By Adolf Kaure.
Then Swakopmund Municipal Council has cautioned residents against selling their Build Together Programme houses to third parties.
During the latest monthly ordinary council meeting, the chairperson of the management committee, Blasius Goraseb said that Build Together beneficiaries may only sell their donated properties to third parties, after the statutory 5-year period has lapsed.
"Beneficiaries are not permitted to sell the house unless at least 5 years of the 20 years have expired."
"Build Together beneficiaries be informed not to sell their properties, as it defeats the purpose of the low-cost housing."
The council said it has a list of 22,041 people on the master waiting list, waiting for erven with most of the beneficiaries living at the Seaside DRC (Democratic Resident's Community) informal settlement.
"The Swakopmund Municipal Council puts further measures in place to prevent beneficiaries from selling their houses when faced with financial difficulties or any other related issues," said Goraseb.
According to him, the council creates and donates serviced erven with communal services such as street lights and water to the informal settlement to improve their living conditions and formalise the status of an informal settlement, only for well-off individuals who can afford to compete in the market to benefit at the cost of less fortunate beneficiaries who live in poverty.
"It is proposed that Council implements measures to prevent beneficiaries from selling their houses such as drafting a well-articulated housing policy."
"Council can further look into organising educational sessions for beneficiaries addressing the importance of owning a property, the implications of selling a house and provide counselling on what to opt for when in debt or having the desire to sell a house without any other form of tenure," he said.
BACKGROUND
The Swakopmund Municipal Council has put in place policies to assist low-income households to obtain ownership of land and this contributes to the eradication of poverty and homelessness.
In terms of the National Housing Development Act, the Swakopmund Municipal Council uses funds raised from rates and taxes to assist residents through the Build Together Programme, by providing subsidised land and a loan amount of N$80,000 that is re-payable over a period of 20 years.
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According to the council, the purpose of donating housing to low income households is not to provide a quick source of income when they sell the property for a small profit to wealthy individuals with the result that the poor family returns to the informal settlement again.
"Home ownership is intended to lift people out of poverty permanently by providing a sense of housing. A home is a also means of raising a family out of poverty by allowing the family to use it as security for a loan to start a business or access funds."
"Further measures are required to effectively prevent beneficiaries using Build Together Property as a quick means to obtaining cash or being misled by shrewd property developers who identify Build Together beneficiaries as being less sophisticated or knowledgeable and in need of funds and therefore exploitable," said Goraseb.
There are several interrelated factors that might have driven the beneficiaries to sell their houses such as desperation to get money, resolving debt, and/or not understanding the value and benefit of owning a house. This results in increased poverty and dependence on the council which negatively affects the delivery of housing.
