The Western Cape government’s response to the housing crisis in Mossel Bay has drawn criticism after it unveiled a new plan for the R339 million Mountain View development, where completed housing units have stood vacant since 2022 despite growing calls for their allocation.
On Saturday, Infrastructure MEC Tertuis Simmers announced a new Instalment Sale Agreement (ISA) model aimed at ensuring the 242 vacant units, which have sparked public backlash, are occupied.
Under the model, qualifying beneficiaries will be able to move into the homes while working towards full ownership.
“This announcement demonstrates that the Western Cape Government continues to innovate where others simply criticise. Rather than abandoning the project, we are adapting it to meet today’s housing realities and creating a sustainable bridge from renting to owning,” said Simmers.
“Affordable housing must respond to the realities facing working families. If the market changes, government must innovate. This approved model keeps homes occupied, protects taxpayers’ investment and, most importantly, gives more qualifying families a genuine opportunity to become homeowners. This is what a responsible government looks like.”
The department said the model would protect public assets, reduce the risk of illegal occupation, assist families excluded from traditional mortgage finance and ultimately recover the full value of the Mountain View development to fund future affordable housing projects.
The vacant units form part of 278 homes earmarked for beneficiaries of the First Home Finance Programme (FHF), formerly known as FLISP. They are intended for households earning between R3501 and R22 000 a month who do not qualify for free Breaking New Ground (BNG) housing but cannot afford homes on the conventional market.
The development also includes 725 BNG units, which were allocated free of charge to approved beneficiaries with a combined household income of up to R3500 a month.
The People’s Movement for Change (PMC) rejected Simmers’ announcement.
Spokesperson Anco Barker questioned why the province could swiftly introduce a new financing model but not amend its housing policy to prioritise poorer households.
“If the government can amend the policy quickly to introduce a completely new financing model, then government can equally amend the policy to prioritise fully subsidised housing where the greatest need exists,” she said.
“According to the Mossel Bay Municipality’s own planning documents, 52.8% of households are classified as low-income households, while 17.4% have no income whatsoever. Mossel Bay has 52 985 households, meaning almost 28 000 fall within the low-income category. Yet despite this overwhelming evidence of where the greatest housing need exists, the provincial government remains determined to design policy around a relatively small segment of households capable of qualifying for an Instalment Sale Agreement.”
Barker also questioned whether the new model offered beneficiaries sufficient security.
“Many households survive from month to month, while others simply do not make it through the month. If beneficiaries default under an Instalment Sale Agreement, will the province obtain court orders to evict them? Will families once again find themselves homeless after believing they had finally secured a home? If so, then this model simply creates another cycle of insecurity instead of delivering permanent housing solutions.”
Cape Times
Ntsikelelo Qoyo
iol.co.za