Although the Western Cape government has called on the people of the province to take advantage of the Financial Linked Individual Subsidy Programme (Flisp), residents believe that the programme is only good on paper and has done little to help people who desperately need houses.
The Western Cape Department of Human Settlements issued a statement encouraging first-time home buyers to take advantage of over 500 affordable housing opportunities currently available across the province.
These housing options include one, two, and three-bedroom homes. These housing opportunities are currently available with developments in areas like Forest Village, Eerste River, George and Bredasdorp – priced between R379 000 and R488 625.
It said the Help Me Buy a Home/Flisp subsidy is designed to assist first-time home buyers to acquire a home. The subsidy will essentially reduce monthly bond/loan payments, making them more affordable. Qualifying applicants will receive a subsidy based on their gross household income.
"There are numerous housing opportunities in prime residential areas across this province. If your household income is between R3 501 and R22 000 per month, and you meet the qualifying criteria, this subsidy can assist you in purchasing your first home.
"We encourage young professionals, first-time homeowners and those starting a family to research the options available to get their foot into the property market," said Provincial Minister of Infrastructure, Tertuis Simmers.
Sphiwe Hobas, who raised the issues around the programme, said to qualify for the government subsidy, you need to earn a gross income between R3 501 and R22 000, yet over 600 applicants were rejected by the bank because they earned less than R8 000.
"Those people can't be homeowners because they don't have other means to finance the purchase of these homes other than applying for a home loan. How long will those houses stand vacant, because applicants meet the Flisp criteria but fall short with the bank," said Hobasi.
SACP regional secretary Langa Langa said the province was running away from something and that he was unsure why houses hadn’t been allocated to people who qualify for them, years after they had been built.
"People do knock on the doors of the banks and government wanting houses. However, they are rejected because the houses themselves do not meet the requirements for a bank loan. These houses were built years ago; they have been standing there unoccupied.
“Do you believe that there are not 500 people in George who can’t qualify for these houses? I think there is something sinister here that the government is not telling us," said Langa.
The department’s Communication and Stakeholder Relations director, Nathan Adriaanse, said there were multiple benefits to home ownership. While it often means different things to different people, to most, a home represents stability, ownership of an asset with a value that will increase over time, and providing a legacy within the family that many generations can benefit from.
"A home also helps to build communities, since many homeowners get involved in the affairs of the neighbourhood for the betterment of the entire community," said Adriaanse.