25 April 2008

EFFORTS by Buffalo City's housing department to provide low cost housing for citizens were given a boost when the housing subsidy increased from R38 000 to R43 506 a house.

The increase was confirmed in a report by the national Department of Housing, sent to provinces and municipalities around the country, detailing how the new subsidy's costs would be broken down.

"The projected new housing subsidy amount for the financing of the 40mē top structure is R43 506 for the 2008-2009 financial year. This only applies to the construction of the 40mē houses. The projected increase represents an increase of 11 percent," the report read.

However, the rise only applies to projects planned for the next financial year; projects already under way will continue using the 2006-2007 housing subsidy.

To arrive at the new subsidy, the department used a detailed cost breakdown entailing what would be involved during the construction of the 40mē houses. These included earthworks, roof structure, doors and frames, electrical, plumbing and toilet, labour, material, finishing and paint work.

Some of the areas that stand to benefit from the higher subsidy include Reeston Phase 3, Potsdam Unit P Stage 2, and Mdantsane Bufferstrip: Manyano and Tembelihle.

Source: BuffaloCity.gov.za