Friday, May 7, 2010

Cape Town housing policy shift making a difference

Christene Bergman, 64, who has had endless fights with her landlord, is among the first group of people to benefit from a shift in policy in favour of the provision of homes to rent in the Western Cape.

Before, people who, like Bergman, earned more than R3 500 a month did not qualify for the government's RDP housing subsidy.

Bergman expressed her gratitude for her new home, a two-bedroomed flat in the R40-million Steenberg Social Rental Housing Project.

"At my previous place where I was renting, my landlord gave me endless grief and there were always unexplained bills that me and my husband were expected to pay," said Bergman, a home-based caregiver.

She had been on the city's housing waiting list since 1985.

Under the provincial Department of Human Settlements' five-year plan, 16 910 new and refurbished rental units are to be made available, provided the department can find the funds.

These figures will barely make a difference in reducing the number of homes needed in the province - a figure that is just over 400 000.

The MEC for Human Settlements, Bonginkosi Madikizela, said public-private partnerships would help to leave provincial funds free for other priorities.

"We are prioritising the provision of serviced sites over the next five years, which will reduce the funds available for other (forms of housing)," said Madikizela.

The three-year budget projection for rental housing is R676 million, with R3.8 billion being required over five years to meet the goals of strategy.

The rental strategy requires that a large proportion of the funds be provided by the national department, with a proposed 30 percent increase in allocations for rental housing along with alternative mechanisms to bridge any gaps in funding.

Adre Bartis, of the privately owned Social Housing Company (Sohco), which is responsible for the project in Steenberg, built on provincial land sold to the company at a reasonable price, said 450 families would be given homes in the first phase.

Rentals range from R625 a month for a bachelor flat to R2 100 for a two-bedroomed unit.

Beneficiaries were screened and selected on the basis of their creditworthiness.

Madikizela said that privately run projects like those of social housing companies such as Communicare and Socho achieved far higher rental collections than government-owned properties.

"Admittedly they generally service a slightly higher income market than we do, but we still need to learn the lessons they can teach us,"said Madikizela.

He said the sales of a number of units in a gap housing project that was part of the N2 Gateway were being hamstrung by the stricter lending criteria.

Although 43 the units had been completed late last year, FNB was finding few buyers.

- Cape Times

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