By Nangamso Mabindla
25 June 2004

THE provision of low-cost housing in Buffalo City has been given a boost: the provincial government has increased the subsidy allocated to the municipality from R23 100 to R25 800 a house.

Buffalo City runs several projects to service sites and build low-cost houses for poor families.

"The subsidies are aimed at households that earn less than R3 500. The municipality assists them when purchasing a house," says Lindelwa Maneli from the City's directorate of developmental planning.

One of the major projects - based on national policy - is the People's Housing Process. Sites are identified and serviced; the beneficiaries then manage or oversee the construction of their own homes.

Another project involves servicing sites and building houses. It is on these houses that the subsidies have been increased to R25 800.

But subsidies depend on the beneficiary's income. To receive the highest subsidy the beneficiary must not earn more than R1 500 a month.

However, "if beneficiaries earn between R1 500 and R3 500 they qualify for a R15 700 subsidy", Maneli says.

"Households who do not earn over R3 500 should submit adequate proof of income and, in the case of income received through self-employment, must sign an affidavit stating the amount earned," Maneli says.

The total cost of a house is R28 279: the stand is R11 698 and construction costs R16 581.

Beneficiaries are expected to contribute R2 479 towards the house - except for those who opt to manage the construction of their own houses.

Beneficiaries must be South African citizens or permanent residents, must be first-time property owners and must have dependants. They must not earn more than R3 500 a month and must not be part of any other housing scheme,

People who meet the requirements need to apply to the municipality.

"People do not apply individually; rather they apply as a community for housing. We then give them individual forms to ascertain if they qualify for a subsidy," she says.

If the community qualified the municipality would set up a project to build houses.