SEROWE ADMINISTRATIVE AUTHORITY

SELF HELP HOUSING AGENCY (SHHA)

Introduction

In an effort to encourage home ownership as well as to improve housing to low income and middle-low income households, government introduced the Self Help Housing programme. This programme is aimed at providing loans to eligible households as well as provides technical assistance to beneficiaries. The loan repayment term is over a maximum period of 20 years at zero interest rate. However, a 10% penalty is charged to beneficiaries who would have defaulted on their monthly repayments. This programme targets only Botswana citizens within the income bracket of P4, 400 to P52, 400 per annum, who have a Common Law Lease, Certificate or Title Deed holders who are between 21 and 60 years of age. There are two types of SHHA schemes, and these are Home Improvement and Turnkey.

Home Improvement: focus is on improvement and or extensions to existing houses/homestead. Beneficiaries for the SHHA loan under this scheme would be expected to start construction of their houses using their own resources (funds) and the SHHA loan would be utilized to complete the project. The maximum loan amount is P60 000.00

Turnkey: caters for the new construction of a house. Applications are done at the Council but the construction is undertaken by Botswana Housing Corporation. Applicants are expected to choose from BHC standard plans after loan approval. The loan amount is P90 000.00

SHHA LOANS ELIGIBILITY

The following will be eligible for SHHA loans

a) Must be a citizen of Botswana

b) Employed individuals/household within the income bracket of P4, 400 to P52,400 per annum. Council should update information regarding income every year. Please note that where applicant is married, spouse income should be taken into consideration in assessing eligibility.

c) Must be formally employed or legitimately self employed and can apply in a planning area of their choice.

d) Self employed individuals/household such as business persons and farmers within the same income bracket will be allowed to repay the loans at regular intervals to be agreed with the Council.

e) Pensioners who earn between P4,400 and P52,400 per annum and are less than 60 years of age also qualify.

f) Common law lease and Certificate of Customary Land Grant holders

g) Individuals must not be less than 18 years old; however applicants below the age of 21 years but above 16 years may be allowed to apply for and be allocated plots provided they are employed and self supporting. Married persons under the age of 21 will attain maturity through marriage and therefore will have full capacity;

h) An applicant or spouse must not have benefited from the SHHA Loan before in designated urban and Non-Township areas where the SHHA programme is in operation. Individuals married out of Community of property will not be considered for SHHA loans separately.

i) Must have an approved house plan (For Home Improvement Applications).

j) Surety Guarantee

a. Plot holders who are over the age of 60, or those who are unable to afford repayments of the loan may access SHHA Loans provided that they have a Suretor.

b. A Suretor is a person who guarantees that all payments for the loan will be made and become legally liable to make those payments. Therefore the Suretor pays the loan on behalf of the person using the building material loan. The Suretor should not earn less than P4,400 per annum. There is no maximum limit for the amount he/she can earn.

A suretor should be required for a plot owner who seeks to apply for a SHHA loan but does not qualify due to his or her inability or likely inability to meet the SHHA loan financial obligations fully.

SHHA LOAN APPLICATION REQUIREMENTS

EMPLOYED APPLICANTS

1 Certified copy of Plot certificate
2 Certified Copy of OMANG for Plot Holder
3 Verification Employment Form (to be signed by Employer)
4 Letter from Next of Kin if Married
5 Certified Copy of OMANG for Next of Kin
6 Advice slip of Plot holder
7 Certified copy of Marriage certificate
8 Approved House Plan (for Home Improvement)
9 Income Bracket P4400-P 52 400 per annum
10 Material and Labour Quotations (for Home Improvement)

SELF-EMPLOYED APPLICANTS

1 Certified copy of Plot certificate
2 Certified Copy of OMANG for Plot Holder
3 Verification of Self-Employment Form (to be obtained from SHHA office and be signed by DC/Kgosi/Police)
4 Bank statement/proof of income
5 Copy of business licence
6 Certified copy of Marriage certificate
7 Approved House Plan (for Home Improvement)
8 Income Bracket P4400-P52 400 per annum
9 Material and Labour Quotations (for Home Improvement)

APPLICATIONS ARE MADE BY FILLING THE APPLICATION FORMS WHICH CAN BE OBTAINED FROM SHHA OFFICES.

SHHA SERVICES ARE OBTAINED FROM SHHA OFFICES IN THE FOLLOWING PLACES:

Serowe Rural Administration Centre (RAC)
Mahalapye Rural Administration Centre (RAC)
Bobonong RAC
Palapye RAC
Tutume RAC
Letlhakane RAC
Tonota RAC


BENEFICIARIES

So far about 1937 people have benefitted under Turnkey while 1519 have benefitted under Home Improvement.

WAITING LIST

Turnkey is 2944 while Home Improvement is 438 but keep changing every month when new applications are received.

ANNUAL BUDGET

Funding is done by the Ministry of Lands and Housing