SOCIAL & AFFORDABLE HOUSING
The Department of Human Settlements, Water and Sanitation is readying itself to anchor human settlements as the biggest catalyst for reinvigorating the South African economy after the pandemic.
S
outh Africa’s housing backlog sits at an estimated at 2.6 million. Minister of Human Settlements, Water and Sanitation Lindiwe Sisulu believes that this, together with the Covid-19 pandemic, necessitates calls to redouble efforts and be bold and innovative in implementing the policies and decisions. “Our solutions must address persistent challenges that impede our delivery of human settlements in a way that spatially transforms our society and provides security of tenure on a broad level, and that ensures our people are living in safe and healthy environments, as we continue to battle to overcome the Covid-19 pandemic,” Sisulu said during the debate on the Human Settlements Budget Vote earlier this year.
Positive progress Sisulu reported that the National Housing Finance Corporation (NHFC) had exceeded targets set for the Finance Linked Individual Subsidy Programme (Flisp), which supports bank finance to first-time home buyers.
44
IMIESA September 2020
BANKING ON HOUSING developed more than 1 100 new settlements and neighbourhoods.
Bank support
Minister Lindiwe Sisulu
The new NHFC now has the benefit of a larger balance sheet to ensure the rapid mobilisation of capital and is currently involved in a funding mobilisation plan to raise the nearly R4 billion in debt finance from the private sector and other development finance institutions. “The potential for human settlements programmes to act as both a construction stimulus and economic lever should be noted,” said Sisulu. “Employing a combination of innovative and alternative construction technologies that are much quicker and more cost-effective than the conventional brick and mortar, the Housing Development Agency has implemented over 8 000 units in the major metropolitan areas of the country, with more still in the pipeline. This is part of our contribution to alleviate the impact of Covid-19 on our poor communities” With the budget allocated to human settlements last year, over 69 600 new houses and more than 51 000 serviced stands have been delivered, which, in the process,
Notably, Sisulu announced that the operating business model for the Human Settlements Development Bank (HSDB) has been approved by National Treasury. The HSDB is expected to become the preeminent development finance institution in human settlements and is expected to play the lead role in the financing of activities across the human settlements value chain. The department has also started a process of engagement with the Banking Association South Africa to strengthen partnerships within the banking sector. The banking sector has reportedly thrown support behind Flisp, as well as the Zenzeleni programme, which seeks to allow for more qualifying families to build their own homes. According to Sisulu, the banks will develop a new regime of building bonds for low-income earners. “With this programme, we aim to deliver billions of rand in home assets over the medium term. The Zenzeleni programme has the potential to deliver wealth of as much as R140 billion into the hands of beneficiaries,” she said.
Department priorities Sisulu noted several priorities for the year ahead, including: • incrementally upgrading over 300 informal settlements and improving living conditions of households • increasing the provision of Emergency Housing Assistance through alternative and affordable building technologies • introducing Covid-19 impact relief measures to enable the sector to survive the serious shocks and constraints brought about by the pandemic • delivering subsidy housing opportunities for serviced stands, houses, and selfbuild options using alternative building technologies • eradicating backlogs in registering title deeds • transforming the property sector as we enter the path of economic revival.
