cimbras formwork coffrage schalungen Encofrados moladi
Build more faster, better for less with moladi plastic formwork
moladi, a South African Company and International supplier for the past 21 years, the pioneer of a one-step casting process for the construction of homes,"...Simply cast a whole house in a day, employing unskilled labour, reducing time, waste and cost, eliminating chasing for plumbing and electrical pipe work, plastering and beam filling, resulting in a wall stronger than brick. A cost effective, holistic design and build technology that far outweighs poorly designed costly concrete-block and masonry structures…
moladi,low,cost,housing,concrete,wall,building,system,hurricane,earthquake,proof,residential,housing,plastic,formwork,alternative,block,development,build,construction,raft,foundation,mortar,south,africa,lowcost,technology,approved,nhbrc,walling,structure,thermal,conductivity,plaster,cheap,innovation,cimbras,formaletas,moldaie,masonry,prefabricated,steel,frame,double,storey,prefab,price,process,patented,design,house,flat,form,reinforced,emergency,disaster,shutter,pour,schools,clinics,awards,certified,sabs,social, upliftment, coffrage, schalungen
Low cost housing - South African news and happenings concerning the delivery or non delivery of low cost affordable housing to the people of South Africa
Thursday, November 01, 2007
Sunday, October 07, 2007
South Africa tackles social inequities
South Africa tackles social inequities
Reconstruction and development
Some of the current bitterness stems from the very high hopes generated by the Reconstruction and Development Programme (RDP). Originally launched in 1994 as the ANC's election programme, it then became the centre of the new government's mandate for reform. As defined by then President Nelson Mandela, the RDP encompassed not only socio-economic programmes designed to redress imbalances in living conditions, but also institutional reform, educational and cultural programmes, employment generation and human resources development. The programme, Mr. Mandela said, would be "an all-encompassing process of transforming society in its totality to ensure a better life for all."
At first, the RDP had a dual aspect. As a policy framework, its priorities influenced the targeting of donor aid and guided the government's normal budgetary process, leading to significant shifts in how government revenues were spent. Less went to the military, for example, and substantially more was allocated to education, health, housing and other social spending.
At the same time, the RDP had its own distinct presence. A special RDP Fund, of several billion rands annually, financed high-profile "presidential projects," such as free medical care for under-six children and pregnant mothers, a school feeding programme, electrification of poor homes and public works projects for unemployed youths. A separate RDP office also was set up, headed by Minister without Portfolio Jay Naidoo (a former Cosatu union leader), to administer the fund and coordinate the different facets of the programme in the various ministries.
In 1996, however, the RDP lost its most visible public face when Mr. Naidoo was reassigned to other ministerial duties. The RDP office was eliminated as a separate entity, with its coordinating functions subsumed into the office of then Deputy President Thabo Mbeki, now president, who remains directly responsible for the RDP programme.
Despite the RDP's lower profile, the programme has continued to register significant progress. Some of its achievements over the past six years, such as the rapid expansion of housing and access to clean water, surpass anything accomplished in such a short period of time elsewhere in Africa -- and even in some European countries (see table, page 14). A recent survey conducted by the National Economic Development and Labour Council, a statutory body that mediates most labour negotiations, found that a majority of those questioned felt their lives had improved due to the RDP.
Reconstruction and development
Some of the current bitterness stems from the very high hopes generated by the Reconstruction and Development Programme (RDP). Originally launched in 1994 as the ANC's election programme, it then became the centre of the new government's mandate for reform. As defined by then President Nelson Mandela, the RDP encompassed not only socio-economic programmes designed to redress imbalances in living conditions, but also institutional reform, educational and cultural programmes, employment generation and human resources development. The programme, Mr. Mandela said, would be "an all-encompassing process of transforming society in its totality to ensure a better life for all."
At first, the RDP had a dual aspect. As a policy framework, its priorities influenced the targeting of donor aid and guided the government's normal budgetary process, leading to significant shifts in how government revenues were spent. Less went to the military, for example, and substantially more was allocated to education, health, housing and other social spending.
At the same time, the RDP had its own distinct presence. A special RDP Fund, of several billion rands annually, financed high-profile "presidential projects," such as free medical care for under-six children and pregnant mothers, a school feeding programme, electrification of poor homes and public works projects for unemployed youths. A separate RDP office also was set up, headed by Minister without Portfolio Jay Naidoo (a former Cosatu union leader), to administer the fund and coordinate the different facets of the programme in the various ministries.
In 1996, however, the RDP lost its most visible public face when Mr. Naidoo was reassigned to other ministerial duties. The RDP office was eliminated as a separate entity, with its coordinating functions subsumed into the office of then Deputy President Thabo Mbeki, now president, who remains directly responsible for the RDP programme.
Despite the RDP's lower profile, the programme has continued to register significant progress. Some of its achievements over the past six years, such as the rapid expansion of housing and access to clean water, surpass anything accomplished in such a short period of time elsewhere in Africa -- and even in some European countries (see table, page 14). A recent survey conducted by the National Economic Development and Labour Council, a statutory body that mediates most labour negotiations, found that a majority of those questioned felt their lives had improved due to the RDP.
Tuesday, September 18, 2007
IOL: 'Four million still living in shacks'
IOL: 'Four million still living in shacks'
More than four million South Africans, or 11 percent of the population, are still living in shacks.According to a 2006 TNS Research Surveys study, conducted on behalf of the FinMark Trust, 4,3-million people still live in shacks. Of this number, most informal dwellers are black and have about one breadwinner per household.The survey was conducted among 3 894 South Africans, aged 16 years and older.The findings were then weighed against the Statistics SA 2001 population census to draw a final result."Although most South African residents live in formal brick structures, a significant number, 4,3-million, still live in shacks, either in urban areas or squatter camps," said the survey. "Also, the most impoverished of our population have the greatest number of people per household, supported by the smallest income. Many households also operate without fairly basic appliances."
In Cape Town alone there are more than half a million people living in 240 informal settlements, according to media reports.The study also found that 75 percent of people lived in flats or brick houses, including structures such as RDP houses.Meanwhile, one percent lived in hostels and a further one percent were backyard dwellers.It also found that, while 86 percent of homes had access to electricity, this figure "was not matched by other basic services". Just more than half the homes in the country had flush toilets, and just more than one quarter had hot running water.Ninety-one percent of interviewees had never had a home loan, six percent were paying off a bond and three percent said they had once had a bond. Fifty-nine percent of adults interviewed had no concept of home loans.
This is what moladi strives to change - get South Africa (Pty) Ltd. working!
More than four million South Africans, or 11 percent of the population, are still living in shacks.According to a 2006 TNS Research Surveys study, conducted on behalf of the FinMark Trust, 4,3-million people still live in shacks. Of this number, most informal dwellers are black and have about one breadwinner per household.The survey was conducted among 3 894 South Africans, aged 16 years and older.The findings were then weighed against the Statistics SA 2001 population census to draw a final result."Although most South African residents live in formal brick structures, a significant number, 4,3-million, still live in shacks, either in urban areas or squatter camps," said the survey. "Also, the most impoverished of our population have the greatest number of people per household, supported by the smallest income. Many households also operate without fairly basic appliances."
In Cape Town alone there are more than half a million people living in 240 informal settlements, according to media reports.The study also found that 75 percent of people lived in flats or brick houses, including structures such as RDP houses.Meanwhile, one percent lived in hostels and a further one percent were backyard dwellers.It also found that, while 86 percent of homes had access to electricity, this figure "was not matched by other basic services". Just more than half the homes in the country had flush toilets, and just more than one quarter had hot running water.Ninety-one percent of interviewees had never had a home loan, six percent were paying off a bond and three percent said they had once had a bond. Fifty-nine percent of adults interviewed had no concept of home loans.
This is what moladi strives to change - get South Africa (Pty) Ltd. working!
Friday, September 07, 2007
R2bn housing scandal
R2bn housing scandal
FRAUD and corruption by developers in collusion with housing department officials are among the key factors for the collapse of hundreds of low-cost housing projects throughout the country.
As a result, the government is now spending more than R2 billion to refinance the completion of the low-cost houses that were abandoned by unscrupulous developers across the country since the dawn of democracy.
The problem has its roots in massive fraud scams by developers who colluded with some of the country’s housing department officials to siphon off millions of rands for work not done.
Across the country, developers left swathes of foundation slabs or mere toilets while others built houses, but could not put on the roofs as they feverishly guarded their profits. In some cases, houses were never built, but the developers were paid. This meant that the rural poor lived for prolonged periods in rickety shacks and corrugated iron houses.
Other common problems in several provinces were shoddy workmanship and rising inflation – especially where projects took longer to complete and prices for building materials skyrocketed.
This comes as provinces race against time to ensure that all the incomplete houses were finished before a 2008 deadline set by Housing Minister Lindiwe Sisulu.
Several documents in the possession of City Press show that developers in the nine provinces claim the non-completion of low-cost houses was caused by several problems, including unresolved land issues and delayed environmental impact assessment studies on sites earmarked for government’s low-cost houses.
But a common concern among developers was the claim that the profit margins in the RDP housing construction were very low.
But government dismissed the complaints. It said tenders were allocated based on submissions by developers and the low-cost housing subsidy had been increased annually to cater for inflation.
Government said there was the discernible problem of a propensity by developers to buy luxury items before they could determine the profits they would make. This resulted in a shortfall.
“We think the problem is that some of the developers are irresponsible in using the money . . . Some use the money they should buy material with or pay workers to buy luxury cars and houses. They forget they have a responsibility to finish the project,” said Ndivhuwo Mabaya, national housing department spokesperson.
Government is now forced to re-finance some of the projects as attempts to get the developers to pay took too long.
In the Eastern Cape, the provincial housing department has allocated another R311 million to unblock 183 housing projects that were either incomplete due to fraud and corruption or escalations and other “implementation-related issues such as land invasions, sudden inaccessibility of construction sites due to roads and bridges washed away”.
But Limpopo is the hardest hit with a whopping 40 000 incomplete houses that have to be finished at a cost of R1 billion in three years.
The Northern Cape’s bill stands at R104 million for 4 300 units, while the Western Cape has allocated R20.9 million this year to complete 1 902 houses.
