Cape Town - The Western Cape Department of Human Settlements is cautioning residents to be aware of online housing subsidy scams that request the applicant to pay for government housing assistance.
The department said it had recently learnt of a WhatsApp message that has been circulating, claiming to assist residents to receive a house within two weeks.
According to the department, residents are then requested to pay R2 300 for the approval letter and title deed to receive a housing opportunity.
The scam has been identified to be running in Khayelitsha, Stellenbosch, Montana, Paarl and Mitchells Plain, among other communities.
The department’s acting director for communication, Muneera Allie, said: “Residents should be aware that no payment is required to be placed on the housing demand database (that is, waiting list) to apply for a housing subsidy or any related government housing service.
“A payment request should alert residents to the offer being a scam.”
Regarding the particular WhatsApp message that is being circulated, Allie said it was but one of many online housing scams preying on vulnerable residents.
In 2022, Allie said the department became aware of several Facebook accounts making similar claims of assisting residents to receive a government housing opportunity for a fee.
In one particular Facebook account, “RDP House Application 2022/2023”, the individual claimed to be an employee of the department.
Allie said: “Fraudulent scams have increasingly been reported and appear on different platforms, particularly on social media, requesting citizens to either pay a deposit or holding fee for a government house or to pay to be approved for a government housing opportunity or to pay for the processing of an application, for example.”
Western Cape Infrastructure Minister Tertuis Simmers said: “Vulnerable residents often fall prey to these scams in the hope of being assisted, or bumped up on the waiting list, for a government housing opportunity. In most cases, money exchanged due to fraudulent scams is not recovered.
“To be considered for a government housing opportunity, citizens need to be registered on the housing database at their local municipality.
“The department urges residents to be alert to requests for money involving government housing and to know that no exchange of money is needed to get approval for a government-subsidised house, and you do not have to pay to be on the housing database,” Simmers said.
To qualify for a government-subsidised house, residents need to:
- Be a South African citizen or have a permanent residency permit.
- Be 18 years or older.
- Be married or living with a partner.
- Be single or divorced and have proven financial dependants living with them permanently.
- Earn a household income of R3 500 or less, before deductions.
- Not be current or previous property owners.
- Not have received a housing subsidy from the government before.
The department also has various subsidies available to assist residents earning between R3 500 and R22 000 gross monthly household income.
Enquiries can be made at any municipal housing office.
“Perpetrators often have some knowledge of how government housing works and go as far as to create fraudulent approval letters and correspondence that may appear authentic and lawful,” Allie said.
“While some residents are also aware of how the system works, the mere suggestion of being bumped up on the waiting list prompts them to find the means to pay a requested fee to fast-track the process.
“During 2022, one victim arranged for a R2 000 loan to pay for an ‘approval letter’. Due to the nature of these scams and false social media accounts created to rip off residents, it is challenging to crack down on these con artists,” Allie said.