GEORGE NEWS - Some new homeowners in the Syferfontein subsidised housing development are unhappy that they have not benefitted from the First Home Finance and Subsidy Assistance (Flisp) subsidy when they bought their properties.
Two buyers paid cash, and in full, for their homes, and were among the first residents who moved into the development.
They were under the impression that their subsidy would be reimbursed to them, but this is yet to happen.
A retiree, Johnny Galant, used his pension to pay the full R320 000 for his home to the transferring attorney in 2022. He was later informed that he qualifies for a subsidy of R150 000. His enquiries to Human Settlements and the conveyancer regarding reimbursement have been to no avail.
Dianne Christians and her husband bought their home cash in 2021. They moved in in January 2022. According to Christians, they were informed that it would be quicker and that their subsidy would be refunded later.
They were in a hurry as they needed a roof over their head. She says they are still waiting for their refund and their queries are not responded to. They borrowed the money privately to pay for the house and are paying back the loan.
A single mother, who wishes to remain anonymous, used all her savings to buy a house in the development last year.
She paid an amount that factored in a subsidy, but later discovered she qualified for a higher amount.
She is still waiting for a refund of the additional subsidy amount.
Dianne Christians in front of their home.
Representations for reimbursement
Brian Denton, director of Project, Contract and Subsidy Administration at the Infrastructure Department, upon enquiry said Galant and Christians' applications for cash purchases were made at a time that the revised Flisp had not yet been approved.
"It only made provision for applications where mortgage loans were involved and therefore correctly declined at time of application.
"The revised policy has been in effect since 1 April 2022 and makes provision for the department to consider cash sales as applicable to the Galant and Christian families.
"In view of the confusion that prevailed at the time of these sales, my team will be making representations to our executive team to consider approving these applications retrospectively in view of the extenuating circumstances."
Denton said Lottering's subsidy application was approved and will be updated to reflect the increased subsidy amount that she qualifies for. "The amount to be reimbursed by Nandi Bulabula Attorneys, acting as the transferring attorneys, will accordingly increase.
"The reimbursement has been confirmed by the aforementioned and will take place as soon as the subsidy amount has been paid. The payment will be effected within the next two weeks."
A kitchen/lounge space in a Syferfontein Flisp home.
Below are Denton's answers to questions regarding the application process for a Flisp subsidy when buying a home, as well as issues with the quality of the building work and building plans at the Syferfontein development:
Q: Some homes face in the opposite direction of what the terrain/building plans indicate;
A: The department is not aware of this issue and if additional detail can be provided a proper investigation could be done.
Q: Building lines have been ignored in some instances.
A: The GP shows the erf boundary as indicated. The surveyor, John Bailey, did as-builts of all the houses indicating their exact locations and therefore the houses should all be in their correct positions. The garden walls were built on the erf boundaries and on top of the erf pegs and should be correct. Boundary pegs were set out by a registered land surveyor.
Q: Some homes do not have plans, but occupation certificates were issued;
A: Plans were issued to the George Municipality Building Control Department for approval at the start of the project. Occupation certificates are issued on request by the conveyancer as the houses are sold. George Municipality does not issue occupation certificates without an approved building plan.
Q: Storm water drains have been built in front of the gates of houses and owners cannot drive in with their cars (photos are attached).
A: The garden gate positions were only determined during the latter part of construction when all the stormwater kerb inlets were already in place. The kerb inlets cannot be moved due to road falls, slopes and catchment areas. In these instances, the gates were located as far as possible from the kerb inlets. The driveways in some instances will have to be diagonal over the sidewalk to miss the kerb inlets and would be the most rational solution.
Q: The plot size of one of the properties (erf 11672) was reduced by the location of the boundary wall because of a storm water outlet that is located within the erf border. How is this to be corrected?
A: From the information provided we agree that the boundary wall of the two units was erroneously built. This, however, could be corrected as we are in the process of appointing a fencing contractor to raise the boundary walls on the perimeter of the development.
Q: A resident would like to know if the repairs and maintenance team that is to repair the empty homes during April and May, will also be addressing the defects of the occupied homes?
A: There is no such undertaking. The houses were prepared by Nandi Bulabula Inc conveyancers for handover and were in good standing when transferred to the homeowners.
More about the application procedures
Q: How long does an average application take where a bond has to be registered?
A: The average approval turnaround time for an application which is found to be procedurally correct at submission is three to four weeks.
Q: What process is followed by the conveyancer?
A: The conveyancer will normally lodge the documents for the transfer of a property to the Deeds Office after they have received the letter of undertaking (guarantee) from our department. This guarantee is issued post the approval of the subsidy.
Q: Does the bank pay out the purchase price (minus the subsidy) to Human Settlements?
A: The bank would pay the monies over to the seller/transferring attorney in the case of this project, Nandi Bulabula Inc was appointed to act on behalf of the seller which is the department.
Q: In the case of a cash sale: Is it the correct procedure for the homeowner to pay the purchase price to the conveyancer, and does the conveyancer then pay Human Settlements?
A: As previously stated, Nandi Bulabula Attorneys was appointed by the department hence it is correct. It is normal procedure that funding is paid to the conveyancer (but normally only the shortfall on the selling price once the subsidy has been factored in) who will only lodge for transfer once all the funding has been secured.
Q: How is the subsidy handled in the case of a cash sale?
A: In the event of a cash sale, i.e. when the person is making a cash contribution, the subsidy amount will be deducted from the selling price and the shortfall is then paid over to the conveyancer who will await the guarantee in respect of the subsidy.
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