please tune in at 19h45.... Ligwalagwala Fm INDIVIDUAL SUBSIDY PROGRAMME ( R0 - R3501) The Individual Subsidy Programme provides access to state assistance where qualifying households wish to acquire an existing house or a vacant residential serviced stand linked to a house construction contract through an approved mortgage loan. These properties are available in the normal secondary housing market or have been developed, as part of projects not financed through one of the National Housing Programmes. In cases where qualifying beneficiaries acquired vacant serviced stands from their own resources and have not accessed state assistance in the past, and who wish to construct/complete top structures on their properties, the MEC may award a full housing subsidy to such persons on condition that he/she can assure construction of a top structure thereof. There are two types of individual Subsidies • NON-CREDIT LINKED INDIVIDUAL SUBSIDIES: Non-Credit Linked subsidies are available to persons meeting the qualification criteria and who do not qualify for credit from a financial institution, as determined by the institution’s lending criteria. In most cases it used to cater for the most vulnerable group in society, those who can’t wait for the municipal waiting list to acquire a house, or situations to avoid disaster because of shelter (Persons classified as aged, disabled & child headed households) • CREDIT LINKED INDIVIDUAL SUBSIDIES: Credit Linked Subsidies can be accessed by persons who wish to acquire an existing house or a vacant residential serviced stand, and who can access mortgage loans. The subsidies are administered on behalf of the MEC by the financial institutions who have concluded agreements with the MEC and who will act as agents for the MEC. RULES GOVERNING CREDIT LINKED SUBSIDIES a) Credit linked subsidy applications must be submitted directly to financial institutions (lenders) who will process the applications, consider the loan application against its credit criteria and submit the applications for approval to the MEC; b) Applications must be submitted to lenders together with a conditional deed of sale for the property to be acquired by the beneficiary as well as a signed building contract where applicable; c) On receipt of the application and the copy of the sale agreement concluded by the beneficiary and the seller, the lender must in principle approve the beneficiary’s application for loan finance, subject to the granting of a subsidy to the beneficiary. d) Approval is also subject to an assessment of the property by the lender; After approval of any subsidy, the lender must: a) Issue a guarantee securing payment of the subsidy amount; The following principles must be adhered to: a) It is essential that the subsidy must be used for housing purposes. The houses to be provided must comply with the Norms and Standards as provided for in the Technical Guidelines. b) Inspections in loco to ensure adherence to approved standards and progress with the construction of houses; and c) Payments must only be made upon confirmation that value for the housing subsidy money has been realised. d) House building plans should only be approved by the responsible municipality and must conform to at least the National Norms and Standards in respect of Permanent residential Structures and the minimum Norms and Standards instituted by the relevant PD. WHO WILL BE ASSISTED? The Programme provides access to subsidies to beneficiaries who satisfy the following entry requirements: a) Resident: b) Competent to contract: c) Not yet benefited from government assistance: d) Not yet owned a fixed residential property: In addition to the above requirements, any applicant must also satisfy the following general criteria: • Married or Cohabiting: • Single with Financial Dependents • Special Provision: • Monthly household income: Special Provision: Beneficiaries of credit-linked subsidies will be subject additional criteria as stipulated by the financial institution. • Persons who are beneficiaries of the Land Restitution Programme: • Persons classified as military veterans: • Persons classified as aged: • Persons classified as disabled: Guest speaker : Mr Bongani Magagula Acting Director: Strategic Housing Support ISSUED BY THE COMMUNICATIONS DIRECTORATE MPUMALANGA DEPARTMENT OF HUMAN SETTLEMENTS CONTACT PERSON: FREDDY NGOBE – 013 766 6014
Posted on: Mon, 15 Sep 2014 17:27:59 +0000
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