Urgent review to meet housing delivery targets

An urgent review is required as part of measures to meet the upscaled housing delivery targets, says Human Settlements Minister Mmamoloko Kubayi.

“Left to run its course, the current plan will perpetuate the [housing] backlogs and the only way this will change is through a review of policy, funding mechanisms, implementation plans, targets and outputs.

“The review we are proposing is required across income categories, regions and provinces,” Kubayi said at the Human Settlement and Exhibition Indaba currently underway at the Durban Exhibition Centre.

The two-day event started on Sunday. It brings together local governments, parliamentarians, civil society, local communities, the private sector, professionals and practitioners, scientific and academic community, and other relevant stakeholders. It aims to find solutions to the housing challenges.

Kubayi warned that the scale of delivery required to effect the desired development outcomes will not be achieved with the current project pipeline and funding trajectory.

She said the affordable housing sector, including rental and social housing, has been identified as a key opportunity based on the available plans and documentation in place.

“The Affordable Rental and Social Rental Housing programme should serve as a case for good practice implementation. Lessons learnt from these programmes should then be transferred to other priority programmes in the sector and includes the human settlements Bulk and Link Infrastructure Programme (BLP), the Informal Settlements Upgrading Programme (ISUP) and the Integrated Residential Development Programme (IRDP),” said Kubayi.

She said the available resources and policies need to be implemented to realise the required developmental outcomes.

“This can only be achieved by ensuring that investments in the housing sector, which are dispersed by different institutions in the public and the private sector, are brought together in a collaborative framework that will ensure increased impact.

“As government, we are utilising all the available resources to create a conducive environment for partners in the private sector and Development Finance Institutions to invest in the sector,” the Minister said.

Social housing

Within government, Kubayi said, the Department of Human Settlements, including the Social Housing Regulatory Agency (SHRA) and the National Housing Finance Corporation (NHFC), has initiated a collaborative relationship with the Infrastructure Fund (IF) to create a framework for large scale financing proposals for catalysing the implementation of the Social Housing Projects (SHP).

Kubayi said this has potential to increase investment into the sector from R1 billion and 3 000 units per year currently, to about R15 billion and up to 45 000 units per year by 2025.

“This would be a positive step in reducing the estimated investment gap of R144 billion and a backlog of 320 000 units in the social housing sector. In its plans, the NHFC has budgeted debt transaction approvals of R1 billion over the three-year period, which is an average of R362 million per annum.

“Given that the Loan to Value in Social Housing is 30%, this debt approval would necessitate Consolidated Capital Grant (CCG) approvals of R2.3 billion in the same period, or R760 million CCG approvals per annum. This is in line with the SHRA’s MTSF [Mid Term Strategic Framework] allocation of R4 billion, which is an average of R800 million allocation per annum,” Kubayi said.

The Indaba is held under the theme, ‘Transforming Human Settlements environment through accelerated planning, implementation and public-private partnership’.

Source: South African Government News Agency