Housing in Southern Africa June 2016

News

A ccording to Manie Annandale, Head of Affordable Housing Development Finance, Nedbank Corporate and Investment Banking (NCIB), “The establishment of social housing can act as a catalyst to aid economic development and growth. By bringing affordable, central hous- ing to this sector of the population, social housing empowers its tenants to live and work in more centrally located hubs, rather than having to commute towork fromthe outskirts of an urban area.” He points out that this in turn tends to increase the lifestyle Housing The recent launch of the Belhar Social Housing Project in the Western Cape showcases the role that Public Private Partnerships (PPPs) can play in facilitating the provision of social housing, which provides housing solutions. Belhar Social

Madulammoho Housing Association (MHA), are one of six fully accredited social housing institutions with the SHRA. The project will roll out over 600 sectional title units for rent in Bel- har’s CBD. Funding will come from the SHRA’s Social Housing Restructuring Capital Grant, contributions from the Western Cape Provincial Government and bond finance from Nedbank CIB. It is located on the corner of Sym- phony Way and Carmen End, Belhar, and is in close proximity to the Uni- versity of the Western Cape and the Cape Peninsula University of Tech- nology. Nearby amenities include an indoor sports complex, two railway stations, taxi ranks, schools, library, clinic and retail stores. With over 35% of the population in dire need of the assistance offered by social housing, this development adds significantly to Nedbank’s portfolio of social housing. In 2013, government allocated R4 billion toward social housing devel- opment subsidies allocated through the Social Housing Investment Pro- gramme, which is run by the SHRA. Spread over five years, this represents significant funding opportunities for commercial banks, due to the strict controls imposedondevelopers by the SHRA that minimise the lending risks. Nedbank CIB spent time working with authorities such as the SHRA and Finmark Trust’s Centre for Affordable Housing Finance in Africa to assess viable frameworks and a strategy for funding social housing investment. “Nedbank will continue to play a piv- otal role in funding developments by reputable developers with a robust rental management policy in place,” concludes Annandale. ■

stability in an individual’s life, with a subsequent positive ripple effect on communities and ultimately, the economy. Annandale says it is particularly im- portant during tough economic times to ensure the ongoing operational viability of social housing. “In this re- gard, the collaborative businessmodel offered by a PPP is highly recommend- ed. The Belhar Social Housing Project is a PPP between Nedbank, the Social Housing Regulatory Authority (SHRA) and the Western Cape Government.” Developers of the project, the

T he City of Cape Town’s next phase of the R200 million Imiza- mo Yethu housing project is set to get underway with bulk earthworks in the steep mountainous terrain. The Imizamo Yethu project is located on former forestry land between Imizamo Yethu and Hout Bay Main Road. May- oral Committee Member for Human Settlements, Benedicta van Minnen, Imizamo Yethu housing project says, “The challenging landscape, with its steep slopes and parts of the site reaching into themountainous terrain, has been an obstacle that we have had to overcome. It has been quite a tough journey to get to this stage but our commitment to improving the living conditions of the people of Imizamo Yethu has kept us going.”

She adds, “We have had in-depth engagements with the community and we urge them to continue to work with us.” More than 900 housing units, comprising a mixture of subsidised houses and community residential unit apartments, will be built for quali- fying beneficiaries from the Imizamo Yethu informal settlement. The exact number could increase when the final yield becomes clearer, on completion of the detailed architectural design of the final stages. Services and top structures on the old forestry land are expected to be completed by June 2019. ■

June 2016