Human Settlements
With regard to his Department’s rental stock:
1. (a) What is the breakdown of the expenditure of his Department on the internal upgrading of (i) rental units and (ii) vacant units and (b) what is the cost of the upgrading per unit;
2. whether there have been any major (a) internal and (b) external upgrades of rental units in (i) 2017, (ii) 2018, (iii) 2019 and (iv) 2020 to date; if not, why not; if so, what are the relevant details;
3. whether his Department has any approved policy on (a) rental stock and (b) the allocation of rental units to applicants; if not, why not; if so, what are the relevant details;
4. (a) what criteria have to be met in order to allocate rental units and (b) where does the Department obtain the details of applicants to whom units are allocated?
12.(1 12(1)(a) The total cost for the Financial Year 2019/20 amounted to R4,5 million.
12.(1)(a)(i) The total cost for internal upgrading of all rental units, excluding current vacant units, between 2017 and 2020 amounts to R17 million. This includes day to day maintenance and internal upgrading in preparation for new tenancy.
12.(1)(a)(ii) The total cost for internal upgrading of (current) vacant units between 2016 and 2020 amounts to R1,1 million.
12.(1)(b) The total cost of upgrading is averaged at R 110 000.00 a unit.
12.(2) Refer to below table:
ITEM | 2017 | 2018 | 2019 | 2020 | Total Value |
External upgrades | 1 | 1 |
|
| R8 750 000.00 |
Internal Upgrades | 4 | 4 | 7 | 6 | R1 156 472.00 |
12.(3) The Department first approved a Rental Housing Policy in 2011 which has been revised and amended periodically up to 2018. Shortcoming’s in the processes used to apply these policies lead to the identification of gaps within the applied systems.
As part of the Provincial Rental Housing Strategy, the Department has undertaken development of the following:
Document | Current Status |
Provincial Rental Allocations Framework and Draft Standard Operating Procedure (SOP) | Complete |
Establishment of the Provincial Rental Housing Allocations Committee (PRHAC) | The Committee was established, and members appointed in July 2020 |
Governance Framework for PRHAC | The document is in draft format and will be finalised by November 2020 |
Rental Determination Framework | In draft, for approval by November 2020 |
Maintenance Framework | In draft, for approval by November 2020 |
Evictions Framework and SOP | The draft document is currently being consulted with Legal services and anticipated for approval by December 2020 |
Electronic Property Management System | In drafting phase with further consultation underway |
Rental Debt Management Policy | The policy is currently under review with further consultation underway |
12.(4) In terms of the Provincial Rental Allocations Framework (July 2020), the applicant has to meet the following criteria:
- Only South African citizens shall be eligible for allocations;
- Applicants must be 18 years or older;
- Must not own fixed property while renting (whether via direct purchase or inheritance);
- All non-public service allocations shall be done from the general waiting list/demand database held by the Municipality within whose jurisdiction the Complex is located. A formal letter of support must be obtained from the Municipality
- The minimum income for consideration is from R1 500-00 to the uppermost band of FLISP (currently R22 000-00); and
- Individuals earning more than the uppermost band of FLISP (currently R22 000-00) will be considered based on circumstantial merit.
The newly established Rental Allocations Committee has noted that to ensure financial sustainability of the rental stock, it is critical that economic cost recovery be balanced with social responsibility in terms of allocations. Thus, these criteria need to be further refined in December 2020.
12.(5)(b) My department has since July 2020, request information for qualifying applicants from the relevant Municipality within whose jurisdiction the rental stock is located.
