The SHRA may invest in social housing projects in accordance with the investment criteria set out in the Social Housing Regulations.
Capital investment is made through the Consolidated Capital Grants (CCG) and debt Funding. There are instances where delivery agents are able to contribute their own equity, or may secure donor funds.
The CCG is a significant contribution to the capital cost of a social housing project, contributing to the delivery of viable, feasible, and sustainable projects that provide affordable rental housing to the poor.
SHRA delivers social housing units through delivery partners. These can either be in the form of social housing institution (SHIs), which are non-profit companies or other delivery agents (ODAs) which are for-profit companies. SHIs must be conditionally or fully accredited by the SHRA.
Delivery partners comprise of the following:
Existing or new SHIs;
Non-profit private sector companies;
For profit private sector companies/ other deliver agents (ODAs).
Delivery agents shall exclude provincial government or municipalities.
The total grant quantum will be determined on a project-by-project basis and will depend on the affordability mix of the units;
The standard grant quantum is equal to R328 687 per unit but may be escalated annually at the discretion of the Investment Committee:
The standard grant quantum will apply to the allocation of a minimum of 30% of the units to the primary target market (households earning R1 850 up to R6 700 a month) up to a maximum of 70% of the units. The secondary target market (households earning R6 701 up to R22 000 per month) shall occupy the remaining units;
The variance to the standard grant quantum will be based on the degree of allocation of units to the primary target market. The standard grant quantum will increase by R 1 874 per 1% allocation to primary beneficiaries up to a maximum of 40% (70% the total units in the project). This variation quantum may be escalated annually at the discretion of the Investment Committee.
Whilst projects may include a higher proportion of primary target market than the 70% maximum referred to above, they will not receive any further increase in the total grant quantum.
Public notices shall be issued by SHRA from time to time, inviting SHIs and other delivery agents to submit applications for CCG funding;
The SHRA investment committee shall determine suitable application requirements, standard forms emplates or tools to be used in applications and may alter or amend these, as it deems fit;
Applications must be submitted to the SHRA on the date and time stipulated in the public notice;
SHRA shall, within 90 days of receipt of applications, notify the applicants whether or not their applications were successful. SHRA shall provide reasons to the applicant in the case where applications were unsuccessful.
The application will comprise
the submission of documentary proof of status of the project (to indicate the degree of project readiness) – currently QS-B;
the submission of a comprehensive feasibility study indicating the financial viability of the project – currently QS-C;
any other information as the SHRA may require.
The project must:
Meet social housing policy objectives;
Be supported by the provincial and local governments;
Be located in a Restructuring Zone;
Meet the criteria for Conditions Precedent and Financial Closure; and
For private sector applicants/ other delivery agents (ODA), a minimum of 20% equity contribution is obligatory.
The confirmation of the approval in principle of a debt funding arrangement by an approved Financial Service Provider (FSP) for a project is a pre-condition to the submission of a CCG application. On approval of the grant, it is a condition of financial closure that the delivery agent enters into a contract agreement with the FSP for the required loan to cover the balance of funds for the project after taking into account the CCG. The debt funding agreement shall be concluded on terms and conditions that are acceptable to the SHRA.
In certain circumstances, the delivery agent may contribute its own equity to the project or obtain donations to the project. This additional source of funding is welcomed and is acceptable to the SHRA. These sources of funding are to be declared at grant application stage, and are to be included in the financial viability to demonstrate the reduction in debt financing.
The Social Housing Investment Programme (SHIP) may invest in social housing projects in accordance with the investment criteria set out in the Social Housing Regulations.
The Sector Development and Transformation (SD&T) Programme administers the Institutional Investment Grants (IIG).
Sandile Luthuli holds a Bachelor of Commerce Degree with Honours, a Masters Degree in Business Administration, a Higher Diploma in Company Law, and a Masters of Philosophy in Development Finance. He has occupied senior roles in organisations such as the Development Bank of Southern Africa (DBSA), CIDA Empowerment Fund, Alexander Forbes Financial Services as well as Khula Enterprise Finance, amongst others. The combination of strategy, development finance and economics experience that he brings to the role is a valuable contribution to realising the vision of the SHRA.
A civil engineer by profession, Confidence Tshilande is committed to fostering a more transformed, inclusive and sustainable housing sector by employing her technical expertise and leadership skills to ensure that quality and affordable housing is delivered efficiently.
