In 1998 Yeast City Housing entered into a long-term lease agreement with the YMCA to manage Hofmeyr House in 460 Van der Walt Street. This was quite a challenge as we took on management when the building had a debt of R200, 000 with the City Council, as well as a number of smaller debts, and only 60% of tenants paid their monthly rents. We were able to salvage the situation, to pay off all the City Council debt within a year, and to stabilize the rental income to above 90% within two months. In 2002 we were also able to upgrade the facility with housing subsidies from the Gauteng Housing Department.
Project description: 56 communal housing units
20-year lease agreement with
Total project value: R 418,400.10 (upgrade only)
Provincial housing subsidy: R 248,000
Loan finance: R 170,000
Current value: R 2,500,000 (estimate)