LEGAL MATTERS segment , the only difference typically being the size of the stands or units .
Market values of new housing developments across all market segments are largely determined by the locality of the development , the level of services provided , the size of stands , the size of the accommodation , finishes , quality of top structures and obviously the demand for such housing in that specific area . Current trends within the affordable housing market are that the finishes and top structures of new developments in this market segment are superior to their minimum requirements .
THE DEVELOPERS CHECKLIST :
The following should be included as part of the developer ’ s submission documents : -
• Details of the developer : This should include – the name of company / entity , details of the members / directors of the company or entity , experience and history ( any previous projects that have been completed and the type and size of such projects ), the professional team , the contact person and their contact details .
• A description of the entire development : The erf number / s , ranges of erven in the development , the price range of units / homes in the development including the land price , number of phases in the development , anticipated completion date of the different phases , if there is to be more than one phase
• Locality map : include the locality of the development within the neighbourhood / town / municipal jurisdiction where the property is situated , describe the area where the development is located ( the social and economic amenities available within proximity to the development , a description of the supply and demand for similar types of housing in the area and for photos of the development to be attached or architectural drawings if these are available )
• Town planning information and approval documents : the conditions of township establishment , zoning details and certificate , confirmation of the provision of bulk services , geotechnical reports , an environmental impact assessment , a flood line diagram , Section 82 and 101 certificates
• Land sale agreement : confirmations of title , an unrestricted title deed , the name of attorney dealing with the development and their contact details
• NHBRC registration for the contractor ( builder )
• NHBRC enrolment of project
• Municipal approved plan / s
• Surveyor General Diagrams : with sizes and prices ( or estimated value )
• National Building Regulations : need to be adhered to and an Occupancy Certificate must be issued on completion .
Once the developer has provided the bank with a set of documents as per the above minimum checklist , the bank issues an instruction to a property valuer who then visits the development site and compiles an area report with recommendations . The feasibility of the development , the bank ’ s risk appetite as well as any conditions applicable to that specific development are then determined .
After this process has successfully been completed , a letter of approval is sent to the developer together with any additional requirements or conditions . If the developer wants to make use of innovative building systems or technologies , they need approval of the system by the SABS , as well as the NHBRC , prior to submitting their development application to the bank .
“ When it comes to affordable housing developments , bank ’ s requirements are no different to that of other market segments .”
If a customer wants to apply for a bond for a builder to build their home , the bank will then require the following :
• Details of the legal description of the property ( if it is a freehold or sectional title development )
• Minimum building specifications and a waiver of builder ’ s lien
• The builders NHBRC certificate
• The builders all risk insurance policy
• Engineering certificates ( at various stages during construction )
• Electrical , gas and plumbing certificates on completion of the project
• Copy of building contract , and
• Floor plans
The development of inclusive , sustainable and affordable housing is a national imperative , which has many challenges but great prospects . There exists opportunities for more collaboration between the various role-players within the housing delivery value chain to improve efficiencies , optimise systems and processes that are essential for the long-term success of the complex property development ecosystem .
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www . saaffordablehousing . co . za JANUARY - FEBRUARY 2021 23