SA: Minister Sisulu adjusts Social Housing Programme to accommodate low-income earners

19th June 2017

SA: Minister Sisulu adjusts Social Housing Programme to accommodate low-income earners

Human Settlements Minister Lindiwe Sisulu

The Minister of Human Settlements, Lindiwe Sisulu, MP, together with
the Provincial Members of the Executive Council (MECs) of Human
Settlements have approved adjustments to Social Housing Programme.

This comes after the launch of one of the biggest social housing
projects in the country, Westgate Social Housing Project in
Pietermaritzburg, KwaZulu Natal by His Excellency, President Jacob

The MinMec-approved adjustments include the shift in income bands
which raises the lower qualifying household income limit for the
primary market from R3 500 to R5 500 per month and  the upper
qualifying household income limit from R7 500 to R15 000 per month.

The MinMec also approved an increase in the Restructuring Capital
Grant from R125 615 per unit to R155 000 per unit and consolidation of
the Community Residential Unit/Hostel with social housing.

“These adjustments ensure that the social housing programme continues
its focus on including the primary target market in well-located
projects so that the poor are integrated into cities. These
adjustments also ensure that more young professionals, or gap market
will now benefit from government rental  subsidized housing and for
developers it means they have more funds to provide spacious and
decent rental stock”, said Minister Sisulu.

Due to the inflation over the years, the social housing programme was
no longer able to grow; with these adjustments production of units
will grow resulting in increased performance by the sector. The
adjustments will also help bring in the required revenue from families
in the gap market while continuing to accommodate families on the
lower end of the income ladder.

“We will continue to work hard in ensuring that we reach out to all
our housing beneficiaries particularly, the low income earners and the
gap market by providing housing opportunities close to transport,
places of work and economic activities”, said Minister Sisulu.

Issued by The Ministry of Human Settlements