The Johannesburg Social Housing Company (Joshco) is building 502 rental housing units, valued at R200-million, in Dobsonville, Soweto, which are scheduled for completion in June 2016.
To alleviate the housing shortage in the City of Johannesburg, the project is expected to deliver 152 one-bedroom and 350 two-bedroom units, creating more than 700 jobs during its construction phase.
“There is a huge number of people living in Johannesburg who do not qualify for reconstruction and development programme housing at the lower end of the economy and also many who cannot afford a bond at the higher end,” said Joshco CEO Rory Gallocher during the media open day last month in Dobsonville.
“The provision of rental housing ensures that residents who do not qualify for government-subsidised or bonded houses are also catered for.”
He added that Joshco’s mandate was to increase low-cost housing so that people who earn from between R3 500 and R7 000 would have a roof over their heads and eventually move into bonded houses once their economic situation improved.
Delivering the keynote address during the media open day, mayoral committee member Dan Bovu indicated that, of the R200-million, about R520-million had been allocated to empowerment – creating local suppliers, providing skills training and encouraging small and medium-sized enterprise development.
“It is our hope that, at the end of the project, the beneficiaries can start their own income-generating businesses,” mentioned Gallocher.
Bovu further alluded that such projects enabled the city to deal with the triple challenge of unemployment, poverty and inequality, identified in the City of Johannesburg’s 2040 Growth and Development Strategy.
The Social Housing Regulatory Authority (SHRA) funds part of the Dobsonville project. The SHRA subsidised units will enable people who earn less than R3 500 a month to rent. For a one-bedroom unit with a kitchen, lounge and bath, a prequalified renter will be expected to pay between R750 to R2 000 a month.