In some cases the original occupant of the property is not a qualifying beneficiary. This is more common in informal settlement upgrading projects. There are three possible options:
The occupant qualifies for a subsidy but has never applied for a subsidy and an application needs to be submitted. Next step: submit a subsidy application
The occupant has applied for a subsidy in the past but was declined: In this case, the housing authority must extract and review the subsidy application from the HSS to assess reasons the application was declined. Where these reasons are based on circumstances that might have changed, the housing authority should ask the occupant to resubmit an application for a subsidy
The occupant does not qualify for a subsidy. Next step: Regularisation
Where the self-classified owner cannot qualify for a subsidy, a regularisation process is required. During this process, the housing authority will sell the property to the self-classified owner occupant for a nominal amount of R15 000. This process is described in more detail in the regularisation overview in this toolkit.
To qualify for a subsidy, applicants must be
A South African citizen or be permanent residents
18 years or older
Married or living with a partner OR
Single with proven financial dependents permanently living with the applicant
Applicants have never owned property or received a subsidy from the government before
Maximum monthly household income of R15 000 (in line with Guiding Principle 6).
Where the occupant earns more than R15 000 the occupant can apply for a FLISP to purchase the property in line with the regularisation process. This price is set at a fixed amount of R15 000 (roughly approximating the value of the land in subsidy properties) plus transfer costs.
Unlike other FLISP subsidies, there the occupant qualifies for a capital amount in excess of the land and transfer costs but this is not paid over to the beneficiary
In order to submit an application for a subsidy, the applicant must have the following documents:
ID document of applicant
ID documents of spouse / co-applicant (if applicable)
Marriage certificate (if applicable)
ID documents of dependants (if dependants are over the age of 18 years)
Unabridged birth certificates of children (if dependants are under the age of 18 years)
Proof of income
Where dependants are over the age of 18 years, proof of income of dependants
These documents must accompany a completed subsidy application form, available from each provincial Human Settlements Department (see https://www.westerncape.gov.za/assets/departments/human-settlements/docs/forms/hs-individual-housing-subsidy-application-form-final-30march2022.pdf for the Western Cape).
The housing authority can facilitate subsidy applications and re-applications in order to expedite the process, particularly where the housing authority is accredited and has access to the HSS.
Once the subsidy has been approved, the transfer process can proceed