The PIE Amendment Bill needs do more to protect publicly funded housing assets
Immediate Release
24 June 2026
The National Association of Social Housing Organisations (NASHO) has expressed deep concern over the liquidation of Capital City Housing NPC, the Social Housing Institution responsible for the Aloe Ridge social housing development in Pietermaritzburg.
According to NASHO, the liquidation and collapse of the Aloe Ridge social housing project represent far more than the failure of a single institution. It highlights growing risks facing South Africa’s Social Housing Programme and raises urgent questions about the country’s ability to protect publicly funded rental housing assets from unlawful occupation and organised non-payment.
The liquidation follows years of challenges arising from the unlawful occupation of the Aloe Ridge social housing project in Pietermaritzburg. The development is a 952-unit project built through public investment exceeding R220 million in 2014. A total of 261 units were unlawfully occupied (hijacked) by military veterans allegedly affiliated to Umkhonto weSizwe Military Veterans Association. Although the project was intended to provide affordable rental housing to qualifying low and moderate-income households, Aloe Ridge has instead become a stark example of how publicly funded housing assets can be rendered financially unsustainable when unlawful occupation becomes entrenched and lawful eviction orders cannot be effectively enforced.
The consequences extend well beyond the project itself. The collapse of CCH has resulted in the loss of a social housing institution, the deterioration of a major public housing asset, and a reduction in the supply of affordable rental housing for current and future beneficiaries.
“The liquidation of Capital City Housing should serve as a wake-up call to policymakers. Aloe Ridge demonstrates that building affordable housing is only one part of the solution. Public housing assets must also be protected and managed within a legal and enforcement framework that allows them to remain sustainable over the long term,” said NASHO General Manager, Karabelo Pooe.
According to NASHO, the Aloe Ridge case validates concerns that the organisation recently raised in its submission (see attached) on the Prevention of Illegal Eviction from Unlawful and Occupation of Land Amendment Bill. In its submission, NASHO warned that building hijacking and organised rental boycotts pose a growing threat to the sustainability of publicly funded rental housing programmes.
The submission highlighted several examples where social housing developers have experienced severe financial distress due to prolonged unlawful occupation and organised non-payment campaigns. Another such example is Yeast City Housing in the City of Tshwane, which developed the Thembelihle Village social housing project located in the Pretoria CBD. The development comprises 733 residential units intended for affordable rental housing. The total investment in the project is estimated at approximately R150 million in government grants and loans as at 2017.
“What is particularly concerning about Aloe Ridge is that an eviction order was obtained, yet the unlawful occupation persisted. The case illustrates that legal remedies alone are insufficient if there are no practical mechanisms to ensure that court orders can be implemented effectively and safely,” said Pooe.
NASHO has called for the PIE Amendment Bill to provide stronger protections for publicly funded rental housing assets. Among other proposals, the organisation has recommended that accredited Social Housing Landlords be formally recognised within the legislation as key custodians of public housing assets.
“South Africa cannot afford to lose publicly funded housing assets at a time when demand for affordable rental housing continues to grow. Every project that becomes financially unsustainable represents a loss, not only to the institution involved, but to the thousands of households who depend on these developments for safe, affordable accommodation,” Pooe said.
NASHO reiterated its support for the objectives of the Prevention of Illegal Eviction from and Unlawful Occupation of Land Amendment Bill but urged lawmakers to ensure that the legislation strikes an appropriate balance between protecting the rights of occupiers and safeguarding public housing assets funded by taxpayers.
Ends.
Media Enquiries:
Anneke Burns
NASHO Public Relations
071 423 0079
anneke@abpr.co.za
About Social Housing
Social housing refers to rental accommodation for low to medium-income households (earning between R1 850 and R22 000 per month), provided by accredited Social Housing Institutions (SHIs) in designated restructuring zones. It differs from other housing typologies by offering secure, well-located, and well-managed rental units within integrated communities. The sector is regulated by the Social Housing Regulatory Authority (SHRA).
About NASHO
NASHO is an independent member-based association of Social Housing Institutions (SHI) and Municipal Owned Entities (MOE), Other Delivery Agents (ODA) responsible for the delivery and management of social housing units and support organisations to the Social Housing Sector. Our members, who collectively oversee over 71% of social housing rental units in the Republic under the management of the Social Housing Regulatory Authority, play a pivotal role in providing dignified rental housing to low to medium-income households.
NASHO’s primary objective is to assist in building a strong and sustainable social housing sector in South Africa with Social Housing Institutions at the heart of the delivery.