The holding company of social housing scheme Thembelihle Village, Yeast City Housing NPC, has been placed in business rescue due to nonpayment by tenants. The City of Tshwane's Department of Human Settlements has conducted a comprehensive tenant audit and affordability assessment at Thembelihle Village to ensure that this social housing is allocated to those who qualify. This process revealed a significant number of tenants who are not eligible for social housing, with some households earning up to R32,000.00 in joint income while continuing to occupy these units. Social housing has been designed as transitional housing for households earning within a prescribed scale, which is currently between R3 500 and R22 000 per month. The findings were based on court documents and official records, which included individuals in professional fields such as teaching, nursing, government service, and business ownership.

As a result of these findings, the court granted eviction notices to tenants who do not meet the requirements for social housing. Additionally, further investigations uncovered several factors contributing to the decision to proceed with evictions:

• Non-Payment of Rent and services: Several tenants have failed to make payments, resulting in financial strain on utilities, services and rentals with arrears currently totaling close to R60 million.
• Non-Disclosure of Income: Some households refused to provide income verification during the affordability assessment.
• Illegal Subletting:Unlawful rental arrangements were identified, compromising the integrity of the housing program.
• Intimidation of Staff:Instances of harassment and threats towards property management staff were reported.
• Unauthorized Fee Collections:Groups have been unlawfully collecting money from tenants under false pretenses.
• Political Interference:Certain external parties have been involved in activities that encourage negative practices, further destabilizing the housing program.
• Fire Hazards and Safety Concerns:Multiple fire incidents have occurred, raising serious concerns about compliance with safety regulations.
• Health and Safety Violations:Conditions within the buildings have deteriorated, posing risks to all residents.
• Security Threats:The ongoing illegal activities have led to a breakdown in security, endangering lawful tenants.
• Vandalism and Sabotage:Property damage has been reported, further contributing to the degradation of the living environment.
• Misrepresentation by Unauthorized Groups:An alleged residents’ association has been encouraging tenants not to pay rent, making it difficult for the managing agents to carry out evictions. Additionally, certain individuals have been fraudulently collecting fees while impersonating the managing agent.
• False Promises of Payment:Some tenants, who have previously not paid rent, are now making conditional promises of payment in exchange for restored services. Municipal services have been disconnected for the last two years due to non-payment.

THEMBELIHLE VILLAGE is committed to ensuring that social housing serves its intended purpose—providing affordable and safe accommodation for those who genuinely qualify and will continue to take firm action to uphold the integrity of the housing program and restore order at Thembelihle Village.

The business rescue process aims to restructure Yeast City’s sizeable debt and ensure that this valuable portfolio can contribute to the housing mix in Tshwane well into the future. Thembelihle should contribute to the City’s housing not only in its present state, but also by increasing the occupancy of its units under management to support those in need.

Further updates on the eviction process will be communicated in due course.

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THEMBELIHLE VILLAGE