Metro hits back at FF claims of ‘failed’ housing company
Spokesperson Lindela Mashigo refutes the claims as baseless and says, on the contrary, Housing Company Tshwane maintains a revenue collection of over 84% across the board.
The Tshwane metro has rebutted the Freedom Front Plus’ assertions that they are constantly footing Housing Company Tshwane’s (HCT) bills.
Earlier this month, the party claimed that the metro’s efforts to financially assist HCT were a fruitless expenditure.
FF Plus councillors claimed out of the 2 107 housing units that HCT manages, a significant rental income loss is recorded annually, and it struggles to carry out essential maintenance on the buildings are present.
The financial complaints include significant operational costs, including security, maintenance, and service levies and not enough collection to balance these costs.
More concerning are 160 Clarina housing units that have a collection rate of just 9%, and a long-term lease agreement for 33 properties in Sunnyside.
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.
HCT reportedly pays more than R50-million in salaries, including those of board directors.
The FF Plus advocates for responsible city management and sensible use of tax money and assures to closely monitor the process and raise objections if there are any signs of maladministration.
The Tshwane metro, however, said the 38 units in Sunnyside have significantly improved in revenue collection since the metro took over in a single year.
“The city transferred a block of flats comprising 38 units in Sunnyside to HCT. Since assuming responsibility for the building, HCT has successfully improved the rental collection rate from 55% to 94% within the span of a year,” said metro spokesperson Lindela Mashigo.
“Currently, HCT maintains a revenue collection rate of over 84% across its entire rental stock. This includes properties recently transferred from the city, as well as the Clarina Estate, which HCT has been managing on behalf of the city as part of its commitment to providing alternative accommodation to former residents of the Schubart Park buildings.”
Mashigo added that Clarina Estate, located in the north of Pretoria, was never intended to be revenue-generating and said the low collection rate is due to some uncooperative tenants.
“Former Schubart Park tenants were expected to contribute agreed-upon levies to HCT for the upkeep of the area. Unfortunately, many residents did not honour this agreement, resulting in a low collection rate of just 9%,” Mashigo said.
The metro reaffirmed it had established HCT as a long-term institutional vehicle to support the procurement, development, ownership, letting, maintenance, and management of residential accommodation.
It is primarily targeting low- and middle-income households as outlined in the National Housing Code.
Mashigo explained that HCT plays a critical role in supporting the city’s agenda to provide inclusive housing opportunities to historically marginalised communities, particularly within the inner-city and adjacent business development districts and dismissed claims of financial mismanagement.
“Despite being a relatively small and growing municipal entity, HCT has made significant strides in both acquiring new rental stock, such as the large-scale Townlands project, currently the largest social housing initiative in the country,” he said.
[It is also] revitalising older housing stock previously transferred from the city. These efforts have resulted in substantial improvements in rental revenue collection and overall property management. Any information to the contrary is unfounded and does not reflect the realities on the ground,” he concluded.
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