South Africa's Social Housing Sector in Shambles - Bill Fails to Tackle 'Biggest Threats'

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The Prevention of Illegal Eviction from and Unlawful Occupation of Land (PIE) Amendment Bill, 2026, has been met with criticism from social housing landlords who say it does not go far enough to address the biggest threats facing the sector: unlawful occupations and rent boycotts.

The National Association of Social Housing Organisations (NASHO) and SOHCO Property Investments have expressed concerns that the Bill fails to tackle these issues, putting billions of rands in publicly funded housing at risk.

According to NASHO, unlawful occupations and widespread non-payment of rent have already driven several housing providers into severe financial distress. At least three major social housing institutions have either collapsed or been pushed to the brink of insolvency because existing legislation has proved ineffective in protecting publicly funded housing assets.

The collapse of Capital City Housing NPC, which managed the Aloe Ridge social housing development in Pietermaritzburg, is a stark example of the challenges facing the sector. The R220 million development, completed in 2014 with public funding, consists of 952 rental units intended for low-income households. The organisation said the complex was occupied in 2018 by military veterans it alleged were linked to the Umkhonto weSizwe Military Veterans Association.

The organisation estimates that Capital City Housing lost about R1 million in rental income every month before eventually entering business rescue and later liquidation. It added that the property was auctioned in April this year without attracting buyers, while the Msunduzi Municipality is owed approximately R64 million for unpaid municipal services linked to the development.

NASHO General Manager Karabelo Pooe said, "The liquidation of Capital City Housing should serve as a wake-up call to policymakers," adding that 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."

NASHO highlighted the financial challenges facing Yeast City Housing, the non-profit social housing institution responsible for Thembelihle Village in Tshwane. According to NASHO, the development comprises 733 units financed through approximately R150 million in government grants and loans. It said a rent boycott during the Covid-19 pandemic left the institution with debts exceeding R130 million, forcing it into business rescue.

NASHO also referenced the Ekurhuleni Housing Company (EHC), a municipal-owned housing entity that NASHO says is burdened by approximately R260 million in unpaid rental debt, in addition to R69 million owed to the City of Ekurhuleni for rates and municipal services.

According to NASHO, EHC budgets for a 90% rental collection rate but currently collects only between 20% and 30%. At one development in Delville Extension 9, it said just 15 of the 112 tenants are paying rent.

NASHO argued that while the proposed Bill criminalises the incitement of unlawful land occupations, it makes no provision for organised rent boycotts, which it says have become a major challenge for social housing providers.

The organisation said earlier evictions at Pharoe Park in Germiston were followed by violent protests in August 2025, including the petrol bombing of the Germiston Department of Home Affairs building.

NASHO argues that the proposed Bill needs to be amended to include provision for organised rent boycotts and to provide a more effective framework for protecting publicly funded housing assets. The National Association of Social Housing Organisations (NASHO) is urging policymakers to take action to prevent the collapse of social housing institutions and to protect the rights of both landlords and tenants.