Metro reacts to criticism over Housing Company’s poor performance
Lenor Janse van Rensburg, Freedom Front Plus councillor, slammed Housing Company Tshwane's financial instability, highlighting a low tenant payment rate and unsustainable reliance on municipal bailouts. She called for immediate reforms, including a financial audit, strict enforcement of rental agreements, and a reduction in municipal subsidies.
The metro said it is addressing concerns over poor rental collection rates in its public housing, especially in areas like Clarina.
Spokesperson Lindela Mashigo emphasised that the tenants at Clarina, who are part of the ex-Schubart Park group, were served with eviction notices following a court order. As a result, the metro has no obligation to provide temporary emergency accommodation for these residents.
This comes after Freedom Front Plus councillor Lenor Janse van Rensburg levelled heavy criticism against the instability of the House Company Tshwane (HCT).
Mashigo said the metro’s broader rental collection efforts are focused on strategies such as encouraging tenants to make payment arrangements, implementing deductions for city employees, and addressing illegal tenants through eviction notices.
These actions aim to improve the overall rental collection, which stands at 85%, excluding Clarina and Rooiwaal.
Long-term, the metro aims to reduce taxpayer reliance by diversifying the HCT’s operations.
Mashigo revealed that HCT’s mandate has been extended to include affordable student housing, rental units, and first-home finance options, allowing the entity to cross-subsidise lower-income residents and work towards self-sustainability.
“This will enable the entity to cross-subsidise the lower-income earners and enable the entity to become self-sustainable.”
Regarding HCT’s R50-million salary bill, Mashigo defended the expenditure, pointing out the entity had made significant progress in improving rental collections since taking over the management of these properties.
He also confirmed that HCT undergoes annual audits by the Auditor-General of South Africa (AGSA), with no findings of financial mismanagement.
The metro is also exploring private sector partnerships and strategies to enhance social housing service delivery and financial viability, as part of its broader affordable housing plan.
Housing projects managed by HCT, include:
– Eloff Gebou, Pretoria CBD;
– Townlands Social Housing, Pretoria CBD;
– Sunnyside Social Housing, Sunnyside;
– Chantelle Village, Akasia
– Clarina Estate, Pretoria North;
– Little Manhattan, Pretoria West.
– Marabastad: Western Pretoria Inner City and home to the large Townlands Social Housing project.
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