For the past few months, the City and the Provincial Department of Housing have been locked in an ongoing dispute regarding the Human Settlements Development Grant (HSDG ) funding. However, a conclusion has finally been reached.
The City had previously been informed that the Human Settlements Development Grant (HSDG) funding would be in the region of R248 million on the basis of the City’s Department of Housing’s business plan, which was adopted by Council and ultimately by the Province.
According to Mashaba, this was soon followed by the publication of a Provincial Gazette which unexpectedly reduced the City’s HSDG funding by R180 million for the current financial year to R68 million – which was insufficient to meet the desperate housing needs of the residents.
Following engagement with national government, the provincial Department of Human Settlements agreed to a consultative process to finally resolve the matter.
The following were agreed upon by City and the Department:
– R33 million is to be honoured by Province with respect to the Fleurhof Development in line with an agreement with the contractor to build high-rise units
– Province is to publish a special Gazette re-allocating R67 million for the South Hills Development to the City.
– R68 million is to be rolled over by the Province to the City in the current financial year, which has been approved. In addition, the City will retain the almost R69 million which was announced in the in revised Gazette published last year.
– Province has agreed to honour its commitment in terms of the tripartite agreement for the Riverside housing development, in the current financial year, to the tune of R63 million.
This will take Province’s financial commitments to R300 million for housing developments in the current financial year within the City.
“I would like to thank MEC Dikgang Moiloa for today’s productive engagement and for seeing reason following our representations on the matter. In so doing, the MEC has worked with the City to ensure that we maximise the delivery of housing for the poorest and most vulnerable of our residents. I am heartened by the fact that this matter could finally be resolved and that we could work cooperatively to ensure that we provide the dignity of housing to residents,” Mashaba concluded.
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