Social Housing Foundation

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Social Housing Foundation
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Meeting with Housing Portfolio committee

• Role, purpose and mandate
• Strategy map
• Supporting housing delivery
• Key achievements
• Sector challenges
• Social housing priorities

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Social Housing Foundation

• Section 21 company established in 1997
• Housing Amendments Act (1999)
• Mandate from government to enable, support and
  strengthen the capability of the social housing
  sector to build sustainable, well functioning
  communities through the provision of social
  housing

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Social Housing Foundation Strategy Map
Mission
Our mission is to enable, support and strengthen
the capacity of the Social Housing Sector to
build well functioning communities through the
provision of sustainable social housing.
Energised, aligned and capable social housing
sector
05 Content, well functioning neighborhood communi
ties
01 Sustainable revenue/ business model
Outcomes
03 Increasing, well managed social public
housing stock
02 Viable model of social housing
04 Well informed policy development
Community and delivery tier Tenants, SHIs, HMC,
Local Provincial Government
Support Tier Support Institutions, Donors and
Professionals
Policy tier Government and Financial Institutions
Funding Tier Government and Donors
Build capability and effectiveness
Inform and support
Align and connect

• Manage finance
• Manage and
• channel grants
• Statutory
• compliance
• and reporting

• Research and expertise
• Monitoring evaluation of
• delivery
• Policy enablement
• Viable model building

Financial regulatory
Stakeholder Perspective

• Engage and connect
• Facilitation
• Marketing and Communication
• Brand Building

• Information and advice
• Training and capacity building
• Standards of Performance, best
• practice guides, standards
• and toolkits
• Generic
• Consultancy

Consumer
01 Finance Support
05 03 02 Advisory Products Services
05 04 02 Client Relationship Management
04 02 Research Development

• Accounting
• Contracts
• Controls
• Systems
• Audit

• Real world research
• Value added product
• and solution development
• Trends, issues
• TAs
• Technical Advisors

• Information flows
• MIS
• Professional support
• Single point of contact
• Initiate and close out
• programmes

• Deliver efficiency
• Drive quality, low cost
• and ease of accessibility
• Norms and standards
• Maintenance and troubleshooting

Internal Process Perspective
Consistent, high quality, timely products,
services and solutions
Efficient info management and flow
Best solutions for customer needs
Human capital
Organisational capital
Information capital
Learning Growth Perspective

• Teamwork
• Build culture
• Alignment
• Leadership building

• Build required competence
• Manage and develop talent
• Develop customer centricity

• Develop enabling I.T.
• architecture

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Supporting housing delivery

• Catalyst in the sector for promoting social
  housing
• Establishment of SHIs
• With provinces and local authorities establish
  institutional systems procedures

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Supporting housing delivery

• Ensuring the allocation provincial subsidy
  funding for access by SHIs
• Assisting with growth development of SHIs in
  all 9 provinces (geographic spread)

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Current Status of the Sector
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Supporting housing delivery

• New housing strategy provides for the creation of
  affordable rental opportunities and tackling
  informal settlements directly
• New plan responds proactively by
• Preventing further development of informal
  settlements and
• broadening access to affordable housing
  opportunities in urban areas

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Supporting housing delivery

• SA rental sector underdevelopment and small when
  considered in international context
• ? of low-income renters in metros are in
  backyard shacks informal settlements
• Many also in formal opportunities provided by
  slumlords and informal landlords

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Supporting housing delivery

• The poor struggle to access limited rental
  opportunities provided by formal market
  (especially in good locations)
• Demand for rental rising (7 p.a. for groups
  earning R1600-R3200/month)
• Range of rental options required for the poor as
  part of the housing strategy
• Gearing rental sector to scale limited by weak
  current capacity

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Supporting housing delivery

• SHF has a key capacity building role in sector
  given
• the need for rental housing delivery at scale
• The institutional capacity and support that will
  be required to respond to this need

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Contribution in summary
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Key achievements

• Awareness about social housing promotion of the
  concept
• Tools and support for SHIs
• Information on social housing sector trends,
  models, networks
• Facilitating social housing policy development
• Education and training for SHIs and other sector
  players

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Key achievements

• Establishing new SHIs
• Co-ordination of sector stakeholders
• Facilitating access to grant funding
• Supporting the housing co-operative approach

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Sector challenges

• Cost of social housing not affordable to the poor
• Lack of management and technical capacity
• Challenges of scale delivery
• Need for Innovation
• Project development and pricing

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Social housing priorities

• Short term
• PIE amendment legislation
• Social housing bill enactment
• Clarity on linkages with Medium density housing
  policy
• Revised funding framework for social housing
• Impact on constitutional court rulings on rental
  housing

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Social housing priorities

• Medium to Long term
• Establishment of sector regulatory body
• Linkages with phasing out and hostel programme
• Related legislation changes (Tax, Co-operatives,
  Land, Municipal services, etc)
• Changes in companies legislation

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SHF budget

• KRA 1 Enhanced SH policy R2,14m
• KRA 2 Improved SHIs skills R5,88m
• EU SPSH support R4,70m
• Support for Co-ops prog R1,00m
• KRA 3 Informed, functioning sector R1,39m
• KRA 4 Sourcing new donor funding R0,02m
• KRA 5 SH network developed R3,01m
• KRA 6 Increased service value to SHIs R6,27m
• Total R24,41m

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SHF budget

• Income sources
• National Department of Housing R15,3m
• R 4,7m
• Investment income (interest) R 0,8m
• Donors R 5,3m
• Total R26,1m

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Broader Institutional Linkages
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Thank You!