shra presentation - durban · shra presentation . about 19% of all households in the country live...

SHRA PRESENTATION

About 19% of all households in the country

live in rented accommodation

44% of people that rent earn

between R1500 - R7500 per month

Demand for rental units nationally grows at a rate of 250 000 units per annum (General Household Survey)

CONTEXT

In 2006, the then National Department of Housing (NDoH)conferred on The Social Housing Foundation (SHF) the mandateto be the implementing agent to manage/oversee the allocationand disbursement of The Restructuring Capital Grant (RCG).

The Social Housing Foundation has closed.Mandate been transferred to the Social HousingRegulatory Authority (SHRA) who is additionallytasked to also annually accredit Social Housing Institutions.

Social Housing Programmes have been funded to date:Interim Social Housing Programme (ISHP): 3 funding cycles SocialHousing Investment Programme (SHIP) - 3 funding cycles

HISTORY

Mandate

• To invest in social housing and be able to regulate the sector

Vision

• Affordable rental homes in integrated urban environments through sustainable institutions

Mission

• The SHRA will regulate and invest to deliver affordable rental homes and renew communities

integrated

invest

regulate

sustainable

affordable

renew

SHRA’s MANDATE VISION MISSION

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 governmentSection 4 - Roles and responsibilities of provincial governmentSection 5 - Roles and responsibilities of municipalitiesSection 6 - Roles and responsibilities of other role-playersSection 7 - Establishment of SHRA Section 8 - Composition of SHRASection 11 - Functions of SHRA

SHRA is the Custodian of Social Housing

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SHRA CUSTODIAN OF SH

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.

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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.

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LEGISLATION – SH ACT

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.

DEFINITION: SOCIAL HOUSING

CREATING A SUSTAINABLE ENVIRONMENT

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REGULATORY FRAMEWORKACCREDITATION

Strategic objectives:Credible, sustainable, growing SHI sector

Protection and intended reach of public funding

Accreditation RegulationSHI Code of

ConductApprovals

•Application•Criteria•Assessment•Adjudication•Certificate•Register•Withdrawal

SH ACT & REGULATIONS

•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

REGULATORY FRAMEWORK

ACCREDITATION PROCESS

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Proposal call SHI Application Verification of information

Assessment Award Feedback

Compliance monitoring

Register

ACCREDITATION: CATEGORIES

UnconditionalMeets all criteriaAccess to investment programme

ConditionalMeets critical criteriaAccess to investment programme

Pre accreditedMeets in excess of 50% of critical criteriaNo access to investment programme

DeclinedDoes not meet criteria at allNo access to investment programme

Social Housing Regulatory Authority 12

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


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.



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.



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 managementsystem



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



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 on-going basis



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

QUESTIONS

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shra presentation - durban · shra presentation . about 19% of all households in the country live...

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