Types of Government Housing Subsidy Flashcards
1
Q
What are the different types of government housing subsidy?
A
- consolidation
- individual
- project-linked
- institutional
- rural
- discount benefit scheme
- people’s housing process
- relocation assistance
2
Q
What does a consolidation subsidy entail?
A
- owners of service stands
- receive a top-up subsidy to construct a house
3
Q
What is a service stand?
A
- piece of land that only has water, sewerage and electricity laid on
4
Q
What does an individual subsidy entail?
A
- for low-income households that are first-time homeowners
- property cannot be part of a housing subsidy project
- can be a Non-Credit-Linked Individual Subsidy or a Credit-Linked Individual Subsidy
5
Q
What does a Non-Credit-Linked Individual Subsidy entail?
A
- where the person uses the subsidy and their personal savings to buy a house
6
Q
What does a Credit-Linked Individual Subsidy entail?
A
- where the person needs to take a loan from the bank
- in addition to the housing subsidy received
7
Q
What does a project-linked subsidy entail?
A
- a qualifying person receives a complete residential unit
- unit must be developed by an approved housing subsidy project
8
Q
What does an institutional subsidy entail?
A
- institutions receive subsidies to provide subsidised housing
- on deed of sale, rental or rent-to-buy options
- for people who qualify for housing subsidies
- institution should also invest capital from its own resources in the project
9
Q
What does a discount benefit scheme entail?
A
- promotes homeownership to tenants of state-financed rental houses
- tenants can receive a maximum discount of R755 on selling price of the property
- when discount equals or exceeds purchase price or loan balance, property is transferred without any further capital charges
10
Q
What does a rural subsidy entail?
A
- people who don’t have formal tenure rights on land that they occupy
- because it is belongs to the State but is governed by traditional authorities
- have the option to decide how to use the subsidy
- can put it toward building costs or provision of services such as water and sewage, or a combination thereof
11
Q
What does a people’s housing process entail?
A
- special subsidy for people building own homes
- can make their subsidy and personal contributions go further
- by doing the building work themselves
12
Q
What does relocation assistance entail?
A
- assists homeowners who can’t afford to pay home loans
- helps them purchase a house they can afford
- must enter into a relocation agreement so they can relocate to affordable housing
13
Q
What are tenure rights?
A
- the right to own
14
Q
What does a monthly housing subsidy/allowance entail?
A
- mean the employer helps employee to pay monthly instalment on a property they have bought
15
Q
How do housing subsidy allowances work?
A
- employer deducts bond repayments directly off employee’s salary
