Housing bank for the poor launched

THE NEW Human Settlements Development Bank will be launched today, creating a single government home finance entity, says Human Settlements Minister Lindiwe Sisulu.

She said the new bank should facilitate faster access to home financing for the poor and boost plans for mega government-led housing projects in metropolitan areas.

There are 46 of these projects in the pipeline, with 14 in Gauteng. Sisulu hoped the private sector would invest R150 billion in similar projects.

She said the National Treasury had for years actively encouraged the establishment of the new bank.

Human Settlements director-general Thabane Zulu said the launch of the bank would mean the start of operational integration between the three institutions – and a law establishing the entity should be introduced to Parliament by the end of September.

The National Housing Finance Corporation, the Housing Loan Fund and the National Urban Reconstruction and Housing Agency will be integrated to form the new bank.

The chief executive of the housing finance corporation would fulfil the same role for the bank, Zulu said.

Sisulu also confirmed the appointment of Themba Mthethwa, a former chief executive of the office of the Public Protector, as the Human Settlements Ombudsman.

Mthethwa would deal with all complaints that the public or construction sector had against the department.