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Property Law: FLISP – How to Obtain a Housing Subsidy if You Are a First-time Homebuyer

What is FLISP?

FLISP (Finance Linked Individual Subsidy Programme) is an initiative developed by the Department of Human Settlements to facilitate affordable home ownership for South African citizens who are first-time home buyers. The aim of this programme is to empower individuals who fall into the R3 500 – R22 000 salary bracket and have difficulty qualifying for mortgage loans. The subsidy is a once-off payment and the available amounts range between R30 000 and R130 000, depending on the applicant’s salary. Individuals that qualify for such subsidies may either buy an existing residential property or buy a portion of vacant land which makes provision for residential property to be built by an NHBRC (National Home Builders Registration Council) registered homebuilder. The provision of these subsidies give effect to section 26 of the Constitution which affords everyone the right to have access to adequate housing and instructs the state to take reasonable legislative and other measures to achieve the progressive realization of this right.

Who can apply?

The following persons are eligible to apply for FLISP:

  • South African citizen with a valid ID; or permanent resident with a valid permit;
  • over 18 years and competent to enter into legal contracts;
  • has not received a Government Housing Subsidy Scheme before;
  • has received Bond approval from an accredited South African financial institution; and
  • first time home buyer, earning from R3 501 to R22 000 per month.

Which documents are required when applying?

Certified copies of the following documents are required in support of your application (where applicable):

  • South African ID / Permanent Residence Permit
  • Birth Certificates / ID’s of financial dependants
  • Proof of Guardianship
  • Marriage / Civil Union Certificate / Co-Habitation Affidavit
  • Divorce Settlement
  • Spouse’s Death Certificate
  • Proof of Income
  • Bond approval from an accredited South African financial institution
  • Agreement of Sale
  • Building Contract and Approved Building Plan

Where do I apply?

Application forms can be found at https://www.westerncape.gov.za/assets/departments/human-settlements/docs/forms/hs-flisp-housing-subsidy-application-form-30march2022.pdf
Once completed, this form, together with the supporting documentation, must be hand delivered or posted to the Department of Human Settlements in Wale Street, Cape Town.

Written by Ayesha Arend
For more information and any property law queries, contact aarend@dkvg.co.za

This article is for general information purposes and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us At DKVG Attorneys for specific and detailed advice.