Human Settlements

Question by: 
Hon Andile Lili
Answered by: 
Hon Tertuis Simmers
Question Number: 
9
Question Body: 

With reference to the reply to question 17 of 9 July 2021:

(1)Whether there are any tenants of government rental stock units who are paying less than the stipulated market-related value; if not, why not; if so, (a) what are the relevant details and (b) why;

(2)  what are the income levels of all those tenants who are paying less than (a) R1 000 and (b) R100 in monthly rental fees?

Answer Body: 

(1) (a) Yes, all tenants are currently paying less than the stipulated market-related   value.

(b) In March 2020, my department embarked on the Rental Turnaround Strategy to improve the management of the current retainable rental stock and align it to the social housing criteria and income bands. A new policy was developed, coupled with new,  market-related rental values, and was subsequently approved for implementation in November 2020. These market-related rentals were reported on in the Parliamentary Question dated  9 July 2021.

My department is currently transitioning from the previous policy to the newly approved policy framework. To effect implementation of the new rental determination framework, my department conducted an income survey, which was completed in April 2021. The latest income data will be applied to implement the annual rental adjustments in line with clause 6 of the lease agreement.

            (2)(a) R1 000 in monthly rental fees

The maximum income to qualify for a rental fee below R1 000 was R4 000 in terms of the previous policy.

           (a) R100 in monthly rental fees

            The previous policy made a provision for tenant households without an income   (unemployed) to pay a nominal rental fee of R100 pm.

            See the attached Annexure A

Date: 
Friday, July 30, 2021
Supporting Docs: 
Top