Okay, Mooikloof is a private development by Balwin. It is not a tender award. Let us breakdown the Mooikloof Mega-city project into sizeable chunks for better understanding of the development and government’s involvement in this development (thread).
Mooikloof is planned as a private residential project with houses/apartments that will range from R500k to R800k catering for the “missing middle” through GAP housing. These houses/apartments are meant for SALE (this is important to note for this discussion).
Mooikloof Project was listed as part of the Strategic Integrated Projects (SIP)- to have a project listed as SIP is really not an easy task with all the red tape, takes quite a number of years (thread for another day).
What the SIP designation means is that applications for these particular projects will be sped up (rezoning applications, water use licenses etc).
Additionally, for this project it means that the government will pay for the bulk services (water, electricity, stormwater and sewer connections), the state will not pay for the top structure (actual house).
Why isn’t the state paying for the top structure? The state only funds BNG/RDP houses through the Human Settlement Grant (HSDG) and Social Housing (only meant for renting) through the Social Housing Regulatory Authority (SHRA).
Because GAP housing is meant for ownership i.e will be SOLD, the state DOES NOT fund the top structure. The state only funds RDP/BNG and social housing (only meant for rentals).
With this particular development, Balwin may sell serviced land to companies that will build the housing or may build the top structure from their pockets or borrow from a financial institution to build the actual units.
So where does the grant funding come in? The grant funding is meant for the homebuyer. Should a first-time home buyer be interested in one of the units in Mooikloof, they would have to apply either through a bank (best option) or directly to NHFC for FLISP- see the thread below.
To summarize:
- Balwin is developing GAP Housing.
- This is a private development.
- Government is paying for bulk services (can be a sizeable chunk for such a development hence this is called a public-private partnership)
- For this type of project, any other government assistance (for the developer) is not applicable
- Citizens are the ones who receive the subsidy/grant funding. Balwin will sell this, as they would any other house/apartment.
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