2011-04-13: Fraudulent allocation of houses

RESIDENTS in Soweto have informed the City's Housing officials of the alleged collection of money by certain organizations from applicants with the promise of helping them jump the housing waiting list.

"Applicants are offered assistance with the application of a housing subsidy scheme and upon approval are misled into believing that the reference number is an allocation to a specific house", says Councillor Ruby Mathang member of the mayoral committee for Housing.

Councillor Mathang said that the number reflected was only a reference number on the Demand Database receipt and not a house or stand number. He further stressed that residents should not be tricked into parting with their hard earned cash with false promises especially now when local government elections are to be held.

According to the Housing Department, the application process when applying for a government subsidized house is as follows:
Applicant applies for a project linked subsidy through the Housing Subsidy Scheme which is administered by the National Department of Human Settlements and is given a reference number reflected on the Demand Database receipt.
Upon meeting the criteria, applicant is then entered into the Demand Database for approval.
When the housing construction begins, successful beneficiaries from the targeted project area are formally informed.
Applicant will thereafter be allocated a house strictly by a Housing official.
Councillor Mathang says, "We urge any person or residents who have information to come forward so that we can take strong action against these organizations and avoid unnecessary raising of expectations".

Issued by:
Virgil James
Communications Specialist
City of Joburg
011 407 7226
082 467 9415​