Families living in Communicare-owned properties face eviction.
Image: Tara Isaacs
Families living in the Communicare-owned homes and social housing complexes in Brooklyn and Rugby have received eviction notices due to overdue and unpaid rent.
At least four women, all over 70, met with Tabletalk last week to discuss their fears about being put out on the pavement with their belongings.
These women, who have been living at Reyger Court for over two decades, are just a few of the hundreds of residents who face eviction and were due to vacate their units at the end of last month.
The women, who did not want to be named, fearing victimisation, showed proof that while their rent was in arrears, they had entered into a concession agreement with Communicare in 2024.
Instead of paying R2 100, they were allowed to pay R600 because they are South African Social Security Agency (SASSA) beneficiaries. The women maintain that they have been paying the lower amount as requested and provided bank statements, but they still face eviction. However, after one of them had visited the Communicare offices in Pinelands in February, she was told that the concession had fallen away, and Communicare demanded that they pay their rent in full.
However, none of them can afford it.
"If we had to pay over R2 000 for rent from our pension, where would we get money for water, electricity and food? The concession apparently ended, but we were not informed," said one of the women.
Two of the women who met with us claimed that their health had been affected by the eviction notices; one of them had suffered a heart attack and the other a stroke – showing us their medical records. Both had been seen at Somerset Hospital.
The women said Communicare suggested that they move in with family and friends and offered them R5 000 to help with the move, but they refused because their children are also struggling financially, they said. The complexes threatened by the evictions are Reyger Court in Brooklyn and Drommedaris Housing Complex in Rugby.
Families at the Drommedaris Housing Complex echoed what these women have said and added that they are left in limbo, "sleeping with one eye open" and fearing that they will soon be evicted.
Other tenants living at Drommedaris did not want to speak to Tabletalk, accusing us of working with Communicare and wanting to get them out faster.
Tenants at some free-standing houses owned by Communicare in Piet Grobler Street, Landros Avenue, and Koeberg Road were informed that their homes were being sold by new owners and would need to move or face eviction.
However, these tenants also maintain that they have nowhere else to go.
Francis Sullivan, living along Koeberg Road, said she had moved into the three-bedroom house 25 years ago after signing an indefinite lease with Communicare. She said her payments were up to date, but she is still being told to move from the house.
For all these years, she says, she had seen the maintenance of the property, including creating a garden, painting the house, and putting up burglar bars.
"Communicare had never come forward to help or assist with the maintenance at this property," said Ms Sullivan.
She said she received a call sometime in February from a man who said his partner had purchased the property and that she was "granted grace" to stay there until the end of May when she will receive R6 000 to find new accommodation. She showed us a copy of this agreement with hand-written notes on the eviction notice.
She said Communicare offered to sell the property to her for R900 000 but that, being a pensioner, she would never qualify.
However, according to a DeedsWeb document, which we have a copy of, the new owner bought the house from Communicare for R400 000.
Ms Sullivan said if Communicare had brought down the price like they did for the new owner, perhaps her son could have applied for the loan, but Communicare did not negotiate with her.
On Monday, March 10, Ms Sullivan called Tabletalk, notifying us that Communicare had offered to put her up in one of their housing units if she reapplied. "I don't understand why I have to reapply, they are putting me out of the house, so why not give me one," she added.
Another tenant whose rental is in arrears, living in Piet Grobler Street house for 26 years, said she was called by Délan Kruger, a property director, and was told that the house was being sold and that she needed to move at the end of April. She was also offered R15 000 to use as a deposit elsewhere.
But she said she won't be able to afford to rent another place because she is a pensioner.
She also said that Communicare had not informed her that the property was being sold.
Mr Kruger told Tabletalk that he called the tenant "on behalf of his business partner" to introduce themselves as the new landlords.
He said that since the tenant told him that Communicare had not informed the tenant, he had given her an extra month to vacate the property – at the end of May.
He said the tenant told him she was happy to move but did not have any money to do so, so he offered the R15 000 after discussing it with the business partner. "We said if you are struggling, we can help you," added Mr Kruger.
Tabletalk asked Communicare for comment and received the following statement from the organisation:
Tenant arrears
The rentals for the properties in question are well below market rates and do not cover the costs required to maintain the units. Further to this, we have reached a point where our organisation is no longer able to retain the hefty arrears that have accumulated in the Brooklyn/Rugby area.
Brooklyn properties have pending legal cases for arrears that exceed R10 million. The Reygerhof complex you refer to has pending legal cases for arrears that amount to more than R4 million, and the Drommedaris complex has more than 20 tenants whose arrears exceed R100 000 each. The total arrears there amount to more than R8 million.
Additionally, despite the concessions provided, tenants have continued to default on payments. This is the product of organised boycotts and the slow pace of the courts granting eviction orders.
Losing a home is distressing, and we make every effort to assist tenants in finding solutions. When tenants are unable to meet their rental obligations despite prolonged efforts to find solutions, the court ultimately decides on what is a fair solution to resolve the dispute.
