Housing Subsidies

The Housing Unit is responsible for facilitating delivery of low-cost housing and assisting households that satisfy the Provincial Department of Housing’s criteria in obtaining government housing subsidies.

What is a housing subsidy?

A once-off capital grant for which repayment is not required and which is provided by the government to assist people to acquire housing.  The grant is accessed by the municipality which employs contractors to purchase land, develop the sites and build the houses on a project by project basis.  Individuals can also apply directly to the Provincial Department of Housing to access individual subsidies or projects that the province is undertaking.

How do I apply for a subsidy?

If you satisfy all of the following criteria you may apply for a subsidy:

• A monthly combined household income of R3,500 or less
• Individuals with dependants, married or those co-habiting with a partner
• South African citizens or a lawful South African resident
• Individuals who have not received a subsidy before; and
• Individuals who have not owned a property before.

Who develops subsidy housing?

A Developer may be a local authority or the provincial government.

What type of subsidies does government offer?

• Project Linked Subsidy - a municipality applies and advertises for applicants.
• Individual Subsidy - An Individual applies to Provincial Department of Housing
• Consolidation (top-up) Subsidy - Only applies to areas that received a subsidy under the previous government
• Institutional Subsidy - Applicant must be a legally established body and meet certain criteria set by the Department of Housing

What are the types of housing projects?

The two most common housing projects are:

• Greenfields – where vacant land is acquired and developed for new housing.
• In-situ upgrades – informal settlements are upgraded by the provision of secure tenure, services and core housing units.

Will a financial contribution be necessary?

There may be a contribution required if the house, site and service costs exceed the subsidy amount.  In addition, beneficiaries with incomes greater than R1,500 per month will need to contribute an amount of R2,479.

How do I apply for a housing subsidy?

If the housing project was advertised in the paper, the advert will tell you where to apply.  If it is an in-situ upgrade, then your Councillor / Development Committee will inform you of the process.

What documents will I need to apply for a subsidy?

• Identity Document
• Dependent/s Birth Certificate, if applicable
• Latest Pay-Slip, if you are employed
• Marriage Certificate

What are my responsibilities?

You will be expected to:

• Deliver all the required documentation timeously.
• Occupy your house immediately.
• Maintain and improve your house and property and seek local authority approval for any building activities.
• Pay deposits for electricity and water.
• In some cases you may need to make a cash contribution or access a loan.
• You will be expected to pay for services used

From which sources can I hear about a housing project?

Housing advertises the availability of sites in the Council's Metro Ezasegagasini which is published fortnightly on a Friday and is distributed in the Independent Daily newspapers.  

What is the time it will take for a subsidy to be approved?

It takes about two months from the time the application is submitted to the Provincial Department of Housing to approval being granted.

How many subsidies can I get?

You only qualify once for a subsidy.

What happens if I sell the subsidy house?

You will not qualify for another subsidy house.   Laws are also being put in place to ensure that houses being sold are first offered to the Provincial Department of Housing. 

How will I be notified of my subsidy approval?

Staff at the Housing Department will inform you immediately your subsidy is approved.

Steps in the subsidy application process

Step 1. For Greenfields – a project is advertised in the Council paper and the beneficiary responds by phoning Housing where he/she will be registered if he/she meets all the requirements.

For In-situ upgrades – Beneficiaries will be informed by their Councillor/Development Committee of the intended project and all the qualifying people within that Informal Settlement will be registered.

Step 2. Applicant assesses his/her affordability (if he/she has to pay a difference) and organises his/her finances.

Step 3. Applicant enters into an Agreement of Sale with eThekwini Housing to purchase the housing package (serviced site plus planned top-structure).

Step 4. Applicant then completes a Subsidy Application Form assisted by staff at Housing.

Step 5. The Subsidy Application with the accompanying documentation is submitted to the Provincial Department of Housing.

Step 6. The Provincial Department of Housing registers the application, acknowledges receipt and carries out procedural checks.

Step 7. The application is approved and if it is not approved, reasons are given, eg. Applicant already owns property elsewhere.

Step 8. The Provincial Department of Housing notifies Housing who will inform the Applicant of the status of his/her application.

Step 9. Once the site is serviced, top-structure completed and all the money requested paid, the Applicant can take full ownership of the house.