Amendment to Adjustment Budget – R300 million more allocated for housing projects

21 February 2019

Today,  Council approved amendments to the City’s recently passed Adjustment Budget in order to incorporate the Gauteng CoGTA and Human Settlements’ commitment to increasing the City’s budget towards housing projects by R300 million following an initial reduction in grant funding in November last year.

This is after I held a meeting with the MEC for Gauteng CoGTA and Human Settlements, Dikgang Uhuru Moiloa, regarding the reduction of the Human Settlements Development Grant (HSDG) for the City of Johannesburg.

Previously, the City and the Provincial Department of Housing had been locked in an ongoing dispute regarding the redemption claims that must be sent to the Provincial Department of Human Settlements in order for the Province to release our HSDG funding.

This was soon followed by the publishing of a provincial gazette which unexpectedly reduced the City’s Human Settlements Development Grant (HSDG) funding by R180 million for the current financial year.

The City had previously been informed that our HSDG funding would be in the region of R248 Million on the basis of the City’s Department of Housing’s business plan, which was adopted by Council and ultimately the Province. Following the publication of the Province’s Gazette, this was reduced to R68 million – which was insufficient to meet the desperate housing needs of our residents.

Following engagement with the provincial department of Human Settlements, the matter was finally resolved earlier this year.

As a result of the agreement reach with the provincial Department of Human Settlements, grant funding will be available for the following projects:

- R67 million is re-allocated for the South Hills Development to the City;

- R68 million is to be rolled over by the Province to the City in the current financial year. In addition, the City still will retain the almost R69 million which was announced in the in revised gazette published last year;

- Province has agreed to honour its commitment in terms of the tripartite agreement for the Riverside development, in the current financial year, to the tune of R63 million; and

- In addition, R33 million is to be honoured by Province with respect to the Fluerhof Development in line with an agreement with the contractor to build high-rise units.

The City’s top priority has always been ensuring the delivery of housing to our poorest residents. Through the receipt of this grant funding, many of our poorest residents will know the dignity of having a home.

Issued by Luyanda Mfeka, Director: Mayoral Communications, Office of the Executive Mayor, City of Johannesburg, 21 February 2019