Western Cape housing subsidy applications opens this Friday

This coming Friday, April 1, the Western Cape department of human settlements, will open its applications for individual subsidies. Picture: Henk Kruger/African News Agency (ANA)

This coming Friday, April 1, the Western Cape department of human settlements, will open its applications for individual subsidies. Picture: Henk Kruger/African News Agency (ANA)

Published Mar 29, 2022

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Cape Town - The Western Cape government has urged prospective homeowners who have been on the housing list to apply for the individual subsidy that kicks off this Friday.

This individual subsidy from the Department of Human Settlement is specifically aimed at residents with a household income of between R0 and R3500 per month.

It caters to people who want to buy an existing house, those who want to buy a house on a plot-and-plan basis, and those who want to finish an incomplete house.

Applications open on April 1 and close as soon as the subsidy allocation limit has been reached. This means that assistance is provided to the individual annually on a first come, first serve basis.

Applicants that have special needs or are elderly will be given priority.

Last month, the acting head of department Phila Mayisela said the province’s housing demand stood at 588 000, with the City of Cape Town accounting for 61% of the database.

MEC for Human Settlements Tertuis Simmers said the subsidy is not only ensuring the expansion of access to housing opportunities, but also the acceleration thereof.

“Our continued aim is to assist the most vulnerable, and in this instance, we’re focusing on the elderly and those living with medically certified disabilities,” he said.

“I’d like to encourage those who would be applying for this subsidy to swiftly do so, particularly since there is a limited budget.”

The subsidy amount allocated is just over R200 000 per person. This amount will be directly paid to the seller, conveyancer, financier or contractor, and successful applicants will only receive the subsidy once.

When an individual requires assistance via the individual subsidy, it then allows residents to identify a house for sale for the subsidy amount or use it as a top-up to purchase a home.

Mayisela said this programme could assist Western Cape residents without them having to wait for a specific government housing development to be built.

“The subsidy can be used to purchase an existing house or to build a house on a vacant plot owned by the applicant,” she said.

To qualify for the individual subsidy, applicants must meet the following criteria:

*Be registered on the housing demand database (ie. waiting list) at your nearest municipality

*Must have been on the housing database for a minimum period of 10 years in Cape Town, and 5 years in areas outside of Cape Town

*Be a South African citizen or have a permanent residency permit

*Be 18 years or older

*Married or living with a partner

*Be single or divorced, and have proven financial dependants living with you permanently

*Not have owned a property before

*Earn a monthly household income of R3500 or less, before deductions

* Not have received a housing subsidy from government before.

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