Social Social Housing Housing

FoundatioFoundationn

Meeting with Housing Portfolio Meeting with Housing Portfolio committeecommittee

Role, purpose and mandate

Strategy map

Supporting housing delivery

Key achievements

Sector challenges

Social housing priorities

Social Housing FoundationSocial 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

Social Housing Foundation Strategy Map

Outcomes

Stakeholder Perspective

Internal Process Perspective

Learning & Growth Perspective

Energised, aligned and capable social housing sector01

Sustainable revenue/ business

model

02Viable model of social housing

03Increasing, well

managed social & public housing stock

04Well informed

policy development

05Content, well functioning

neighborhoodcommunities

Community and delivery tier Tenants, SHIs, HMC, Local &

Provincial Government

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

Build capability and effectiveness…

Support Tier Support Institutions,

Donors and Professionals

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

Align and connect …

Policy tierGovernment and

Financial Institutions

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

Inform and support…

Funding TierGovernment and

Donors

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

“Best solutions for customer needs”

01Finance & Support

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

Human capital

•Develop enabling I.T. architecture

Information capital • Teamwork

• Build culture• Alignment• Leadership building

Organisational capital

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.

• Accounting• Contracts • Controls• Systems• Audit

“Consistent, high quality, timely products, services and solutions”

05; 03; 02Advisory Products &

Services

05; 04; 02Client Relationship

Management

04; 02Research &

Development

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

• 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

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Efficient info management and flow

Catalyst in the sector for promoting social housing

Establishment of SHIsWith provinces and local

authorities establish institutional systems & procedures

Supporting housing Supporting housing deliverydelivery

Ensuring the allocation provincial subsidy funding for access by SHIs

Assisting with growth & development of SHIs in all 9 provinces (geographic spread)

Supporting housing deliverySupporting housing delivery

Current Status of the SectorCurrent Status of the Sector

TABLE 1: TOTAL NUMBER OF SOCIAL HOUSING INSTITUTIONS, PER PROVINCE (1994 to May 2004)

No. of SHIs Province 2001 2002 2003

Gauteng 16 30 35 Western Cape 7 8 7 Eastern Cape 7 8 19 KwaZulu-Natal 4 4 12 Northern Cape 0 1 1 Limpopo 0 1 1 Free State 1 2 2 Mpumalanga 3 4 4 North West 2 1 2 Total 40 59 83 No. of units (planned, complete or under construction)

24917 30332 Not available

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

Supporting housing deliverySupporting housing delivery

SA rental sector underdevelopment and small when considered in international context

⅓ of low-income renters in metro’s are in backyard shacks & informal settlements

Many also in formal opportunities provided by slumlords and informal landlords

Supporting housing deliverySupporting 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

Supporting housing deliverySupporting 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

Supporting housing deliverySupporting housing delivery

Contribution in summary…Contribution in summary…Policy Inform and support development, review,

enhancement, alignment and application of policy in the sector

Implementation Build sector capability & effectiveness in the 6 sub-programmes

Institutional capacity Broader sector focus & linkages with international partners

Funding Inform planning and setting of targets for each sub programme at provincial and local level

Institutional arrangements Align and connect sector stakeholders to ensure that they operate efficiently

Key achievementsKey achievementsAwareness about social housing &

promotion of the conceptTools and support for SHIsInformation on social housing sector

trends, models, networksFacilitating social housing policy

developmentEducation and training for SHIs and

other sector players

Key achievementsKey achievementsEstablishing new SHIsCo-ordination of sector stakeholdersFacilitating access to grant fundingSupporting the housing co-operative

approach

Sector challengesSector 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

Social housing prioritiesSocial housing prioritiesShort 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

Social housing prioritiesSocial 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

SHF budgetSHF budgetKRA 1: Enhanced SH policy R2,14m

KRA 2: Improved SHI’s 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 SHI’s R6,27m

Total R24,41m

SHF budgetSHF budgetIncome sources

National Department of Housing R15,3m

R 4,7m

Investment income (interest) R 0,8m

Donors R 5,3m

Total R26,1m

Broader Institutional LinkagesBroader Institutional Linkages

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SHIs as delivery agents

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Thank You!Thank You!