Debt sinks Tshwane CBD social housing, residents face homelessness

Tshwane Non-Profit Housing Company Faces Financial Crisis

A once-promising non-profit social housing company in Tshwane is now grappling with substantial debt, putting its future in jeopardy. Yeast City Housing (YCH), established by the Tshwane Leadership Foundation and eight partner churches, aimed to provide affordable housing and contribute to urban renewal and social integration through well-managed social housing units.

Financial Distress and Business Rescue

YCH has accumulated a debt exceeding R130 million, leading to the appointment of business rescue practitioners to navigate the company’s financial woes. The company owns multiple residential buildings in the inner city, offering low-cost apartments and houses for monthly rentals ranging from R1,500 to R1,800 to individuals with incomes around R6,000.

Root Cause of Financial Strain

The dire financial situation at YCH has been attributed to the non-payment of rentals by tenants at the Thembelihle social housing project, breaching their lease agreements. The rent boycott during the Covid-19 pandemic at Thembelihle, managed by YCH, has exacerbated the company’s financial challenges.

City Intervention and Future Plans

Tshwane metro spokesperson Lindela Mashigo emphasized that the city has engaged with YCH to address tenant concerns and outstanding service accounts at Thembelihle. Despite efforts to resolve the matter, rental payments remain outstanding, leading to electricity disconnections due to non-payment.

Mashigo highlighted the city’s commitment to affordable and social housing initiatives, including the Affordable Rental Housing Strategy and Implementation Plan (ARHSIP) to attract more social housing entities. The city aims to support social housing institutions by providing land at nominal costs and expediting township establishment approvals.

Contact Information:
If you have further information on this issue, please reach out via email to [email protected] or call 083 625 4114.

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Source: The Citizen