Department of Infrastructure’s human settlement branch successfully delivered nearly 8000 housing opportunities in the 2022/23 financial year

Today the department presented the former Department of Human Settlements 2022/23 annual report to the Standing Committee on Infrastructure and the Public Accounts Committee. The department formed part of the Western Cape Government’s clean audit achievers.

In the year in review, the department created 7808 housing opportunities for citizens across the province. The department’s performance trumped all the other 8 provinces in the delivery of the affordable housing programme. The delivery of 1 436 First Home Finance (FLISP) houses further exemplified the Western Cape Government’s intention to make affordable housing accessible to more citizens.

Cognisant of the tough economic climate the department innovatively developed a new pilot project, the Deferred Ownership project. This project was launched in June 2022, under the name of Mill Park Development. This development is envisaged to create 106 affordable housing opportunities for residents of Bredasdorp and the broader Cape Agulhas municipal area.

The deferred ownership project offers applicants a rent-to-own option. This allows applicants to rent for up to 36 months, during which prospective buyers will be assisted in improving their credit records and affordability. After 36 months, the purchase is done through the First Home Finance subsidy and end-user finance. This is another initiative by the department to make adequate affordable housing available to all citizens. It accommodates residents earning a gross monthly income of R3,500 – R22,000, and who qualify for a First Home Finance subsidy.

The department committed 66% of its Human Settlement Development Grant (HSDG) to the awarding of contracts to contractors in designated groups. With the country facing high levels of unemployment through its projects it directly created 1 111 job opportunities and 274 young people received formal training within the infrastructure sector.

The security of tenure and homeownership remains a priority of the Western Cape Government. Thus, the department handed over a total of 3,727 title deeds to qualifying beneficiaries.

In his opening remarks the provincial Minister of Infrastructure, Tertuis Simmers, commended the performance of the branch. “In a year that had heightened challenges in the infrastructure sector, the department managed to deliver on its mandate and innovatively made advancements in the acceleration of making affordable and social housing accessible to more citizens. The completion of 130 units in phase 1 at Conradie Park and 204 social housing at Maitland Mews has significantly improved the lives of citizens and brought them closer to business hubs.”

The Minister continued, “With this performance as a foundation, I am fully confident that in the year ahead as a branch with the Department of Infrastructure, we will further see further advancements in the delivery of adequate human settlements.”

The 2022/23 financial year was the final year of the Western Cape Department of Human Settlements operating as an administrative department. It is now a branch within the Western Cape Department of Infrastructure as of 1 April 2023.