Minister of Human Settlements welcomes changes on human settlements subsidies
The Western Cape Minister of Human Settlements, Tertuis Simmers welcomes National Minister of Human Settlements, Ms Mmamoloko Kubayi’s changes on human settlements subsidies and other portfolio issues. The Social Housing adjustment of the qualification criteria of household income from R1,500 – R15,000 to R1,850 – R22,000 gross monthly income, and the extension of FLISP to non-mortgage housing finance facilities from 2022/23 financial year will particularly be of benefit to Western Cape citizens.
The Social Housing household income qualification criteria adjustment will enable those who could not access housing opportunities, due to earning higher than the previously prescribed household income band, to access these opportunities. This will also assist youth with a household income of up R22 000 and who are not ready for a mortgaged home. This will ultimately enable more citizens to access affordable rental opportunities and will, in turn, enable the Department to initiate more social housing projects as the demand is expected to increase with this adjustment.
The FLISP extension to non-mortgage housing finance facilities gives hope that more people who were unable to access this programme due to not qualifying for a mortgage loan for various reasons, will now be able to access this programme through various non-mortgage housing finance facilities such as:
- Housing loans granted or guaranteed by a pension and provident fund.
- Unsecured housing loans from any registered lender.
- Housing loans granted or guaranteed by cooperative- or community-based savings scheme.
- Housing loans supported by employer-based schemes.
“Not only are these amendments opening up an opportunity for those who were previously excluded from affordable housing opportunities, but it also presents construction and property entities the chance to form part of the provision of social housing to Western Cape residents by applying as accredited Social Housing Institutions (SHIs). This will enable them to partner with government in the provision of social housing opportunities to qualifying residents. The adjustments to the affordable housing programmes will certainly result in increased demand. This demand will need us to work closely and together with private sector,” said Minister Tertuis Simmers.
The Department also welcomes the increase of the subsidy quantum effective from 1 April 2022. Some of these increases include:
- BNG services and top structure-R196 887
- House for persons with disabilities-R209 071
- Military veterans house-R240 607
- FLISP-R147 045
- Social housing-R187 395
The Department is pleased with the increase of HSDG allocation for bulk infrastructure from 3% to 5% and the new directives applicable to deal with natural disasters, such as floods, thunderstorms and fires. “As the Province is often affected by fires, the allowance to now utilize available funds from HSDG, USDG and ISUPG to intervene in dealing with the disasters will enable us to respond timeously in such situations,” said Minister Simmers.
These changes will assist the Department in getting closer to achieving its mission of providing settlements that offer good basic and socio-economic services, a range of rental and ownership options that respond to the varied needs and incomes of households. The Department is committed to consistently improving settlements through joint citizen and government effort, supported by private sector contributions.
Spokesperson for Minister Tertuis Simmers
Tel: 021 483 3397
Mobile: 082 721 3362
Director Communication & Stakeholder Relations
Tell: 021 483 2868
Mobile: 083 263 1720