The KZN Department of Human Settlements has received an additional R100 million from the National Department of Human Settlements and National Treasury due to its strong performance in implementing housing projects. This funding will be injected into the Aloe Ridge Social Housing Project in Msunduzi, Pietermaritzburg, aiming to resolve long-standing housing challenges in the region.
Boost for Housing Amid Financial Challenges
The allocation was announced by KZN Department of Human Settlements MEC, Siboniso Duma, during a media briefing in Durban. He provided updates on housing interventions for families affected by prolonged rains, as well as efforts to resettle communities displaced by the April 2022 floods.
Duma acknowledged that financial pressures had strained the department’s operations, citing that multiple housing projects had simultaneously reached the implementation stage without the necessary cash flow to support them. These challenges were worsened by budget cuts in the 2023/24 financial year, leading to significant accruals in the current financial cycle.
Despite these constraints, the KwaZulu-Natal Department of Human Settlements has consistently demonstrated efficient budget spending, making it eligible for reallocated funds from underperforming provinces.
“We wish to announce that the Department of Human Settlements has again been identified to receive a reallocation of R100 million of additional funds,” Duma stated, expressing gratitude to the national government for its support.
How the R100 Million Will Be Used
Duma confirmed that the newly allocated funds will be directed at resolving critical issues within the Aloe Ridge Social Housing Project, which has faced delays and illegal occupation. The key focus areas include:
- Resolving the issue of 261 invaded flats by purchasing the units to regain control over them.
- Providing financial relief to Capital City Housing, allowing the social housing institution to recover from business rescue and avoid liquidation.
The Aloe Ridge Development, consisting of 952 two-bedroom units, was built in two separate housing villages in Msunduzi Municipality. Construction began in December 2014 and was completed in February 2018. However, 261 units were illegally occupied by community members and military veterans in February 2018, leading to financial distress for Capital City Housing, the organization responsible for managing the properties.
Efforts to Address Illegal Occupation
Since February 2021, relocation efforts have been ongoing to clear the invaded flats. Many illegal occupants were moved to alternative housing projects in Glenwood, uMshwathi, and Copesville, but the issue remains unresolved. The additional funding will help speed up the process of restoring control over the occupied units.
Duma emphasized the importance of following the South African Housing Code in the fair allocation of housing opportunities. He warned Capital City Housing and other Social Housing Institutions to manage their properties responsibly to avoid bankruptcy.
“We wish to caution Capital City Housing and other social housing institutions operating in KZN to always guard their assets and manage their facilities in a manner that does not invite bankruptcy,” he said.
Task Force to Oversee Funding Implementation
To ensure the R100 million allocation achieves its intended outcomes efficiently, Duma has mandated the Head of the Department to form a joint task force comprising:
- National Human Settlements
- National and Provincial Treasury
- Capital City Housing
- Msunduzi Municipality
This team will work towards fast-tracking the resolution of the Aloe Ridge issue in record time.
Related: Types of Low-Cost Housing Available in Urban Areas and How to Apply for Them
Government’s Commitment to Military Veterans
The issue of military veterans illegally occupying housing units in Aloe Ridge stems from frustration over delayed housing allocations. Former Human Settlements Minister Mmamoloko Kubayi had previously committed to prioritizing military veterans in new housing projects, ensuring a percentage of all future social housing developments include provisions for former combatants.
Duma acknowledged the urgency of the situation and reassured stakeholders that the government remains committed to accelerating housing construction for deserving beneficiaries, including military veterans.
The additional R100 million funding for the KwaZulu-Natal Department of Human Settlements is a significant boost towards resolving housing challenges in Msunduzi. The department’s strong performance and ability to spend efficiently have earned it national recognition, making it eligible for additional funds from underperforming provinces.
With the establishment of a task force and government support at various levels, the Aloe Ridge Social Housing Project is set to move forward, ensuring that families in need receive access to proper housing.