The lowest bill is the Free State’s. The province has put aside R13 million to finish 909 units.
Phumlani Mndolomba of the Eastern Cape Housing Department said the province’s model of building houses – using the People’s Housing Delivery vehicle – resulted in a slow pace in completing houses.
“A second major factor . . . is that the province elected to build a 40m² house using a conditional grant allowance which was based on a 30m² unit as the national norm,” Mndolomba said.
FRAUD and corruption by developers in collusion with housing department officials are among the key factors for the collapse of hundreds of low-cost housing projects throughout the country.
As a result, the government is now spending more than R2 billion to refinance the completion of the low-cost houses that were abandoned by unscrupulous developers across the country since the dawn of democracy.
The problem has its roots in massive fraud scams by developers who colluded with some of the country’s housing department officials to siphon off millions of rands for work not done.
Across the country, developers left swathes of foundation slabs or mere toilets while others built houses, but could not put on the roofs as they feverishly guarded their profits. In some cases, houses were never built, but the developers were paid. This meant that the rural poor lived for prolonged periods in rickety shacks and corrugated iron houses.
Other common problems in several provinces were shoddy workmanship and rising inflation – especially where projects took longer to complete and prices for building materials skyrocketed.
This comes as provinces race against time to ensure that all the incomplete houses were finished before a 2008 deadline set by Housing Minister Lindiwe Sisulu.
Several documents in the possession of City Press show that developers in the nine provinces claim the non-completion of low-cost houses was caused by several problems, including unresolved land issues and delayed environmental impact assessment studies on sites earmarked for government’s low-cost houses.
But a common concern among developers was the claim that the profit margins in the RDP housing construction were very low.
But government dismissed the complaints. It said tenders were allocated based on submissions by developers and the low-cost housing subsidy had been increased annually to cater for inflation.
Government said there was the discernible problem of a propensity by developers to buy luxury items before they could determine the profits they would make. This resulted in a shortfall.
“We think the problem is that some of the developers are irresponsible in using the money . . . Some use the money they should buy material with or pay workers to buy luxury cars and houses. They forget they have a responsibility to finish the project,” said Ndivhuwo Mabaya, national housing department spokesperson.
Government is now forced to re-finance some of the projects as attempts to get the developers to pay took too long.
In the Eastern Cape, the provincial housing department has allocated another R311 million to unblock 183 housing projects that were either incomplete due to fraud and corruption or escalations and other “implementation-related issues such as land invasions, sudden inaccessibility of construction sites due to roads and bridges washed away”.
But Limpopo is the hardest hit with a whopping 40 000 incomplete houses that have to be finished at a cost of R1 billion in three years.
The Northern Cape’s bill stands at R104 million for 4 300 units, while the Western Cape has allocated R20.9 million this year to complete 1 902 houses.
The lowest bill is the Free State’s. The province has put aside R13 million to finish 909 units.
Phumlani Mndolomba of the Eastern Cape Housing Department said the province’s model of building houses – using the People’s Housing Delivery vehicle – resulted in a slow pace in completing houses.
“A second major factor . . . is that the province elected to build a 40m² house using a conditional grant allowance which was based on a 30m² unit as the national norm,” Mndolomba said.
Tuesday, September 04, 2007
Lack of Low-Cost Housing in Dubai | Best Syndication
Lack of Low-Cost Housing in Dubai Best Syndication
Dubai's private developers have recently announced that erecting low-cost housing was not their first priority. High land rates in the emirate have prevented them from taking up low-range housing assignments. According to Ahmad Al Abdullah, chairman of New Dubai Properties that has constructed 22 projects worth over $7 billion across the emirate, high land rates are forcing developers into projects that involved building luxurious apartments, office blocks and Dubai hotels. These bring back far better returns on investment as compared to what the affordable housing may deliver. There is already a shortage of three and four star hotels in Dubai that many construction companies are trying to make business from. Nobody dares announcing low-cost housing projects on the other hand though.
The time will soon come when the market runs dry for the top of the pyramid. Then the developers will realize the massive opportunity at the bottom two thirds! moladi is once again the solution to build low construction cost housing quickly and effieciently
Dubai's private developers have recently announced that erecting low-cost housing was not their first priority. High land rates in the emirate have prevented them from taking up low-range housing assignments. According to Ahmad Al Abdullah, chairman of New Dubai Properties that has constructed 22 projects worth over $7 billion across the emirate, high land rates are forcing developers into projects that involved building luxurious apartments, office blocks and Dubai hotels. These bring back far better returns on investment as compared to what the affordable housing may deliver. There is already a shortage of three and four star hotels in Dubai that many construction companies are trying to make business from. Nobody dares announcing low-cost housing projects on the other hand though.
The time will soon come when the market runs dry for the top of the pyramid. Then the developers will realize the massive opportunity at the bottom two thirds! moladi is once again the solution to build low construction cost housing quickly and effieciently
Tuesday, August 21, 2007
Sudan floods kill 62 people, leave tens of thousands homeless - CNN.com
Sudan floods kill 62 people, leave tens of thousands homeless - CNN.com
KHARTOUM, Sudan (AP) -- Floods and heavy rains have caused 23,000 mudbrick homes to collapse and killed at least 62 people across Sudan this month, a senior Sudanese official said Tuesday.
moladi is the SOLUTION to replace destroyed mudbrick homes...
KHARTOUM, Sudan (AP) -- Floods and heavy rains have caused 23,000 mudbrick homes to collapse and killed at least 62 people across Sudan this month, a senior Sudanese official said Tuesday.
moladi is the SOLUTION to replace destroyed mudbrick homes...
Monday, August 20, 2007
Sowetan - News
Sowetan - News
The DA says it has discovered that R2,363billion has been spent on incomplete housing schemes.
“There are many elements to this. We primarily suspect corruption and collusion between national department of housing officials and developers,” said the DA’s Butch Steyn.
He said the projects date as far back as September 1995 and up to September 2005. The figures reveal that millions have been squandered on incomplete projects in every province, except Gauteng.
Topping the list is Limpopo with 193 projects at a cost of R1,684billion, followed by Eastern Cape with 64 blocked projects at a cost of R268,4million.
Mpumalanga has four unfinished projects that cost R174million, Northern Cape has 12 out- standing projects that cost R68,6million, Western Cape has eight projects that cost R55,7million, Northern Cape has 14 projects costing R49,7million and Free State has 31 projects costing R48,8million.
The DA says it has discovered that R2,363billion has been spent on incomplete housing schemes.
“There are many elements to this. We primarily suspect corruption and collusion between national department of housing officials and developers,” said the DA’s Butch Steyn.
He said the projects date as far back as September 1995 and up to September 2005. The figures reveal that millions have been squandered on incomplete projects in every province, except Gauteng.
Topping the list is Limpopo with 193 projects at a cost of R1,684billion, followed by Eastern Cape with 64 blocked projects at a cost of R268,4million.
Mpumalanga has four unfinished projects that cost R174million, Northern Cape has 12 out- standing projects that cost R68,6million, Western Cape has eight projects that cost R55,7million, Northern Cape has 14 projects costing R49,7million and Free State has 31 projects costing R48,8million.
IOL: 'Housing is key'
IOL: 'Housing is key'
August 01 2007 at 04:07PM
"The majority of the people affected by the floods are of the poorest in the Western Cape."Housing is key to overcoming the problems but we can't wait until we have built all the houses. Something needs to be done now. moladi has been saying this for 21 years to all housing departments all over South Africa but no ACTION!!!!
PM3/2/3/13-2006/1145
11 July 2007
Dear Mr. Botes
MOLADI-ADDRESS THE BACKLOG IN AFFORDABLE HOUSING
By direction of Premier Ebrahim Rasool, I wish to acknowledge receipt of your correspondence dated 09 July 2007, the content of which has been noted.
Your correspondence was forwarded to the Office of the MEC for Local Government and Housing for consideration. You may expect a reply from the said MEC`s office in due course.
Kind regards
MR. LIONEL PETERSEN
ADMINISTRATIVE SECRETARY
August 01 2007 at 04:07PM
"The majority of the people affected by the floods are of the poorest in the Western Cape."Housing is key to overcoming the problems but we can't wait until we have built all the houses. Something needs to be done now. moladi has been saying this for 21 years to all housing departments all over South Africa but no ACTION!!!!
PM3/2/3/13-2006/1145
11 July 2007
Dear Mr. Botes
MOLADI-ADDRESS THE BACKLOG IN AFFORDABLE HOUSING
By direction of Premier Ebrahim Rasool, I wish to acknowledge receipt of your correspondence dated 09 July 2007, the content of which has been noted.
Your correspondence was forwarded to the Office of the MEC for Local Government and Housing for consideration. You may expect a reply from the said MEC`s office in due course.
Kind regards
MR. LIONEL PETERSEN
ADMINISTRATIVE SECRETARY
SABCnews.com - politics/government
SABCnews.com - politics/government
A multi million rand low cost housing pilot project in Klerksdorp and Mafikeng in North-West province has collapsed. This follows the delay of payments from the local government to the contractors, after the National Home Builders Registration Council (NHBRC) effectively disapproved quality assurance certificates for payment to be made.
A multi million rand low cost housing pilot project in Klerksdorp and Mafikeng in North-West province has collapsed. This follows the delay of payments from the local government to the contractors, after the National Home Builders Registration Council (NHBRC) effectively disapproved quality assurance certificates for payment to be made.
Saturday, August 18, 2007
The Genius of GEICO, Clayton Homes, and NetJets -- GuruFocus.com
The Genius of GEICO, Clayton Homes, and NetJets -- GuruFocus.com
Manufactured housing has a huge cost advantage over traditional builders, as much as $100,000 per home. This cost advantage is more pronounced in Clayton’s case, because they get to borrow money from AAA-rated Berkshire at a 1% premium to Berkshire’s low rates.
So Clayton will have two important advantages in the next decade, low building cost and low financing costs. The biggest hurdle in my mind to Clayton becoming America’s biggest homebuilder is marketing; convincing people that these homes offer high quality. If that hurdle can be crossed, there is no reason Clayton, with its enormous cost advantages, cannot grow exponentially.
