DA fights for tenants in Council owned rental properties
by Cllr. Mabekenyane Thamahane — DA Shadow MMC for Human Settlements in Ekurhuleni
Date: 30 March 2021
Release: Immediate
Type: Media Statement
The Democratic Alliance (DA) in Ekurhuleni is immensely dissatisfied with the Human Settlements Oversight Report concerning the proposed rental tariffs increases on the Municipal Rental Stock.
The ANC and its Coalition partners* have imposed a social housing threshold, which will see many families being homeless. As the DA, we believe that the social housing threshold does not take into consideration lower-middle-income groups. That is, individuals who earn too much to qualify for RDP housing and too little to apply for a bond. The threshold, therefore, prevents these individuals from applying for rental in Council-owned properties, as they earn slightly above the social housing rental threshold of R7500.
During the March 2021 Council Meeting, we, as the DA, submitted a minority report, reflecting our views on this policy and proposing an alternative approach to this issue.
The DA recommends that the City of Ekurhuleni (CoE) makes provision for low-income earners and take into consideration individuals and households in the ‘missing middle gap’. That is, individuals who earn too much to qualify for free housing under the Breaking New Ground (BNG) Policy, but not enough to qualify for a bond or mortgage or rental in the private sector
The R3500-R7500 social housing threshold for low-income earners implemented in the new rental item does not take into consideration individuals and households in the ‘missing middle gap’. The income threshold also does not take into consideration the living circumstances of households who may have, through long tenure in rental properties, accumulated an income just above R7500 (e.g. family size, unemployment, monthly expenditure etc.).
These individuals have lived in these rental properties over a long period and have adjusted to a lifestyle that does not allow them the ability to afford alternative housing above their current means. It is our view that these individuals should be allowed to continue their lease in the rental property until such time that the CoE creates housing or rental opportunities that serves the needs of the individuals/ households in this “missing middle”.
The DA also recommends that tenants should not be charged rent that exceeds 25% of their monthly income. There are cases where tenants in the R3501- R4500 income threshold are charged R1108 (25%-31%) for a family unit (3 bedroom). For individuals whose monthly income is just above R3501, this leaves these them with just less than R2393 for their other household expenses. This does not take into consideration the monthly expenditure of these households such as groceries, school fees, transport and other costs.
The ANC and its Coalition partners* rejected the DA’s minority report, thereby, rejecting all our recommendations. The CoE claims to be running a pro-poor administration that is anchored on the principle of people-centred governance. Yet, they continuously fail to put Ekurhuleni’s residents first!
*Coalition Partners: African Independent Congress (AIC), Pan Africanist Congress (PAC), Patriotic Alliance (PA) and Independent Ratepayers Association of South Africa (IRASA)
Cllr. Mabekenyane Thamahane
DA Shadow MMC for Human Settlements in Ekurhuleni
