Flisp house buyers in the dark about subsidies
Some new homeowners in the Syferfontein subsidised housing development are unhappy that they have not benefitted from the First Home Finance and Subsidy Assistance (Flisp) subsidy when they bought their properties.
Two buyers paid cash, and in full, for their homes, and were among the first residents who moved into the development. They were under the impression that their subsidy would be reimbursed to them, but this is yet to happen. A retiree, Johnny Galant, used his pension to pay the full R320 000 for his home to the transferring attorney in 2022. He was later informed that he qualifies for a subsidy of R150 000. His enquiries to Human Settlements and the conveyancer regarding reimbursement have been to no avail.
Dianne Christians and her husband bought their home cash in 2021. They moved in in January 2022. According to Christians, they were informed that it would be quicker and that their subsidy would be refunded later. They were in a hurry as they needed a roof over their head. She says they are still waiting for their refund and their queries are not responded to. They borrowed the money privately to pay for the house and are paying back the loan.
A single mother, who wishes to remain anonymous, used all her savings to buy a house in the development last year. She paid an amount that factored in a subsidy, but later discovered she qualified for a higher amount. She is still waiting for a refund of the additional subsidy amount.
Representations for reimbursement
Brian Denton, director of Project,
Contract and Subsidy Administration at the Infrastructure Department, upon enquiry said Galant and Christians' applications for cash purchases were made at a time that the revised Flisp had not yet been approved. "It only made provision for applications where mortgage loans were involved and therefore correctly declined at time of application. The
revised policy has been in effect since 1 April 2022 and makes provision for the department to consider cash sales as applicable to the Galant and Christian families. In view of the confusion that prevailed at the time of these sales, my team will be making representations to our executive team to consider approving these applications retrospectively in view of the extenuating circumstances."
Denton said Lottering's subsidy application was approved and will be updated to reflect the increased subsidy amount that she qualifies for. "The amount to be reimbursed by Nandi Bulabula Attorneys, acting as the transferring attorneys, will accordingly increase. The reimbursement has been confirmed by the aforementioned and will take place as soon as the subsidy amount has been paid. The payment will be effected within the next two weeks."