Manufactured housing has a huge cost advantage over traditional builders, as much as $100,000 per home. This cost advantage is more pronounced in Clayton’s case, because they get to borrow money from AAA-rated Berkshire at a 1% premium to Berkshire’s low rates.
So Clayton will have two important advantages in the next decade, low building cost and low financing costs. The biggest hurdle in my mind to Clayton becoming America’s biggest homebuilder is marketing; convincing people that these homes offer high quality. If that hurdle can be crossed, there is no reason Clayton, with its enormous cost advantages, cannot grow exponentially.
Thursday, August 16, 2007
Business Report - FNB to fund R427m housing project
Business Report - FNB to fund R427m housing project
Pretoria - First National Bank (FNB) has boosted its expenditure on low-cost housing to R3 billion with the launch of a R427 million mixed housing development at Evaton West, south of Johannesburg.The project will deliver 1 776 mixed housing units and increase the number of affordable homes financed by FNB to 10 337 units since last year
Pretoria - First National Bank (FNB) has boosted its expenditure on low-cost housing to R3 billion with the launch of a R427 million mixed housing development at Evaton West, south of Johannesburg.The project will deliver 1 776 mixed housing units and increase the number of affordable homes financed by FNB to 10 337 units since last year
Wednesday, August 15, 2007
Alternative to brick building
Alternative to brick building
moladi the solution
recipient of the South African Bureau of Standards Design for Development Award and aims at providing millions of people around the world to obtain equity in their country by providing them with homes that are of a high standard and at a reduced cost.
is a unique patented plastic injection moulded form work system, which produces cast-in-place mortar structures.
is a fast, simple, adaptable and a low construction cost technological building system.
is suitable for all types of buildings, yet it is highly suited for use in mass housing markets, without compromising quality.
utilizes indigenous materials to produce high standard permanent structures that are earthquake, cyclone and tsunami resistant.
is unique in that it forms all the walls in a building simultaneously. At the same time, it brings to field construction all the benefits of a factory assembly line - quality work, by unskilled workers at a maximum rate of production.
is versatile and allows for easy adaptation to varied design specifications, whether they are schools, homes, clinics or factories whist maintaining design aesthetics for social acceptability.
promotes a high standard in the construction industry.
is successful in alleviating many of the logistical problems facing the construction of affordable repetitive housing projects.
creates a high production output capacity
facilitates the possibility for many in situ structures to be built in just one day.
is amortized over many re-uses, reducing the cost of construction and transportation is significantly.
far outweighs poorly designed and costly concrete-block and masonry structures, as they often fail to timeously meet the requirements of mass housing schemes.
does not rely on traditional skilled labour and can employ the local indigenous unskilled community.
train local contractors and entrepreneurs to use our technology and, in turn, empowering communities to build quality structures. Jobs are created within the community and members become participants in the construction of their homes.
moladi the solution
recipient of the South African Bureau of Standards Design for Development Award and aims at providing millions of people around the world to obtain equity in their country by providing them with homes that are of a high standard and at a reduced cost.
is a unique patented plastic injection moulded form work system, which produces cast-in-place mortar structures.
is a fast, simple, adaptable and a low construction cost technological building system.
is suitable for all types of buildings, yet it is highly suited for use in mass housing markets, without compromising quality.
utilizes indigenous materials to produce high standard permanent structures that are earthquake, cyclone and tsunami resistant.
is unique in that it forms all the walls in a building simultaneously. At the same time, it brings to field construction all the benefits of a factory assembly line - quality work, by unskilled workers at a maximum rate of production.
is versatile and allows for easy adaptation to varied design specifications, whether they are schools, homes, clinics or factories whist maintaining design aesthetics for social acceptability.
promotes a high standard in the construction industry.
is successful in alleviating many of the logistical problems facing the construction of affordable repetitive housing projects.
creates a high production output capacity
facilitates the possibility for many in situ structures to be built in just one day.
is amortized over many re-uses, reducing the cost of construction and transportation is significantly.
far outweighs poorly designed and costly concrete-block and masonry structures, as they often fail to timeously meet the requirements of mass housing schemes.
does not rely on traditional skilled labour and can employ the local indigenous unskilled community.
train local contractors and entrepreneurs to use our technology and, in turn, empowering communities to build quality structures. Jobs are created within the community and members become participants in the construction of their homes.
Saturday, August 11, 2007
Section Articles
Section Articles: "Living up to its nickname 'The Friendly City', Port Elizabeth is making an elderly lady a very happy woman this National Women's Day by providing her with a house. The event will be attended by dignitaries Richard Dyantyi, the MEC for local government and housing, and president Thabo Mbeki. Moladi, an affordable housing construction company, in conjunction with the municipality of Aliwal North, have embarked on building a 40 sq m, two bedroom and one bathroom home for the elderly lady, who is confined to a wheelchair."
SABCnews.com - politics/government
SABCnews.com - politics/government
Mbeki hands over house to elderly woman at imbizo
An elderly woman was handed a house by the president himself in Aliwal NorthAugust 11, 2007, 10:00
President Thabo Mbeki has just made 80-year-old Evelina Mokwena, of Bukathole ward six in Aliwal North in the Eastern Cape, the proud owner of a (moladi) house. He handed over the house to Mokwena who has lived in a shack for more than 10 years. Mokwena shed tears of joy after receiving keys to her new home. She was one of thousands of women who took part in the 1956 march to the Union Buildings in Pretoria, where women marched against pass laws. This is part of Mbeki's two-day Eastern Cape imbizo. Yesterday, he was in Ugie. Mbeki will wrap up the imbizo in Aliwal North, where he will later join mayors and other officials from the Ukhahlamba District for a meeting. Earlier in the day, Mbeki laid wreaths at the gravesites of fallen struggle heroes at the Maletswai Freedom Square Memorial site in Aliwal North. The wife of an ANC stalwart who was assassinated in Zimbabwe in 1981 has warmly welcomed and thanked Mbeki for honouring her late husband, Joe Gqabi.
Mbeki hands over house to elderly woman at imbizo
An elderly woman was handed a house by the president himself in Aliwal NorthAugust 11, 2007, 10:00
President Thabo Mbeki has just made 80-year-old Evelina Mokwena, of Bukathole ward six in Aliwal North in the Eastern Cape, the proud owner of a (moladi) house. He handed over the house to Mokwena who has lived in a shack for more than 10 years. Mokwena shed tears of joy after receiving keys to her new home. She was one of thousands of women who took part in the 1956 march to the Union Buildings in Pretoria, where women marched against pass laws. This is part of Mbeki's two-day Eastern Cape imbizo. Yesterday, he was in Ugie. Mbeki will wrap up the imbizo in Aliwal North, where he will later join mayors and other officials from the Ukhahlamba District for a meeting. Earlier in the day, Mbeki laid wreaths at the gravesites of fallen struggle heroes at the Maletswai Freedom Square Memorial site in Aliwal North. The wife of an ANC stalwart who was assassinated in Zimbabwe in 1981 has warmly welcomed and thanked Mbeki for honouring her late husband, Joe Gqabi.
Wednesday, August 08, 2007
Section Articles
Section Articles - Sa Firm Reconstructs Quake Damage
Mr. Hennie Botes, CEO of Moladi, a South African based manufacturer and sole distributor of a multi award winning affordable housing technology to be used in the reconstruction of earthquake affected areas in Pakistan, met with the relevant government officials and organisation members in Islamabad this month to discuss the implementation of Moladi.
Mr. Hennie Botes, CEO of Moladi, a South African based manufacturer and sole distributor of a multi award winning affordable housing technology to be used in the reconstruction of earthquake affected areas in Pakistan, met with the relevant government officials and organisation members in Islamabad this month to discuss the implementation of Moladi.
Tuesday, August 07, 2007
The Herald Online **Business**
The Herald Online **Business**
A PORT Elizabeth company with a unique home building technology has just signed a contract to use its technology to rebuild government buildings ravaged by a 2005 earthquake in Pakistan.
Moladi Technology – which specialises in technology for “instant housing” – is a Markman Township-based company that builds moulds which allow a house to be built within a day.
A PORT Elizabeth company with a unique home building technology has just signed a contract to use its technology to rebuild government buildings ravaged by a 2005 earthquake in Pakistan.
Moladi Technology – which specialises in technology for “instant housing” – is a Markman Township-based company that builds moulds which allow a house to be built within a day.
The Herald Online **Business**
The Herald Online **Business**
THE Eastern Cape government failed to spend R246-million of the close to R3-billion it received as conditional grants from the national treasury in the last financial year
THE Eastern Cape government failed to spend R246-million of the close to R3-billion it received as conditional grants from the national treasury in the last financial year
Wednesday, August 01, 2007
Business Report - 'Affordable' homes keep out low earners
Business Report - 'Affordable' homes keep out low earners
Johannesburg - There is a decline in the affordability of homes in Africa.This is according to the latest FinMark Trust publication exploring innovation in housing finance for poor people.Families living in reconstruction and development programme houses were unlikely to get better housing because of the rising cost of financing a home.The report says less than 10 percent of all South African households can afford the average "affordable" house today
Johannesburg - There is a decline in the affordability of homes in Africa.This is according to the latest FinMark Trust publication exploring innovation in housing finance for poor people.Families living in reconstruction and development programme houses were unlikely to get better housing because of the rising cost of financing a home.The report says less than 10 percent of all South African households can afford the average "affordable" house today
Wednesday, July 25, 2007
R2bn housing scandal
R2bn housing scandal
FRAUD and corruption by developers in collusion with housing department officials are among the key factors for the collapse of hundreds of low-cost housing projects throughout the country.
As a result, the government is now spending more than R2 billion to refinance the completion of the low-cost houses that were abandoned by unscrupulous developers across the country since the dawn of democracy.
The problem has its roots in massive fraud scams by developers who colluded with some of the country’s housing department officials to siphon off millions of rands for work not done.
Across the country, developers left swathes of foundation slabs or mere toilets while others built houses, but could not put on the roofs as they feverishly guarded their profits. In some cases, houses were never built, but the developers were paid. This meant that the rural poor lived for prolonged periods in rickety shacks and corrugated iron houses.
