Government Housing Initiatives

On 1st April 2012, the Corporation’s mandate was expanded in accordance with Presidential Directive Cab 20 (B)/2010. The directive pronounced that all Government housing implementation programmes be transferred to BHC to operate as Government’s Single Housing Authority (SiHA). In compliance with the directive, BHC is as from 1st April 2012 responsible for the construction of turnkey SHHA projects, Public Housing Initiative, Youth Housing as well as District Housing.

The Corporation has completed a number of SHHA projects in various constituencies around the country. Furthermore the corporation has identified plots for the construction public officer’s houses through the Public Housing Initiative which is expected to take of in 2016. 

SHHA Low Income Housing Programme

Self Help Housing Agency (SHHA) established in 1973 to assist the low-and middle lower income households to access housing in urban areas.  Government took a decision to extend the SHHA programme to Non Township areas in terms of Government Paper No. 2 of 2000 (National Policy on Housing in Botswana).

SHHA Home Improvement

The main objective of this scheme is to provide funding for extension or renovation of an exixting house and/ or completion of an existing house and/ or completion of an unfinished structure. Beneficiaries of the SHHA Home Improvement loans are expected to start construction of their houses using their own resources and the SHHA loan would be utilized to complete the projects. Councils undertake inspections on site to ensure applicants  have already started constructions before the loan can released. The assessment must be done to verify the level of development and the loan is only granted if the required amount would allow for the completion of the project. Materials purchased by the loan must strictly be used to build the proposed structure and failure to do so is a violation of th agreement.

The maximum loan entitlement is P60,000.00. The repayment period for the scheme is 20 years at no interest charged on the loan while 10% interest is charged to beneficiaries who default on their payment.

The implementation of the programme is decentralized to District Councils with the Department of Housing providing policy guidance and funding. Beneficiaries applications and the home improvement construction process is administered by the District Councils.

SHHA Turnkey

The programme involves the design and construction of basic core houses for eligible low income households. Upon occupation the beneficiaries pay the cost of the built houses for a period of 20 years at P375.00 per month at no interest save for a penalty interest is charged to beneficiaries who default. The turnkey loan amount is P90 000.00.

The implementation of the programme is decentralized to District Councils with the Department of Housing providing funding. The beneficiary identification and loan repayment administration process is handled by the District Councils. Construction of the beneficiary houses is undertaken by Botswana Housing Corporation.

Eligibility criteria for SHHA Home Improvement and Turnkey Development Schemes

  • Must be a citizen of Botswana.
  • Employed individuals/ households within the income bracket of P4,400.00 to P52,000.00 per annum. IF the applicant is married, spouse income will be considered in assessing eligibility. Applicants over the age of 60 years and/ or are unable to afford repayments of the loan can apply provided they have a suretor. A suretor is a person who guarantees that all payments for the loan will be made and becomes legally liable to make payments. The suretor should not earn less than P4,400.00 per annum. There is no maximum limit for the loan amount he/ she can earn.
  • Self employed individuals/ households such as business persons and farmers within the same income bracket are allowed to repay the loans at intervals to be agreed with the District Council.
  • Pensioners who earn between P4,400.00 and P52,00.00 (P366.00 to P4,333.33) per annum and of ages less than 60 years old.
  • Common law lease and certificate of customary land grant holders.
  • Individuals must be aged between 21 and 60 years. Those between 18 and 21 will be considered under special circumstances.
  • An applicant or spouse must not have benefited from the SHHA loan before in a designated urban and Non-Township areas where the low income housing programme is in operation. Individuals married out of community of property will not be considered for loans separately.

Home Improvement loan application requirements

1. Approved House plan.

2. Certified copy of Plot Certificate.

3. Certified copy of Omang of Plot Holderand next of kin.

4. Verification of employment/ self employment.

5. Certified copy of Marriage certificate & Letter from spouse (where applicable).

6. Proof of income.

SHHA Turnkey requirements

1. Fenced Plot.

2. Water for construction.

3. Storage for construction materials.

4. Overal site/ project security lies with the beneficiary.

5. Type of house plan to be used is provided by BHC.

6. Physical site conditions will be considered.

7. Certified copy of Plot Certificate.

8.Certified copy of Omang of Plot Holderand next of kin.

