Background
With regard to housing development government,
has established the following national institutions to facilitate the specific
housing and housing-related needs of the market, in addition to the role
provincial governments and municipalities play
Approximately 70% of households in SA are
currently excluded from access to housing credit through the formal banking
sector. Through the housing subsidy scheme, the lower 40% of households, for
which housing credit is not a viable option, are provided with a housing unit.
The upper income bracket of the subsidy scheme, require end user finance to
access a housing product. Thus 30% of the SA population who are under- or
un-served as a result of:
- The conventional banking sector being unable
to service them due to structural incompatibilities
- Insufficient capacity in the emerging,
increasingly successful but inadequately funded specialized lending sector
- Insufficient focus by Government and the
private sector on alternative tenure forms.
Following intensive local and international
research, the National Department of Housing concluded that 4 mutually
comprehensive and supportive approaches should be adopted in order to assist the
under- and un-served portion of the population to access housing. These are:
- Government initiative aimed at facilitating
and encouraging the formal banking sector to increase lending to the lower end
of the housing market
- Proactive steps to foster growth and
development of the emerging alternative lending sector
- A major initiative to stimulate the
provision of housing under a variety of tenure options
- Mechanisms to substantially promote and
expand the amount of personal savings mobilized in the housing process.
In order to assist in the achievement of the
above objectives, Government created a number of housing support institutions,
with various roles and functions.
All institutions are required to report
quarterly to the Department in terms of the Public Finance Management Act.
Quarterly and annual reports must be submitted to the National Department of
Housing. The Annual reports are tabled in Parliament.
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