LOW cost flat residents in Isipingo are in a state of uncertainty after being requested to sign new lease agreements despite waiting for decades, hoping for home ownership promises since 1994 to finally be met.

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When lessees of low-cost rental units in Ward 90 were requested to sign lease agreements, concerned residents issued a public service announcement imploring that residents do not sign until legal experts review the document.

Lotus Park flat lessee, Dineshri Raju, raised concerns about a number of issues with the terms of the lease, which represent a far cry from the original agreements long-time residents signed in the early 1980s when the units were built.

Raju argued that because the flat units were built prior to 1994, lessees qualify for the Enhanced Extended Discount Benefit Scheme (EEDBS), a government initiative meant to assist long-term tenants purchase publicly-owned rental homes. It provides a discount on the purchase price and can write off longstanding rental debts, allowing qualifying beneficiaries to receive full ownership and their title deeds.

“Where original leases were month-to-month for an indefinite period of time, the new leases have a renewal period after three years. It is uncertain whether by the end of those three years, we will have title deeds. There are requirements that need to be met, but they were not explained to us. Since 2020, we were promised title deeds around five times. Flat owners in other areas like Chatsworth and Phoenix have gotten title deeds yet we still do not have ours,” said Raju.

She explained that many families living in the flats live solely on Sassa grants, having to balance  limited money for food, travel, medication and other living costs with rent of around R1000 for units they are supposed to own.

“These new leases include termination clauses and mention of eviction notices, which only add to residents’ fears. We are worried of being told we no longer meet the criteria,” said Raju.

The City’s response

In response to residents’ concerns, eThekwini Municipality’s communications director, Mandla Nsele, confirmed that Isipingo housing development qualified for the EEDBS. He explained, however, that the process of transferring ownership is not limited to a simple transfer of flats to occupants.

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“A series of statutory, planning, and regulatory processes must first be completed to facilitate the transition from a rental housing scheme to a sectional title housing scheme. These processes include planning approvals, subdivision, land surveying, conditional assessments, consumer education, infrastructure and building compliance assessments, as well as upgrades to ensure compliance with all applicable legislative and regulatory requirements,” said Nsele.

While the aforementioned processes are being undertaken, the units remain classified and managed as rental stock, and consequently the Auditor-General has mandated that the City formalise lease agreements, ensuring that they are legally enforceable and comply with the law.

Nsele added that 112 housing units in Isipingo have completed the planning phase and advanced to the upgrading stage. Once completed, the properties will be made available for sale to qualifying occupants in accordance with the EEDBS.

“The City’s approach aims to balance compliance with legislative and governance obligations while simultaneously advancing the long-term objective of transferring ownership of qualifying rental housing units to beneficiaries,” said Nsele.

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