HOUSING: In search of a place called home

After working in the civil service for more than 20 years, all 57-year-old Vusani Mapadza needed was a rest.

From the spoils of his toil, he had planned to build a suburban house and retire in comfort, watching his offspring grow.

Slowly, his dream turned to reality.

His pension funds started trickling in September 2013, the same time a local land developer advertised housing stands in the Stoneridge area of Harare.

“I visited Campus Land Developers, who purported to own the land being advertised and after paying a deposit of US$1 080, I was given a stand and thereafter started paying US$120 per month since 2013 for the 300 square metres.

“I was informed that the land belonged to a housing co-operative called Mabhunu Muchapera. The land developer’s executive director, Elias Hamandishe, immediately advised us to start construction work, since the land developing aspect of the initial agreement was going to follow later.

“By last year, I had built a cottage and immediately relocated from where I was lodging in Sunningdale to my new cottage which I had built.

“I really felt proud knowing that I had at least made headway, insofar as starting real construction of a bigger house was concerned, since I knew that I had left a legacy for my children, in case something bad happened to me.”

However, Mapadza and 189 others allocated land in the Stoneridge area were brought back to earth with a bump. This was after the $57 million Caledonia housing scam, which affected around 30 000 home-seekers, burst the bubble.

“When the Caledonia story broke this year, I became suspicious since there was no development at all which was taking place in the Stoneridge area despite our monthly payments of land development levies.”

Together with the other residents, Mapadza found the courage to confront the project director, Elias Hamandishe, who was reluctant to face them.

“When he finally came two weeks ago, he tried to avoid the issue of the land, we cornered him until he told us the truth. He admitted that his company did not have the deeds of the land, meaning we were illegal occupants on the land where he had been milking us of our funds for the past three years.

“Our further investigations indicated that his housing co-operative was a bogus one, which is not even registered with either the Ministry of Small to Medium Enterprises and Local Government and National Housing.”

Hamandishe refused to comment on the allegations.

Vusani Mapadza’s case is not an isolated one. Thousands of home-seekers have been duped of million of dollars over the past years.

The number of home-seekers in the country has risen tremendously over the years, with thousands on local authorities’ waiting lists.

The Zimbabwe Agenda for Sustained Socio-Economic Transformation directs the Social Services and Poverty Eradication Cluster to deliver 250 000 serviced residential stands between 2013 and 2018.

The country has around 800 000 people on various housing waiting lists. These include 600 000 in Harare, 100 000 in Bulawayo, 59 000 in Mutare, 18 000 in Marondera, 17 000 in Gweru and 6 000 in Masvingo.

However, the failure by local authorities to avail serviced stands has facilitated the rise of housing co-operatives with many of them duping desperate home-seekers.

Zimbabwe Institute of Regional and Urban Planners president Percy Toriro said there was an increase in bogus housing co-operatives and land developers.

“The number of home-seekers that are falling victim to bogus co-operatives and developers has been increasing. This is mainly being driven by the strong currency we now use that everyone would want to get hold of. Our observation as town planners is that whilst cases of property fraud have always existed, the cases have increased to astronomical proportions since dollarisation,” he said.

“Some co-operative leaders do swindle people by selling a single stand to multiple buyers whereby when one wants to build, they find someone already there. Others will steal outright by selling a non-existent stand. Yet others also commit fraud by selling stands on land that do not belong to them. The cases are many and whilst we are still compiling figures, they run into tens of thousands and many go unreported.”

Toriro urged the authorities to monitor and supervise housing co-operatives to ensure that they comply with all development conditions as well as sound corporate governance as is expected in terms of the Co-operative Societies Act.

University of Zimbabwe lecturer in the Department of Urban and Rural Planning, Mr Nyasha Mutsindikwa, said there was more that needed to be to be done by the Government to alleviate the situation.

“There, obviously, has been a high demand for home ownership since dollarisation, rentals have been going up almost every day and this causes desperation which then gives these bogus housing co-operatives reason to swindle home-seekers their hard-earned cash,” he said

“Since most people do not qualify for housing mortgages, they end up opting for these housing co-operatives and they end up falling in these traps.”

Harare Residents Trust director Precious Shumba said home-seekers were partly to blame for not making proper consultations before investing in housing co-operatives.

He also blamed corruption in Government departments for fuelling the rise of unregistered housing co-operatives.

“Before residents become members of housing co-operatives, they have to satisfy themselves that the housing co-operative is legally registered, and has a certificate issued by the relevant Government ministry. If they are not sure, they can consult officials from the City of Harare, department of housing,” he said.

“Corruption is the root of all these problems being experienced. Most of the officials handling issues of housing co-operatives demand bribes and delay the processing of papers for these housing co-operatives whose leaders refuse to pay the bribes, resulting in other avenues being created. As long as the whole process is opaque, there would be challenges in addressing corruption in the housing sector.”

The economic hardships that faced the country for over a decade have left the majority of home-seekers unable to qualify for bank mortgages.

Interests rates at most banks are pegged at between 18 percent and 22 percent. And for stands that cost US$10 000 and requiring a deposit of, for example US$3 000, bank loans are simply not forthcoming.

Moreso when salaries for many civil servants are at around US$300.

Cabs recently introduced mortgage schemes for low-income earners. Their definition of low income is someone with a US$750 monthly salary. This is for US$17 000 two-roomed house in Harare’s Budiriro — and also requiring a 25 percent deposit.

The mortgage also attracts 15 percent interest per annum, with the tenure period being 10 years.

“Bank mortgages are unaffordable for many people, therefore there is need for Government to partner the private sector to build housing stock which is affordable for everyone,” Mutsindikwa added.

Now, Mapadza and other residents are pinning their hopes on Government intervention.

“I have invested over $20 000 in buying and developing this stand. I cannot move to any other place. I am now hoping the Government intervenes in this situation, the way it handled the situation in Caledonia.”