Land and Housing > Housing > Types of Housing Subsidies > Institutional Housing Subsidy
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Institutional Housing Subsidy

This is for non-profit organisations like churches, local authorities or housing associations (also called ‘social housing institutions’) that want to provide rented accommodation to people from lower income groups. It is called an institutional subsidy because it goes to the institution who can rent out the housing to different families. A family who lives in this type of rented accommodation does not jeopardise their chance to apply for their own subsidy at a later date. This is because the subsidy for rented housing is taken in the name of the organisation and not in the name of the individual. The homes developed through the institutional subsidy must remain in the ownership of the organisation for at least four years after they are built. In 2011, the subsidy for the institutional subsidy per household is R55 706 which is paid directly to the non-profit organisation. The organisation must add capital. Starting 3 November 2011, the subsidy for the institutional subsidy per household is R81 383 which is paid directly to the non- profit organisation.

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