Other common problems in several provinces were shoddy workmanship and rising inflation – especially where projects took longer to complete and prices for building materials skyrocketed.
This comes as provinces race against time to ensure that all the incomplete houses were finished before a 2008 deadline set by Housing Minister Lindiwe Sisulu.
Several documents in the possession of City Press show that developers in the nine provinces claim the non-completion of low-cost houses was caused by several problems, including unresolved land issues and delayed environmental impact assessment studies on sites earmarked for government’s low-cost houses.
But a common concern among developers was the claim that the profit margins in the RDP housing construction were very low.
But government dismissed the complaints. It said tenders were allocated based on submissions by developers and the low-cost housing subsidy had been increased annually to cater for inflation.
Government said there was the discernible problem of a propensity by developers to buy luxury items before they could determine the profits they would make. This resulted in a shortfall.
“We think the problem is that some of the developers are irresponsible in using the money . . . Some use the money they should buy material with or pay workers to buy luxury cars and houses. They forget they have a responsibility to finish the project,” said Ndivhuwo Mabaya, national housing department spokesperson.
Government is now forced to re-finance some of the projects as attempts to get the developers to pay took too long.
In the Eastern Cape, the provincial housing department has allocated another R311 million to unblock 183 housing projects that were either incomplete due to fraud and corruption or escalations and other “implementation-related issues such as land invasions, sudden inaccessibility of construction sites due to roads and bridges washed away”.
But Limpopo is the hardest hit with a whopping 40 000 incomplete houses that have to be finished at a cost of R1 billion in three years.
The Northern Cape’s bill stands at R104 million for 4 300 units, while the Western Cape has allocated R20.9 million this year to complete 1 902 houses.
The lowest bill is the Free State’s. The province has put aside R13 million to finish 909 units.
Phumlani Mndolomba of the Eastern Cape Housing Department said the province’s model of building houses – using the People’s Housing Delivery vehicle – resulted in a slow pace in completing houses.
“A second major factor . . . is that the province elected to build a 40m² house using a conditional grant allowance which was based on a 30m² unit as the national norm,” Mndolomba said.
The province has already spent R211 million to finish 134 of the 183 incomplete housing projects and has allocated another R100 million to finalise the remaining 49 projects in this financial year.
Limpopo housing spokesperson Clayson Monyela said there were a total of 40 000 incomplete houses. About 8 500 of these would be completed by the end of this financial year at a cost of R331 million. Another R780 million will be used in the next three years to finish the remaining houses.
Monyela said government had now reviewed the tender contracts and included penalties for shoddy work and lock-in clauses to ensure developers finish their projects.
Bronwyn Thomas, provincial department spokesperson, said that in the Northern Cape, most of the housing projects were halted between 2000 and 2001 when the subsidy allocations did not keep up with rising building costs.
In the past three years, the department had completed 2 100 houses and hoped to finish the remainder by March next year.
In North West, price increases of material supply, unresolved land issues and the delay in processing approvals for environmental impact studies resulted in about 40 projects being halted.
Provincial spokesperson Lesiba Kgwele said a subsidy policy had been approved that allowed the department to "increase the subsidy amount to enable developers to complete the projects while land-related matters are ?being resolved".
Two years ago, the Mpumalanga housing department froze new housing projects and started a process to finish a total of 17 000 units abandoned by unscrupulous developers.
The province was also forced to destroy a R9.5 million housing project after it was found that the developer had used "weak bricks" to build the 427 units. But in Premier Thabang Makwetla's 2006 state of the province address, he ?announced a R234 million budget to deal with these units.
In KwaZulu-Natal, 80 low-cost housing projects were halted as a result of "social and political" ?issues.
Spokesperson Lennox ?Mabaso could not provide the number of units to be refinanced nor the costs involved.
Gauteng spokesperson Mongezi Mnyani could only say that the department had commissioned a study to list the number of un?occupied homes.
Mabaya said in instances where houses were of poor quality or where developers had disappeared after being paid, government would track the developers and recover the money.
Mabaya said the Special Investigating Unit in the National Prosecuting Authority had been mandated to investigate all forms of fraud and corruption since the low-cost housing programme had been introduced.
FRAUD and corruption by developers in collusion with housing department officials are among the key factors for the collapse of hundreds of low-cost housing projects throughout the country.
As a result, the government is now spending more than R2 billion to refinance the completion of the low-cost houses that were abandoned by unscrupulous developers across the country since the dawn of democracy.
The problem has its roots in massive fraud scams by developers who colluded with some of the country’s housing department officials to siphon off millions of rands for work not done.
Across the country, developers left swathes of foundation slabs or mere toilets while others built houses, but could not put on the roofs as they feverishly guarded their profits. In some cases, houses were never built, but the developers were paid. This meant that the rural poor lived for prolonged periods in rickety shacks and corrugated iron houses.
Other common problems in several provinces were shoddy workmanship and rising inflation – especially where projects took longer to complete and prices for building materials skyrocketed.
This comes as provinces race against time to ensure that all the incomplete houses were finished before a 2008 deadline set by Housing Minister Lindiwe Sisulu.
Several documents in the possession of City Press show that developers in the nine provinces claim the non-completion of low-cost houses was caused by several problems, including unresolved land issues and delayed environmental impact assessment studies on sites earmarked for government’s low-cost houses.
But a common concern among developers was the claim that the profit margins in the RDP housing construction were very low.
But government dismissed the complaints. It said tenders were allocated based on submissions by developers and the low-cost housing subsidy had been increased annually to cater for inflation.
Government said there was the discernible problem of a propensity by developers to buy luxury items before they could determine the profits they would make. This resulted in a shortfall.
“We think the problem is that some of the developers are irresponsible in using the money . . . Some use the money they should buy material with or pay workers to buy luxury cars and houses. They forget they have a responsibility to finish the project,” said Ndivhuwo Mabaya, national housing department spokesperson.
Government is now forced to re-finance some of the projects as attempts to get the developers to pay took too long.
In the Eastern Cape, the provincial housing department has allocated another R311 million to unblock 183 housing projects that were either incomplete due to fraud and corruption or escalations and other “implementation-related issues such as land invasions, sudden inaccessibility of construction sites due to roads and bridges washed away”.
But Limpopo is the hardest hit with a whopping 40 000 incomplete houses that have to be finished at a cost of R1 billion in three years.
The Northern Cape’s bill stands at R104 million for 4 300 units, while the Western Cape has allocated R20.9 million this year to complete 1 902 houses.
The lowest bill is the Free State’s. The province has put aside R13 million to finish 909 units.
Phumlani Mndolomba of the Eastern Cape Housing Department said the province’s model of building houses – using the People’s Housing Delivery vehicle – resulted in a slow pace in completing houses.
“A second major factor . . . is that the province elected to build a 40m² house using a conditional grant allowance which was based on a 30m² unit as the national norm,” Mndolomba said.
The province has already spent R211 million to finish 134 of the 183 incomplete housing projects and has allocated another R100 million to finalise the remaining 49 projects in this financial year.
Limpopo housing spokesperson Clayson Monyela said there were a total of 40 000 incomplete houses. About 8 500 of these would be completed by the end of this financial year at a cost of R331 million. Another R780 million will be used in the next three years to finish the remaining houses.
Monyela said government had now reviewed the tender contracts and included penalties for shoddy work and lock-in clauses to ensure developers finish their projects.
Bronwyn Thomas, provincial department spokesperson, said that in the Northern Cape, most of the housing projects were halted between 2000 and 2001 when the subsidy allocations did not keep up with rising building costs.
In the past three years, the department had completed 2 100 houses and hoped to finish the remainder by March next year.
In North West, price increases of material supply, unresolved land issues and the delay in processing approvals for environmental impact studies resulted in about 40 projects being halted.
Provincial spokesperson Lesiba Kgwele said a subsidy policy had been approved that allowed the department to "increase the subsidy amount to enable developers to complete the projects while land-related matters are ?being resolved".
Two years ago, the Mpumalanga housing department froze new housing projects and started a process to finish a total of 17 000 units abandoned by unscrupulous developers.
The province was also forced to destroy a R9.5 million housing project after it was found that the developer had used "weak bricks" to build the 427 units. But in Premier Thabang Makwetla's 2006 state of the province address, he ?announced a R234 million budget to deal with these units.
In KwaZulu-Natal, 80 low-cost housing projects were halted as a result of "social and political" ?issues.
Spokesperson Lennox ?Mabaso could not provide the number of units to be refinanced nor the costs involved.
Gauteng spokesperson Mongezi Mnyani could only say that the department had commissioned a study to list the number of un?occupied homes.
Mabaya said in instances where houses were of poor quality or where developers had disappeared after being paid, government would track the developers and recover the money.
Mabaya said the Special Investigating Unit in the National Prosecuting Authority had been mandated to investigate all forms of fraud and corruption since the low-cost housing programme had been introduced.
Saturday, June 30, 2007
Unsafe houses torn down — eThekwini Online
Unsafe houses torn down — eThekwini Online
DOWN IT COMES: Housing MEC Mike Mabuyakhulu and Deputy Mayor Logie Naidoo bring down one of the death traps. Picture: Bonga Msimang
By Vernon Mchunu
Deputy Mayor Logie Naidoo lent a hand when a piece of inadequate planning was destroyed in a project that promises Cato Manor residents safer homes. In a symbolic gesture, Naidoo hammered down one of the houses that has gained notoriety as a “house of death” due to the fact that the walls were fitted with wire.
The wire was meant to strengthen the walls http://www.robustkits.com/.
However, it had put the residents in danger of electrocution. On Sunday, Naidoo and provincial housing MEC Mike Mabuyakhulu laid the foundation for “a fresh start”. The rectification programme is led by the provincial housing department and supported by the eThekwini Municipality.
Naidoo said knocking down the wire-wall houses marked the beginning of the R20 million roll-out of an extensive programme that would see the houses demolished and safer units constructed.
It is widely argued that even though the houses were built between 1996 and 1999, the actual planning and design had been done prior to the advent of democracy in 1994. The fact that residents would require an electricity supply had not been taken into consideration, said local resident Happiness Shange, whose house was the first to go down.
