Johannesburg Social Housing Company battles to reduce staggering waiting list

In response to a parliamentary question in March 2023, the then human settlements minister revealed that by 2023, Johannesburg had a housing backlog of just more than 400,000 units.

This staggering backlog has spiralled into a full-blown crisis, forcing many to seek refuge in hijacked buildings.

“Joshco’s application system is flawed. I along with many of my relatives have been applying for years, but none of us have been successful despite our varying salary rates. How do you explain that? The system only favours certain people,” prospective tenant Malusi Shabangu said.

“It’s a vague selection criteria so I will not bother again. I have been applying for the past two years without any success,” prospective tenant Brenda Hadebe said.

Prospective tenants claim that the vague selection criteria led to the acceptance of ineligible applicants. Daily Maverick confirmed with prospective tenants that some successful tenants were subletting Joshco units. Among the reasons given for this was saving on rentals. Prospective tenants contend that transparent selection criteria would snuff out such applicants.

According to Census 2022, South Africa recorded 17.8 million households, an increase from 14 million in 2011 and nearly double the nine million households recorded two years after the end of apartheid.

Joshco

The Johannesburg Social Housing Company (Joshco) was established by the City of Johannesburg in March 2004 to eradicate the housing backlog and offer affordable housing options.

While the company prides itself on being a beacon of hope, affordability remains an obstacle for many prospective tenants – and the selection criteria are frequently questioned.

According to the company, it caters to diverse income brackets ranging from R1,850 to R22,000 a month, with a keen focus on uplifting lower-income households. It boasts a portfolio of more than 9,000 housing units.

‘Dubious and discriminatory’ allocation policies

Joshco would not respond to Daily Maverick’s questions, including claims that the allocation policy is dubious and discriminatory. However, Gauteng Housing Crisis Committee leader Keith Duarte insisted the process was discriminatory, especially against the coloured community.

“The selection criteria is that one must be employed within a certain salary bracket. Many of our people meet this threshold, but they are still rejected,” said Duarte.

“Only two coloureds in 200 people qualify. The online application process is not working for our people,” he said.

“Joshco’s rental stock, as well as the RDP housing stock, we can say are not allocated in a transparent manner,” Duarte said.

Location

According to Joshco, its rental stock is dispersed across different parts of Johannesburg.

“We house an estimated 24,330 people. Some of the older stock was originally developed and managed by the City of Johannesburg. The newer stock was developed by Joshco.”

Funding

The company is funded by the City of Johannesburg. It says the Capital Expenditure (capex) funding it receives from the city is based on the number of social and affordable rental units to be developed in a financial year and the support programmes identified as necessary to implement the delivery of the social housing programme.

“Capital funding is also received through application for capital funding from SHRA (Social Housing Regulatory Authority). Market demand studies and project feasibility studies are critical to this funding programme, given their role in tracking achievements and rental stock growth projections,” Joshco says.

According to the Gauteng Housing Crisis Committee, despite the challenges, Joshco stock is affordable to ordinary working-class South Africans.

Joshco’s main revenue streams are:

• Rental of facilities and equipment;


• Agency services; and


• Grants and subsidies.

Qualification criteria

In terms of who qualifies for a Joshco property, the company says the qualifying criteria depend on the project applied for. To qualify for an SHRA-funded or greenfield project (new builds), one must earn between R1,500 and R15,000. For brownfield (existing builds) projects, Joshco charges per square metre.

Requirements 

Prospective tenants need the following to apply:

• Have permanent residence status and be 18 years and older, or open to a suretyship agreement form if under 18;


• Be permanently employed, or if self-employed, have proof of income via a bank statement;


• Provide a certified ID copy; a signed and dated letter of employment; and reachable employer contact details; plus the latest payslip if the applicant earns a monthly salary;


• Twelve consecutive payslips if earnings are commission-based; four pay slips for weekly earners; or two consecutive payslips for fortnightly earners;


• Three months of stamped and certified bank statements; and


• Proof of residence.

Foreign nationals

According to Joshco, it considers all permanent residents of Johannesburg, but South African residents are prioritised.

Rental amounts

The rental amount is dependent on factors such as the type of projects, location and size. It can also be dependent on earnings.

The Gauteng Housing Crisis Committee will meet Johannesburg Executive Mayor Dada Morero over Joshco operations in the next few days. DM