SA Affordable Housing March / April 2018 // Issue: 69 | Page 35

PROJECTS
Biometric access-controlled entrance.
income and the ever-increasing building costs made it
unfeasible for the Social Housing Institutes to be able to
meet this demand on the delivery of social housing units
as this framework had not been reviewed since 2009.
As a result, it became a lot more difficult to deliver on
government housing goals because there was no rationale
for private individuals to get involved. By moving the
income band to R15 000, Government is strategically
tapping into a larger segment of the market (the growing
gap market) and, according to Mahlaole, there are some
good thought processes behind the catchment of
that market.
These types of secure housing projects are applied all
over the world, he says, and countries like Holland and
Singapore have always been best-practice market leaders
in the concept of subsidised housing and rent control. It
not only opens opportunities for private sector
participation, but also allows the beneficiaries to enjoy
social upliftment without fear of just exceeding the
income band and losing their subsidy. Because of this, IHS
and their partners began to investigate new product types
or housing typologies, for example, three-bedroom units
that accommodate larger families.
“Another very important issue of social housing is property
management,” adds Odendaal. The control of the
development and screening of beneficiaries must be
properly conducted to prevent issues of non-payment and
to ensure that strict guidelines as regulated by SHRA are
adhered to. The property management must inform the
tenants of their responsibility as tenants as well as educate
them about the prepaid electricity and water meters
amongst others.
BREAKING NEW GROUND
Odendaal explains how the government subsidy works, “It
is rental accommodation, although the private sector was
not aware of this and the SHRA did not actively promote
ODAs until recently. The applicable act has always allowed
for ODAs in the sector. However, it is only recently that the
SHRA has promoted the participation of ODAs in the
sector. As the owners of the housing development, the
ODAs raise the capital to develop housing stock, but the
rent is legislatively controlled. Regular inspections of the
rentals are required to ensure that they accommodate
qualifying beneficiaries in line with the policy to service
Aerial view of Motlosana Gardens under construction.
AFFORDABLE
SA HOUSING
MARCH - APRIL 2018
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