Difference between RDP and Government Subsidized Housing
Reconstruction and Development Programme (RDP):
- Initiated by the South African government under President Nelson Mandela in 1994.
- Aimed to address social issues such as housing, clean water, sanitation, and electricity.
- Provided government-subsidized housing known as RDP houses.
Government Subsidized Housing:
- A program offering beneficiaries the opportunity to acquire houses built and provided by the government through a subsidy.
- These houses were commonly referred to as RDP houses.
Qualifications for Government House:
- South African citizenship.
- Contractual capability.
- Marital status: Married, cohabiting, single with dependents, single military veterans without dependents.
- Monthly income below R3,500.01 per household.
- First-time government subsidy recipient and homeowner.
Essential Documents for Qualification:
- Applicant and spouse’s identity documents.
- Birth certificates of children.
- Proof of income (e.g., salary slip).
Application for Government Housing Subsidy:
- Provincial Department of Human Settlements or Local Municipality.
Waiting Period for Housing Subsidy:
- Varies locally, typically takes at least two years for housing development to be completed.
Fees for Application:
Transfer of Subsidy House Location:
- Possible, but waiting lists must be re-joined in the new area.
Divorce or Separation:
- Circumstances evaluated by MEC; new subsidy may be provided if eligible.
Single Applicants with Dependents:
- Eligible if over 21 years of age or previously legally married.
Selling Government Subsidy House:
- Illegal before residing in it for a minimum of eight years.
- Beneficiary may only sell back to the relevant Provincial Department of Human Settlements.
Follow-Up on Application:
- Recommended to follow up at the office where the application was submitted.
Ownership Papers and Registration:
- Beneficiary registered on government housing database.
- Title Deeds received after eight years.
First Home Finance:
- Program for affordable first-time homeownership opportunities.
- Offers subsidies for individuals earning between R3,501 and R22,000 per month.
- Allows purchase of existing or new residential properties or vacant serviced residential stands.
Qualifications for First Home Finance:
- RSA citizens or permanent residents over 18 years old.
- Never benefited from Government Housing Scheme before.
- Approval in principle of home loan from accredited South African banks.
Important Documents for First Home Finance:
- RSA ID or permanent residence permit.
- Birth certificates/RSA IDs of financial dependents.
- Proof of income.
- Home loan approval in principle/grant letter from an accredited lender.
- Agreement of sale for residential property.
- Building contract and approved building plan (where applicable).
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