At least 100 houses are to be demolished as part of the project, which is expected to be complete by the end of July.
Mabuyakhulu said the new houses would be built using bricks, mortar and plastered walls, with appropriate electrical connections. The wire-wall technology had not lived up to the government’s expectations and had instead created a situation in which houses became life-threatening, he said.
Government now has a show village where all new technologies are tested before being implemented.
DOWN IT COMES: Housing MEC Mike Mabuyakhulu and Deputy Mayor Logie Naidoo bring down one of the death traps. Picture: Bonga Msimang
By Vernon Mchunu
Deputy Mayor Logie Naidoo lent a hand when a piece of inadequate planning was destroyed in a project that promises Cato Manor residents safer homes. In a symbolic gesture, Naidoo hammered down one of the houses that has gained notoriety as a “house of death” due to the fact that the walls were fitted with wire.
The wire was meant to strengthen the walls http://www.robustkits.com/.
However, it had put the residents in danger of electrocution. On Sunday, Naidoo and provincial housing MEC Mike Mabuyakhulu laid the foundation for “a fresh start”. The rectification programme is led by the provincial housing department and supported by the eThekwini Municipality.
Naidoo said knocking down the wire-wall houses marked the beginning of the R20 million roll-out of an extensive programme that would see the houses demolished and safer units constructed.
It is widely argued that even though the houses were built between 1996 and 1999, the actual planning and design had been done prior to the advent of democracy in 1994. The fact that residents would require an electricity supply had not been taken into consideration, said local resident Happiness Shange, whose house was the first to go down.
At least 100 houses are to be demolished as part of the project, which is expected to be complete by the end of July.
Mabuyakhulu said the new houses would be built using bricks, mortar and plastered walls, with appropriate electrical connections. The wire-wall technology had not lived up to the government’s expectations and had instead created a situation in which houses became life-threatening, he said.
Government now has a show village where all new technologies are tested before being implemented.
Friday, May 25, 2007
Tuesday, May 22, 2007
business.iafrica.com | business news SA braces for R1m homes
business.iafrica.com business news SA braces for R1m homes
BUSINESS NEWS SA braces for R1m homesStaff ReporterMon, 21 May 2007
South Africans are bracing themselves for the price of an average home hitting R1-million in 2008, as the property market continues its steady march higher.
Looking at the recent trends in house price data from the Absa House Price Index, it is likely that the average price of a home in SA will top R1-million in 2008, said Tracy French, provincial manager at MortgageSA.
Nominal house price growth of 15.5 percent year-on-year was recorded in April from a revised 15.7 percent in March, according to the latest Absa House Price Index.
Golden era
This brings the average price of a house in the survey to R911 800 in April 2007.
A 10 percent increase from this level over the next year would see average prices hit just over R1-million by May 2008.
"We are definitely in a golden era of South African property as house price growth continues unabated. The rate of increase has cooled from the heady days of 2004, but there are still double digit increases that are providing long term investors with an exceptional wealth creating opportunity.
Tourist hotspot
"South African economic growth remains strong, more people than ever are entering the property market and the country is growing in popularity as a tourist and property investment hotspot."
French said that while higher values have priced some people out of the market, others are sitting on their hands hoping for a better opportunity to buy.
"Unfortunately, they are likely to be disappointed — the best time to buy property always seems to be last year. Potential house buyers should not waste time and get onto the property ladder as soon as possible."
250 percent returns
French said that an analysis of house price gains from 2000 serves to make the point — and illustrate the power of compounding returns.
"If an investor bought a house for R500 000 seven years ago, the value of that house would now be worth an amazing R1 747 000, a return of 250 percent.
"Even if South African property prices rise at 10 percent for the next seven years, house prices will nearly double."
BUSINESS NEWS SA braces for R1m homesStaff ReporterMon, 21 May 2007
South Africans are bracing themselves for the price of an average home hitting R1-million in 2008, as the property market continues its steady march higher.
Looking at the recent trends in house price data from the Absa House Price Index, it is likely that the average price of a home in SA will top R1-million in 2008, said Tracy French, provincial manager at MortgageSA.
Nominal house price growth of 15.5 percent year-on-year was recorded in April from a revised 15.7 percent in March, according to the latest Absa House Price Index.
Golden era
This brings the average price of a house in the survey to R911 800 in April 2007.
A 10 percent increase from this level over the next year would see average prices hit just over R1-million by May 2008.
"We are definitely in a golden era of South African property as house price growth continues unabated. The rate of increase has cooled from the heady days of 2004, but there are still double digit increases that are providing long term investors with an exceptional wealth creating opportunity.
Tourist hotspot
"South African economic growth remains strong, more people than ever are entering the property market and the country is growing in popularity as a tourist and property investment hotspot."
French said that while higher values have priced some people out of the market, others are sitting on their hands hoping for a better opportunity to buy.
"Unfortunately, they are likely to be disappointed — the best time to buy property always seems to be last year. Potential house buyers should not waste time and get onto the property ladder as soon as possible."
250 percent returns
French said that an analysis of house price gains from 2000 serves to make the point — and illustrate the power of compounding returns.
"If an investor bought a house for R500 000 seven years ago, the value of that house would now be worth an amazing R1 747 000, a return of 250 percent.
"Even if South African property prices rise at 10 percent for the next seven years, house prices will nearly double."
Sunday, May 13, 2007
Absa - SA house price growth
(Residential) In the first quarter of 2007, SA nominal house prices in the affordable segment (houses of 40m²-79m² and priced at R370 000 or less) as measured by Absa increased by 18,1% year-on-year to about R243 000 on average. In the fourth quarter of 2006, the nominal price rise was 15,7% y/y. In real terms, house price growth in the affordable category came to 11,8% y/y in the first quarter of this year, compared with growth of 9,6% y/y in the final quarter of 2006. The current rising trend in the price growth of affordable housing, which commenced in the fourth quarter of 2006, can be ascribed to the strong demand for housing at the lower end of the market causing prices in this segment to increase at a brisk pace.Middle-segment housingNominal house prices in the middle-market segment (houses of 80m²-400m² and priced at up to R2,7 million) increased by an average of 15,5% y/y to about R892 500 in the first quarter of 2007. In real terms, house price growth in this category came to 9,3% y/y in the first quarter. In both nominal and real terms, the year-on-year growth in house prices in the first quarter was up on that of the fourth quarter of 2006, when it was a nominal 14,8% and a real 8,8%. This development came on the back of strong growth in transaction volumes in the first three months of the year after interest rates were left unchanged during this period. In the three middle-segment categories, house price growth as measured by Absa was as follows in the first quarter of 2007:* Small houses (80m²-140m²): a nominal 12,6% and a real 6,6% higher.* Medium houses (141m²-220m²): a nominal 18,4% and a real 12,1% higher.* Large houses (221m²-400m²): a nominal 16,1% and a real 9,8% higher.Luxury housingNominal house prices in this segment (houses valued at between R2,7 million and R9,9 million) increased by an average of 7,6% y/y to around R3,9 million in the first quarter of 2007 (9,6% y/y in the final quarter of 2006). In real terms, house prices in the luxury category increased by1,8% y/y in the first quarter (3,9% y/y in the fourth quarter of last year).The low growth in house prices at the upper end of the market is related to a strong supply of properties in this market segment during recent years, whereas demand started to taper off in late 2004 because of the high prices caused by strong price growth in 2003 and 2004.Regional house pricesOn a provincial basis, nominal year-on-year growth in house prices in the middle segment of the housing market varied from as low as 5,2% in KwaZulu-Natal to as high as 28,2% in the Northern Cape in the first quarter of 2007. In the country’s major metropolitan areas, nominal house price growth in the first quarter of the year varied from 9,0% y/y in the Durban/Pinetown area to 26,1% y/y in the central and southern parts of Johannesburg.
Wednesday, May 02, 2007
Iranian President Speech Highlights Need for Low-Cost Housing - Health - RedOrbit
Iranian President Speech Highlights Need for Low-Cost Housing - Health - RedOrbit
Iranian president Mahmud Ahmadinezhad has highlighted the need for low-cost housing. In a speech on 24 April 2007 before a joint meeting of provincial governors and provincial directors-general of housing, Ahmadinezhad also spoke of the need to create jobs of the country's baby boom generation. He said xxx. The following is the text of the speech, a recording of which was broadcast by Iranian TV on 27 April; subheadings inserted editorially:
Housing
In the name of God most compassionate, most merciful. [Koranic verse recited] I will submit some issues to you the most important of which is housing. Please note that housing, as a cultural phenomenon in our country is quite different from that of many of these western countries. Housing for us is not just a roof over our heads. In other words [it is not] a place where the owner comes to after doing a days work only to go back out again to resume his life. Housing for us is a place to live, to development, to have security, to be constructive. It is a place to establish an important institution called the family. You see quite palpably, what beliefs people in our country have on accommodation across generations. Unfortunately, and despite the fact that the government is charged with providing housing to all strata of society today, and despite all the attempts that have been made so far, a clear and coherent policy does not exist. The situation has so developed that for a certain few people who are now in possession of housing would otherwise not have been able to afford a place now. For many others a substantial part of their livelihood has to be sold or pre-sold so that they can provide a basic minimum of accommodation for themselves.
This is neither in our constitution nor in our culture. The potential of our country should allow us to change this situation. The reality is that our country possesses the necessary potential and capabilities of the nation. The factors that are essential to the housing include land. Today, one of the most important issues is land. Between 25 and 90 percent of the final price or selling price if you will, is dependant upon land or the situation of land and terrain. Its share of the price formation is high. Then there is the question of building materials and workforce and sources of finance. For each and any of these we need to formulate some kind of solution. As far as land is concerned, I shall relay one sentence to you that probably encapsulates all the issues therein. Other than the armed forces, who have their own facilities and who if they wanted to use the rights afforded to them to help their own personnel can benefit from this law. The remaining land which is available, be they natural resources or those for dwelling or for co- operatives, whoever has come by some land through the government then they have to remember that this land belongs to the government and the government alone.
