35% of Build Together accounts in arrears
A total of 35% of Build Together beneficiaries’ accounts are in arrears.
This was revealed by the Swakopmund municipality during a council meeting recently. The Build Together programme, which supports low-income Namibians to construct homes, is dealing with a significant challenge as 35% of its participants are currently in arrears, it said.
Municipality spokesperson Linda Mupupa said 150 houses were expected to be completed under the project. During Phase 1 and Phase 2, 70 houses were completed. “Those in arrears with their municipal accounts were required to put down a 30% down payment on the balance before they receive the go ahead to construct. This means construction would still commence despite the debt owed to council.”
A total of 27 of 76 beneficiaries are reported to be in arrears with their service accounts, and these individuals have yet to make satisfactory payment arrangements with the finance department, she said.
Progress
Despite these financial setbacks, a majority of beneficiaries have made progress in other areas of the programme. Specifically, 70 beneficiaries have signed updated deeds of sale and loan agreements, and 68 have agreed to a cession agreement with Pupkewitz & Sons for the provision of building materials. Additionally, 42 beneficiaries have signed consent agreements allowing the council to pay the remaining loan amounts directly to their builders. However, five of these beneficiaries have requested changes to their builders, Mupupa said.
Meanwhile, the construction process is advancing through various phases. “We are now busy with Phase 3, which will see the construction of 80 properties which have been planned and approved for construction. Out of the 80, a total of 60 are already under construction and 76 beneficiaries’ haves signed loan agreements,” she noted.
In response to the arrears situation, the council sent out letters to beneficiaries, urging them to visit municipal offices to make payment arrangements. Beneficiaries who manage to make payment arrangements will have three months to demonstrate their commitment before construction can proceed. Failure to meet these requirements could lead to the cancellation of their Build Together loan, the municipality said.
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This was revealed by the Swakopmund municipality during a council meeting recently. The Build Together programme, which supports low-income Namibians to construct homes, is dealing with a significant challenge as 35% of its participants are currently in arrears, it said.
Municipality spokesperson Linda Mupupa said 150 houses were expected to be completed under the project. During Phase 1 and Phase 2, 70 houses were completed. “Those in arrears with their municipal accounts were required to put down a 30% down payment on the balance before they receive the go ahead to construct. This means construction would still commence despite the debt owed to council.”
A total of 27 of 76 beneficiaries are reported to be in arrears with their service accounts, and these individuals have yet to make satisfactory payment arrangements with the finance department, she said.
Progress
Despite these financial setbacks, a majority of beneficiaries have made progress in other areas of the programme. Specifically, 70 beneficiaries have signed updated deeds of sale and loan agreements, and 68 have agreed to a cession agreement with Pupkewitz & Sons for the provision of building materials. Additionally, 42 beneficiaries have signed consent agreements allowing the council to pay the remaining loan amounts directly to their builders. However, five of these beneficiaries have requested changes to their builders, Mupupa said.
Meanwhile, the construction process is advancing through various phases. “We are now busy with Phase 3, which will see the construction of 80 properties which have been planned and approved for construction. Out of the 80, a total of 60 are already under construction and 76 beneficiaries’ haves signed loan agreements,” she noted.
In response to the arrears situation, the council sent out letters to beneficiaries, urging them to visit municipal offices to make payment arrangements. Beneficiaries who manage to make payment arrangements will have three months to demonstrate their commitment before construction can proceed. Failure to meet these requirements could lead to the cancellation of their Build Together loan, the municipality said.
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