Everything you need to know about government housing

Last updated: 25 November 2024.

This article is regularly updated. Please alert us to inaccuracies or omissions. GroundUp is not the government and we are not responsible for what government does. Many people have been on waiting lists for decades, and we frequently receive allegations of corruption in the allocation of houses. While this information sheet will not make the housing process more efficient and fair, we hope that it will make you aware of what the policies are so you can exercise your rights.

The government houses people using the following projects:

(1) Government subsidy housing – commonly known as BNG or RDP

(2) Community Residential Units (CRU)

(3) Upgrading of Informal Settlements Programme (UISP)

(4) GAP Housing and First Home Finance – previously known as FLISP

(5) Social Housing

(6) Emergency housing

To apply for any of these, you have to register with your municipality or provincial Department of Human Settlements. You can go to the Housing Needs Register website (https://www.hssonline.gov.za/#/) or visit your nearest provincial or municipal housing office. Some cities, like City of Cape Town, have other venues for application. The entire application is free of charge.

To qualify, you will need to be over 18, and either a South African citizen with an identity book or card, or a foreign resident with a permanent residency permit. Different housing projects are designed for different incomes and so you may also have to provide proof of your monthly income.

To check your status, you can

• Log on to the online Housing Needs Register (https://www.hssonline.gov.za/#/);

• SMS your 13-digit ID number, followed by a space and your surname, to 44108;

• Visit the housing office where you applied;

• Call 0800 146 873

Depending on where you are, you will be listed on a Municipal Housing Demand Database or your province’s Housing Needs Register. When new projects are built you might be allocated housing. Remember to keep your proof of registration. If you move let the department where you applied know so they can find you if your house becomes available.

Allocation of government-built houses is complex. Each municipality or province has different systems for housing allocation, and so the information here is only a guide of what is available and how to apply. Each municipality has its own system for appeals, but each province’s MEC is allowed to review applications on a case-by-case basis. If your application gets rejected, try contacting your MEC of Human Settlements for help.

Government subsidy housing – commonly known as Breaking New Ground (BNG) or RDP houses

These are houses that have been built by the government and are given to low-income families. Government subsidy houses are owned, not rented, by beneficiaries. You should be given a title deed for your house.

To qualify for a BNG (previously RDP) house, you must meet the National Housing Subsidy Scheme criteria. This means you must be:

• A South African citizen, or have a valid permanent residence permit

• Over 18 and mentally competent to sign a contract

• Married or living with a partner, or single and have dependants (single military veterans or aged people without dependents also qualify)

• Earning less than R3,500 per month per household (so if two people in your family earn an income and these earnings amount to more than R3,500 per month you will not qualify)

• A first-time government subsidy recipient

• A first-time homeowner

If you are disabled you are supposed to be given preference and your house is supposed to be adapted to meet your needs.

To apply for a Government Subsidy house, you can go to the Housing Needs Register website (https://www.hssonline.gov.za/#/) or visit your nearest provincial or municipal housing office. Some cities, like City of Cape Town, have other venues for application. The entire application is free of charge. You will need:

• Completed Housing Assistance Form (available online and at your local housing office)

• Certified copies of your and your spouse/partner’s identity documents

• Certified copies of your marriage or civil union certificate OR a cohabiting affidavit

• Certified copies of your children’s birth certificates

• Proof of foster children guardianship

• Proof of income if working, e.g. salary slip

• Details of special needs within the household, and supporting documents like medical records

Depending on your province or municipality, you will then be registered on the National Housing Needs Register or your Municipal Housing Demands Database. This is called a “waiting list”. Once the project is finalized and the houses built, you will be given keys and a title deed to your home, but it can take many years.

It is illegal to sell a BNG or RDP house before you’ve lived in it for eight years. It is illegal to rent out a BNG or RDP house.

There is a common misconception that individual ward councillors are involved with the allocation process. They are not! Ward councillors can tell you where to go and who to speak to so that you can register on the housing database, but a ward councillor is not involved in the allocation of houses and you shouldn’t pay a ward councillor to take up your case.

Note: The Department of Human Settlements no longer refers to RDP houses but has updated the RDP housing plan, and now calls it “Breaking New Ground” or BNG. They want to integrate different types of housing – rented, bought and subsidised – and provide facilities like schools, clinics and shops, to improve the quality of people’s lives. BNG houses are supposed to be larger than RDP houses, with two bedrooms, a separate bathroom with a toilet, shower and hand basin, a combined kitchen and living room area and electricity installation, where electricity supply is available in the township. The same conditions apply to qualify for a BNG house as for an RDP house.

Community Residential Units and Housing Programme (CRU)

This housing programme is aimed at households who earn between R800 and R3,500 per month. CRU housing units are for rent and not for sale. This project is aimed at refurbishing inner-city buildings and hostels.

The municipality will charge you rent to cover the municipal rates of the house.

