This division forms part of the Directorate of Development Planning. The function of the Housing Division is to create sustainable human settlements so that all residents have access to housing opportunities, which include rental accommodation or permanent residential structures. Secure tenure ensures external privacy, protection against the elements and access to potable water, adequate sanitary facilities and domestic energy supply.

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General enquiries
(eg housing waiting list, indigent subsidy,
complaints/defects, housing project developments)

Telephone: (043) 705-2205/2461

Housing Manager
Telephone: (043) 705-2461

Physical address
Housing Department
1st and 5th Floor
Engineering Building
Oxford Street
East London
5201

Postal address
Directorate of Development Planning
Housing Division
PO Box 81
East London
5200

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Six main criteria need to be fulfilled in order for a person to be eligible to apply for the subsidy. A person only qualifies for a housing subsidy if:

• Married or financial dependants:
  He or she is married (in terms of the civil law or in terms of a customary union) or habitually co-habits with any other person, or he or she has proven financial dependants. (For the purpose of this code, the word "spouse" includes any partner with whom a prospective beneficiary under the scheme habitually cohabits.)
• Resident:
  He or she is lawfully resident in South Africa (ie a citizen of the Republic of South Africa or in possession of a permanent resident permit).
• Competent to contract:
  He or she is legally competent to contract (ie over 21 years of age or married or divorced and of sound mind).
• Monthly household income:
  The gross monthly household income of his or her household does not exceed R3 500. A prospective beneficiary will be required to submit adequate proof of income, and, in the case of income received through self-employment, must sign an affidavit stating the amount earned.
• Not yet a beneficiary of government funding:
  Neither that person nor his or her spouse has previously derived benefits from the housing subsidy scheme, or any other state funded or assisted housing subsidy scheme which conferred benefits of ownership, leasehold or deed of grant or the right to convert the title obtained to either ownership, leasehold or deed of grant, with the exception of the consolidation subsidy, and relocation grant. A person who received only a vacant serviced site under the previous dispensation on the basis of ownership, leasehold or deed of grant, however, qualifies for a consolidation subsidy. This criterion is also not applicable to persons who qualify for relocation assistance or to disabled persons. (See below for details on assistance available to disabled persons.) In the event of a divorce, the terms of the divorce order will determine a beneficiary's eligibility.
• First-time property owner:
  He or she is acquiring property for the first time, except in the case of a consolidation subsidy, and relocation assistance. This criterion does not apply to disabled persons. (See below for details on assistance available to disabled persons.)

The following table illustrates the new subsidy grants (effective 1 April 2002):

Income category	Existing subsidy	New subsidy
R0 to R1 500	R16 000	R20 300
R1 501 to R2 500	R10 000	R12 700
R2 501 to R3 500	R5 500	R7 000
Old aged, disabled & indigent	R16 000	R22 800
Consolidation sub: up to R1 500	R8 500	R10 900
Consolidation sub: old aged, disabled & indigent	R8 500	R13 400
Institutional subsidies	R16 000	R20 300

• Income category R0 - R1 500 a month
  Qualifying beneficiaries falling within this income category and who will not participate in the People's Housing Process will be required to make a financial contribution of R2 479 to enable the final approval of a housing subsidy application. The revised subsidy amount in this instance will therefore amount to R20 300.

  Where a beneficiary qualifies for a consolidation subsidy, but will not participate in the People's Housing Process, he or she will qualify for a subsidy of R10 900 and will be obliged to make the required financial contribution of R2 479.

The following subsidy could therefore apply if:

	Ind/project linked	Consolidation
Subsidy amount	R20 300	R10 900
15% variation (R22 800 x 15%)	R3 420	R3 420
	R23 720	R14 320
Total revised subsidy amount	R23 720	R14 320
Plus beneficiary contribution	R2 479	R2 479
Total product price	R26 199	R16 799

• Beneficiaries that participate in the People's Housing Process
  Due to the exemption of the People's Housing Process (PHP) projects from the National Home Builders Registration Council warranty cover, beneficiaries that opt to construct or manage the construction of their own houses will not be required to contribute R2 479. Beneficiaries of the People's Housing Process in the income category R0 to R1 500 a month will therefore qualify for a subsidy of R20 300.

  Consolidation subsidy beneficiaries participating in PHP projects will not be obliged to make the said financial contribution and will therefore qualify for a subsidy of R10 900.

  All beneficiaries within PHP projects will only qualify for the aforementioned subsidies if they are aged, disabled or indigent.

  The following subsidy could therefore apply in respect of beneficiaries that participate in PHP projects:

	Greenfield	Consolidation
Subsidy amount	R20 300	R10 900
15% variation (R22 800 x 15%)	R3 420	R3 420
Total product price	R23 720	R14 320

Beneficiaries who are aged, disabled or indigent should receive assistance regarding the realisation of their right to access to housing opportunities. Such beneficiaries will qualify for an increased subsidy amount of R22 800 in respect of Individual and Project Non-Credit Linked Subsidies and R13 400 in respect of Individual and Project Linked Consolidation Subsidies.

The following subsidy could therefore apply in respect of the aforementioned beneficiaries that do not participate in People's Housing Process projects:

	Ind/Project linked	Consolidation
Subsidy amount	R22 800	R13 400
15% variation (R22 800 x 15%)	R3 420	R3 420
Total product price	R26 220	R16 820

• The minimum size of completed structure shall not be less than 40m^².
• The internal reticulation services are limited to water, sanitation, roads and stormwater.
• Subject to a funding limit of a maximum provisional amount of R7 300 for the services and the acquisition of land (including township establishment).

Water: Single (metered) standpipe per erven
Sanitation: VIP per erven
Roads: Access to each erf with graded or gravel paved roads
Stormwater: Lined open channels
If a higher level of service is required (eg waterborne sanitation), the developers must motivate their decision.
Any savings achieved in the provision of services must be transferred to the top structure.
Any deviation from the norms and standards - for example, when a developer or community demands higher levels of service - will have to be financed from resources other than the housing subsidy.

Project linked subsidies

• The minimum size of the completed structure shall not be less than 40m^².
• The above subsidies will participate in the National Home Builders Registration Council warranty scheme.
• All top structures approved after 1 April 2002 will have to be compliant with the National Home Builders Registration Council specifications. These specifications are found in the Home Building Manual Parts 1, 2 and 3.

People's Housing Process

• The minimum size of the completed structure shall not be less than 40m^².
• The People's Housing Process does not participate in the National Home Builders Registration Council warranty scheme.
• Although it is not a requirement for the People's Housing Process to enroll in the National Home Builders Registration Council, the department requires that the top structures be built to NHBRC standards.
• The department will embark on recruiting building inspectors to monitor the quality of workmanship. The works managers involved on site will also assist in quality checks, using a standard checklist.