Confidence Tshilande currently serves on various Boards.
An attorney by profession with significant experience in his career; he aims to provide the executive and management of SHRA with oversight support by sharing and tapping into his extensive insights and knowledge of providing housing solutions for the poor and marginalised. He believes that this will be expedited by ensuring that SHRA partners with the private sector and industry partners and develops integrated housing solutions and developments which is close to required amenities and enables employment opportunities.
Ashley Latchu is an IT specialist currently completing his doctorate focused on research within the public sector, and has served on several boards and board subcommittees. He is committed to enabling the SHRA to be able to use 4IR technologies and good corporate governance to augment and enable its mandate.
Ayanda Olifant’s career has been characterised by two roles – an economist and a strategist. She has a breadth of experience across industries, including banking; FMCG and telecommunications, and holds a Masters in Economics, Masters in Business Administration. Ayanda is committed to assisting the SHRA to play an integral role in addressing the income and spatial inequalities in South Africa.
Mashukudu James Maboa is a Chartered Accountant with corporate finance and governance experience. He has played an instrumental role in various boards over the past decade.
James is committed to supporting the SHRA to become a vehicle to provide affordable and quality social housing for qualifying South Africans.
An attorney by profession with significant experience in her career and years of board experience at large, reputable institutions, Lahlane Malema remains committed to developing, growing, promoting, protecting and sustaining social housing.
Pulane Thobejane, a social worker by profession, is committed to addressing the imbalances of the past, by providing decent/affordable housing and renting options that are sustainable for vulnerable communities. She boasts 20 years of experience in the public sector, including 17 years in the Gauteng Department of Social Development.
Pulane Thobejane holds an honours degree in Social Work, a postgraduate certificate in labour relation and Human Resource management, and has served on various Boards.
Statistics (University of Pretoria.
Sanele Masiza is a former Mvula Trust board member. She has held various leadership positions in financial institutions. She brings more than 15 years experience in risk management, spanning over various domains such as operational risk, credit risk, compliance and enterprise risk management. Ten years was spent in senior management roles in financial institutions and regulatory entities. With this expertise, the SHRA can effectively evaluate risks that can occur within the sector.
She holds an MSc Financial Economics (University of Leicester, UK), Institute of Risk Managers South Africa- Certified Risk Professional, Certified Fraud Examiners (ACFE), Professional Risk Manager’s Certification (PRMIA), BCom Honours Statistics (University of Pretoria.
A gifted entrepreneur with a finance and investor relations background, Zimbini Hill joined the SHRA as an interim Council member in 2018, and Chaired the Project Development and Funding Committee.
Zimbini Hill currently serves as a board member on various private, public sector and social enterprises; and is convinced that with the public sector operating as it was designed to, it will play a vital role in ensuring a better South Africa for all. Zimbini Hill hopes to wholeheartedly serve the SHRA to successfully meet its mandate.
Ms. Mbane has a wealth of experience in governance and administration. She has 30 years’ experience in the public sector of which 15 years is at a senior management level. She is the former CEO of the Health and Welfare SETA as well as an Interim CEO of the IDT. She has led various governance structures in various sectors.
As a senior official, she has served in the human settlements sector for 7 years and was instrumental in the formation of some of the entities of the department. Her experience as a specialist in the organisational developmental space, and being an international coach, will come handy an enable the SHRA to benefit from her knowledge and experience.
Busisiwe Nzo is a practicing professional quantity surveyor (PrQs) registered with the South African Council of Quantity Surveying Profession (SACQSP). She is currently a partner (managing and active) at a private practice with offices in various regions of the country.
Her experience in the professional building industry spans more than 20 years. She also has vast experience in the human settlements space having been involved at different capacities for more than 15 years. This is where her knowledge and understanding of the human settlements development space originates.
Busisiwe has served as a council member of the National Home Builders Registration Council (NHBRC). She has also served in other boards of other state entities e.g. Gauteng Partnership Fund (an implementing agent of the Gauteng Human Settlements, responsible for other programmes such as strategic urban renewal projects and those designed to promote participation of previously disadvantaged owned companies in the affordable rental market). She is currently the Chairperson of the Social Housing Regulatory Authority (SHRA).
Busisiwe is committed to helping create an impact and implement changes within the social housing development space to better the livelihoods of South African communities.