CONTEXT. About 19% of all households in the country live in rented accommodation. 44% of people that rent earn between R R7500 per month

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1 SHRA PRESENTATION

2 CONTEXT About 19% of all households in the country live in rented accommodation 44% of people that rent earn between R R7500 per month Demand for rental units nationally grows at a rate of units per annum (General Household Survey)

3 HISTORY In 2006, the then National Department of Housing (NDoH) conferred on The Social Housing Foundation (SHF) the mandate to be the implementing agent to manage/oversee the allocation and disbursement of The Restructuring Capital Grant (RCG). The Social Housing Foundation has closed. Mandate been transferred to the Social Housing Regulatory Authority (SHRA) who is additionally tasked to also annually accredit Social Housing Institutions. Social Housing Programmes have been funded to date: Interim Social Housing Programme (ISHP): 3 funding cycles Social Housing Investment Programme (SHIP) - 3 funding cycles

4 SHRA s MANDATE VISION MISSION Mandate invest To invest in social housing and be able to regulate the sector regulate Vision Affordable affordable rental homes in integrated urban environments through sustainable sustainable institutions Mission The SHRA will regulate and invest to deliver affordable rental homes and renew renew communities

5 SHRA CUSTODIAN OF SH The mandate of the Social Housing Regulatory Authority (SHRA) is derived from the Social Housing Act 16 of 2008 Section 3 - Roles and responsibilities of national government Section 4 - Roles and responsibilities of provincial government Section 5 - Roles and responsibilities of municipalities Section 6 - Roles and responsibilities of other role-players Section 7 - Establishment of SHRA Section 8 - Composition of SHRA Section 11 - Functions of SHRA SHRA is the Custodian of Social Housing 5

6 LEGISLATION SH ACT The Social Housing Act 16 OF 2008, has a number of intentions and is the primary piece of legislation for the sector. It is closely aligned with the Rental Housing Act and the Housing Act. The Social Housing Act has a number of goals, which include: establishing and promoting a sustainable social housing environment; providing definitions of the roles of the various spheres of government in social housing; providing for the establishment of the Social Housing Regulatory Authority (SHRA) and defining its role as the regulator of all social housing institutions that have obtained or in the process of having obtaining public funds; giving statutory recognition to SHIs. 6

7 LEGISLATION SH ACT The Act identifies the following principles in support of social housing: To promote integration (social, physical and economic) through housing development in order to create sustainable communities; To be demand driven and as such to respond to local housing needs in relation to typology, tenure, and quality and to ensure security of tenure; To promote economic development, particularly those of low-income communities through the provision of housing in close proximity to job opportunities, markets and transport facilities; To provide clear-cut roles and responsibilities of both tenants & social landlords; To promote cooperative governance in the provision of social housing by outlining clear and definite roles and responsibilities of different spheres of government; To promote the establishment of viable institutions to develop and manage social housing stock though the provision of financial, administrative and technical support to social housing institutions. 7

8 DEFINITION: SOCIAL HOUSING Social Housing is defined as: a Rental housing option targeted at medium to low income households (earn betw R1500 to R7500 per month) located in Restructuring Development Zones (RDZ) is delivered at a scale/built form which requires institutionalised management which is provided by accredited (SHI s). Social Housing contributes to the National priority of restructuring South African society in order to address structural, economic, social and spatial dysfunctionalities; contributing to Government s vision of Sustainable Human Settlements. The Social Housing programme has two specific aims urban regeneration and urban restructuring in terms of racial, social and economic integration. provision of social housing will give poor households access to the city and the social and economic opportunities that it offers.

9 CREATING A SUSTAINABLE ENVIRONMENT REGULATORY FRAMEWORK ACCREDITATION 8/4/2014 9

10 REGULATORY FRAMEWORK Strategic objectives: Credible, sustainable, growing SHI sector Protection and intended reach of public funding SH ACT & REGULATIONS Accreditation Regulation Approvals SHI Code of Conduct Application Criteria Assessment Adjudication Certificate Register Withdrawal Reporting Compliance monitoring Forensic investigation Internal review Disposal stock Transfer stock Changes to lease agreements Business plans Operation plans Requirements for: Good governance Financial sustainability Service delivery Communications

