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Govt to close RDP house sales loophole

Govt to close RDP house sales loophole

Photo by Bloomberg

8th June 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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Government has commissioned a study to determine how many Reconstruction and Development Programme (RDP) houses have been sold by beneficiaries to the private sector within eight years of being awarded a house, as well as why the houses were sold. 

By March 31, government had built 2.92-million subsidy houses across the range of approved national housing programmes, with an estimated 3 411 sold by beneficiaries to the private sector.

In response to a question asked by opposition party Inkatha Freedom Party MP KP Sithole, Human Settlements Minister Lindiwe Sisulu said government could not take disciplinary action against beneficiaries who received and then sold their RDP houses, as the government did not employ these recipients.

“While the Housing Act 107 of 1997, as amended by the Housing Amendment Act 4 of 2001, set out that a subsidy beneficiary ‘shall not sell or otherwise alienate his or her dwelling or site within a period of eight years’ as a condition of the State housing subsidy programme, no punitive measures are stipulated in this regard.

“We are looking at closing this lacuna in our law,” she added.

Further, Sisulu invited MPs to partner with government in educating people about the “assets we are providing and the various housing opportunities we provide to our citizens”.

“Our people must be cognisant of the fact that they only qualify once for housing assistance from government and, therefore, a decision to sell the houses we provide them should not be taken lightly, it should be driven by the fact that their economic conditions have changed for the better,” the Minister added.

She reiterated comments from her May 2015 Budget Vote speech: “Our hope is that owners selling their houses will do it legally under circumstances that are regulated. Our job as government is to regulate the sale of houses so that the transaction is legal and that the seller is well informed and consciously takes a decision to sell.

“There is great value in the houses we give our people and we want them to appreciate that. To the extent that it is possible, I would urge beneficiaries of houses please to look after their houses carefully and consider before they sell,” she said.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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