04/05/2022
It is with regret that the meeting aimed at addressing and clarifying uncertainties of the tenants at Lerato Park to degenerated to a point where Mr Seekoei is his own recording device labelled the attendees fools and municipal officials’ baboons that must not be listened to.
There is nothing wrong in activism, but being opportunist is equally not serving any purpose.
The CRUs are rental units and all tenants have signed lease agreements. For. the tenants to come back and want to change government policy of CRU into apartments for sale is disingenuous.
The Flats are meant for the part of working class that cannot be bonded nor qualify for RDP houses or whose income is so low that rental is the only option for them in as far as shelter is concerned.
The Flats were evaluated to determine standard rental amounts notwithstanding the rule of maximum of 30% of gross. At the initial signing of contract, the standard rate determined through a professional valuation method was utilised. At all meetings, it was clarified that tenants can come and have the rental reviewed and be based on affordability, and none came this far, and this was raised a concern.
The affordability principle is based on 30% of gross income. As the tenants are complaining of unaffordable rates, and this will be addresses on an individual basis. We will utilise the “higher of principle” which will be between 30% of gross income or the standard rate, or the lower of between the standard rate and 30%. The higher of methodology means, if you earn R8000 pm your rent can either be R2400 or R1500 , and accordingly, the tenant will pay R2400 which is the affordability. In the same scenario, if a tenant stays in a flat with standard rate of R3500 and 30% of income is R2400, the tenant will pay R2400.
Most of tenants at the CRUs are government officials with negative credit record and had only this opportunity to stay in decent housing. All of them are collecting an average of R1200 pm in their salaries additional benefit as government housing subsidy yet at the meeting demand to pay a meagre R500 pm.
They went to an extent to compare the CRUs with old rental stock and the Swedish Hull Street and Moshoeshoe Housing projects which were developed as a concept for rent to buy stock after 7 years of tenancy. Buying in anyway would require a loan of some sort as the units can cost anything from 150k to R400k.
The following are facrs
The CRU were donated to Sol Plaatje by COGHSTA in 2017 up to 2019, all papers are available to this effect
CRUs are for rental for as long as they stand and remain developed as CRUs
The principle remain “affordable rate” which is an individualistic principle as it is based on a person's income.
All tenants including Mr. Seekoei, who is an Assistant Director at one of the government departments signed lease agreements at arm's length and costs were clear, in fact, they chose the flats as per their demand or needs, one bedroom, bachelor, 2 bedroom which varies in 3 sizes with determined amounts.
Tenants are fully aware that the water and electricity is prepaid and have registered the meters in their names.
The municipality went to an extent to develop tenant rules and these were shared to ensure that tenants live harmoniously.
Each block was advised to establish committees to enforce the rules
The communal taps are provide as emergency water in case a household runs out of units at an inconvenient time
The Jojo tanks were installed as emergency water during disaster regulations and remained locked until there is water unavailability and are meant to ensure that in a case of no water, residents must be able to wash hands as part of COVID 19 protocols.
The municipality remain open for those who want to review their lease contract and require the consideration of 30% of income of gross as monthly rental.
There was never blocking of meters and tenants attested to this
The security was put there to guard the property against vandalism when it was not occupied
All units are now 100% occupied and as government always plead, guard your own community asset. The demand seems to be that the tenants want slaves to open and close the gates as they move in and out 24 hrs. Even during the time when the security was in place, it was difficult for them to maintain order as tenants refuse to collect their guests from the gate, they publicly drank in front of minors, washed cars despite this being prohibited, and adults playing at children’s park. The caretakers reported loud music to the discomfort of other tenants and they could not help the situation. Ignored the 10 pm rule and continued with vula Vala until weee hours of the morning.
The following are the questions that were raised:
- Who owns the CRUs
- Why are Jojo tanks and communal taps closed
- Why are the caretakers not wanting to assist them with minor inside repairs of water leaks etc
- Why water and electricity was blocked
- Why the units are not changed into RDP houses or made rent to buy, in fact they claim that they were under the impression that they will buy the units after 3 years of renting
- Why are the units leasing done under Finance
- What will happen to the loyal tenants who continued to pay rent whilst most did not pay, whether they will be refunded
- Whether they can install burglar doors and DSTV dishes
- Why is the municipality not doing an audit to check tenants, units and rent
In closing, the municipality instituted bank debit orders in March in the amount of approximately R330 000.00 and upon one person’s influence tenants were told to reverse the debit. We have run another run of debits and some have already been reversed. We will work together with HR departments to reclaim the subsidy given to tenants who reverse the charge and a breach of contract letter will be issued as well as Credit Bureaus.
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