All You Need to Know about Housing Subsidies
A housing subsidy is a grant by government to qualifying beneficiaries for housing purposes. One of the DHS areas of responsibility in the delivery of human settlements relates to the bottom-most end of the market, where it provides housing subsidies to the poor. This is where the bulk of the housing backlog exists, affecting mainly those who earn below R3 500 a month.
The Department of Public Service and Administration has partnered with the Public Investment Corporation (PIC) in terms of which the PIC, through its Developmental Investment Policy, has invested R11 billion in support of the GEHS Housing Finance Access Service to promote and increase home-ownership among public service employees. Prior to the GEHS, over 954 000 employees received housing allowance of R900 per month, which increased to
R1 200 with effect from 1 July 2015.
The scheme was established in response to the housing finance and access gap that exists with households in the monthly bracket of R3 500 and R15 000, who continue to remain underserviced and excluded from accessing home loans in spite of their regular income and relatively secure employment.
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