Madulammoho Housing Association was established in 2004 to provide affordable housing solutions for Johannesburg’s inner city community.
Economic cost recovery model
Using an economic cost recovery model with affordability as the starting point, Madulammoho pioneered a model that meets the housing needs of the very poor. Madulammoho was born out of Metro Evangelical Services (MES), a non profit, faith-based organisation that provides a wide range of social services to Johannesburg’s inner city community.
Affordability as the starting point
Although set up to provide affordable rental accommodation for low-income earners, the housing delivered through Social Housing Institutions (SHIs) was still providing a rental housing model beyond the reach of MES’s clients.
With its clients in mind, Madulammoho began to examine the need for housing with affordability as the starting point. We developed a method were we first asked the question – What can the client afford? – Then we calculated what we can developed to accommodate the poor. This was the start of communal and transitional housing opportunities in Hillbrow, Johannesburg in which people could rent a bed space and access shared ablution and kitchen facilities.
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What is Social Housing
Social Housing is an affordable rental option for low income families.
The Department of Human Settlements has several housing options available as part of their housing delivery program. This ranges from BNG and Finance linked housing (FLISP) – which is aimed at ownership to Social Housing – which is only for rental.
Social Housing is aimed at providing affordable rental accommodation for people earning between R1 500 and R5 500 as the primary target market and for people earning between R5 500 and R15 000 as the secondary target market.
In order to provide affordable rental accommodation the Department of Human Settlements provide a once of Capital Grant to Madulammoho in order to lower the loan finance of the project. No other subsidies are available and all operational costs like security, cleaning, maintenance, staff and administration must be covered from rentals collected.
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