That someone should come and say: This is mine, this belongs to the electricity company, this belongs to the finance department, and this belongs to that department and so on. We will not have any of this. From the start when I announced it, land, in general, all this land belongs to the government. Now, if you want to hand it over for construction, the land that belongs to [government] bodies or companies, give their employees priority. That is the first point.
Second, if we remove the cost of the land from the cost of the finished the product, it would be a big help. It was decided that, from now on, the land will be a long-term leasehold. The land belongs to the government and the government leases it out.
The second [as heard] point is the [construction] material. In other words, the second factor is the material. Go and set up a committee on material and work on it.
Provinces that have border markets - in the south and north - and can import, should import the required ironware without limit, because iron and cement are two main types of material for the construction of housing. The import of these is allowed. There's no limitation. Not customs, no one should impose limitations. Of course, standards and so on should be maintained. In other words, announce this and allow people to import. There are no tariffs in border markets. In other words, multitudes of tariffs are not imposed as they are elsewhere. Go, get it and import it; these two construction material. Ironware for use in construction, don't allow them to import steel under this guise. No! Steel girders and steel rods for use in construction and door and window fixtures are the only [items allowed]. For now, for five, six months, [also] cement, either the clinger [as heard] or cement. After five, six months, God willing, our own domestic cement will suffice, because new plants will come online, God willing. That's as far as the material is concerned.
As to the human resources - well, one of the friends here pointed this out: We have this. Sit down with vocational training [department], and put some of your provincial resources at their disposal - it's in the regulations, I'm just underlining it.
Hold some quick courses and certify them. The plan is already prepared by the vocational training [department]. Give certificates, labourer, grade III labourer, grade II, mason, plumber, welder, whatever; hand it to them. This can be an extensive programme in each province and can be very constructive. Financial resources, these resources are now at your disposal. In other words, you can direct the councils, the ones you have created for the banks, similar to the percentage that went for job creation. Although, and in spite of all your efforts and the banks' efforts, it did not, that is to say the twenty thousand odd billion tomans did not perform so well, and we have to makeup for it this year. I will tell you about it later and we will give a part of it to housing. There are also subsidies. I will explain the details of it in due course. I should flag a few things for your attention; one is the preparatory work. Right now, the provincial governor is responsible for everything. You are the head of the taskforce. You have to take decisions and that's that. You have to prepare quickly. It's up to you who does it and how they do it. But bring the costs down. We can charge the public for the preparatory work. In low-income areas, these charges will be paid in part by the ministry of hosing and you can allocate some provincial funds for this purpose and recover the costs form the beneficiaries over time. You are allowed to do this. Get the money back in instalments, like over 5 or 10 years. It will be 200 tomans a month. The utility companies should come now to do the groundwork. It's up to you, you can tell them come do the work fast, and get paid for it in instalments. Allocate some provincial funds; charge the public for it, whatever you have allocated from provincial funds get the money back in instalments form the beneficiaries. These things are possible. Find formulas to fit local situations in each town. We are not going to give a formula for the entire country.
Your mandate is to house the population starting from the lowest denominator. This means you should start form smaller towns, give more incentive in smaller towns, provide higher subsidies in smaller towns. We will also put you in charge of the subsidies. You can say in a town the loan I provide will be at 4%, and in another town, it will be at 10% and still in that other town, it will be 12% or 14% or whatever. It's up to you. You have to move towards decentralization. You are a regional manager. Pay close attention. The over arching policy is decentralization, you are regional manger and you have to manage things so that this decentralization will happen in your province. You are both the head of the housing council and the head of the article 55 commission. Use this position well. In some towns, you can increase the allowable building extension ratios. We have allowed for up to 300% in the regulations. I don't think you will need more than 300%. Sit down; decide if you need to change the usage [of land]. It's up to you. You can convene a meeting of the article 55 commission and change the usage or grant building extensions. In rural area the ministry of agriculture will fully cooperate. You can have a meeting and change the usage. You can say in such and such place the land is agricultural land and the harvest is inferior. You can change the usage [of the land]. After all, we need housing. You should be mindful of urban sprawl, because later on, the cost associated with that will be higher. These are urban planning issues.
You should then set up a special committee. The committee should benefit from the services of a number of urban developers in your province as advisors. These advisors should be expert, honest and have an Islamic and national outlook to urban development. These advisors should draw the plans and you should act accordingly.
I am asking you to carry out a job on a fast-track basis, and I will explain why. Urban development is in your hands, unless, you would want to make a major change; then the work would be referred to the Urban Development Council. You have however the power to change the use of properties and lands; or allow extensions. This is in your hands. So lands no matter which body owns them or where they are located - inside or outside the city - are under your control.
You have the financial resources and you can quickly organize the manpower. We have decided at the national level to import some construction material, such as iron beams and bars, which we have some shortage. Fortunately, we do not have problem with the production of other construction material; and they are produced more than what we need domestically, such as sanitation amenities, bricks and the like. However, if there were any shortages, you can easily grant loans for the construction of Hoffman furnaces to produce as much bricks as you like.
You can manage the work and succeed. You should be careful not to mix a number of issues. The housing situation in our country is as follows: About 78 per cent of the people live in their own homes; and about 22 per cent do not own houses. They either are tenants or live with their parents or others, i.e. two or three families live in one residential unit.
Today our society is moving in a direction where every family wants to have its independent residential unit; or if there are communal houses, there is some sort of boundary separating the families. For example, in the past, there were some rooms around a yard and the father and his children used to live in each of the rooms. Now the same families live in apartments. [For example] four apartments are built on a plot of land and the children live close to their parents. There is no problem with this; and the system works better for these people as compared to those who live far from each other.
It seems that everyone wishes to have independent residential units. In other words, we have about 22 per cent of people demanding houses; i.e. 22 per cent of 17m [households]. It is 17m now, right? We have 17m households. Some 22 per cent [of 17m households] would mean that there is demand for 3.5m residential units.
if (typeof(gnm_ord)=='undefined') gnm_ord=Math.random()*10000000000000000; if (typeof(gnm_tile) == 'undefined') gnm_tile=1;
document.write('');
This is one issue. The other issue is the dilapidated areas of cities and villages that need to be renovated. There are 5.5m such residential units. So altogether, there are about 9m units. There are also about 700,000 to 800,000 new families formed every year. If we want to address the accumulated demand and the dilapidated areas within ten years, we should create the capacity for the construction of 1.7 to 1.8m residential units every year.
The more houses we build the better. Some are not interested to work on the dilapidated areas. We should therefore plan to encourage investors to work on these areas. If we create the capacity for the construction of 1.7 to 2m residential units every year, the pressure will decrease and the housing market will calm down.
This is while one-third to one-fourth of the work should be done in villages. If we build between 300,000 to 500,000 residential units in villages, the problem would be settled. We have set the target of granting loans for 300,000 residential units this year. Of course, some finance the cost of construction themselves.
I told the officials at the Ministry of Housing and the Housing Foundation, and I will tell you as well, if this money is quickly used up, we will increase it to cover 500,000 residential units. The problem should be solved within four to five years. Why should there be 2 to 2.5m dilapidated houses in our villages? Lorestan incident led to the destruction of 40,000 houses. We had to spend hundreds of millions [of tomans] for the reconstruction of the houses. Apart from that, human casualties can never be made up for. When we lose people, we suffer as long as we are alive.
This is possible. In the council that you will set up, you should have two specialized committees, one for villages and one for cities. You will also have certain committees for manpower, construction material, financial resources, urban development, etc. You may create these committees and proceed with the work.
If you manage the work properly, you can reduce the construction costs too. There are some unnecessary costs incurred. In some places, people are taxed, without any reason, several times higher than the normal rates. It has been written in the law that taxes and levies should be approved by the Interior Ministry. However, the law is not always practiced. There are some parts in the country where taxes are introduced and approved by the governor and the interior minister is not informed at all.
You should brief governors and hold meetings with the [local] councils and mayors. You should explain the importance of the work to them and try to involve them in the work. When there is mass construction, local government revenues will increase as well. There is no need to multiply taxes with various excuses. I have heard that in some cities the taxes have increased 60 fold. I don't want to name the places. But this is oppression. It is not right to impose such taxes on people.
It is however the responsibility of the Interior Ministry to stop such actions. Astronomic rates of taxes are imposed on people. The people deserve to have some place to live in. Taxes in some places exceed the cost of construction. This is not good, is it? Such issues should be under control.
Concerning lowering prices, we believe that every province should act independently. We do not want to act in a centralized manner. You should go and work with factories that can introduce prefabricated material or new designs that decrease the weight of buildings. A province that will have at most two-storey buildings for the next 100 years would not need heavy and expensive plans. We can observe how some provinces show that there is not going to be [a need for] six-storey buildings there in near future. Their people believe that the sixth floor is no place to live.
Don't make a hovel and force thirty people to go inside one unit; and claim that you have built housing for people. You [will] destroy their culture and whatever else. Try to the extent possible to provide people with houses or at most construct three or four flats in a building. Those occupying such flats need to know each other to accept to live there. They should be brothers, sisters and cousins to be able to live together. There should not be cultural differences among them so that their culture and privacy is protected.
These issues should be taken into consideration. You can however build inexpensive houses. Some houses may also be developed in dilapidate areas. You may say for example that this dilapidated area is entitled to a 120 per cent extension [building permits issued based on a ratio of land to building], but we will grant a licence for the construction of 180 or 300 per cent of building area. The municipality may then levy taxes or provide incentives as encouragement for people to replace old rundown houses with new and bigger ones. However, you should bear in mind that from here on out you should not transfer the ownership of the land.
By the end of the year, I want you to get to a point where you could tell a young person, who has for example graduated and has completed his military service, when he will have a house of his own. You can do this. You can tell the person that your plot of land is there and you will have your own house in two or three years. These are all possible. Don't think that it is not possible. We should not allow a person to build 300 or 500 houses and sell them to the people. When you grant land on a leasehold basis, you give it to an individual. So a person representing a cooperative should provide you with for example 150 names and you should enter these names into your computer to indicate that those 150 people have received their share [of land]. Then, in the name of those 150 people, you hand over the plot of land to the cooperative. You should set preconditions.
