City Increases Housing Grant for Poor

The City of Cape Town has raised the income ceiling of beneficiaries of its housing indigent grant from a monthly household income of R1 200 to R1 640 per month, with immediate effect.

"Of the City's 43 300 occupants of Council home-ownership properties and 24 500 rental tenants, there are many who are willing to pay, but are unable to do so because of financial hardships," says Cllr Dan Plato, Mayoral Committee Member for Housing.

"It's very important for them to apply as soon as possible for this housing grant to avoid falling even deeper into debt. More importantly this will prevent them from being affected by Council's housing debt management process which is in line with national legislation," he says.

The amount of R1 640 is equal to the sum of two State pensions, and the new grant is of particular benefit to senior citizens and single income families.

Potential beneficiaries live in Adriaanse, Avondale, Bellville South, Bishop Lavis, Bonteheuwel, Grassy Park, Gugulethu, Hanover Park, Heideveld, Kewtown, Khayelitsha, Kleinvlei, Langa, Lavender Hill, Leonsdale, Macassar, Manenberg, Mfuleni, Mitchells Plain, Nyanga, Ocean View, Parkwood, Ravensmead, Retreat, Robinvale, Scottsdene, Strand, Uitsig, Valhalla Park and Woodlands.

"The housing indigent grant and the services indigent grant are two important 'lifelines' given by the City of Cape Town to those in need. While the services grant is based on a fixed amount per household, the housing grant provides for monthly rental and installment payments based on the monthly income of the household. The housing grant focuses on the household's ability to pay," says Wayne Muller of the City's Housing Finance Department.

Thus, for a family with a monthly household income of R400 or less, 5% of the income will be payable, plus R5 to pay off any arrears. For a family with a monthly income of between R400 and R800, 8% of the income will be payable, plus R7,50 to pay off any arrears, and for a family with an income of between R800 and R1 640, 10% of the income will be payable, plus R10 to pay off any arrears.

"The monthly payment is calculated regardless of the actual charge for the property. The City funds the difference," says Mr Muller.

Residents who wish to register for these grants will need to personally visit the nearest City housing administration office with their ID documents and proof of income. The housing indigent grant is valid for six months, whereafter the applicant will need to re-apply for an extension of the grant.

"By paying off the monthly Council housing charges, residents will enable the municipality to spend more on the maintenance of Council properties and create new housing opportunities for other families," says Mr Muller.

Issued by:
Directorate: Communication and Marketing
City Of Cape Town
Tel: 021 400 2201
Fax: 021 957 0023

Media queries:
Cllr Dan Plato
Mayoral Committee Member for Housing
Tel: 021 400 1304

Wayne Muller
Manager: Housing Finance and Leases
City Of Cape Town
Tel: 021 400 5122
Email: wayne.muller@capetown.gov.za