Addressing the residents on Thursday MEC for Local Government, Housing and Traditional Affairs Mike Mabuyakhulu said the rehabilitation project will take 24 months to be completed.
Mr Mabuyakhulu said the project would be used to rehabilitate 1 423 houses. These houses would be demolished and new units would be constructed for the residents.
According to the department, there would be temporary housing structures, where the people can live while they were waiting for their new houses.
"With this project, we as the department want to give the residents of Townview proper housing that gives them dignity and makes them feel like a citizen of this country.
"The rehabilitated houses will be 40 square metres. We want to give people enough space and the dignity they deserve," said Mr Mabuyakhulu.
The houses that are due to be demolished were built in 1997 and they are not in an acceptable standard. The houses were also too small measuring only 20 square metres.
According to the department a budget of R24 million was allocated for the development, however the developer only used R2 million to build the houses and then absconded with the remaining R22 million.
"In 2006 I discovered that the houses that were built were not in an acceptable proper standard. Then the developer shut down the company and absconded to New Zealand and left behind the houses that were collapsing while others were still to be completed."
The department is investigating the issue.
"However, the department could not stand aside while the people of Townview were still waiting to have their homes, so we decided to have this rehabilitation project," said MEC Mabuyakhulu.
A similar project was also under way in Umgundlovu District areas such as Imbali and Edendale and owners expected are expected to receive their keys to their new houses soon.
MEC Mabuyakhulu said after what had happened with the developer who absconded with the money, the department would only be dealing with the developers that were affiliated with the National Builder and the National Home Builder Council.
"Using these developers will that if something goes wrong with the houses, we are able to contact the developer. We also want to ensure that the houses that are built are in a good quality and of high standard," said Mr Mabuyakhulu. - By Siboniso Ntuli, BuaNews
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