To ensure the proper implementation of the Housing Allowance and streamline the process for public servants to access housing benefits in government departments, the Government Employees Housing Scheme (GEHS) conducted a two-day campaign of Educational and Outreach Sessions in collaboration with stakeholders SA Home Loans and the National Housing Finance Corporation. These sessions were held at Emperors Palace, Kempton Park on August 3rd and 4th, 2023, and were coordinated by the Gauteng Office of the Premier.
The primary focus of the GEHS presentation was to emphasize the importance of government employees enrolling with the GEHS to access the Housing Allowance benefits. The presentation aimed to equip HR practitioners with the necessary knowledge to assist employees in enrolling with the scheme and receiving the Housing Allowance.
During her presentation, Ms Ivy Selepe of the GEHS explained the two processes involved: enrolment and application for Housing Allowance.
She said enrolment with the GEHS is mandatory for all employees on salary levels 1 – 16, including senior managers. On the other hand, the application for the Housing Allowance is for employees on salary levels 1 – 10 (non-management employees) and includes Occupational Specific Dispensations (OSDs).
Ms Selepe emphasized that Housing Allowance does not happen automatically; employees must complete the Housing Allowance application form as either homeowners or tenants to start receiving the benefit.
Ms Ivy Selepe highlighted the critical role played by HR practitioners in ensuring that employees receive the housing allowance and that HR practitioners are the first and last point of contact for employees in their respective departments. She urged attendees to inform new employees about the Housing Allowance benefit and provide them with application forms to complete.
The National Housing Finance Corporation (NHFC), an entity of the National Department of Human Settlements, presented information about First Home Finance (formerly known as FLISP). First Home Finance is a once-off subsidy for first-time homebuyers earning a gross salary between R3,501.00 and R22,000.00. The subsidy aims to provide sustainable and affordable homeownership opportunities to South African citizens and legal permanent residents. It can be used to purchase an existing property, buy a vacant serviced residential stand linked to an NHBRC registered builder, or build a home on a self-owned serviced or tribal stand through a Permission to Occupy (PTO) arrangement.
The once-off First Home Finance subsidy amount ranges between R38,911.00 and R169,264.60, depending on the applicant’s monthly income. This subsidy is a grant and does not need to be repaid.
The presentation by SA Home Loans focused on the steps involved in acquiring home ownership and the importance of maintaining a healthy credit profile.
Mr Humphrey Mitchell of SA Home Loans highlighted that access to home finance is dependent on three key factors: credit health, affordability, and saving for costs. He cautioned attendees about the negative impact of cash loans and advised them to honour payment arrangements with creditors. He stressed the importance of maintaining a good credit profile, stating that it reflects how individuals manage their finances.
Discussing the products offered by SA Home Loans, Mr. Mitchell said it is significant to have one’s own house, stating that it provides dignity and peace of mind. He noted that while everything may change in life, property remains a constant.
The GEHS is mandated through the Public Service Coordinating Bargaining Council (PSCBC) Resolution 7 of 2015 to administer the Housing Allowance benefit for government employees, with the objective of empowering them to become homeowners.
