ASSOCIATIONS
SHRA : State of Social Housing Sector Report 2020
By Social Housing Regulatory Agency
In accordance with key requirements of the Social Housing Act , this annual State of the Social Housing Sector Report provides an overview of the current state of the sector , including the demand to-date for social housing , the profile and performance of the sector , the current state of transformation in the sector , and the successes , challenges , opportunities , and developments facing the sector . It also presents the plans and initiatives of the SHRA and the sector to support the development of the Social Housing Programme , policy , and the sector in partnership with all key role-players . This report is for the 2020 calendar year .
SOCIAL HOUSING IN SOUTH AFRICA
The Social Housing Act , 2008 ( Act No 16 of 2008 ) defines social housing as : ‘ A rental or co-operative housing option for low to medium income households at a level of scale and built form which requires institutionalised management , and which is provided by social housing institutions or other delivery agents in approved projects in designated restructuring zones , with the benefit of public funding .’ ( Social Housing Act , 2008 , p8 – b )
Primary legislative and policy documents and initiatives that define social housing in South Africa include the Constitution of South Africa , 1996 ( Act No 108 of 1996 ), the Housing Act , 1997 ( Act No 107 of 1997 , as amended in 2001 ), the Social Housing Policy , 2005 and the Social Housing Act ( Act No 16 of 2008 ).
SOCIAL HOUSING PROGRAMME
The Social Housing Act governs the implementation , funding , and regulation of social housing in South Africa . As a policy instrument , the primary purposes of social housing are urban restructuring and regeneration and increasing the supply of rental housing in good locations for low- to moderate-income earners .
Social housing projects are developed and managed predominantly by SHIs . SHIs are intended to be sustainable cooperatively- , privately- or municipal-owned entities ( MOEs ) operating for profit or not-for profit over a long period . The policy also enables private sector for-profit entities termed other development agencies ( ODAs ) to develop and manage social housing projects .
In addition to residential accommodation , social housing estates can incorporate other facilities and services . These provide community development incentives and empowerment benefits and promote a lifestyle conducive to community cohesion .
Social housing is delivered under the jurisdiction of the SHRA and must be developed within restructuring zones . The SHRA is a juristic person whose core functions are to regulate SHIs and projects , and to invest in capital projects and institutional development .
A government grant enables access to the housing stock provided by low-income households . The focus is on funding projects rather than units , which allows for a holistic approach to lifecycle costing and long-term perspective required for social housing projects . Public sector funding for social housing comprises three components : 1 . Funding for social housing projects through the
Consolidated Capital Grant ( CCG ). 2 . Funding for SHIs through the Institutional Investment
Grant ( IIG ). 3 . Funding for the operations of the SHRA , which is mandated to oversee the social housing sector .
A total of R4.3-billion has been allocated for social housing over the five-year MTEF period . This is expected to deliver 30 000 social housing units .
The CCG of R723.706-million is only 2.2 % of the human settlement ’ s capital budget for the 2019 / 20 year ( the budget is R32 752-billion ). Of this , 57 % ( R18.779-billion ) was allocated to the human settlement development grant ( HSDG ) and 37 % ( R12.045-billion ) to the urban settlement development grant ( USDG ). The SHRA is currently motivating for an increase in its allocation , as it believes the current allocation is insufficient for 30 000 units . The current Social Housing Act and Regulations do not allow the SHRA to borrow or leverage its current capital allocation .
DEMAND FOR SOCIAL HOUSING
Based on data from the 2016 Community Survey ( StatsSA ), social housing is 0.5 % of the housing sector , about 76 617
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