Monday, February 23, 2009

116 shacks make way for houses, 299884 still to be built

THERE were tears of joy at the weekend when Western Cape Housing MEC Whitey Jacobs toured the Southern Cape to hand over the keys and title deeds for 116 new low- cost houses.

The homes are at Elangeni in Mossel Bay, Kayalethu in Knysna and Bossiesgif in Plettenberg Bay.

He also turned the sod for two new housing projects in Wolwedans near Great Brak River. Construction of the 677 homes is expected to start in the next few weeks.

Piet Monkhe, who received a house in Bossiesgif, couldn‘t resist hugging Jacobs and Bitou mayor Lulama Mvimbi as he danced around.

“I have been waiting 18 years for this house,” he exclaimed. “I used to live in the bushes here and even if you tried to go to the toilet, the youths would throw stones at you.

“I didn‘t believe it when they said I was going to get a house. I am so happy now.”

Monkhe‘s wife, Patience, showed her new home off to curious friends and family, saying she had already made curtains. The couple have two young children.

Jacobs‘s spokesman, Lukhanyo Calata, said the government would look at increasing the amount allocated for low-cost housing from R54000 to R88000 per house when the new financial year starts in April.

“In Wolwedans, we had to increase the subsidy from R54000 to R88000 because it cost more to work in the rough terrain there,” said Calata.

“The financial year ends on March 31 and in the new budget the (MEC) is expected to increase the subsidies of all housing to R88000.”

Jacobs also promised residents of the Bossiesgif informal settlement that the provincial administration would look at how sub-contractors were “exploited” by big companies that won the tenders to build houses.

“We will look at the exploitation of sub-contractors who don‘t get enough money to pay their labourers,” said Jacobs. “Meanwhile, the big guys laugh all the way to the bank.”

Handing over the first 20 houses in the Bossiesgif project, Jacobs urged residents not to sell their homes for a “quick cash” fix.

He said there had been instances where people had received houses valued at R54000 and had then sold them for R5000, only to be relegated back to a shack resident‘s existence.

Those who were militant and held protests over housing delivery had sold their houses and now wanted houses again.

Jacobs said the new low-cost houses were bigger than before at 40m², but the government also needed to provide for people in the middle-income bracket (between R5500 and R12000 a month) such as civil servants. In this respect, the government needed to work with the banks to provide for nurses, teachers, policemen and civil servants.

Jacobs said Plettenberg Bay had a housing backlog of 6000. Apart from the project in the Bossiesgif/Qolweni and Pinetree/Gaaitjie settlements, where more than 1300 houses would be built in phases, he also launched a 640-home project in Kwa- Nokuthula last year. Houses were also built in Kurland and Kranshoek.

Jacobs expressed disappointment at the Mossel Bay municipality, saying it appeared unwilling to use reserve funds for housing.

The government had offered Cape Town R750-million to address a housing backlog of 300,000.

- The Herald

R750-million to address a housing backlog of 300,000

this means either:

each unit will cost R2,500
or
only 8,523 units will be built.

Less the 116 just delivered and the 8,523 funded at the new rate of R88,000 per unit

The housing backlog at the end of the year will be 291,361 add the 14,000 annual requirement
and we are back up too 305,361... which doesn't appear to have made a dent from the original starting number.

The current mayor of Cape Town believes this number to be closer to 460,000

So this BEGS the questions:

  • Is this approach working to solve the housing backlog?
    The answer is NO.
  • Is the government able to afford providing housing?
    This answer is also NO.

The only solution is;

Government can only afford to deliver basic services such as roads, sewage and water. Set up / enable the habitat environment so that it is easy to be developed with local equity.

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