SA Affordable Housing November - December 2018 // Issue: 73 - Page 18

ADVERTORIAL - COVER STORY Continued from page 14. Developments in Kwa-Guqa Ext 18, eMalahleni and Protea Glen Ext 10, Gauteng. consultations, the City of Johannesburg tabled an amended policy, one that we believe is a practical policy for developers in general, although it did not make provision for the affordable space. After constructive engagement with the City of Johannesburg we agreed that JHB and SAARDA would enter into a Memorandum of Agreement, specifically relevant to the affordable housing space, under which SAARDA members will comply under the new policy. This will provide clear and specific guidelines for affordable housing, taking the uncertainties out of the equation when planning a new development. We are engaging with other local authorities during the drafting process of their Inclusionary Housing Policies. NHBRC We commenced discussions with the NHBRC for the reduction of the enrolment fees, especially in the affordable space where price sensitivity is always relevant. We trust that collectively we can make positive progress in the coming months. We are also engaging with the NHBRC to find an effective way forward to deal with the adjustment of enrolment values. The NHBRC issued a circular on 20 July 2018 whereby they advised that, ‘the market value fluctuations over time is not an under-declaration, and therefore no price adjustment should be effected’. This is a result of declaring under values when enrolling properties at commencement of construction by developers and then later correcting the values to align with the bank bond amounts. We are in discussion with the NHBRC to adopt a suitable policy where significant property value increases do take place and that within reason the price adjustment can be realised. This might also include punitive measures where blatant under enrolment took place. DEVELOPER CONTRIBUTIONS The issue of developer contributions in the affordable housing space is always a contentious matter. We are in the 16 NOVEMBER - DECEMBER 2018 process of gathering accurate information and statistics from our developers to show that the consumption and usage of bulk services in affordable developments are indeed less that general developments and thus should have a lower contribution levy. SAARDA envisage that this will result in effective agreement with local authorities that could be included in future Memorandum of Agreements for the benefit of SAARDA members. TSHWANE DEVELOPMENT FORUM The City of Tshwane municipality recently introduced an innovative forum to engage with the role players in the property development industry. SAARDA is represented on the forum and is attempting to establish an affordable housing sub-committee to deal with the unique challenges in our industry. We are engaging with other metropolitan councils to establish similar forums to have open communication channels to discuss and resolve issues and stumbling blocks. MEMBERSHIP SAARDA membership is open to all role players in the property industry including contractors and suppliers, engineers, town planners, architects, surveyors, environmental consultants, attorneys, financial institutions and bond facilitators. Our membership also extends to national and provincial government and local authorities. EVENTS We have numerous events every year and attempt to have guest speakers at our events to address interesting and relevant matters in our industry. Please visit our website for more information on membership, events and newsletters, at: www.saarda.co.za. www.SAAffordableHousing.co.za