"We have reached a point where our organisation is no longer able to retain the hefty arrears that have accumulated in the Brooklyn/Rugby area. As a social enterprise, we do not receive government grants to offset operating costs, and rental payments are necessary to sustain our housing offering," said Makhosi Kubheka, General Manager: Rental Property Management for Communicare.
Rental concessions
Rental concessions are awarded on a case-by-case basis and are valid for only one year. Concessions are implemented as a temporary assistance measure to assist tenants who have experienced a financial setback. These are discretionary. Concessions do not provide a sustainable way to rent with us. These are meant to provide relief for a certain period of time to allow tenants to visit other options that will improve their situation. Tenants are informed of this when they make a concessions application.
We consistently encourage tenants to proactively engage us when they are experiencing financial setbacks so that we can review their case to find alternate solutions that are more affordable.
"Communicare understands that unforeseen circumstances can be challenging, and we encourage tenants to engage with us proactively should they encounter any such challenges," said Ms Kubheka. "Together, we can explore available rental options within Communicare's residential portfolios that better align with tenants' affordability criteria, age criteria, and housing needs.
"Despite our unwavering commitment to supporting our tenants, we must prioritise the long-term sustainability of our operations to ensure that we can continue to serve our communities effectively."
Evictions
It is important to note that evictions are actioned by the Sheriff of the court with the support of the South African Police Service (SAPS). We do not receive notification of when these take place; instead, we receive information on the conclusion of a warrant of ejectment. We can confirm that we did not receive notification that such warrants were actioned on February 28.
"Evictions are never the first action. They are granted by the court after a lengthy engagement and legal due process. During these engagements, tenants would have been given the opportunity to make payment arrangements and/or find more affordable alternatives either at one of our complexes or elsewhere," said Ms Kubheka.
Elderly tenants
It is a common misconception that Communicare manages homes for the aged. We do have properties designated for independent seniors, which cater to the market segment from 50 to 65 years of age. Our properties are not designed for older persons – as defined by the Older Persons Act 13 of 2006 – as they do not meet the criteria to cater to the needs of such persons.
In the case of elderly tenants, they would be encouraged to relocate to their families. We do not pay people to do this but assist with the move when needed. For example, our social workers would assist the elderly in finding and applying for care facilities for the aged and securing tenancy there.
"It is a common misconception that Communicare manages retirement homes. Communicare does not manage retirement homes. We do have complexes designated for senior tenants between the ages of 50 and 65," said Ms Kubheka. "We do not provide care for older persons as our properties are not designed for this purpose."
Property sales
Brooklyn house rentals have become progressively unsustainable due to exceptionally high rental arrears and a housing infrastructure in need of refurbishment. These issues have resulted in continuous financial losses, significantly threatening the organisation's future sustainability.
As a result, Communicare has decided to dispose of this type of accommodation under its management, as it can no longer afford to invest further in ageing stock with very low or no returns. The sales will enable the funding of upcoming housing projects and create more affordable housing opportunities.
Communicare aims to use the proceeds from property sales to develop new, improved housing and support social development programmes. There is a preference for higher-density developments for sustainable, affordable housing projects, as the current house typologies are not suitable for sustainable, affordable housing purposes. Selling these houses should ultimately yield higher volumes of better-quality housing for more people.
Each property is evaluated, and a sales price is set accordingly. When arrears are owed, they may be added to the purchase price. Properties sold in bulk may be afforded a reduced price, though the figures mentioned are inaccurate.
When a tenant expresses an interest in purchasing the house they rent, Communicare offers preferential rates and covers the transfer and bond registration costs. The purchase price for investors takes several factors into account, as investors typically buy in bulk from an inventory list. Investors are responsible for covering the costs of transfer and bond registration. They are also open to negotiating certain
conditions and assuming responsibility for specific inspections and repairs.
"Tenants with excessive rental arrears would be given an opportunity to purchase their homes, providing they can secure adequate financing to buy the house and reach a settlement agreement with Communicare regarding their arrears.
"When properties are sold to new investor landlords, the sale is subject to existing tenancies. The new landlord is bound by the tenant's rights under the lease and the terms and conditions of that lease. They are informed of the tenant's rights under the Rental Housing Act. Tenants who pay their monthly rent should be retained as per the existing lease agreement," said Ms Kubheka.
Communicare further said that the allegations against it are not new. The organisation will defend itself against the misleading and damaging claims that have been circulating for many years. Communicare offers affordable quality housing to tenants at rentals that are about 30% below the market rate. All rental agreements are governed by a lease.
Over 95 years old, the organisation's mission is to provide people with sustainable, affordable housing in Cape Town and opportunities for economic upliftment.
In this sustainability model, elements of the business model are designed to generate a profit to sustain those parts of the business that are not designed to be profitable and rather have a social goal in mind. This includes reduced rentals to keep them at an affordable rate in their social impact housing portfolios.
• This article has been updated to include Communicare's full statement and quotes from Makhosi Kubheka, General Manager: Rental Property Management for Communicare, sent to Tabletalk.