The Tshwane Metro cannot keep financially bailing out the Housing Company Tshwane. It is unsustainable and a waste of money.
The Housing Company Tshwane, an entity of the Metro responsible for managing 2 107 housing units, records a significant rental income loss annually and struggles to carry out essential maintenance on the buildings.
Only 33% of rental income is collected annually, while the 160 Clarina housing units in the CBD have a collection rate of just 9%.
Due to the low collection rate, the Metro is forced to subsidise the shortfall. If the Company were efficiently managed and generated a profit, these funds could have been used for improving the Metro’s infrastructure.
The Housing Company Tshwane pays more than R50 million in salaries, including those of board directors.
The Freedom Front Plus (VF Plus) insisted during the last council meeting that a comprehensive review plan be implemented to ensure financial sustainability. Rental agreements should be stringently enforced to reduce defaulting.
Subsidies should be reduced so that the Housing Company can function independently, while partnerships with the private sector should be facilitated to provide a sustainable alternative to public funds.
Housing, particularly social housing, is essential but needs to be managed responsibly. Repeatedly providing financial assistance to the Housing Company places an unfair burden on taxpayers.
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