• What is a Housing Subsidy?

• Do I Qualify for a Housing Subsidy?

• How much subsidy do I qualify for?

• How do I apply for a Housing Subsidy?

• Where do I go from here?

• What documents will I need?

• I am disabled, what now?

• Contribution requirements.

• Consolidation Subsidy

• Individual Subsidy

• Project Linked Subsidy

• Institutional Subsidy

• Discount Benefit Scheme

• Rural Subsidies

• People's Housing Process

Click here for the Subsidy Application Forms

Subsidy Basics

What is a Housing Subsidy?
 

No housing subsidy will be approved unless the applicant correctly completes the application form which must then be submitted to the relevant Provincial Housing Department or Municipality.

The following documents, where applicable, must accompany the application form:

• A Certified Copy of:
  • the page of the bar-coded R.S.A. identity document containing photograph of applicant and that of his/her spouse;
  • the page of the bar-coded Permanent Residence Permit containing the photograph of the applicant and that of his/her spouse;
  • a marriage certificate (if applicable);
  • a spouse's death certificate (if applicable);
  • a divorce settlement (if applicable);
  • birth certificates of all dependants (if applicable); and
  • most recent pay slip [applicant and spouse].
• Agreement of Sale.
• Building Contract and Approved Building Plan.
• Sale of Land and House Building Support agreement i.r.o People's Housing Process (PHP) (if applicable).
• Proof of Disability (where applicable).
• Proof of loan granted by lender (if applicable)
• Application for exemption for capital contribution (if applicable)

Click here for a list of Provincial Departments.

You do not pay any fee to apply for a Government-subsidised house. Visit your nearest Local Council with the following documents:

1. Your ID Book

2. Your spouse's ID Book (if any)

3. Birth certificates of dependants (children)

4. Proof of income if you are employed (applicant and/or spouse)

You can make copies of these documents and certify them at your nearest Police Station before visiting the Local Council
 

Disabled beneficiaries may receive special additions to their houses to enable them independent living in normal residential areas. These additions have been tailor made to accommodate the variety of special housing needs. Such special additions to houses entail concrete aprons and ramps to facilitate access to houses, special grab rails in bathrooms, kick plates to doors, visible doorbells and special access arrangements to toilets.

Housing Subsidy beneficiaries with a household income of between R1 501,00 and R3 500,00 per month will be required to pay a financial contribution of R2 479,00 upfront to achieve access to the Housing Subsidy Programme. Alternatively beneficiaries will be required to participate in the building of their houses through an approved People's Housing Process Project.

In respect of disabled and / or health stricken beneficiaries earning in excess of R1 500,00 a month, the requirement of a contribution does not apply and such beneficiaries will be assisted through access to a subsidy amount equal to the product price as announced from time to time.

Beneficiaries classified as aged. Beneficiaries who attained the age of 65 in the case of a male beneficiary, and 60 in the case of a female beneficiary, (including beneficiaries that receive a social welfare grant from the State in respect of the aged) and who earn in excess of R1 500,00 per month, will be assisted in the form of an increased subsidy. In order to qualify for the increased subsidy, a beneficiary must submit proof of income received from a social welfare grant and/or any other source.

Assistance to the disabled. Beneficiaries with disabilities, could apply for approval to receive an increased subsidy to afford them the opportunity to access a contractor-built house with special additions / improvements.

Proof of the relevant disability that warrants the special assistance measure, must be confirmed in the form of a certificate by a registered medical practitioner as well as proof of income. Beneficiaries that currently receive a State welfare grant, in respect of the disabled category as administered by the Department of Social Development, will be required to provide proof of their income from a welfare grant together with the medical certificate, as indicated.
 

Consolidation Subsidy
 

This housing subsidy mechanism has been designed to afford previous beneficiaries of serviced stands, financed by the previous housing dispensation [including the Independent Development Trust's site and service schemes], the opportunity to acquire houses. A top up subsidy to construct a house, is granted to beneficiaries with a household income not exceeding R3 500 per month, while  beneficiaries with a household income of between R1 501,00 to R3 500,00 per month will be required to pay the contribution of R2 479.  Beneficiaries exempted from making a contribution (see above) will also be assisted in the form of an increased subsidy.

An individual subsidy provides qualifying beneficiaries with access to housing subsidies to acquire ownership of improved residential properties (stand and house) or to acquire a house building contract which is not part of approved housing subsidy projects.  The latter option is only available to beneficiaries who will access housing credit.

The Institutional Subsidy is available to qualifying institutions to enable them to create affordable housing stock for persons who qualify for housing subsidies.

This housing subsidy mechanism provides capital for the construction of housing units in respect of qualifying beneficiaries who do not earn more than R3 500. The subsidy is paid to approved institutions to provide subsidised housing on deed of sale, rental or rent to buy options, on condition that the beneficiaries may not be compelled to pay the full purchase price and take transfer within the first four years of receipt of the subsidy.

Institutions must also invest capital from its own resources in the projects.

The Discount Benefit Scheme promotes home ownership among tenants of State-financed rental stock, including formal housing and serviced sites. In terms of this Scheme, tenants receive a maximum discount of up to R7 500 on the selling price of the property. Where the discount amount equals or exceeds the purchase price or loan balance, the property is transferred free of any further capital charges.

This housing subsidy is available to beneficiaries who only enjoy functional tenure rights to the land they occupy. This land belongs to the State and is governed by traditional authorities.

The subsidies are only available on a project basis and beneficiaries are supported by implementing agents. Beneficiaries also have the right to decide on how to use their subsidies either for service provision, on building of houses or a combination thereof.

The People's Housing Process aims to support households who wish to enhance their housing subsidies by building or organising the building of their own homes themselves.  This process is a method of accessing the Projects Linked, Project Linked Consolidation, Institutional, or Rural Subsidies as well as technical and other forms of assistance in the house building process.