Frequently asked questions on Human Settlement, Policies and Housing Programmes
1. Eligibility Criteria Who is a financial dependent? Financial dependents are normally children but no age restrictions apply. Proof must however be provided that the persons financially depend on the applicant and that they reside permanently with the applicant. What if a financial dependent or spouse earns more that R3500? The income criterion is based on household income. If a financial dependent or spouse earns more than R3500 the applicant will not qualify for a subsidy. What if the application is made whilst financial dependents are under age, but the application is considered when the children are over 18 years of age? All subsidy application forms must be most recent, thus not older than 3 months. Can a man that has different children by different spouses and pays maintenance for them but does not stay with them qualify for a subsidy? No. Financial dependents have to reside permanently with the applicant. Can a mentally handicapped person apply for and be awarded a housing subsidy? If applicants are competent to contract and of sound mine, then they can apply for a subsidy. In instances where they are not legally competent to contract, legal guardians will have to act on behalf of the person. Can an individual who has a house in a communal land rights area apply for an ownership subsidy in an urban area? Yes, as the person is not the registered owner of a house in communal land areas and may therefore apply for an ownership subsidy in an urban area. Who is required to make financial contribution when applying for a subsidy? Beneficiaries with a monthly household income of between R1501 - R3500 are required to pay a financial contribution of R2479. Alternatively, beneficiaries will be required to participate in the building of their houses through an approved Enhanced People's Housing Process project. For disabled and / or health stricken beneficiaries earning in excess of R1500 a month, the contribution requirement does not apply. 2. Home ownership If a person inherits shares on a house, can they qualify for a subsidy? No. Such a person is not eligible for a housing subsidy. If a home owner sells their house just before turning 60 (the minimum age set to qualify for Government's old age social grant), can they qualify for a subsidy when they reach 60 years of age? No, previous owners are not eligible. What is the Department doing to assist people with bonded housing that can no longer able to keep up with bond repayments? Contractual obligations between the banks and homeowners are binding. The Department does not assist in these instances. 3. Military Veterans Do Self Defence Units, Self Protection Units and homeland armies qualify for housing subsidies? Confirmation of classification of military veterans must be obtained from the South African National Defence Force. Veterans must submit, with their application, proof of service and details of social services rendered. 4. Variation Subsidy Persons that previously benefited and then become disabled, do they also qualify for a variation subsidy? If a person who has already received state funding for housing and/or who already owns or owned a residential property, is or becomes disabled, or if his or her dependent(s) is/are or become disabled and that person satisfies the other qualification criteria, they may be awarded the variation of the subsidy. The Southern Cape Coastal Condensation Areas reflected on the maps exclude other areas which are also susceptible to condensation conditions. Why are such areas not included? In identifying these areas, scientific testing was done with the CSIR and these areas were identified based on those scientific investigations. The mountain ranges form the boundary. The variation subsidy is not adequate for Provinces where towns and settlements are far apart. 5. Norms and Standards Where VIP toilets are installed, how would contamination due to a high water table be addressed? VIPS are not viable in such areas. The following measures can be taken:
What is the Department exploring to compensate beneficiaries that received housing based on old norms and standards to match the current norms and standards? Before 1994 there were numerous housing schemes that had to be consolidated. Emphasis after 1994 was placed on incremental housing schemes based on equity, with every beneficiary receiving the same product offered at any given time. There is no compensation for previous beneficiaries to 'upgrade' to the current norms and standards. 6. Technical Aspects Prospective builders are always approaching Provinces and Municipalities offering 'cheap' housing products made from alternative building materials. What is the official response to this request? Prospective builders should contact Agrément South Africa, an agency that is responsible for certification of non-standardised construction products, through technical assessments, to verify whether the products and systems are fit for construction purposes. Having obtained the Agrément certification, the builders can offer these when tendering for projects. The final approval whether these structures can be used vests with MECs. 7. Financial Interventions How sustainable is the Housing Subsidy Instrument? The Department is continuously evaluating the sustainability of the subsidy mechanism. The buying power of R3500 has decreased. Will the income limit be increased? The Department is constantly reviewing the subsidy scheme and its funding limits. However, any adjustment of the income limit will likely have vast implications on the budget. Does the Enhanced Extended Discount Benefit Scheme consider income category? No, the income category is not considered but it may affect the amount of the discount. What is the Finance Linked Individual Subsidy Programme (FLISP)? The Programme was introduced to address the affordability and product gaps (income ranges R35021 - R7000). The Department is currently revisiting the sliding scale (35 subsidy intervals), and reviewing the top income group. Why does the Programme on Rectification of pre 1994 housing stock only focus on that period? The Programme addresses pre 1994 