In the beginning, in preparation, you have to go and build the schools and the mosques and so on. It shouldn't be the case that you ask others to build it, with them saying, 20 years later, we've come to build a mosque. The people don't have a place to congregate, to worship, and then they say, We want to build it now. It can be done. Bring these under the heading of preparation. But don't allow heavy costs. Low costs. It really can be done. If you dedicate time to it, these things can be done. There are people who will invest in these sectors. Of course, in rented [housing], they'll probably be more takers. [But] In this arena, too, they're ready to invest. Set a reasonable profit for them, so that they'll take on the construction of a cooperative. Supervise it. Don't let the past repeat itself. Hundreds of cooperatives collected money from people. Went away. Weren't able to finish it at the agreed cost. There were irregularities, abuses. Now the people are left in limbo. They're neither landlords nor do they have the money in their hands. They've given the money and it's gone. They don't have a house either. Sit together and [discuss this]. If you have any questions, raise them. I'll allocate time myself, here, at the Housing Council, so that we can answer you.
Contrary to the views of some friends - and no doubt their views have changed now, at this meeting - you can set the engine of housing rolling this year. Housing is something that's different from a textile plant, a petrochemical plant, a this-or-that plant, where you have to set the industry rolling. Then, you have to go and be connected up over there and connected up over here, and so on. Let me tell you, anyone of you who is able to bring in foreign investment, too, in the field of construction or new technology, go ahead and do so. The Housing Council will just give you the authorization. You will say, we want to sign an agreement with this or that group in this or that country, so that it will get a factory rolling here. If it's kept informed, it will give you the authorization. That you should imagine that a group of people are sitting in the ministry of housing totally devoted to the issue of housing round the clock, running around and ready to solve all these issues, this isn't even possible. Even if they are sympathetic people - and, God be praised, they are - is such a thing even possible? This is Iran after all. Iran is very big. No-one has the sense that I have now of how big Iran is, because everyone [else] understands it on paper, whereas I've gone and seen it with my own eyes. We have seven, eight, ten provinces that are each the size of a big a country. This is the way you need to think. Each one of you should think that you have a country. You have to think and decide on this kind of scale. You shouldn't think that a bunch of people are sitting and taking care of all the country's affairs, big and small, from our villages to here, and we, for our part, can keep an eye on things. No! Imagine that your province is a country and you're its manager, in charge of everything. Manage things on this basis.
You can use these quick-yielding facilities to produce the material or even to produce parts. It's at your disposal after all. Tell them to set up a part-making plant; concrete-beam making; pillar making; reinforced concrete making; mesh making; whatever. You can give part of these [facilities; i.e. loans] to them to set up this sort of thing. Of course, you have to keep an eye on the quality too. I want to underline again, all the water, sewerage, and communications - bring all of this under the preparations committee. Everyone must consider this as his or her own [work]. A movement has to be set in motion in the country.
Don't say, We don't have it. In this Tehran, for example, there is both a great deal of land in the city itself and outside, in the surrounding townships. Don't go and say, We're going to design a township - with just the design and preparation taking 10, 20 years. In these 20 years, Tehran's whole shape has changed. The demand and the models for housing have changed. Now, to be just on the point of saying, Well, what should do now?
Things have to be done quickly. This is why the governor-general steps in, because the governor-general is the head of the province and has the authority. He has the bodies under his jurisdiction. And the Housing Ministry fully supports the governor-general. You have to go and do this. Everything is in your hands.
Of course, as I said, I hope you'll pay sufficient attention to indigenous planning and architecture. My expectation is that, by the end of the year, we'll see that a heavy train is on the tracks and is advancing at a good speed. In other words, a good outlook for the future of housing should be placed before the people.
We can't have this where a young person doesn't even know what's happening now. What's going to happen. Bunches of people turn up. They strike some kind of deal with some of the public and non- public bodies, with people who provide financial resources and so on and so forth. Then suddenly they produce a 30 per cent, 40 per cent, 10 per cent, 60 per cent fluctuation in the housing market. Someone has prepared everything, sold everything he had, is in debt, has sold his wife's dowry, has made things hard for his wife and kids, has put some money together, is going to go and sign the contract tomorrow and get the house. Suddenly, it jumps up by 30 per cent. He's at his wits end now. His life will fall to pieces. We have to do something to create calm. Housing is a place for calm. Now, it's turned into a cause of anxiety for many. However, housing is for calm, for living and calm. It should make people calm. Now, it's turned into a cause of anxiety. You can do it. You have to consider yourselves in charge.
Employment
The second issue is the question of employment, which we discussed together. The issue of employment is very important. Bear in mind, in particular, that people born in [13]59, 60 to 63, 64 [1980-85], when the population growth was 3 per cent, 4 per cent, 5 per cent, are now entering the job market. They've finished their studies, their military service. Now, they're entering the job market. In other words, the demand is going up in an accelerated way. This is the way you have to look at it. Follow this through. Look at things upstream. Many of the units that you've worked for are now getting up and running. A new company has to be created to collect their products, to give them raw material, to take care of marketing. If they need to export, then, export it. Put this kind of support on your agenda this year. They'll come [to you] later and they may, God forbid, fall down.
The next point is the issue of the payment of salaries and benefits. This year, as you know, salaries and benefits will be concentrated in the Economy and Finance [Ministry]. This is a big new decision. The person in charge of a province's financial resources is the governor-general. Now that we've put the Plan and Budget at your disposal, it's you [who is in charge].
We've had one problem up to now. Funds for current spending are put at the disposal of bodies. Costs other than salaries and benefits are paid. In the last three or four months of the year, everyone comes and says: We don't have salaries and benefits. Constant deficits, [budget] addendums - the volume of current spending is going up rapidly. This is very dangerous for the country. We'll all fall down. By 20 per cent, 30 per cent each year. What's going on? We'll soon reach the point where there'll be no money left for development work. There'll be no money for policy making, for subsidies. You have to manage this.
Salaries and benefits are put at the disposal of [changes of] - the Economy and Finance [Ministry] pays it. All the increases and so on go there. They'll deduct it from your funds starting now. The amount that's left in your hands, you need to manage. Whatever you save, part of it will be at you disposal again for giving bonuses and providing services to your employees.
I think it can be done. It is possible to consume little and produce a lot. It really can be done. Some of our systems have become very profligate. Nothing is accounted for. Money for their cars, money for their petrol, money for their water, electricity, fuel, repairs. Never mind about all the stationery - no one even thinks pens and paper are worth anything, although if you add it up for the whole country, you'll see that it adds up to 40bn, 50bn tomans.
A manager - if you can put someone there who thinks well, who knows the administrative system well, who can go from body to body, look at the expenditure and cross things out, saying: No need for this, no need for this, no need for this.
We should give priority to things that support our mission. Whatever is not directly related to our mission should be put aside. Nothing will happen. We should experience this for one year. We should put this on our agenda and pursue it seriously.
We ask some organizations about the number of their personnel and they don't know. Neither the Ministry of Finance and Economic Affairs nor Plan and Budget [Organization] know the exact number of civil servants. Even [government] organizations do not know how many people work there.
We once asked the Ministry of Education to let us know how many people work there. In one report they presented ten different numbers. We asked the same question from another ministry, it gave six different figures. When I review your reports at the provinces, I see that the figures you give on the population of the province on the first page are different from that of the second or eighth page. You should revise these figures and pay attention to the details. This is possible.
All those who receive wages from the government should be registered. Mr Danesh [-Ja'fari, minister of finance] should seriously pursue this issue from all organizations and he should start from his own ministry. There should be an extensive data bank. It should be clear who is working at the electricity office in Birjand today. We should have the information to be able to plan. We should also know how much each person is being paid.
You are responsible to ask organizations about their current budget. You should see how much of the money is being paid on wages and benefits. You should allow that money to be kept at the treasury and the remaining part should be accounted for. You should know why those amounts are spent. Why should an organization spend 170,000 tomans on the recreation and welfare of its employees, while another organization would not even have 30,000 tomans for the same purpose? Is there a difference between employees? Employees are the same. This person is also a human being. He also has children and stomach. He also needs welfare. Prepare accurate statistics and control the costs, so that God-willing the issue would be solved.
Iranian president Mahmud Ahmadinezhad has highlighted the need for low-cost housing. In a speech on 24 April 2007 before a joint meeting of provincial governors and provincial directors-general of housing, Ahmadinezhad also spoke of the need to create jobs of the country's baby boom generation. He said xxx. The following is the text of the speech, a recording of which was broadcast by Iranian TV on 27 April; subheadings inserted editorially:
Housing
In the name of God most compassionate, most merciful. [Koranic verse recited] I will submit some issues to you the most important of which is housing. Please note that housing, as a cultural phenomenon in our country is quite different from that of many of these western countries. Housing for us is not just a roof over our heads. In other words [it is not] a place where the owner comes to after doing a days work only to go back out again to resume his life. Housing for us is a place to live, to development, to have security, to be constructive. It is a place to establish an important institution called the family. You see quite palpably, what beliefs people in our country have on accommodation across generations. Unfortunately, and despite the fact that the government is charged with providing housing to all strata of society today, and despite all the attempts that have been made so far, a clear and coherent policy does not exist. The situation has so developed that for a certain few people who are now in possession of housing would otherwise not have been able to afford a place now. For many others a substantial part of their livelihood has to be sold or pre-sold so that they can provide a basic minimum of accommodation for themselves.
This is neither in our constitution nor in our culture. The potential of our country should allow us to change this situation. The reality is that our country possesses the necessary potential and capabilities of the nation. The factors that are essential to the housing include land. Today, one of the most important issues is land. Between 25 and 90 percent of the final price or selling price if you will, is dependant upon land or the situation of land and terrain. Its share of the price formation is high. Then there is the question of building materials and workforce and sources of finance. For each and any of these we need to formulate some kind of solution. As far as land is concerned, I shall relay one sentence to you that probably encapsulates all the issues therein. Other than the armed forces, who have their own facilities and who if they wanted to use the rights afforded to them to help their own personnel can benefit from this law. The remaining land which is available, be they natural resources or those for dwelling or for co- operatives, whoever has come by some land through the government then they have to remember that this land belongs to the government and the government alone.
