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Last modified: 02 Oct 2020
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Affordable rental housing for Kouga

02 October 2020
Kouga Human Settlements manager, Mawethu Penxa (right), congratulates Own Haven Social Housing CEO, Andrew Wiseman, on the company's appointment.

Kouga Human Settlements manager, Mawethu Penxa (right), congratulates Own Haven Social Housing CEO, Andrew Wiseman, on the company's appointment.

At least 1 500 rental units for households with low to moderate incomes are set to be built in Kouga over the next five years.

Kouga Executive Mayor Horatio  Hendricks said the municipality had secured a place in the “Municipal Support Programme” run by the Social Housing Regulatory Authority (SHRA), the body that oversees the implementation, regulating and funding of state-subsidised rental housing projects in South Africa.

“Kouga is the only municipality in the Eastern Cape to have been selected for the municipal support programme and one of only six local authorities countrywide,” he said.

“Our inclusion will ensure that the municipality receives the necessary technical and organisational support to implement social housing programmes.

“The target is to deliver at least 1500 rental units over the next five years but, according to SHRA, the first project for Kouga can be approved, built, tenanted and managed within as little as one to three years.”  

 He commended the municipality’s Human Settlements section for their excellent submission that secured the municipality a place in the programme.  

“It is another feather in the municipality’s cap and will help to address the demand for affordable rental housing in the area.”

Hendricks said social housing is a government programme aimed at providing low to moderate-income households, earning between R1 501 and R7 500 per month, with quality and affordable rental housing opportunities in well-located areas.

He said the project would complement the Finance Linked Individual Subsidy Programme (FLISP) that had also been approved for the area.

“While social housing addresses the need for affordable rentals, FLISP offers first-time home-ownership opportunities to South African residents earning between R3 501 and R22 000 per month,” he explained.

“This is the income group that earns too much to qualify for an RDP house but typically also struggles to secure a bond to buy a home.”

He said the municipality had appointed a service provider, Own Haven Social Housing, in October 2019 for the implementation of social housing and FLISP projects.

“The service provider has completed a demand and needs analysis study for the proposed project in Jeffreys Bay.

“They are currently drawing up a detailed report on how the FLISP and Social Housing programmes will be introduced and marketed to prospective buyers and beneficiaries.”