Cape Town - The Cape Argus can reveal Sohco Property Investments, a social housing non-governmental organisation (NGO) pays a R150 annual lease to the city council for the land on which controversial 700-unit Steenvillas complex was built in 2010.
But several tenants, who have all been served with eviction notices, cried foul, accusing Sohco of charging them steep rentals “while it only paid a R150 a year to lease the property” they live on.
“We are trying to figure out why Sohco only pays R150 a year to the city (council). It doesn’t make sense. Something doesn’t seem to be right, because if you look at our rentals, we are charged almost bond rates for these apartments,” Tina Schoor, a community leader said.
The information, which has been confirmed by both Sohco and the city council, had been leaked by tenants who were entangled in an eviction case before the Western Cape High Court.
Sohco chief executive Heather Maxwell said the company approached the court “after all our attempts to resolve the rent situation were unsuccessful”.
Maxwell explained: “Sohco has a long-term notarial lease with the City of Cape Town for the underlying land that Sohco developed the Steenvilla complex on.
“This was concluded under the city’s social housing partnership programme and rental was deliberately set at R150 a year by the city.”
She said the saving reduced the development cost of the complex and resulted in the rentals being set lower than they would otherwise have been able to be.
“Steenvilla was developed by Sohco at Sohco’s risk and cost. Rentals charged to tenants cover bond repayments as well as the operating and maintenance costs of the development,” Maxwell said.
Schoor said they would argue that the financial situation of a lot of families had changed since moving in in 2010.
“They’ve lost their jobs, divorces took place, couples broke up, people have passed away. A lot of things have changed. It doesn’t mean because you came in here earning a certain amount, things are going to stay that way forever. So we are stating that Sohco needs to listen to us.
“They must drop the rentals to accommodate the household income of the tenants. We are not saying we want to stay here for free, this is a good environment and we are happy where we are,” she said.
Schoor said she paid R3 000 a month for a two-bedroom flat. Another resident, Gill Adams, 30, who shares a flat with her mother, a pensioner, said they had been served an eviction notice and had until tomorrow to leave. She said since moving in six years ago, their rent had increased by R1700 to R3500.
The eviction matter is back in court on March 23.