10 Feb 2016

The Botswana Housing Corporation (BHC) first introduced the Tenant Purchase Scheme (TPS) in 1986 and was stopped in 2004.

Answering a question in Parliament on Tuesday, Minister of Lands and Housing, Mr Prince Maele said the scheme aimed at assisting Batswana sitting tenants to purchase residential properties they occupied on instalment terms over a maximum period of 25 years.

He also said another installment scheme, step ownership scheme, was introduced in 1998 and it had the same principles as the Tenant Purchase but had low initial monthly installment which was paid together with a portion of the rent.

He however noted that the two schemes were suspended for two main reasons; first, BHC could not sustain borrowing money which it paid on short term to build houses while recovering payments through TPS on long term basis.The other reason was that there was a high level of arrears as most beneficiaries of the instalment schemes failed to honour the agreed payment terms.

Mr Maele said after careful consideration, the BHC was now preparing to sell some of its houses under the revised Tenant Purchase Scheme.

“In this respect, my ministry is currently working closely with the Ministry of Finance and Development Planning to finalise the terms of the new scheme, after which the sale of some BHC houses under the revised TPS will continue,” he said.
He however said the TPS would not necessarily take the same form and shape of the old scheme.

Francistown South MP, Mr Wynter Mmolotsi had wanted to know when would the Botswana Housing Corporation’ Tenant Purchasing Scheme be resuscitated. Ends