SOCIAL HOUSING WORKSHOP JUL’14

THE PURPOSE OF SOCIAL HOUSING

To provide good quality rental housing in well located parts of the Municipality at rentals affordable to people on low incomes (below R7500)

Through this contribute to the Economic, Spatial and Social integration of the Municipality

The Social Housing Policy and Legislation allowsMunicipalities to receive extra funds called the SocialHousing Restructuring Grant of R125 000 per Unit. TheProvince has to contributes utilising the institutionalsubsidy equating to R110 000 per unit. Then the SocialHousing Companies contributes the rest of the fundsthrough loan funding or equity funding. In Short theState contributes about 70% of the funding and the SHcompanies contributes about 30% of the funds.

Capital Restructuring

Grants (National)

37%

Institutional Subsidy

(Province) 33%

Debt/Own Funding

30%

Funding Slipt - Social Housing

AGENTS RESPONSIBLE FOR THE DELIVERY OF SOCIAL HOUSING

Non Profit Companies Accredited by SHRA (SHI’s, & CO-OPs,)

For Profit Companies whose projects have been accredited by SHRA.

ROLE OF DELIVERY AGENTS IN SOCIAL HOUSING

Applying for and achieving accreditation and comply with the accreditation requirements of the regulator,

Establishing and complying with performance agreements with local authorities on social housing projects in the area of jurisdiction,

Development and/or management of viable social housing projects for low income residents in restructuring areas jointly with local authorities,

Consulting with residents in social housing projects through meaningful participation,

Informing residents on issues relating to consumer protection,Observing and operating within a best practice and value regime as supported by policy,

ROLE OF DELIVERY AGENTS IN SOCIAL HOUSING (cont…)

Promoting the creation of quality living environments for low income residents,

Reinvesting operational surpluses in further social housing projects in restructuring areas,

Building up operational reserves for long term maintenance and upgrading of housing stock under management,

THE ROLE OF A MUNICIPALITY IN SOCIAL HOUSING

Facilitate social housing delivery in its area of jurisdiction,

Initiate and propose restructuring zones, and specifically provide for them in the local government

Integrated Development Plans (IDP),

Commit the IDP to specific measures,

Encourage the development of new social housing units and the upgrading of existing units in

approved restructuring zones together with SHIs,

Support the SHI in its establishment stage,

Delivery and planning of service provision for SH projects.

THE ROLE OF A MUNICIPALITY IN SOCIAL HOUSING (cont…)

Provide preferential access to land and buildings for social housing development in approved restructuring zones,

Provide preferential access for SHIs to acquire local authority rental stock,

Provide access to municipal infrastructure and services for social housing projects in approved restructuring zones,

Identify the restructuring zones, social housing initiatives and projects,Establish municipal entities for social housing or support existing SHIs in the delivery of social housing units,

Support for a SHI must be specified in the performance agreement between the two parties.

SUMMARY OF THE ROLE OF A MUNICIPALITY IN SOCIAL HOUSING

• Relationship with SHI’s

• Proposal call for projects

• Co-ordination of development for infrastructure and servicesFACILITATING

• Coordination of IDP, Setting of targets, strategy and planning,

• Identification of Restructuring Zones , submissions and management thereto

• Development Control and township establishments and rezoningPLANNING

• Provision of Infrastructure, Land and Buildings

• Operational support to SHI’s (capacity and equipment)RESOURCING

• General signing of Partnership Agreements and SLA’s which are project specific

PARTNERSHIP AGREEMENTS & SLA’s

BENEFITS OF SOCIAL HOUSING PERFORMANCE AGREEMENTS

Social Housing Performance Agreements (SH PA) are “Performance Agreements” which the

Municipality is required to enter into with its Social Housing Institution in terms of Section 5 (ii) of

the Social Housing Act, (Act 16 of 2008).

Social Housing Performance Agreements are based on Public Private Partnership (PPP) model for

Service Delivery.

Government has acknowledged that it cannot deal with the housing back-log alone but will need

external/private sector Partners and the Performance Agreement provides that vehicle.

PA is a formal Recognition Agreement of the Social Housing Institution (SHI) by the Municipality in

delivering Social Housing.

Performance Agreements stipulate Aims, Goals and Objectives of the parties regarding the delivery

of Social Housing.

.

BENEFITS OF SOCIAL HOUSING PERFORMANCE AGREEMENTS (cont…)

The Social Housing Performance Agreements stipulates the expected Social Housing Performance

Targets and specific areas of Cooperation between the Municipality and the Social Housing

Institution, (for example outcome 8 Social Housing targets).

It assists officials and politicians to agree and standardize what is permissible and not permissible

during Social Housing delivery, for example, whether development Contributions or Rates are waived

or not for the SH projects.

It gives Social Housing Institutions the means to negotiate with various Municipal officials for

assistance e.g. Plans approvals, Subsidies, Land access, Technical support, Project prioritization

etc.

It illustrates the commitment of the Municipality and the Social Housing Institutes to the delivery of

Social Housing

MESSAGE TO THE PRIVATE COMPANIES

Private Companies for profit are encouraged to avail their land/building in the Restructuring Zones

for Social Housing Development.

The Municipality will avail Social Housing Subsidies for the development of Social Housing on the

land/buildings,

Private Companies can Manage the SH Units themselves or the Municipality can link them with

accredited SHI to manage these on behalf of the Private Companies.

Private companies can apply to SHRA for accreditation, if they want to enter into Partnership

Agreement with the Municipality.

CURRENT RESTRUCTURING ZONES

· iTrump (INNERCITY)

· Bridge City

· Cornubia

· KwaMashu Town Centre

· KwaMashu Surrounds

· Southern Durban Basin (SDB)

· Springfield – River Horse Valley

· Pinetown CBD

· Greater Cato Manor Area

· Phoenix

· Newlands

· Chatsworth

Thank You

“It is about transforming our cities and towns and building cohesive, sustainable and caring communities with closer access to work and social amenities.”

Extract from President Jacob Zuma's State of the Nation Address - 2009

QUESTIONS