R32 700.
“From now on, interest rates applicable to the city’s home-ownership property loans will be linked to whatever mortgage rate the major banks are charging on January 1 and July 1 of each year - but not beyond a set maximum of 13,5 percent a year.
“This will enable homeowners to reap the benefits of lower interest rates. By paying less interest they will have some more money in their pockets.”
But Plato urged the debtors to keep their payments at the same level, despite the interest rate drop, so they would be able to pay off their loans.
The interest rate adjustment is to be reflected on the next city bill. - Cape Times
After initially being told that it would cost less than R500 a month to rent a unit, former Joe Slovo and Langa shack-dwellers say they have been told by the national Department of Housing they must come up with R1,050.
A deputation of community leaders from these areas met Dan Plato, the city’s mayoral committee member for housing, on Thursday.
“They reckon (they were misled) and that the new rental structures exclude the poor,” said Plato.
A few families have moved into the housing project, almost two months after housing minister Lindiwe Hendricks handed over the first keys.
Promises lacking delivery
National housing spokesperson Monwabisi Maclean confirmed that the rent ranged from R500 upwards.
Only 705 units are available in the first phase, but the provincial and national housing departments received close to 7 000 applications.
Maclean said beneficiaries would move in “as and when” the screening process was completed. Successful applicants are required to attend a series of workshops before they receive their keys.
Plato said he had told the disgruntled shack-dwellers that “the city’s hands are tied”. The city was stripped of all responsibility for the N2 Gateway in June. Plato said he advised the delegation to contact the provincial government.
“But the city will look at providing erven for these people.”
Meanwhile, there has been a financial reprieve for the 27 500 tenants of council-owned properties who owe the city money for their home loans.
Plato announced on Thursday that the national Department of Housing had agreed to lower the fixed interest rate on municipal home loans from 13.5% to the external mortgage rate.
This rate is currently 11 percent.
“Previously it was a bit higher than the normal rate. Now this will assist the poorest of the poor.” Loans ranged from R16 500 to R32 700.
“From now on, interest rates applicable to the city’s home-ownership property loans will be linked to whatever mortgage rate the major banks are charging on January 1 and July 1 of each year - but not beyond a set maximum of 13,5 percent a year.
“This will enable homeowners to reap the benefits of lower interest rates. By paying less interest they will have some more money in their pockets.”
But Plato urged the debtors to keep their payments at the same level, despite the interest rate drop, so they would be able to pay off their loans.
The interest rate adjustment is to be reflected on the next city bill. - Cape Times
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