SA Affordable Housing July / August 2018 // Issue: 71 - Page 25

ADVERTORIAL the high end or affordable market. With the implementation of the Spatial Planning and Land Use Management Act (SPLUMA) of 2013, some changes have been adopted that provide appropriate guidelines for the sector. But the challenge remains, as some local authorities disregard the fact that the housing market is segmented and service usage principles are dictated by these different segments. SAARDA strongly believes that, with its active involvement and current discussions, these parameters will soon shift in favour of affordable housing. FLISP SUBSIDIES AND NHBRC Scepticism towards the effectiveness of the Finance Linked Individual Subsidy Programme (FLISP) has been prevalent in the past couple of years. The capacity to process applications is a challenge and therefore budget constraints, together with qualifying parameters limited to homes below R300 000, were raised. Cooperative efforts of SAARDA members resulted in parameters shifting positively without a capped purchase amount, which was previously based only on affordability. Developers are now able to successfully process client applications. The National Home Builders Registration Council (NHBRC) plays a vital role in ensuring adherence to the minimum requirements of building methods. SAARDA is involved in discussions pertaining to policy implementation and changes. Through early discussion and prompt action turnaround times in the issuing of enrolment certificates, this has been addressed and currently the NHBRC is within its prescribed timeframes. As and when matters arise, SAARDA is there to assist its members. From left are: Nthabiseng Mehale (NHBRC), Dr Alf Levin (Township Realtors) and Marie Marais. From left are: Chris Marshall (Krism Developers), Nthabiseng Mehale (NHBRC) and Marie Marais. WATER AFFAIRS SAARDA is in consultation with the Department of Water Affairs to address the timeous issuing of water licenses; currently this process takes up to two years to resolve. This places many projects on hold and puts tremendous pressure on holding costs. ESKOM The implementation of electrical planning alongside Eskom results in difficulties that cause strain on the feasibility of housing projects. The goal is to implement underground reticulation, which will not only escalate costs on new projects, but also add costly additions to existing networks. Regarding the use of bulk copper connections and theft in relation to this, has resulted in Eskom using alternative materials such as aluminium, which has been implemented successfully in some developments. Discussions around timeframes for approval and availability of network capacity remain a huge challenge and appropriate solutions are being sought. Although the ongoing challenges might, for some, seem overly optimistic to resolve, SAARDA remains at the forefront and continues to raise and challenge matters that impact its members and the industry. While aiming to provide a cost effective and sustainable home to the market. Says Michael Page from SAARDA, “Sustainability is key to the longevity of this industry and many challenges arise which can be resolved through rational solutions. People are challenged on a daily basis in all aspects of their lives and the main thing SAARDA wants to achieve, through our collective efforts, is to ensure that affordable homes are provided to the low to middle income segment. There is no other reason that this housing sector is categorised as the affordable housing market and we believe that all stakeholders will eventually make an effective contribution to it.” Nthabiseng Mehale (NHBRC) and Councillor Elliot Sithole (COJ). From left are: Nthabiseng Mehale (NHBRC), Marinda Barnard (FNB) and Marie Marais. Contact SAARDA Tel: +27 (0)11 607 8000 email: info@saarda.co.za AFFORDABLE SA HOUSING JULY - AUGUST 2018 23