The Western Cape government said a housing subsidy to assist the most vulnerable in society, particularly low-income applicants, has been made available.

In a statement released on Wednesday, Western Cape MEC for Human Settlements Tertuis Simmers said three categories of housing subsidy will be made available: non-credit linked, credit linked and the finance-linked individual subsidy programme (FLISP).

He said each category is unique and caters for a specific group. The biggest benefit is that the subsidy is not a loan and does not have to be repaid.

For a non-credit-linked subsidy, individuals earning between R0 and R3,500 (about US$210) a month who wish to buy an existing house, or a plot that is linked to the construction of a house, will qualify for a R168,852 (about US$10,000) subsidy. The difference in the selling price is to be financed from another source.

Through the credit-linked subsidy, a loan must be from a recognised financial institution. If someone is planning to purchase a house for R200,000 (about US$12,000), they will qualify for a R168,852 subsidy and the balance must be financed via a bank.

The normal qualifying criteria applies, with the additional Western Cape requirement that persons applying must be on the housing demand database (HDD) for a period of 10 years in the Cape metro and five years for non-metro areas.

Individuals over the age of 40 years, backyard dwellers, those on the HDD for 15 years or more and persons with disabilities will be given priority.

The FLISP subsidy is a form of credit-linked subsidy with an income category from R3,501 to R22,000 (about US$1,300) and does not have the HDD requirement as the non-credit link.

The requirement is that the applicant will have to obtain a mortgage loan in order to qualify. It also allows provision for those earning between R3,501 and R7,000 to be assisted with a free serviced site as a once-off assistance, meaning they cannot apply for any subsidy after receiving this assistance.

Simmers said FLISP has proven to be popular as during the 2019/20 financial year 2,340 applications were received, with 1,843 being approved.

Individuals who need assistance or may have any queries can contact the help desk on 021 483 6488/3112 /0611/8984/0623 or email Simmers’s office on humanmin@westerncape.gov.za.

Source: ANA