[ Home ] [ Speeches & statements ]

17 September 2008

Housing and Human Settlements

On provision of housing to the military veterans, there has been a significant progress with more than ten thousand (10 000) military veterans having registered for housing subsidy and more than one thousand five-hundred (1 500) subsidies already allocated.

Military veterans are also advised to register through their respective associations before the deadline of 31 December 2008. Qualifications for a government housing subsidy are the same:

Qualification criteria:

* be a South African citizen
* be 21 years or older
* be married or habitually cohabit with a partner
* be single and have financial dependants
* not earn more than R3 500 per month
* not received a government housing subsidy before
* not owned a house before.

The establishment of the Social Housing Regulatory Authority is now imminent as the Social Housing Bill was approved and passed by both houses of Parliament. The Bill has now been submitted to the office of the State President for assent.

The Social Housing Regulatory Authority is an agency aimed at improving the functioning of the Social Housing sector. It is hoped that the legislative and regulatory framework will ensure a viable and sustainable social housing sector. It will also contribute to the overall functioning of the housing sector.

Consistent with the objectives of the Comprehensive Plan for the Development of Sustainable Human Settlements, the Housing Development Agency will also be established shortly to assist provinces and municipalities with the rapid release of land to fast-track housing delivery.

The housing delivery programme for 2008/09 will see the delivery of over 265 000 units to improve the lives of mostly informal settlements and backyard dwellers. This indicates progress in meeting government's commitment to eradicate informal settlements towards a better life for all. It is important to note the commitment of our financial institutions in the reconstruction process. In this regard, they have so far released R39 billion for housing development.

To ensure that the communities are aware and know their rights, obligations and responsibilities, the department continues to intensify its efforts to educate the public through education initiatives in particular Breaking New Ground (BNG) television and "A re ageng Mzanzi". The impact of these programmes in sensitising communities has been a valuable yardstick to measure perceptions of housing delivery.

As reported previously, final steps regarding the transformation of the National Home Finance Corporation (NHFC) are being implemented in the context of a government-wide review of Development Finance Institutions. The NHFC's offering of end-user finance for home ownership targets 8 000 loans in townships and "sterile" areas.

Other developments and topical issues in housing delivery

a. Eastern Cape intervention and capacity support measures to improve housing delivery are continuing.
b. Investigations and prosecutions through the Special Investigation Unit (SIU) (progress on Proclamation 07 of 2007)
c. Increasing number of (legitimate) evictions due to rising rent defaulters
d. Rising number of mortgage defaulter and the consequence of foreclosures (auctioning of properties) as a result of high interest rates and eroded affordability. However, instead of aggressive foreclosure or repossession of homes from defaulters, banks are now more noticeably assisting their mortgage holders to regain financial footing or sell their houses at market value before the consideration of any legal action. In this regard, the National Credit Act has had an impact in lowering the rate of (reckless) borrowing.

Enquiries:
Xolani Xundu
Cell: 082 885 3378

Issued by: Department of Housing
17 September 2008