09 Jun 2016 18:00pm
WINDHOEK, 09 JUN (NAMPA) Only first-time buyers will be catered for in the Mass Housing Development Programme (MHDP).
About 716 houses have been completed in various localities and are ready to be sold to potential first-time buyers, Minister of Urban and Rural Development, Sophia Shaningwa said in the National Assembly (NA) on Thursday.
The minister said looking at the income levels of potential clients, it is clear that many low income earners will not qualify to buy these houses without a discount.
She also noted that Cabinet approved a Government discount on the selling price of these houses to ensure affordability to low income earners.
She explained that a person earning a minimum of N.dollars 2 700 will now be able to buy a D1 house, which costs N.dollars 70 000, or a Core 5 house that costs N.dollars 90 000.
The D1 houses are constructed under the MHDP and the allocation of these units to beneficiaries is the responsibility of the respective local authorities.
The subsidies by Government should therefore be viewed as enhancing affordability and also as a socio-economic empowerment to the home owners, Shaningwa said.
She further noted that no multiple ownership of houses in a single or various local authorities will be allowed under the MHDP, in order to address the housing backlog.
No shacks will be erected around those properties and the properties can also not change ownership for the next 10 years. In the event that the beneficiary wishes to sell the house, Government will have the first option to buy it.
The houses will be financed through the National Housing Enterprise (NHE), while the credit linked houses will be financed through the commercial banks and proceeds will be deposited in a revolving fund account, which will be audited on a monthly basis as directed by Cabinet.
Shaningwa also informed the House that her ministry is expected to deliver at least 5 000 new houses and at least 6 500 new residential plots every year, and to eradicate the bucket system during the 2016/17 financial year.