11 ACCREDITATION PROCESS Proposal call SHI Application Verification of information Assessment Award Feedback Register Compliance monitoring 8/4/

12 ACCREDITATION: CATEGORIES Unconditional Meets all criteria Access to investment programme Conditional Meets critical criteria Access to investment programme Pre accredited Meets in excess of 50% of critical criteria No access to investment programme Declined Does not meet criteria at all No access to investment programme Social Housing Regulatory Authority 12

13 ACCREDITATION:APPLICATION Accreditation application form Quickscan A: Organization assessment tool Supporting documents Company: Registration, founding documents, tax status Financial info: Audited annual financial statements and most recent Management Letter from the auditors; Latest available management accounts; Budget for the next year; Long-term financial forecasts; Strategic: 5 year strategic plan including Annual Business Plan, operational policies and procedures (tenant, property, finance, internal) Governance: Board Charter; Code of Conduct and Duties of Directors / Letters of appointment of directors; Summary CVs of Board members and key staff ; Complete copies of the last two Board Packs (including the minutes); Organizational Structure Social Housing Regulatory Authority 13

14 ACCREDITATION CRITERIA 1. Legal Form Company limited by shares; or Section 21 company; or Co-operative; or Share block company; or Communal property association; or Voluntary association with legal personality distinct from its members; or Trust; or Non-profit company under the new Companies Act. 2. Not for profit Institution s income and assets must be applied solely to advance its main object, and no portion shall be paid by way of dividend, bonus, or in any other manner, to any founder, member, shareholder, director, trustee, beneficiary excepting only payment in good faith of reasonable remuneration for goods or services actually delivered; and On its winding-up the net assets shall be given to some other SHI. Social Housing Regulatory Authority 14

15 ACCREDITATION CRITERIA 3. Good Governance As its main object the provision of rental or co-operative housing options for low- to medium-income households on an affordable basis and the management of its housing stock over the long term; Applicant must be independent from other entities, except it may be controlled as a subsidiary by another SHI; Adequate operational policies; Governing body and Committees with clear mandates and delegated authority; decision making, board charter, code of conduct Organization: Staffing & performance management A business strategy with objectives supporting the main object of providing social housing; Legal compliance, integrity standards Adequate system of risk management. Social Housing Regulatory Authority 15

16 ACCREDITATION CRITERIA 4. Financial sustainability A comprehensive financial planning and forecasting; Access to financial resources sufficient to implement the financial business plan, including adequate provision for maintenance and particulars of applications for institutional subsidies; Sound and workable financial control policy; Effective accounting, financial management and management-accounting systems and procedures. Financial reporting and performance management system Social Housing Regulatory Authority 16

17 ACCREDITATION CRITERIA 5. Effective tenant management Management arrangements and staffing resources that are sufficient to deliver excellent tenant/membership management service A Tenant/Membership Management Plan in place Tenant management systems Policies and procedures in place and implement a full range of tenancy/membership policies to support tenancy/membership management including Take on, letting, letting management, dispute/conflict resolution and termination A system of control in place to manage tenant s complaints effectively Tenant/Membership take on Letting management Support arrangements and referral system in place to deal with identified support A Community engagement and neighbourhood involvement plan in place Tenant/membership consultation and empowerment programme A periodic tenant/membership satisfaction survey A Exit/Termination system A Dispute resolution system Complaints management system Social Housing Regulatory Authority 17

18 ACCREDITATION CRITERIA 6. Efficient property management A system to meet the thresholds of the property management KPI s as contained within the rules. A Housing Portfolio Plan that takes into account maintenance, acquisition, disposal, managing property life cycle, efficient use of housing stock. Systems: Policies and procedures for maintenance, vacancy, rent management Property roll: profile of projects, location, no of units and types, rentals Maintenance Management: complaints system, responsive, cyclical Rental Management: rent setting, increases, collection A vacancy management system: rates, turnover time, void days & properties Efficient management costs that seek, in a systematic manner, to improve the efficiency, economy and effectiveness of its service delivery on an ongoing basis Social Housing Regulatory Authority 18

19 ACCREDITATION CRITERIA 7. Property development systems Planning and costing of SH developments Use of housing assets for financial leverage Produce quality accommodation that meets the SH guidelines and standards in terms of design and quality Social Housing Regulatory Authority 19

20 QUESTIONS 20