The City Times has received queries regarding the rate at which rentals for council-owned stock (Ekurhuleni metro) is calculated.
The metro’s divisional head for communication and media relations Nhlanhla Cebekhulu responded with the following:
Accommodation reserved for elderly persons receiving a pension (designated as retirement, cottages and flats)
Rental includes, but is not limited to capital redemption and interest, administration fees, insurance charges, security charges, maintenance charges, service charges and charges for water and electricity consumption, except where electricity and water consumption are being read and billed separately.
A rental deposit equal to one month’s rental is payable prior to occupation plus a water and electricity deposit.
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Affordable rental is calculated at 25 per cent of joint monthly income between R1 501 and R4 000 plus a monthly levy representing assessment rates, service charges, administration, maintenance costs and water consumption, based on the following:
• Bachelor unit
• One-bedroom unit
• Two-bedroom unit.
Electricity consumption will be read and billed separately.
Allocation criteria
Allocation is done in accordance with a waiting list of prequalified applicants that is kept on regional service delivery centre level.
Applications must be renewed by applicants every year to ensure waiting lists reflects true need and applicants who do not renew their applications are taken off the waiting list.
A lease agreement for a maximum period of two years is entered into prior to occupation and the tenant has the option to renew lease agreement on expiry.
The latest financial and family circumstances are taken into account when the new lease is negotiated.
All tenants must submit certified proof of income.
Qualification criteria for applicants:
• The applicant must be over the age of 60, a South African citizen and Ekurhuleni resident, unless there are exceptional circumstances, which circumstances must be considered on merit.
• Self-caring (Category A). In this case the elderly person must be able to attend to themselves.
• Applicant must submit certified statement of all income as well as proof of latest pension increase as issued by National Treasury.
• Accommodation is reserved for pensioners only and no children or family will be allowed to reside permanently with the tenant.
• Applicants must not be the owners or joint owners of any fixed property or be a member of a trust or company that owns residential property
Boarding House Rooms
• Only persons receiving government pensions or grants as the sole source of income.
• Rooms are regarded as temporary emergency accommodation and are reserved for that use only.
• The lease agreement is for a maximum period of one year and entered into prior to occupation.
• The tenant does not have the option to renew the lease agreement on expiry thereof.
• Should the joint income be R4 001 and more, the rental will be in accordance to the market-related tariff.
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