MEC Nombulelo Mabandla has signed a partnership with ABSA DEVCO to facilitate cooperation between the department and ABSA in the development of housing units to be owned or leased by low and middle income families residing within the province targeting low to middle income workers of R0 (nil) to R15 498 combined income per month.
The middle income groups constitute workers who don't qualify for low cost houses and can't afford expensive bonds, hence the agreement to provide home opportunities for the market at affordable rates.
"We want to maximise the impact of private and public sector resources to accelerate the delivery of tenure, with good quality services and housing on well located land with convenient access to transport options, near jobs and other economic development opportunities, which promotes integrated and sustainable living areas and communities," MEC Nombulelo Mabandla said.
The department needs participation by the banking sector in South Africa in order to achieve these goals, taking into consideration the spirit of the provisions of the Financial Sector Charter and the principles contained in the memorandum of understanding (MOU) between the national Department of Housing and the banking sector in South Africa signed in March 2005.
ABSA bank seeks to assist the department in its mandate of providing quality affordable housing to the low to middle income housing market, the facilitation of the development of housing units for the low to middle income families residing in the Eastern Cape Province, and the rectification of existing houses in terms of the department's provincial House Rectification programme.
ABSA DEVCO will assist ABSA in the implementation of the developments in respect of the projects that are identified in terms of the agreement.
"We already have a strong and successful existing partnership with ABSA DEVCO in Port Alfred, Thorn Hill where the bank has been appointed as the implementing agent to build 5 000 homes.
The project is an integrated house where the low, middle income and unemployed are settled in one settlement as part of our integration of communities through the Breaking New Ground policy of 2006 which compels us to create sustainable human settlements with all social and economic amenities. It is important to enter into such partnerships as they assist us to speed service delivery," Mabandla added.
She said her department was looking forward to work closely with other financial Institutions to provide sustainable Human Settlements.
"Our approach must be cordial to an extent that the provision of decent homes must not only be responsibility of government alone. We thank ABSA for their role in meeting the objective of the ruling party outlined in the Manifesto."
As part of the agreement, ABSA would identify project and develop proposal for approval by the department. The projects would be built throughout the province particularly in rural areas in a mixed mode of rental and home ownership as part integrating communities into one sustainable human settlement.
Contact:
Lwandile Sicwetsha
Tel: 043 711 9534
Fax: 086 645 2757
Cell: 071 6711 770 or 079 873 6400
E-mail: lwandileS@echousing.gov.za
MEC Mabandla signs agreement with the Amalgamated Banks of South Africa (ABSA) to build homes for low and middle income workers
Province
