Cape Town to write off R3m arrears

2016-08-25 08:08

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Cape Town – The over R3 million rental and utility arrears tenants of a Langa housing scheme owe should be written off, a Cape Town council meeting decided on Wednesday.

A full council meeting voted in favour of the move.

People renting 33 of the units in the Joe Slovo housing scheme signed lease agreements with the City of Cape Town in exchange for having their water and sewerage arrears, accrued between 1 November 2014 and February 2016, scrapped.

The property previously belonged to the Housing Development Agency (HDA), who handed its scheme over to the city for rental purposes in 2013.

No lease contracts had existed between the HDA and the occupants. As a result, the agency received no rent or utility service payments.

The city tried, but had limited success in signing lease contracts with the occupants inherited with the units. The limited lease contracts resulted in only some of the tenants being billed.

According to city records, as of May last year, the property had an outstanding balance for services of over R6m.

It was recommended that R3 455 556 be written off. The Human Settlements Department would pay the balance of R2 724 973.

Read more on:    city of cape town  |  cape town  |  local government

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