11 Oct Motion on Social Housing units being rent to own
Media Release – 10 October 2023
10 October 2023
THE SOCIAL HOUSING REGULATORY AUTHORITY (“SHRA”) STATEMENT ON ETHEKWINI METROPOLITAN MUNICIPALITY COUNCILLORS MOTION ON SOCIAL HOUSING UNITS BEING RENT TO OWN
THE SHRA MANDATE
The SHRA was established by the National Department of Human Settlements (“NDoHS”) as prescribed by the Social Housing Act 16 of 2008. The SHRA mandate is to invest in, as well as capacitate and regulate the social housing sector, with the primary objectives, firstly to deliver affordable rental housing for low-to middle-income households who mostly do not qualify for free Breaking New Ground (BNG) housing but also do not earn enough to qualify for bank financing to purchase a house and secondly, to achieve spatial, economic, and social integration of the urban environments in South Africa.
This communication serves to reiterate that social housing projects are not for rent to own but for quality rental homes in perpetuity.
The transfer and or/ disposal of social housing stock which may result in the stock being lost to the social housing sector will only be permitted by the SHRA, as a Regulatory Authority, after the principles applicable to and the process for the transfer of social housing stock or rights, as contemplated in Regulation 13 of the Social Housing Regulations dated 12 December 2011 (“the Regulations”), and the disposal of social housing stock, as contemplated in Regulation 14 of the Regulations, and any matters ancillary thereto have been duly followed by the applicant.
The SHRA further confirms that KZN Social Housing Company (KZNSHC) and First Metro Housing Company (FMHC) are accredited Social Housing Institutions (SHIs) and their social housing units under SHRA, as Regulatory Authority, are for rental purposes and not rent to own.
In the premise, the SHRA wishes to distance itself from any motion and statements that purport that Social Housing Units were developed with a rent to own objective and inform all the tenants of social housing and stakeholders to continue honouring their leases with their social housing landlords.
Enquiries: Contact Lesego Diale, Marketing and Communications Manager at the SHRA, on 011 274 6218 or email@example.com.
Issued by the SHRA
3rd Floor, Sentinel House, Sunnyside Office Park, 32 Princess of Wales Terrace, Parktown, Johannesburg, 2193.