GEORGE NEWS - The George Council approved an updated Beneficiary Selection and Allocation policy which is aimed at improving transparency and compliance with lawful administrative procedures in government housing projects.

In terms of the new policy, that was adopted in November 2025, housing beneficiary allocations will be submitted to Council, and will then be published for public review and comment.

This is one of a number of new measures taken by George Municipality to ensure fair and open processes in the light of ongoing complaints about irregularities in housing allocations.

According to the Planning and Development director, Mahlatse Phosa, their Beneficiary Selection and Allocation policy is now aligned with the provincial policy. In terms of the new policy, a new Beneficiary Allocation Committee has been established, which is chaired by Phosa.

Phosa issued a statement following a public protest in Rosedale on Friday 19 December by a group of Pacaltsdorp residents over alleged illegal sales and the unfair allocation of RDP houses, as well as a perceived lack in transparency in the housing application process.

In a memorandum to the municipality, the group alleged they had reliable information indicating that certain housing beneficiaries have illegally sold or rented out housing units, in some cases before title deeds were issued. These houses were intended for needy residents who have been on the housing waiting waiting list for 15 to 20 years.

Phosa, under whose directorate Integrated Human Settlements resorts, responded as follows:

The George Municipal Department of Integrated Human Settlements does not deviate from the prescriptive legal framework applicable to the Housing Portfolio. This includes all directives contained in legislation, rules and policies pertaining to the Housing Chapter of the National Housing Code. The National Housing Code together with the housing priorities contained in the National Development Plan informs and guides all decisions and resolutions made within the provision of housing.

It is incumbent upon all residents and communities to report all suspected illegal housing administrative activities, both by municipal officials as well as the public at large to the municipality’s department of Integrated Human Settlements. This enables action by the municipality in conjunction with the Western Cape Provincial Government, to prevent and correct such activities.

A housing consumer education session precedes all housing handovers to beneficiaries. During these sessions, the beneficiaries are informed of the value, rightful use and the restrictive criteria contained within their title deeds.

Currently only one case of Erf 13236 has been reported to the department of Integrated Human Settlements and is now under investigation. The municipal attorneys have been instructed to suspend the process of registration of the title deed pending the outcome of the investigation.

Recipients of government-subsidised housing are granted full ownership rights over the property and this ownership is formalised through the issuance of a title deed which is registered at the Deeds Office. It is important that recipients heed the restrictive conditions contained in their title deeds as these conditions are registered in favour of the municipality, granting the municipality the right to reclaim the property if the owner does not abide.

An important clause that should be noted in these title deeds is one that we call a pre-emptive right condition. This condition prohibits recipients from selling their property within an eight-year period from the date that the property was acquired, unless the property is first offered back to the Provincial Housing Department, or express consent for the sale is granted by the department. The pre-emptive eight-year clause is an important legal safeguard to protect the recipients of low-income housing’s right to tenure, to act as a safeguard against abuse of the housing grant programme and address South Africa’s housing backlog.

Beneficiary Allocation Committee

The municipality recently aligned their Beneficiary Selection and Allocation policy with the provincial policy, which was adopted by Council during the month of November 2025. In terms of this new policy a new Beneficiary Allocation Committee has been established, which is chaired by the director of Planning and Development. These revisions were aimed at improving fairness, transparency and compliance of the lawful administrative procedures.

The previous council resolution however makes provision for beneficiaries from other groups, inter alia informal settlement dwellers who have not been on the waiting list for an elongated period, to be taken up in a project. 

In addition, various individual cases based on merit have been approved by Council for inclusion within the project. These exceptions are mostly based on severe health conditions and might account for recipients that have benefitted, yet have been on the waiting list for a shorter period than others.

Unhappy Pacaltsdorp residents.  Screen grab from supplied video 

In conclusion, to address the concerns of the residents, the following actions have been implemented:

1. Community’s demand: An immediate, independent and transparent investigation into all alleged illegal sales, rentals and misuse of housing units.

• Reported suspected illegal sales, rentals and misuse of housing units are under investigation.
• A list of properties where fraudulent activities are suspected can be submitted to the Directorate: Planning and Development. These will be dealt with immediately.

2. Community’s demand: The immediate suspension of all irregular transactions.

• As reported above, it is standard practice to suspend transactions where fraudulent activity has been proven.

3. Community’s demand: That no title deeds, transfers or registrations be approved where illegal sales or breaches occurred.

• All illegal sales or rentals are reported to the Department of Infrastructure with recommendations to withdraw housing opportunity and transporting opportunity to a new beneficiary.

4. Community’s demand: That all unlawfully obtained or sold houses be reallocated to residents with the longest waiting period.

• See response to 3 above. This is the standard practice.
• In cases where houses were registered and title deeds already obtained, properties are deregistered and passed on to the next deserving opportunity.

5. Community’s demand: Full disclosure of the housing waiting list.

• The new policy adopted in November 2025, makes provision for the submission of the beneficiary allocations to be submitted to Council and subsequently published. This practice will be instituted from 2026.
• The housing waiting list is derived from the Western Cape Housing Demand Database (WCHDDB) and contains personal information of beneficiaries. This list is frequently reviewed and updated, however, it cannot be released to the public.
• With the introduction of the new practice to publish approved beneficiaries, members of public will be able to comment.

6. Community’s demand: A written explanation of the official housing allocation policy and weighting of criteria.

• A copy of the policy is attached.
• The department of Integrated Human Settlements will facilitate public meetings during 2026 to elaborate on the requirements, procedures and criteria addressed in the policy.

The municipality is confident that the new Beneficiary Selection and Allocation policy promotes a system of selection that ensures accountability and oversight.

We wish to provide assurance that housing allocations follow national and provincial policies. George Municipality, in partnership with the Western Cape Government, remains committed to accelerating housing delivery and ensuring fair allocation.

Read a previous article:

Protest in Rosedale over housing waiting list

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