To qualify for CRU housing, you must be:

• A South African citizen, or have a permanent residence permit

• Over 18 and mentally competent to sign a contract

• Married or living with a partner, or single and have dependants (single military veterans or aged people without dependents also qualify)

• Earning between R800 and R3,500 per month per household

• Registered on the Municipal Housing Demand Database/National Housing Needs Register

You may still qualify for CRU housing if you have previously benefitted from a government housing programme or owned property.

To apply for CRU housing, you can go to the Housing Needs Register website (https://www.hssonline.gov.za/#/) or visit your nearest provincial or municipal housing office. Some cities, like City of Cape Town, have other venues for application. The entire application is free of charge. You will need:

• Completed Housing Assistance Form (available online and at your local housing office)

• Certified copies of your and your spouse/partner’s identity documents

• Certified copies of your marriage or civil union certificate OR a cohabiting affidavit

• Certified copies of your children’s birth certificates

• Proof of foster children guardianship

• Proof of income if working, e.g. salary slip

• Details of special needs within the household, and supporting documents like medical records

Upgrading of Informal Settlements Programme (UISP)

This programme tries to provide running water, sanitation, electricity and roads to informal settlements, but not necessarily houses. If your informal settlement receives UISP funding, you can later apply for housing construction assistance through other programmes.

You cannot apply for UISP as an individual. Municipalities identify informal settlements in their area that need upgrades and then apply to their provincial department’s MEC for funding. After funding has been set aside, your community will be invited to come to planning meetings to determine the needs of your community.

Caution: This can be a difficult process. A lot of municipalities prefer to relocate entire informal settlements instead of upgrading it because getting engineering services into overcrowded informal settlements can be difficult.

Put pressure on your ward councillors and municipal officials to ensure that the budget for UISP is used for upgrading your settlement.

GAP Housing and First Home Finance – previously known as FLISP

If you earn more than R3,500 but less than R22,000 per month and qualify for a home loan from a bank, there are some state-driven housing initiatives that apply to you, such as the First Home Finance subsidy (previously known as the Financed Linked Individual Subsidy Programme, or FLISP).

First Home Finance subsidy – previously known as FLISP

These units are available for purchase by first-time homebuyers who earn between R3,501 and R22,000 per month and qualify for a home loan from the bank. Eligible households can apply for financial aid through the First Home Finance (FHF) subsidy (previously called the Finance Linked Individual Subsidy Programme, or FLISP).

The First Home Finance subsidy ranges from R38,878 to R169,264, depending on your income. The lower your income, the higher the subsidy. The aim of the subsidy is to make it easier to afford a home loan and increase your chances of the bank granting your home loan application.

You may apply for an FHF subsidy for the following purposes:

• Buy an existing home—secondary market;

• Buy a new home in a new development;

• Buy a vacant serviced residential stand;

• Build a new home; or

• Build a home on a tribal land available through Permission to Occupy.

When applying for FHF, and depending on a household situation, a certified copy of each of the following documents is required (where applicable):

• Smart Card or a barcoded identity document of every adult member of the household;

• Birth certificates, bearing the 13-digit identity number, for every child member of the household that does not have a barcoded identity document;

• Proof of South African citizenship;

• Marriage certificate for any union solemnised in terms of civil law;

• Affidavit for any union solemnised in terms of customary law;

• Divorce settlement agreement, to prove custodianship;

• Court order or order issued by the Commissioner of Child Welfare, to prove guardianship; and,

• Proof of sources of income.

• Home loan approval or grant letter from an accredited lender

• Sale agreement for a residential property

• Building contract and approved building plan (where applicable)

You can apply for First Home Finance through the National Housing Finance Corporation (NHFC): https://www.nhfc.co.za/finance-solutions/first-home-finance/.

Social housing programme (SHP)

“Social housing” refers to subsidised rental housing. Municipalities and provincial governments can subsidise companies to develop new housing projects if some of the houses are rented as affordable housing. This makes the building and planning of the projects cheaper, which makes rent lower.

Each municipality has to conduct an Integrated Development Plan every five years to see what the housing needs are. Participating in your community’s Integrated Development Plan Representative forum is a good way to communicate your housing needs to the municipality.

SHPs are mainly (but not only) for households earning between R1,850 and R22,000 per month (sources differ on this – we are using this Social Housing brochure by the Social Housing Regulation Agency). You can qualify even if you have benefited from other housing projects in the past, but you may not currently own property. Couples (married or living together) qualify, or single people with dependents. You must have a clean credit record.

To apply for an SHP, approach your local housing office about planned SHP projects in your area. Depending on the province and project, you may have to apply directly to the institution or company that is managing the SHP. It will have its own screening process.

Note: All of the above programmes tend to be advertised during the Integrated Development Plan Forums, or otherwise they should be advertised at local housing offices. Sometimes your municipality or province will advertise online on their websites. Keep a lookout for signs near new developments, or speak to your ward councillor about which projects are being planned.

In addition to all the above programmes government also has an Emergency Housing Projects programme, but this is seldom used, so we don’t cover it here.

Initially written by Julia Chaskalson. Updated occasionally.

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