Fi­nan­cial body a boost for hous­ing

‘Qual­ity of life of low- to mid­dlein­come house­holds im­proved’

Weekend Argus (Saturday Edition) - - PROPERTY -

THE NATIONAL Hous­ing Fi­nance Cor­po­ra­tion (NHFC) has recorded the high­est num­ber of project launches in a sin­gle year, mak­ing a dif­fer­ence in the lives of the many low- to mid­dle-in­come house­holds.

The NHFC was es­tab­lished by the Depart­ment of Hous­ing as a de­vel­op­ment fi­nance in­sti­tu­tion (DFI) in 1996, with the prin­ci­pal man­date of broad­en­ing and deep­en­ing ac­cess to af­ford­able hous­ing fi­nance for t he l ow- t o mid­dle- i ncome house­holds.

Clients ob­tain­ing fund­ing from NHFC cover a wide spec­trum of the low- to mid­dlein­come hous­ing mar­ket and re­quire dif­fer­ent lev­els of sup­port and at­ten­tion.

Ac­cord­ing to its 2011 an­nual re­port tabled in Par­lia­ment re­cently, the cor­po­ra­tion’s projects divi­sion de­liv­ered 70 per­cent of its bud­geted hous­ing im­pact. The group profit be­fore tax of R76 mil­lion in­creased marginally from 2010.

The NHFC’S im­pair­ment charge of 8.07 per­cent is higher than the bud­geted fig­ure of 5 per­cent, which in­di­cates the in­creased risk taken by the cor­po­ra­tion as a de­vel­op­ment fi­nance in­sti­tu­tion. The profit be­fore tax is 11 per­cent higher than last year.

This achieve­ment was at­tained in spite of the ef­fects of the over­all eco­nomic down­turn, par­tic­u­larly in the hous­ing fi­nance mar­ket, as well as the col­lapse of the credit and mort­gage mar­kets. This made lenders more risk averse and credit granted to house­holds and busi­ness fell dras­ti­cally.

NHFC chief ex­ec­u­tive Sam­son Moraba says that dur­ing the year un­der re­view, the cor­po­ra­tion con­tin­ued to be a cat­a­lyst in in­creas­ing pri­vate sec­tor par­tic­i­pa­tion in the af­ford­able hous­ing mar­ket.

This was achieved ei­ther through the NHFC sup­port­ing its key clients to the point of grad­u­a­tion, or in the in­creased fund­ing of new en­ti­ties in the af­ford­able hous­ing space.

One area of de­vel­op­men­tal im­pact was the sourc­ing of al­ter­na­tive fund­ing from the Euro­pean In­vest­ment Bank (EIB) and French De­vel­op­ment Agency (AFD) and al­lo­cat­ing it to var­i­ous in­ner city pri­vate and so­cial rental projects.

As a re­sult, a to­tal of R388m was chan­nelled into the hu­man set­tle­ment space through this in­ter­ven­tion.

“The NHFC has a sig­nif­i­cant con­tri­bu­tion to make in two of the four Out­come 8 out­puts, namely, the im­prov­ing of prop­erty mar­kets and mak­ing af f ord­able rental hous­ing ac­ces­si­ble to low- and mid­dlei ncome house­holds,” says Moraba. “We owe much of our suc­cess to our clients and part­ners, through whom we were able to ex­tend the reach and de­liv­ery of af­ford­able hous­ing fi­nance to our tar­get mar­ket.”

Out­come 8 is one of the 12 Pres­i­dent’s Of­fice projects es­tab­lished to im­prove the qual­ity of life of South Africans by 2014. Out­come 8 cov­ers de­liv­ery agree­ments on sus­tain­able hu­man set­tle­ments and im­proved qual­ity of house­hold life.

Among high­lights cap­tured by the NHFC is the progress made in the de­vel­op­ment of the mort­gage de­fault in­sur­ance op­er­at­ing model, that is backed by the R1 bil­lion guar­an­tee an­nounced by the min­is­ter of hu­man set­tle­ments. The loan port­fo­lio of the NHFC’S strate­gic in­vest­ment part­ner in the ex­pan­sion of the in­ner city re­gen­er­a­tion, Trust for Ur­ban Hous­ing Fi­nance, has ex­ceeded the R1 bil­lion mark.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.