SA Affordable Housing January - February 2019 // Issue: 74 | Page 14

FEATURES
Innovative solutions to
financing the sector
Affordable housing is becoming increasingly unaffordable but
changes in how we finance the sector may just be the breath of fresh
air that is desperately needed.
By Warren Robertson
The loan book currently comprises 33 037 residential units, 598 buildings and about 350 entrepreneurs assisted.
T
he shape of finance in the affordable housing sector is
welcoming a few new developments and other (older)
but increasingly successful methods that are set to
change the landscape of how the sector will be financed
in future.
Traditionally affordable housing has been largely
financed through partnerships with government where
subsidies are awarded to construction companies to
develop housing for the lower income brackets. These
homes are then often distributed free or supplied at a
discount to people based on their needs.
12
JANUARY - FEBRUARY 2019
A basic government subsidy – Finance Linked Individual
Subsidy Programme or FLISP – is also available for those in
the gap market looking to buy their first homes, but the
reality is it does not do enough to address the real cost of
housing in South Africa, and is only available in limited
circumstances and as such does not reach as wide a market
as it intended.
In July this year government sought to rectify the
problem with the FLISP by expanding the qualification
See more on page 14
www.saaffordablehousing.co.za