4. Verification of employment/ self employment.

5. Certified copy of Marriage certificate & Letter from spouse (where applicable).

6. Proof of income.

Where to get assistance

SHHA home improvement and Turnkey loan applicants are advised to contact Council Offices in theri respective districts to enquire about the processes and procedures for acquiring these loans.

Public Officers Housing Initiative

The Corporation has already acquired land and funds, and would be constructing the first 200 houses in June 2015.This is a project where BHC is going to build housing units in different parts of the country at a capped cost of just under P 153,000.00. The houses will be bought by citizens and rented out to Government to house civil servants. The rental amount will serve as repayment or mortgage for the house in each case. Where houses are not bought out right,Government will pay BHC the rental amount equivalent to the amount payable under the Tenant Purchase Scheme (TPS) until such time that the outstanding amount has been fully paid off. So far a list of 540 plots has been submitted to BHC, 318 of which have been acquired and are ready for future development.

Installment Purchase Scheme & Youth Housing

The scheme involves the design and construction of three storey flats, (2 beds) measuring 65sqm at Tsholofelo, Gaborone. The Corporation has commenced the intial units, which will mainly house the youth and Batswana earning between P3 000.00 and  P 7 000.00

The Botswana Government has given the Corporation 400 million PDSF loan to start 372 high density units at Tsholofelo. The Corporation has started 156 houses at an estimated cost of P64 million. Other units will be contructed once all the necessary processes are in place. The Government has allocated the Corporation another plot in Tsholofelo to accommodate 264 units and one in Block 7 for 114 units to make a total of 750 units. The maximum repayment period will be 25 years and will be staggered for the different age groups to ensure that customers are able to pay-off their loans whilst within their active work life. 

Initially the Corporation was to build 1000 housing units this year and for another 3 years, in which one quarter of the units goes to the youth and the remaining units goes to the rest of Batswana eligible for the scheme. The Scheme which will be piloted first in Gaborone will later extend to Francistown and Palapye respectively where they is high demand for housing.

This new Installment Purchase Scheme (IPS) is targeted to the low income upper as well as the middle income lower categories.  The beneficiaries will be prospective home buyers whose income range between P3 000.00 – P7 000.00 per month.  This is a category of home seeker who fall in between highest group currently being catered for by SHHA and the lowest group being catered for by BHC. The youth will also be covered under this scheme. The first batch of units are expected in December 2017.

Eligibility criteria for Installment Purchase scheme (IPS)

  • The scheme shall be exclusively for individual citizens of Botswana.  
  • The beneficiaries shall be persons aged between 18 years to 65 years with a monthly income ranging between P3 000.00 – P7 000.00.  
  • Both sitting tenants and prospective customers not in occupation of a BHC houses will be eligible for the scheme.
  • The targeted beneficiaries will be entitled to benefit from the scheme only once.
  • An applicant must have not acquired any ownership of plot in the designated area the scheme is running.

Reintroduction of the Tenant Purchase Scheme (TPS)

Tenant Purchase Scheme is a BHC program that allows tenants to purchase their leased BHC property through instalments. The instalments are determined from the price of a housing unit and the age of the tenant. The objective of the scheme is to assist Batswana to purchase properties on instalment terms over a maximum repayment period of 25 years. The scheme is designed to encourage home ownership, with tenants eventually becoming owners of the properties they are leasing from BHC.

Tenant Purchase Scheme (TPS) offers Batswana an opportunity for home ownership with conducive payment terms that are affordable. Potential mortgage Customers could not afford or qualify for mortgages with commercial banks largely due to loan pre-requisites such as deposit, transfer costs and registration fees required upfront. Through TPS these upfront payments could be eased throughout the instalments payment period.

The re-introduction of Tenant Purchase Scheme will accommodate those buying new properties but are limited in purchasing power through financial institution requirements. BHC will vet buyers that otherwise did not qualify for mortgages from financial institutions for possible sales through TPS.

Eligibility criteria for Tenant Purchase Scheme (TPS)

  • Citizens of Botswana only, no companies
  • Aged between 21 and 65 years ( the maximum repayment period is 25 years)
  • Tenants currently renting BHC properties
  • Credit life insurance will be required upon purchasing

 

 

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