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.

Tsholofelo 372 Housing Development

The Tsholofelo 372 housing development was conceived and developed as part of the initial 750 housing project under the IPS for all Batswana aged between 18 and 65 years with a monthly income between P5,325.00 and P14,000.00. After consultation with the Government, it was deliberately decided to reserve one third of the units, that is a total of 250 out of 750 units, for purchase by the Youth. The youth reservation was meant to grant them access to purchase housing instead of them competing directly with other Batswana.On further consultation, the Government directed that on completion of the project, the units be sold outright  as opposed to paying through instalments, with a view to using the money from the sales to roll out more units over a short period of time to accommodate more Batswana going forward.

The Tsholofelo 372 project was offered at a price of P440,160 (VAT Inclusive). These units are two bedroomed with a lounge, kitchen and bathroom cum toilet clustered in three storey blocks of twelve each. The price was such that BHC would able to recover the cost of construction including utilities, the interest charged on the borrowed money and management fees. Furthermore, these costs were spread across all the units to effectively spread the base for cost recovery and create affordable pricing. The capacity of the targeted group (including the youth) to access funding from the different financiers was tested when the units were first made available for sale to the public in October 2019. Out of a total of 850 applications received for the 372 units, 595 or 70% of these came from the youth, which indicated that the targeted group could afford the set price of the units. By March 30th, 2020, 222 units were sold with 161 (72.5%) taken up by the Youth. The commercial banks took a keen interest in financing this development, which has greatly assisted prospective buyers, especially the youth. 

In consideration of these developments, the Corporation is of the view that the price of the units is relevant to the market and indeed the youth. The Youth has participated effectively by partaking at a proportion (72.5%) much higher than their 33% reservation. It must also be borne in mind that most mortgage lenders gave 100% credit on this project which banks only do when the purchase price is lower or equal to the market (usually forced sale market).

Eligibility criteria for the Tsholofelo 372 Housing Development

•Must be a Motswana to purchase a unit from the project.
•Under the Youth arrangement, one must be youth aged between 18 & 35 years of age at the time of sale of the project.
•Other Batswana besides the youth,  will be allowed to purchase.
•Three months bank statements.
•Affidavit that you have not purchased BHC house before.
•First time homebuyers will be given preference.
•Second time home buyers to be considered in case the project does not sell accordingly.