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City subsidises transfer of rental units to qualifying residents

The City of Cape Town has approximately 16 000 rental units available for transfer to the existing qualifying tenants in terms of the Enhanced Extended Discount Benefit Scheme (EEDBS). 

“As part of the City’s commitment to building an Opportunity City, that cares for its citizens and that is committed to redress, this administration will continue to do all we can to provide residents with the opportunity to own their own homes” said Councillor Tandeka Gqada, Mayoral Committee Member for Human Settlements.

Qualifying tenants with a household income of less than R3 500 per month are eligible for a discount of up to R88 228 (the value of the Individual Subsidy for Breaking New Ground Housing). Tenants with an income between R3 500 and R7 000 per month are eligible for a discount amount of R7 500.

In order to assist and encourage existing tenants to take transfer of their saleable units, the City is making a financial contribution in the form of a transfer fee subsidy of R500,00 which will expedite the transfer of these units.

The City will also write off any residual services arrears and rental arrears where the subsidy allocated does not cover the unit’s sale price, plus the arrears.

The units for sale are single and row type cottages and maisonettes. These saleable units are spread across the City.

Multi-storey flats are not at this stage being considered for sale as they can only be sold through sectional title as set out in the Sectional Title Scheme Act.

Public engagements will soon be held in which information will be shared with communities about how to take advantage of this offer. Details of these meetings will be released in due course.

“I look forward to working with all involved parties from both within the City and from relevant communities. In the meantime, I encourage all qualifying tenants to visit their local housing office and talk to the staff to find out more about this very exciting opportunity” said Cllr Gqada.

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