state housing that does not comply with acceptable minimum technical and infrastructural standards, negatively affecting the sale and transfer of some units. It is linked to the Enhanced Extended Discount Benefit Scheme. There was a Programme that addressed houses constructed after 1994 until 1 April 1992, when the warranty scheme administered by the NHBRC also covered subsidised housing products. What is the current percentage allocated for the Operational Capital Budget Programme (OPSCAP)? The current limit is 5% of the provincial housing allocation provided through DORA. 8. Incremental Interventions Upgrading of Informal Settlements: The Programme encourages queue jumping as this is a priority for the government. Informal settlements are upgraded at the expense of other applicants on waiting lists and in backyards. The Programme requires that municipalities should keep a register of people living in informal settlements to ensure that those to be assisted are on the database. However, the municipalities should plan for housing development in general to address the needs of the people in its area of jurisdiction. When is relocation recommended? Relocation is recommended for a variety of reasons, including de-densification of settlements, where the current settlement is not suitable for accommodation. What is the cut off date for upgrading informal settlements? There is no cut off date for upgrading informal settlements, but municipalities are required to prioritise these in their planning. Do previous beneficiaries qualify under this Programme? Persons who are not first time home owners, those who have previously received housing assistance and those who previously owned and/or currently own a residential property do qualify under the Programme. But these will be determined on a case by case basis to determine the facts that led them to be in the area and the approval of access. What is the status regarding illegal immigrants staying in informal settlements earmarked for upgrading? The status of illegal immigrants should be investigated by the Department of Home Affairs on a case by case basis, with a recommendation made to the MEC who will make the final decision. Why is the Programme not being implemented according to policy? There may be a number of factors resulting in this, including the misinterpretation of policy. The Housing Code provides guidelines for implementation and variations may be allowed in some instances. Does the Emergency Housing Assistance Programme cater for the homeless? The Programme addresses the needs of households who, for reasons beyond their control, find themselves in an emergency housing situation. For example, their shelter is destroyed or damaged, their prevailing situation poses an immediate threat to their lige, health and safety, or they have been evicted, or face the threat of imminent eviction. What is the role of Municipalities in Emergency Housing Assistance? Municipalities are responsible for planning, implementing the projects, managing the settlements, planning for permanent housing situations, ensure the availability of bulk and connector engineering services, registering beneficiaries, and the provision of relocation assistance to affected persons. Municipalities must also, in their Integrated Development Plans, set aside land earmarked for emergency situations. Municipalities are supposed to identify suitable land. What happens if it is private land? The municipality can either invite the land owners to offer the land for sale to the state. The price is normally market related. Or, should the preferred land owner refuse to sell the land in question, the Housing Act stipulates that expropriation of the land could be considered. The National Spatial Development Plan stipulates that there should be no development of houses on the urban edge. Does the Farm Residents Programme take cognisance of this requirement? The creation of unsustainable farm resident settlements may distort existing settlement patterns and increase municipal service delivery burdens by creating a number of small settlements. The creation of new farm resident settlement should, therefore, be regarded as an option of last resort. If settlement is to take place outside of an existing town, an appropriate service delivery and maintenance agreement with the municipality must be in place before the project is implemented.
Why should previous beneficiaries that earn R3500 or less, buy Integrated Residential Development Programme (IRDP) serviced sites at input cost and not market related costs? Such people cannot afford buying services sites at market related prices. 9. Rural Interventions Traditional leaders deny 18 year old applicants to benefit from accessing subsidies. What steps should be taken? Legal recourse should be taken. What approach is taken in cases of contested land rights in Communal Land Areas? The Department of Rural Development and Land Reform must confirm, validate and confer land rights in these areas. No subsidies can be warded in these circumstances until these have been clarified. Can government provide Community Residential Units (CRUs) in rural areas? CRU is an urban rental programme meant to be implemented on state land in areas that are in close proximity to economic opportunities and access to amenities. However, where the demand for rental in rural areas can be demonstrated through a socio-economic study and there is municipal management capacity, the option of building CRU rental units can be explored with contractual agreements between the local municipality and the tribal leader. Why does policy make provision for the sale of housing acquired for farm residents through state funding at depreciated cost? The value of houses always appreciates. Policy provisions are for the sale of these at depreciate replacement cost. The value of farm land is rarely affected by the residential development on it, therefore it would be very difficult to determine the market value of the improvement on farms. Therefore the notion of 'depreciated replacement cost' applies. Thus, what it would cost to replace the units at the sale of the farm, depreciated by the deteriorating factor of the buildings. |
