When I applied for an RDP house in 2007 I qualified. I am still waiting but now I earn more than R3,500 per month and have been told I no longer qualify. What can I do?

The short answer

There are two other housing programmes you may qualify for: the Social Housing Programme (SHP) or “Gap” Housing.

The whole question

I applied for RDP house in 2007 and I was fully qualifying then. But now 12 years later I am told I do not qualify to get the house because I earn more than R3,500 per month. What must I do because I desperately need that house and I do not qualify for a home loan?

The long answer

Thank you for your email about no longer qualifying for an RDP house, after being on a waiting list for years.

It is true that if you earn more than R3,500 a month, you do not qualify for an RDP house, even though you did qualify when you applied in 2007.

There are two other government housing programmes which you may qualify for: the Social Housing Programme (SHP) or the “Gap” Housing. Below is a copy of relevant parts from an article Groundup has written on housing:

Social housing programme (SHP)

Municipalities and provincial governments can subsidise companies to develop new housing projects if some of the houses are rented as affordable housing. This makes the building and planning of the projects cheaper, which makes rent lower.

Each municipality has to conduct an Integrated Development Plan every five years to see what the housing needs are. Participating in your community’s Integrated Development Plan Representative forum is a good way to communicate your housing needs to the municipality.

SHPs are mainly (but not only) for households earning between R3,500 and R7,500 per month. You can qualify even if you have benefited from other housing projects in the past, but you may not currently own property. Couples (married or living together) qualify, or single people with dependents.

To apply for an SHP, approach your local housing office about planned SHP projects in your area. Depending on the province and project, you may have to apply directly to the institution or company that is managing the SHP. It will have its own screening process.

Note: All of the above programmes tend to be advertised during the Integrated Development Plan Forums, or otherwise they should be advertised at local housing offices. Sometimes your municipality or province will advertise online on their websites. Keep a lookout for signs near new developments, or speak to your ward councillor about which projects are being planned.

In addition to all the above programmes government also has an Emergency Housing Projects programme, but this is seldom used, so we don’t cover it here.

“Gap” housing

If you earn more than R3,500 but less than R15,000 per month (which is the minimum amount needed to qualify for a home loan from a bank), there are some state-driven housing initiatives which apply to you.

Financed Linked Individual Subsidy Programme (FLISP)

FLISP helps people who qualify for a home loan to buy a house for the first time. FLISP gives you a grant which can be used to reduce the initial loan amount. This will make your monthly repayments lower. Depending on how much you earn, you can apply for a grant up to R87,000.

FLISP grants can be used for both existing houses and to build a new one.

Besides getting approval for a home loan and earning between R3,500 and R15,000 per month, you must meet the same criteria as described for RDP houses above.

To apply for a FLISP grant, you must first go to your bank or financial institution and apply for a home loan. For that you will need:

  • Certified copy of your South African ID or passport/permanent residence permit

  • Copy of your signed Offer to Purchase the house or property

  • Proof of your current residential address

  • Official salary slip or stamped bank statement showing the last three months of income

To qualify for a home loan you have to be over 21, have been employed for a minimum of six months, have no defaults on your credit profile and earn above the minimum salary requirement as decided by your chosen bank. If your home loan application is denied, your FLISP application will not be considered.

Once this has been completed:

  • Ask for an “Approval in Principle” letter from the bank.

  • Register on the FLISP website: www.flisp.co.za or go to your municipal offices to register for a FLISP grant.

  • Compile the following certified documents for your application:

    • Home Loan Approval in Principle letter from your bank

    • Completed FLISP application form available from National Housing Finance Corporation (NHFC) website

    • RSA ID document or permanent residence permit

    • Certified copies of birth certificates/RSA IDs of all your dependents, and proof of foster children guardianship (where applicable)

    • Proof of marriage, civil union or partnership (an affidavit can be done for the latter)

    • Divorce settlement (where applicable)

    • Spouse’s death certificate (where applicable)

    • Proof of monthly income

    • Agreement of sale for the property or building contract and approved building plan (where applicable)

Once this is done, your completed FLISP application will be sent to the National Housing Finance Corporation to be processed.

Below is a list of government housing assistance contact details:

Government housing assistance contact details

Housing Enquiries Hotline: 0800 146 873

Gauteng: 011 355 4000

Western Cape: 079 769 1207 (Please Call Me)

Eastern Cape: 043 711 9901/2/3

KwaZulu Natal: 033 392 6400 or 033 3365300

North West: 018 388 5403

Limpopo: 015 284 5000

Northern Cape: 053 830 9422

Free State: 051 405 3883

Mpumalanga: 013 766 6087

 

Answered on April 18, 2019, 10:18 a.m.

See more questions and answers