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Get your Government housing subsidy now
Cape
Town is in the midst of a housing crisis, exacerbated by the huge
numbers of people left homeless by shack fires. The Western Cape
Government and the City of Cape Town are facing the mammoth task of
providing housing to thousands people. Work has already started on
the N2 Gateway housing project, which will provide low cost housing
to thousands on the Cape Flats.
But
when these homes are eventually completed, will those for whom it is
intended be able to afford it? The following are some guidelines for
applying for a housing subsidy from the Western Cape
Government.
Individual
Housing Subsidies
There
are two forms of individual subsidies:
-
Non-credit
linked subsidies - enables you to buy your property using the
subsidy and maybe your savings. You will not have a loan to repay.
-
Credit
linked subsidies - mean that you get the subsidy together with a
loan from a financial institution. You will have to repay the
loan.
What
can you use a housing subsidy for?
You
can use the housing subsidy to buy a house and land.
In
order to qualify for a housing subsidy, you:
-
Must
be married, live with your partner or have financial dependents.
-
Must
be a lawful resident of South Africa - you must be a citizen or
have a permanent resident permit.
-
Must
be able to enter a legal contract - you must be over 21 or must be
married or divorced and of sound mind.
-
Need
to have a gross monthly household income of less than R3500.00.
-
Must
not already have benefited from other government housing funding.
-
Must
be a first-time property owner.
How
to Apply for a Non Credit Linked Housing Subsidy
You
need to fill out an application form, which is available from the
Western Cape Housing Development Board (WCHDB). If you are awarded a
non credit linked subsidy, you can use the subsidy to buy a
property. The subsidy can be topped up with your savings.
When
you complete the application form, you also need to supply the
documents listed on the form.
In
addition also supply:
-
A
certified copy of the sale agreement and/or building contract, as
well as approved building plans.
-
A
conveyancer appointment: The developer or seller must nominate an
attorney or conveyancer. The conveyancer will register the
transfer of the property and will help the WCHDB to administer
payment of the subsidy amount to the developer or seller.
-
A
certificate from the conveyancer. This certificate confirms that
the conveyencer is prepared to register the property and
administer payment of the subsidy. If a conveyancer fee has been
agreed upon this must also be listed. The Conveyancer's fee is
paid out of the subsidy.
How
to Apply for a Credit Linked Subsidy.
Application
forms for a credit linked subsidy are available from accredited
lenders. You apply for a subsidy at the same time as applying for
the bank loan. Both the subsidy and the loan will go towards buying
the property.
Credit
linked subsidies are administered by banks and financial
institutions. These approved bodies act as agents for the WCHDB. You
can get a list of lenders from the nearest WCHDB office.
How
much is the subsidy worth?
The
amount of the subsidy that you can get and the contribution that you
have to make depend on:
-
Gross
household monthly income
-
Whether
you are aged or disabled
-
Whether
you are participating in the People's Housing
Process
If
the gross household income is under R1 500 per month, the subsidy is
R25 800; if it is between R1 501 to R2 500 per month, the subsidy is
R15 700; if the household income is between R2 501 to R3 500 per
month, the subsidy is R8 600; the elderly and disabled beneficiaries
get up to R28 279.
Beneficiary
contributions
If
you receive a housing subsidy you are required to make a
contribution towards the cost of the house. Qualifying subsidy
beneficiaries falling within the income category of under R1 500 per
month will be required to make a financial contribution of R2 479.
Beneficiaries falling within the categories receiving less than R25
800 will have to make up the shortfall of money adding up to R25
800. Beneficiaries who are in receipt of Old Age pensions, those
whose combined income is below R800.00 per month and those who
participate in People's Housing Process initiatives are exempted
from making the contribution.
Detailed
information on the requirements and process relating to Individual
Housing Subsidies are available in the Housing Code. For more
information contact the Subsidies Helpdesk on tel. 021 483 2342,
Desiree Jacobs on tel. 021 483 3977, email dajacob@pgwc.gov.za; Glyn
Grey on tel. 021 483 4641, email ggrey@pgwc.gov.za;
Natasha Oosterwyk on tel.021 483 4037, email noosterw@pgwc.gov.za
This
information has been supplied courtesy of Housing Management,
Provincial Government of the Western Cape - Department of Housing.
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