PROGRAMMES AND SUBSIDIES:

PROGRAMMES AND SUBSIDIES:

1. INTEGRATED RESIDENTIAL DEVELOPMENT PROGRAMME (IRDP)
The integrated residential Development Programme replaced the project linked Subsidy Programme. The programme provides for planning and development of integrated housing projects. Projects can be planned and developed in phases and provides for holistic development orientation.

Phase 1: Land, Services and Township Proclamation
The first phase entails planning, land acquisition, township establishment and the provision of serviced residential and other land use stands to ensure a sustainable integrated community.
Phase 2: Housing Construction: Individual Ownership options.The second phase comprises the house construction phase for qualifying housing subsidy beneficiaries and the sale of stands to non qualifying beneficiaries and to commercial interests etc.

 

2. INFORMAL SETTLEMENT UPGRADING PROGRAMME
The programme facilitates the structured upgrading of informal settlements. It applies to in situ upgrading of informal settlements as well as where communities are to be relocated for a variety of reasons. The programme entails extensive community consultation and participation, emergency basic services provision, permanent services provision and security of tenure.
 

3. SOCIAL HOUSING
There is an increasing need for affordable rental units which provide secure tenure to households which prefer the mobility provided by rental accommodation. Social housing provides good quality rental accommodation for the upper end of the low income market (R1500 - R7500), with the primary objective of urban restructuring, creating sustainable human settlements.The programme provides for grant funding to establish, capacitate and capitalize social housing institutions which may develop, hold and administer affordable rental units within identified restructuring zones.
 

4. INSTITUTIONAL SUBSIDY
Institutional Housing Subsidies are available to Housing Institutions that provide tenure arrangements alternative to immediate ownership (such as rental, installment sale, share block or co-operative tenure) to subsidy beneficiaries. The subsidy will enable Housing Institutions to undertake approved projects and to enable them to create affordable housing stock for beneficiaries to live in subsidised residential properties. The rental unit may not be transferred to the beneficiary within the first four years of occupation. A further condition is that the legal entity must in addition to the subsidy, make its own capital investment in the property
 

5. COMMUNITY RESIDENTIAL UNITS PROGRAMME
The Community Residential Units Programme supports the upgrading of government owned communal rental accommodation otherwise known as hostels. The CRU programme aims to facilitate the provision of secure, stable rental tenure for lower income persons/households. The housing stock funded by the CRU Programme should remain in public ownership and cannot be sold or transferred to individual residents.
 

6. INDIVIDUAL SUBSIDY
This programme provides access to state assistance where qualifying households wish to acquire an existing house or a vacant serviced residential stand, linked to a house construction contract through an approved mortgage loan. These properties are available in the normal secondary housing market or have been developed, as part of projects not financed through one of the National Housing Programmes.
These subsidies are available to individual beneficiaries who wish to buy an existing house or a stand, linked to a house building contract in the market. These subsidies are available on a first come first serve basis and may be credit linked or non-credit linked.
 

7. RURAL SUBSIDY: COMMUNAL LAND RIGHTS
This subsidy is available to beneficiaries who only enjoy functional tenure rights to the land they occupy. This land is normally in rural areas and 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 how to use their subsidies either for service provision, on building of houses or a combination thereof.
 

8. CONSOLIDATION SUBSIDY
The consolidation subsidy is available to a beneficiary who has already received assistance through government to acquire a serviced residential site under the pre-1994 housing scheme. This subsidy is applicable to serviced sites that were obtained on the basis of ownership, leasehold or deed of grant and must be utilised to construct or upgrade a top structure on the relevant property.
 

9. FINANCE LINKED INDIVIDUAL SUBSIDY PROGRAMME (FLISP)
The Finance Linked Individual Subsidy Programme is a subsidy established by government which aims to provide the poor and the low to middle income households with access to adequate housing.
Qualifying households for this subsidy are those that in the gap market that is - those that do not qualify for a fully subsidised house and at the same time they do not qualify for mortgage loan from the banks. These are families earning between R3501.00 and R15000-00 per month.

Individuals who are unable to secure a mortgage loan may apply for the allocation of a vacant serviced stand.The subsidy will be used to decrease the mortgage bond and is only applicable to persons who have never been assisted by the state. It will be disbursed as a once off subsidy towards the repayment of the bond. The subsidy attaches to the beneficiary and not to the property.

The subsidy may be used to

  • To buy new or old residential property
  • To buy a vacant serviced residential-stand, linked to an NHBRC registered homebuilder contract; or
  • To build property on a self-owned serviced residential stand, through an NHBRC registered homebuilder

10. ENHANCED PEOPLE’S HOUSING PROCESS
The Enhanced People’s Housing Process aims to support household who wish to enhance their housing subsidies by building their own homes. The enhanced people’s Housing process can be accessed through the Integrated Residential Development Programme, Project Linked Consolidation, Institutional or Rural Subsidies as well as technical and other forms of assistance in the house building process.
This subsidy is given to people who want to build or manage the building of their own homes. Unlike the Project Linked Subsidy where a contractor builds houses for a number of people, the Peoples Housing Process allows people or beneficiaries to build or organise the building of their homes. People are in charge of their own house construction process in this programme and are supported by a support organisation. Additional funds are available to pay for the support functions.
 

11. FARM RESIDENTS HOUSING ASSISTANCE PROGRAMME
This housing assistance programme provides capital subsidies for the development of engineering services where no other funding is available and adequate houses for farm workers and occupiers in a variety of development scenarios. The programme attempts to address the wide variety of housing needs of people working and residing on farms by providing a flexible package of housing models to suit the local context.
The programme will be applied where the farm residents are required to reside close to their employment obligations and where the farm land is distant from the nearest town, rendering the settlements of the farm residents in the town impracticable
 

SUBSIDY VARIATION FOR EXTRAODINARY DEVELOPMENT CONDITIONS AND DISABLED PEOPLE
In order to ensure that housing units delivered through the National Housing Scheme are adjusted to accommodate the special housing needs of a disabled beneficiary (or a member of the beneficiary household) to enable them to live independently, certain additions/alterations are necessary. The developer will therefore submit an application for the adjustment of the subsidy amount for extraordinary development conditions on the applicable form with all relevant information (e.g. proof of disabilities) to enable the decision-making authority to evaluate the application. The MEC may require additional information before the final decision can be conveyed to the Developer.


Government cares for people with disabilities. Thus, those who qualify for a housing subsidy will receive additional amounts to improve their houses with special additions such as paving and ramps to the outside doors, grab rails in bathrooms, kick plates on doors and visible door bells for the deaf.
 

QUALIFICATION CRITERIA
WHO QUALIFIES?
To qualify you must:

  • Be a South African citizen.
  • Be contractually capable.
  • Be married or habitually cohabit with a partner.
  • Be single and have financial dependants.
  • Be a first time government subsidy recipient.
  • Be a first time home owner.
  • Single Military Veterans without financial dependant.
  • Single aged persons without financial dependant.


ESSENTIAL DOCUMENTS
Applicants are required to produce the following:
 

  • Applicant and spouse’s Identity Documents
  • Birth certificates of children
  • Proof of income if working. (Salary Slip)
  • Where to apply for Housing Subsidy
  • Provincial Department of Human Settlements
  • Local Municipality