South Africa

City of Cape Town's rental stock to be upgraded in partnership programme

City of Cape Town's rental stock to be upgraded in partnership programme

The National Housing Finance Corporation (NHFC) has formed a partnership with the City of Cape Town which will see an upgrade and maintenance of the city’s rental stock, estimated at 57,000 units.

The partnership was announced this week by human settlements, water and sanitation minister Lindiwe Sisulu.

She said the partnership would go a long way in providing decent, secure and affordable accommodation to the people who live and work in Cape Town.

Sisulu said by July, more than 200 units would have been completed.

“What the NHFC is doing in the Cape Town metro must be extended to other metros. Our development finance institutions must commit their resources towards the revitalisation of our inner cities and towards funding a mix of developmental projects to scale up social housing and affordable housing as well as student accommodation,” said Sisulu.

“Our sector plays a key role in stimulating the economy to produce much-needed jobs and opportunities in our delivery value chains, especially for the designated groups. This project will assist us to achieve urban restructuring, meet housing demand, create jobs and transform our communities.”

According to the human settlements department, Sisulu has launched several social housing projects in Gauteng and the Western Cape, with the latest being Anchorage in the Cape Town and the Kempton Village in Ekurhuleni.

In April, she called on those who were seeking to buy property for the first time to apply for the finance-linked individual subsidy programme (Flisp) provided by the government to encourage home ownership for those who earn between R3,501 and R22,000 a month.

“We have designed this subsidy to assist low-income workers both in the private and public sectors. I have directed the NHFC and Human Settlements Development Bank to make sure they have a call centre and capacity to process all applications and to go on a roadshow to educate the public about this subsidy,” Sisulu said.

“This subsidy is to encourage home ownership among our teachers, factory workers, receptionists, nurses and police, among others.”

A budget of R461m had been set aside for the project in the 2021 financial year and was set to benefit 7,600 qualifying beneficiaries.