THE cost of top structures in Bitou’s 2000-unit housing project in KwaNokuthula outside Plettenberg Bay exceeds the provincial R74,000 subsidy by R40,000 a house and could cost the municipality up to R80-million in top-up funds, consultants have warned.
Bitou has taken the lead in providing low-cost housing that exceeds Reconstruction and Development Programme standards, which include only one bedroom, a basin and a kitchen sink. The civil work includes only the tarring of the main taxi route and not residential streets.
In a report before both the executive committee and council yesterday, consultant Stewart Scott said if the municipality was not in a position to contribute the R80-million over the course of the project, cost-cutting measures on civil works could include that only main roads be tarred and that the roads be made narrower.
To conform to the R74,000 a unit provided by the Western Cape Housing Department, a number of “nice- to-haves” could be omitted from the houses, including roof tiles, inside painting and a covered patio.
Mayor Lulama Mvimbi said that while mindful that the council should watch its spending on housing, the government should give people a certain quality of life.
“Consultant reports can be misleading ... We must remember that people live in these houses ... What are we trying to say to someone if we put them in an unpainted house?”
Housing head Mark Fourie said the provincial government subsidy had not changed in two years, while costs had in fact risen.
“Their (provincial RDP) standards are terrible, but this report is just informing us we must be mindful that we are exceeding the contributions.”
Community services manager Monde Stratu said while the consultant report painted a bleak picture, the municipality had no intention of bankrupting itself or being reckless with funds, but it did want to move away from the low RDP standards.
DA opposition councillor Charles Dreyer agreed the standard RDP houses were “dehumanising”, but he said the council should be provided with a clearer picture of the real costs of houses of a good standard.
Fellow DA councillor Johann Brummer said it appeared as if there had been serious over-expenditure on the housing budget as a result of accepting tenders way in excess of the subsidy amounts.
The council resolved to use an increased provincial allocation of R28-million for 288 houses in KwaNokuthula and civil services on 230 erven in Kurland.
Bitou has taken the lead in providing low-cost housing that exceeds Reconstruction and Development Programme standards, which include only one bedroom, a basin and a kitchen sink. The civil work includes only the tarring of the main taxi route and not residential streets.
In a report before both the executive committee and council yesterday, consultant Stewart Scott said if the municipality was not in a position to contribute the R80-million over the course of the project, cost-cutting measures on civil works could include that only main roads be tarred and that the roads be made narrower.
To conform to the R74,000 a unit provided by the Western Cape Housing Department, a number of “nice- to-haves” could be omitted from the houses, including roof tiles, inside painting and a covered patio.
Mayor Lulama Mvimbi said that while mindful that the council should watch its spending on housing, the government should give people a certain quality of life.
“Consultant reports can be misleading ... We must remember that people live in these houses ... What are we trying to say to someone if we put them in an unpainted house?”
Housing head Mark Fourie said the provincial government subsidy had not changed in two years, while costs had in fact risen.
“Their (provincial RDP) standards are terrible, but this report is just informing us we must be mindful that we are exceeding the contributions.”
Community services manager Monde Stratu said while the consultant report painted a bleak picture, the municipality had no intention of bankrupting itself or being reckless with funds, but it did want to move away from the low RDP standards.
DA opposition councillor Charles Dreyer agreed the standard RDP houses were “dehumanising”, but he said the council should be provided with a clearer picture of the real costs of houses of a good standard.
Fellow DA councillor Johann Brummer said it appeared as if there had been serious over-expenditure on the housing budget as a result of accepting tenders way in excess of the subsidy amounts.
The council resolved to use an increased provincial allocation of R28-million for 288 houses in KwaNokuthula and civil services on 230 erven in Kurland.
In addition, the council would “augment the shortfall on the housing subsidies as and when required”.
It would also investigate if savings on the housing project in the Bossiesgif/Qolweni informal settlement could be used to fence the homes and plant fruit trees.
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