March 25, 2004
By Ndaba Dlamini
IKE Ndweni has been living in a rented flat in Soweto for the past 20 years. Now his dream of owning a home is about to come true after the Joburg City Council approved a plan to sell flats to tenants under a discount benefit scheme.
Ndweni lives in a block flat with his family in Jabulani and has been a tenant since 1984. "It's a noble idea to sell us the flats since we have lived here for such a long time. It is better to buy the place so that I can have a place I can call my own," he said, adding that he had not known of the council's plans.
Blocks of flats in Jabulani, Chiawelo and Zola will be sold to tenants by the city council under a discount benefit scheme, which allows tenants who occupied the flats as of 14 March 1994 a discount of up to R7 500.
The scheme was made available to "former 'own affairs' communities", those who managed the flats independently of the then city council prior to the establishment of the unicity in 2000. After the metro was established, the City of Johannesburg took control of the flats, monitoring rents and maintenance.
The benefit scheme allows for the discount on purchase of the flats at old cost of the flats plus rental owed by tenants. The balance over and above the R7 500 is payable in cash against transfer, or secured by a mortgage bond at a market-related interest rate, according to a City of Joburg housing department report, approved by the council in February.
The flats in Jabulani, which comprise 28 three-bedroom duplex flats, 114 two-bedroom flats, and 299 three-bedroom flats are selling for R23 500, R18 500 and R22 100 respectively, cost of buildings, civil infrastructure and electrical reticulation included.
Chiawelo flats are selling for R20 000 for four-roomed units and R10 000 for one-roomed units but the prices exclude electrical reticulation and site cost.
Tenants who qualify under the scheme have the option to either buy the flats, or "remain in occupation subject to the lessor's right to increase the rentals".
Those who do not qualify as tenants as at 14 March 1994 are not entitled to claim the discount benefit and any sale would have to be at either market value or historic cost, the report adds.
The City's housing department report states that in order for a property to qualify for the benefit, it must be transferable. In the case of the Jabulani and Chiawelo flats, which comprise multiple units, sectional title is required.
According to council spokesman, Nthatisi Modingoane, consultations with tenants are under way to prepare sectional title registers and to establish responsible bodies in respect of each block of flats to facilitate the sale of units.
The report found that in the case of Jabulani flats, which comprise duplex and multi-storied blocks of flats, a distinction has to be made between the two because duplex flats could be transferred in individual title while the remainder will only be transferred in sectional title.
In order to make the duplex flats transferable, the report states that "survey of sites, preparation of diagrams, separation of service points and registration of servitude on common walls" must be done. The costs of transfer, though, will be borne by the City under its subsidy scheme.
Despite the "historic" prices suggested by the city council, some of the tenants expressed dissatisfaction with the council's plan to sell them the flats. Ronny Mthembu of Jabulani flats, suggested that the flats be given to them for free. "My flat is in a sad state. The roof leaks, plumbing is in a bad state and I do not have a geyser. There is no incentive for me to buy it," he said.
Chiawelo tenant, Eunice Radebe, said she could not afford the rent of her four-room flat, let alone buy it. "I have been tenant of Chiawelo flats since 1984 and paying the rent has been a constant struggle. Maybe this is a ploy by the council to throw us out of these flats," she said.
An investigation of flats in Zola, owned by the pension fund of the Johannesburg administration, is still under way to determine their status, according to Modingoane.
The sale of the flats started immediately after the housing department report was approved, Modingoane said. "Most tenants are keen to buy the flats. A lot of politics, though, is involved in the transfer of the properties and there is still a lot of legal and technical work to be done in order to finalise the sale of the units," he added.
The housing department's project manager, Mazwi Panyane, said the tenants would be informed formally "in due course" about the sale of the flats during a road show which is going to take place after investigations of the flats have been completed.
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