Infrastructure:
With regard to the development of housing at the Old Salt River Market property:
(1) Whether mixed affordable housing falls in the housing scope of the Province; if so, what are the relevant details;
(2) whether homeless families and the backyard dwellers in the Salt River and Woodstock areas will be beneficiaries of this housing development on the Old Salt River Market property; if not, why not; if so, what are the relevant details;
(3) (a) how many social housing cooperatives are there in the province, (b) what measures are in place to stop evictions where tenant beneficiaries can no longer afford to pay rent and (c) why was the Salt River Housing Development not considered as a social housing cooperative;
(4) whether due diligence and a financial audit were done to determine whether Communicare is in good standing; if not, why not; if so, what are the relevant details;
(5) what housing model did Communicare propose for this housing development?
[1] Mixed affordable housing does fall within the housing scope of the Province and the Municipality. An example of this would be the Conradie Park development, which has a mix of Social Housing and FLISP [Help Me Buy a Home] housing. Affordable Housing caters to income categories falling between R1 850 – R22 000. The Social Housing programme falls within the ambit of affordable housing and the qualification requirements are as follows:
- South African citizen or have a permanent residency permit;
- 18 years or older and competent to contract;
- Married or cohabitating OR single or divorced, with proven financial dependants permanently living with you; and,
- Monthly household income is between R1 850 and R22 000 before deductions.
The FLISP (Help Me Buy a Home) programme is a housing subsidy for first-time home buyers, with a household income of between R3 501 to R22 000 per month, to assist with purchasing a home. The criteria for a citizen to access a FLISP [Help Me Buy A Home] subsidy are as follows: -
- South African citizen or have a permanent residency permit;
- 18 years or older and competent to contract;
- Married or cohabiting OR single with financial dependents;
- Have not received a government housing subsidy before;
- Have not owned fixed-residential property before;
- Gross household income is between R3,501 and R22,000 per month, i.e. basic household income, plus housing allowance where applicable.
[2] The qualification criteria applies to all applicants for Affordable Housing: were these families and backyard dwellers to fall within the defined household income bracket, can demonstrate affordability for the product on offer and comply with the remaining criteria for Social Housing and FLISP, they could apply for the housing development of Salt River. An affordable housing opportunity is not a “free” house: it would be incumbent on the recipient of affordable housing to contribute financially.
[3][a] There are 7 active Social Housing Institutions [SHI] in the Western Cape. Of these 3 are Fully Accredited by the SHRA and the balance are Conditionally Accredited. There are no accredited, registered cooperatives active in the Western Cape.
[3][b] Payment of rental is a non-negotiable requirement for Social Housing: ownership is not an option under the premise of the programme. All Social Housing Institutions have their own Client Services and Tenant Management Plans, based on the Social Housing Act and the Social Housing Regulatory Authority [SHRA] requirements. The general, overarching process would be:
- The SHI to first confirm whether non-payment is verified;
- Visit the tenant/s personally and provide them with a letter of demand [Proof of receipt/delivery to be placed on file]; and,
- Contact tenants for invitation to come for an interview at offices and arrangements to be made within 30 days (arrangement criteria and arrangement forms completed and signed by legal tenant).
The tenant is responsible for informing the SHI of their circumstances and to provide proof thereof. Failing to do so would leave the SHI to act in accordance with the Lease Agreement signed between the parties.
[3][c] An institution wishing to carry on the business of social housing must apply to the SHRA for accreditation. A social housing institution must be a company registered under the Companies Act, 1973 [Act 61 of 1973] or a co-operative registered under the co-operatives Act, 2005 [Act 14 of 2005] or any other form of institution acceptable to the SHRA.
[4] In terms of the Social Housing Act 16 of 2008, the Social Housing Regulatory Authority [SHRA] is responsible for conducting compliance monitoring. Communicare must submit to this, in order for it to maintain its accreditation status. The documents subject to compliance monitoring includes (but is not limited to):
- the institution’s founding documents;
- the institution’s business plan;
- the institution’s operational policies; and,
- such information and documentation as may be prescribed by rules of the Regulatory Authority in order to assess the applicants’ [i] arrangements for good governance; [ii] financial sustainability; [iii] effective tenant management; and [iv] efficient property management capacity.
Regular inspections and compliance measures are enforced on all accredited Institutions.
[5] A mixed housing model, with 216 Social Housing units and 484 FLISP [Help Me Buy a Home] units envisaged.
