The City of Tshwane’s MMC for Housing and Human Settlements Aaron Maluleka has addressed the ongoing tension between tenants at Thembelihle Village, a low-cost housing complex in the CBD, and their landlord, following the forced eviction of numerous tenants from the property earlier this week.

Maluleka said longstanding disputes over rent, soaring electricity costs, and frequent service disruptions were among the underlying causes of the deepening rift between tenants and Yeast City Housing, the landlord.

Thembelihle is the first social housing project in the municipality, which was launched by the government in 2018 to accommodate people who fall within income brackets of between R11 301 and R22 000 per month.

Maluleka shed light on how, over the years, the low-cost housing project has been plagued by persistent problems stemming from tenants’ non-payment of rent and utilities, resulting in Yeast City Housing being placed under business rescue.

He said: “The matters of rent disputes, escalating electricity costs, and service disconnections have created significant tension between the residents and Yeast City Housing.”

Maluleka said immediately after taking office last year, he engaged with all stakeholders at the project and “central to our discussions was addressing the restoration of essential services that had been disconnected by the City of Tshwane Revenue Management Division”.

“Moreover, we aimed to intervene in the ongoing stalemate between Yeast City Housing and the appointed business rescue manager, recognising the complexities of the situation.”

He said it emerged during the discussions that Yeast City Housing faced significant financial hardships, including substantial debt threatening the sustainability of their operations.

“Our subsequent meeting with the business rescue manager further highlighted the reality of the situation. The financial difficulties of Yeast City Housing are significant and detrimental to their property portfolio. It is clear that the business health of Yeast City Housing has direct implications for the residents of Thembelihle Village and any resolution must consider this relationship,” he said.

Maluleka said his department has already taken steps to address the concerns raised by tenants.

However, he cautioned that the city’s efforts to mediate have limitations “as the dynamics largely rest upon the relationship between the residents and the property owners”.

Evicted tenants were left to endure a cold and rainy Monday night on the streets.

Yeast City Housing obtained an eviction order to remove tenants who do not meet the requirements for social housing.

According to the company, numerous tenants have defaulted on payments since 2019, resulting in significant financial strain on utility bills, services, and rental fees. The outstanding arrears have now ballooned to nearly R60 million.

One of the tenants, Lorato Matlhabine, said: "We were unfairly evicted due to the failure of our former service provider to settle our electricity bills with the City of Tshwane."

Other residents blamed the landlord, alleging that the opaque billing process and the lack of basic services such as electricity and water led to a collective decision to withhold rent payments.

rapula.moatshe@inl.co.za

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Tshwane Housing MMC intervenes as R60m debt forces hundreds onto streets