The process that SOHCO follows as a non-profit Social Housing Institution is to source well located land and develop affordable units for the rental market. As part of the development process, SOHCO applies to Government for a captial grant which pays for part of the construction of the development. The balance of the development costs are then sourced by SOHCO as loan finance. This method of financing allows SOHCO to develop units for the Social Housing RENTAL market and in the process enables the units to be rented out at lower than normal market rental value.
In order to comply with Social Housing Regulatory Authority (SHRA) guidelines, rentals are determined as a percentage of gross monthly income of all occupants. The current guideline is that combined household income should be less than R15 000 per month.
All SOHCO apartments are available on a RENTAL basis and all tenants sign valid lease agreements which clearly indicate all the terms and conditions of the rental agreement.