On Friday, May 6 the MMC for Housing, Councillor Mlungisi Mabaso issued a media release reflecting on the new gazetted rates for the social housing bands.
The Minister of Human Settlements Mmamoloko Kubayi recently addressed the media regarding social housing rates adjustments following the last adjustment of the 2018 qualification criteria, as tenants were struggling to pay their rentals due to inflation and substantial increases in utility costs.
Kubayi announced the revised income bands for households with a gross monthly income of between R1 850 and R22 000 to qualify as opposed to the previous qualification criteria for household income of between R1 500 to R15 000.
According to Kubayi, the aim is to align the rates with the broader definition of the affordable housing programmes such as the Finance Linked Individual Subsidy Programme (FLISP).
FLISP is a housing subsidy to assist first-time home buyers to purchase a home, and for buyers to qualify, they have to fall within a certain income bracket that is considered as the ‘gap market’ or the ‘missing middle’.
The Johannesburg Social Housing Company (JOSHCO) provides rental accommodation for the lower and upper end of the low- income market (R1 500–R15 000), with the objective of creating sustainable human settlements. The Social Housing Regulatory Authority (SHRA) as one of JOSHCO’s key stakeholders that fund their projects.
According to the Social Housing Act 16 of 2008 and the Minister’s announcement on March 25:
• The threshold of the sub-primary market’s household income limit has been adjusted from R1 500 to R1 850 per month.
• The threshold of the primary market’s household income limit has been increased from R5 500 to R6 700 per month.
• The threshold of the secondary market’s household income limit has been increased from R15 000 to R22 000 per month, in order to align with the National Housing Programme commonly known (FLISP).
According to Mabaso, these adjustments do not affect JOSHCO’s primary and secondary occupancy percentiles. The primary occupancy will remain at 30%, and the secondary occupancy at 70% within a project.
The adjustments were effective from Sunday, May 1 for the following projects:
• Devland – 255 units
• Dobsonville – 502 units
• Fleurhof Junction – 452 units
• Fleurhof Riverside – 252 units
• Turffontein – 525 units
• Roodepoort – 423 units
• Union Square – 210 units
• City Deep – 329 units
