|
Adjustment
of the
Quantum
of the
Housing
Subsidy
for the
new
Financial
Year
PRETORIA:
Housing
minister,
Brigitte
Mabandla,
today
announced
an
increase
in the
government’s
housing
subsidy.
In a
statement
issued
this
morning,
Mabandla
said the
increase
was
effective
from the
beginning
of this
month.
“I am
convinced
that
this
rise of
up to
11,68%
in the
subsidy
will be
welcomed
by
millions
of the
beneficiaries
who are
expected
to
receive
houses
this
year”,
said
Mabandla.
The
announcement
means
that the
current
amount
of R23
100
introduced
last
year
will
rise to
R25 800
for
those
receiving
maximum
subsidies.
The
maximum
subsidy
applies
to the
lowest
income
category
of R0-R1
500 per
household
per
month,
who are
homeowners
for the
first
time.
The
subsidies
for
those
earning
between
R1 501
to R2
500 rise
from R14
200 to
R15 700
while
those
earning
R2 501
to R3
500 have
had
their
subsidy
increased
from R7
800 to
R8 600.
When
South
Africa’s
first
democratic
government
came
into
power in
1994, a
decision
was
taken to
address
the
serious
housing
problem
for the
poor in
the
country.
The
government’s
housing
subsidy
scheme
was then
introduced
and the
massive
delivery
of
housing
began.
Ten year
down the
line,
about
1,6
million
housing
units
have
since
been
completed.
These
houses
are
occupied
by an
estimated
7,8
million
people
who did
not have
adequate
shelter
before.
In this
way,
says
Mabandla,
the
government’s
housing
programme
has been
a
catalyst
for
integrated
service
provision
to
ensure
empowerment
of
ordinary
citizens.
Subsequently,
secure
tenure
has been
provided
to
millions
of poor
people.
This
achievement
has been
hailed
by the
international
community.
Last
year,
the
United
Nations
awarded
South
Africa
with a
Scroll
Award in
recognition
of this
achievement.
Mabandla
also
announced
that
MinMEC
(the
committee
comprising
the
minister
and the
nine
housing
MECs)
had
decided
on a
formula
that
would be
used to
calculate
the
adjustment
of the
quantum
of the
subsidy,
on an
annual
basis.
This,
according
to
Mabandla,
is an
attempt
to keep
up with
the
inflation.
“This is
to
ensure
that
subsidy
amounts
counter
the
eroding
effect
of
inflation
and thus
contribute
towards
the
delivery
of high
quality
houses
throughout
South
Africa”,
said
Mabandla.
The
latest
subsidy
of R25
800 has
come a
long way
from the
first
grant of
R12 500
introduced
ten
years
ago. The
first
increase
in this
subsidy
was in
1998,
when it
was
adjusted
to R15
000. In
1999, it
increased
to R16
000 and
in 2002
it was
again
adjusted
to R20
300.
Last
year it
was
increased
to R23
100.
This
means
that the
subsidy
over the
past ten
years
increased
by
106,4%
from
R12 500
to R25
800.
Mabandla
said
this
reflected
Government’s
sensitivity
and
responsiveness
towards
the
needs of
its
people.
“It also
provides
value
for
money
and
increased
product
quality
in the
houses
we
deliver”,
said
Mabandla.
The
subsidy
provides
for a
serviced
site and
the
house
according
to the
minimum
standards,
prescribed
by the
Ministerial
Norms
and
Standards
for
Permanent
Residential
Structures.
The
subsidy
also
finances
the
minimum
technical
standards
as
prescribed
by the
National
Builders
Registration
Council
(NHBRC),
thereby
ensuring
that a
warranty
on the
construction
work
will be
issued,
against
bad
workmanship
and
resultant
structural
damage.
Issued
by:
Ministry
of
Housing
Inquiries:
Marlene
Britz,
Communication
Services.
Tel
(012)
421-1538/082
892-6760 |