Human Settlements Minister Lindiwe Sisulu has commended the partnership between the National Housing Finance Corporation (NHFC) and the City of Cape Town to upgrade and maintain the city's housing rental stock, estimated at 57 000 units.
Sisulu said she believes the partnership will go a long way in providing decent, secure and affordable accommodation to the people who live and have come to work in the City of Cape Town.
The Minister said the main responsibility of the NHFC in this partnership is to provide finance; manage the database of contractors and suppliers, and provide business and technical support to them.
The NHFC has committed R150 million to the initiative.
It is estimated that by July 2021, over 200 units will be completed, providing decent and affordable accommodation to over 400 families.
"What the NHFC is doing in the Cape Town Metro must be extended to other metros. Our development finance institutions must commit their resources towards the revitalisation of our inner cities and towards funding a mix of developmental projects to scale up social housing and affordable housing, as well as student accommodation.
"Our sector plays a key role in stimulating the economy to produce much needed jobs and opportunities in our delivery value chains, especially for the designated groups. This project will assist us to achieve urban restructuring, meet housing demand, create jobs and transform our communities," Sisulu said.
Over the past few months, Sisulu has launched several social housing projects in Gauteng and the Western Cape, with the latest being Anchorage in the City of Cape Town and Kempton Village in the City of Ekurhuleni.
The Minister has also challenged the NHCF, an agency of the Department of Human Settlements and funder of government national priority projects, to reach out to qualifying households in the low-to-middle income market through their Finance Linked Individual Subsidy Programme (FLISP).
The once-off financial assistance for qualifying beneficiaries ranges between R27 960 to R121 626.
Over the past 12 months, the NHFC has processed 2 815 applications and of these, 2 120 were approved.
To date, over R60 million has been disbursed to 1 136 beneficiaries and this has triggered over R1 billion worth of home loans approved by banking institutions.