That someone should come and say: This is mine, this belongs to the electricity company, this belongs to the finance department, and this belongs to that department and so on. We will not have any of this. From the start when I announced it, land, in general, all this land belongs to the government. Now, if you want to hand it over for construction, the land that belongs to [government] bodies or companies, give their employees priority. That is the first point.
Second, if we remove the cost of the land from the cost of the finished the product, it would be a big help. It was decided that, from now on, the land will be a long-term leasehold. The land belongs to the government and the government leases it out.
The second [as heard] point is the [construction] material. In other words, the second factor is the material. Go and set up a committee on material and work on it.
Provinces that have border markets - in the south and north - and can import, should import the required ironware without limit, because iron and cement are two main types of material for the construction of housing. The import of these is allowed. There's no limitation. Not customs, no one should impose limitations. Of course, standards and so on should be maintained. In other words, announce this and allow people to import. There are no tariffs in border markets. In other words, multitudes of tariffs are not imposed as they are elsewhere. Go, get it and import it; these two construction material. Ironware for use in construction, don't allow them to import steel under this guise. No! Steel girders and steel rods for use in construction and door and window fixtures are the only [items allowed]. For now, for five, six months, [also] cement, either the clinger [as heard] or cement. After five, six months, God willing, our own domestic cement will suffice, because new plants will come online, God willing. That's as far as the material is concerned.
As to the human resources - well, one of the friends here pointed this out: We have this. Sit down with vocational training [department], and put some of your provincial resources at their disposal - it's in the regulations, I'm just underlining it.
Hold some quick courses and certify them. The plan is already prepared by the vocational training [department]. Give certificates, labourer, grade III labourer, grade II, mason, plumber, welder, whatever; hand it to them. This can be an extensive programme in each province and can be very constructive. Financial resources, these resources are now at your disposal. In other words, you can direct the councils, the ones you have created for the banks, similar to the percentage that went for job creation. Although, and in spite of all your efforts and the banks' efforts, it did not, that is to say the twenty thousand odd billion tomans did not perform so well, and we have to makeup for it this year. I will tell you about it later and we will give a part of it to housing. There are also subsidies. I will explain the details of it in due course. I should flag a few things for your attention; one is the preparatory work. Right now, the provincial governor is responsible for everything. You are the head of the taskforce. You have to take decisions and that's that. You have to prepare quickly. It's up to you who does it and how they do it. But bring the costs down. We can charge the public for the preparatory work. In low-income areas, these charges will be paid in part by the ministry of hosing and you can allocate some provincial funds for this purpose and recover the costs form the beneficiaries over time. You are allowed to do this. Get the money back in instalments, like over 5 or 10 years. It will be 200 tomans a month. The utility companies should come now to do the groundwork. It's up to you, you can tell them come do the work fast, and get paid for it in instalments. Allocate some provincial funds; charge the public for it, whatever you have allocated from provincial funds get the money back in instalments form the beneficiaries. These things are possible. Find formulas to fit local situations in each town. We are not going to give a formula for the entire country.
Your mandate is to house the population starting from the lowest denominator. This means you should start form smaller towns, give more incentive in smaller towns, provide higher subsidies in smaller towns. We will also put you in charge of the subsidies. You can say in a town the loan I provide will be at 4%, and in another town, it will be at 10% and still in that other town, it will be 12% or 14% or whatever. It's up to you. You have to move towards decentralization. You are a regional manager. Pay close attention. The over arching policy is decentralization, you are regional manger and you have to manage things so that this decentralization will happen in your province. You are both the head of the housing council and the head of the article 55 commission. Use this position well. In some towns, you can increase the allowable building extension ratios. We have allowed for up to 300% in the regulations. I don't think you will need more than 300%. Sit down; decide if you need to change the usage [of land]. It's up to you. You can convene a meeting of the article 55 commission and change the usage or grant building extensions. In rural area the ministry of agriculture will fully cooperate. You can have a meeting and change the usage. You can say in such and such place the land is agricultural land and the harvest is inferior. You can change the usage [of the land]. After all, we need housing. You should be mindful of urban sprawl, because later on, the cost associated with that will be higher. These are urban planning issues.
You should then set up a special committee. The committee should benefit from the services of a number of urban developers in your province as advisors. These advisors should be expert, honest and have an Islamic and national outlook to urban development. These advisors should draw the plans and you should act accordingly.
I am asking you to carry out a job on a fast-track basis, and I will explain why. Urban development is in your hands, unless, you would want to make a major change; then the work would be referred to the Urban Development Council. You have however the power to change the use of properties and lands; or allow extensions. This is in your hands. So lands no matter which body owns them or where they are located - inside or outside the city - are under your control.
You have the financial resources and you can quickly organize the manpower. We have decided at the national level to import some construction material, such as iron beams and bars, which we have some shortage. Fortunately, we do not have problem with the production of other construction material; and they are produced more than what we need domestically, such as sanitation amenities, bricks and the like. However, if there were any shortages, you can easily grant loans for the construction of Hoffman furnaces to produce as much bricks as you like.
You can manage the work and succeed. You should be careful not to mix a number of issues. The housing situation in our country is as follows: About 78 per cent of the people live in their own homes; and about 22 per cent do not own houses. They either are tenants or live with their parents or others, i.e. two or three families live in one residential unit.
Today our society is moving in a direction where every family wants to have its independent residential unit; or if there are communal houses, there is some sort of boundary separating the families. For example, in the past, there were some rooms around a yard and the father and his children used to live in each of the rooms. Now the same families live in apartments. [For example] four apartments are built on a plot of land and the children live close to their parents. There is no problem with this; and the system works better for these people as compared to those who live far from each other.
It seems that everyone wishes to have independent residential units. In other words, we have about 22 per cent of people demanding houses; i.e. 22 per cent of 17m [households]. It is 17m now, right? We have 17m households. Some 22 per cent [of 17m households] would mean that there is demand for 3.5m residential units.
if (typeof(gnm_ord)=='undefined') gnm_ord=Math.random()*10000000000000000; if (typeof(gnm_tile) == 'undefined') gnm_tile=1;
document.write('');
This is one issue. The other issue is the dilapidated areas of cities and villages that need to be renovated. There are 5.5m such residential units. So altogether, there are about 9m units. There are also about 700,000 to 800,000 new families formed every year. If we want to address the accumulated demand and the dilapidated areas within ten years, we should create the capacity for the construction of 1.7 to 1.8m residential units every year.
The more houses we build the better. Some are not interested to work on the dilapidated areas. We should therefore plan to encourage investors to work on these areas. If we create the capacity for the construction of 1.7 to 2m residential units every year, the pressure will decrease and the housing market will calm down.
This is while one-third to one-fourth of the work should be done in villages. If we build between 300,000 to 500,000 residential units in villages, the problem would be settled. We have set the target of granting loans for 300,000 residential units this year. Of course, some finance the cost of construction themselves.
I told the officials at the Ministry of Housing and the Housing Foundation, and I will tell you as well, if this money is quickly used up, we will increase it to cover 500,000 residential units. The problem should be solved within four to five years. Why should there be 2 to 2.5m dilapidated houses in our villages? Lorestan incident led to the destruction of 40,000 houses. We had to spend hundreds of millions [of tomans] for the reconstruction of the houses. Apart from that, human casualties can never be made up for. When we lose people, we suffer as long as we are alive.
This is possible. In the council that you will set up, you should have two specialized committees, one for villages and one for cities. You will also have certain committees for manpower, construction material, financial resources, urban development, etc. You may create these committees and proceed with the work.
If you manage the work properly, you can reduce the construction costs too. There are some unnecessary costs incurred. In some places, people are taxed, without any reason, several times higher than the normal rates. It has been written in the law that taxes and levies should be approved by the Interior Ministry. However, the law is not always practiced. There are some parts in the country where taxes are introduced and approved by the governor and the interior minister is not informed at all.
You should brief governors and hold meetings with the [local] councils and mayors. You should explain the importance of the work to them and try to involve them in the work. When there is mass construction, local government revenues will increase as well. There is no need to multiply taxes with various excuses. I have heard that in some cities the taxes have increased 60 fold. I don't want to name the places. But this is oppression. It is not right to impose such taxes on people.
It is however the responsibility of the Interior Ministry to stop such actions. Astronomic rates of taxes are imposed on people. The people deserve to have some place to live in. Taxes in some places exceed the cost of construction. This is not good, is it? Such issues should be under control.
Concerning lowering prices, we believe that every province should act independently. We do not want to act in a centralized manner. You should go and work with factories that can introduce prefabricated material or new designs that decrease the weight of buildings. A province that will have at most two-storey buildings for the next 100 years would not need heavy and expensive plans. We can observe how some provinces show that there is not going to be [a need for] six-storey buildings there in near future. Their people believe that the sixth floor is no place to live.
Don't make a hovel and force thirty people to go inside one unit; and claim that you have built housing for people. You [will] destroy their culture and whatever else. Try to the extent possible to provide people with houses or at most construct three or four flats in a building. Those occupying such flats need to know each other to accept to live there. They should be brothers, sisters and cousins to be able to live together. There should not be cultural differences among them so that their culture and privacy is protected.
These issues should be taken into consideration. You can however build inexpensive houses. Some houses may also be developed in dilapidate areas. You may say for example that this dilapidated area is entitled to a 120 per cent extension [building permits issued based on a ratio of land to building], but we will grant a licence for the construction of 180 or 300 per cent of building area. The municipality may then levy taxes or provide incentives as encouragement for people to replace old rundown houses with new and bigger ones. However, you should bear in mind that from here on out you should not transfer the ownership of the land.
By the end of the year, I want you to get to a point where you could tell a young person, who has for example graduated and has completed his military service, when he will have a house of his own. You can do this. You can tell the person that your plot of land is there and you will have your own house in two or three years. These are all possible. Don't think that it is not possible. We should not allow a person to build 300 or 500 houses and sell them to the people. When you grant land on a leasehold basis, you give it to an individual. So a person representing a cooperative should provide you with for example 150 names and you should enter these names into your computer to indicate that those 150 people have received their share [of land]. Then, in the name of those 150 people, you hand over the plot of land to the cooperative. You should set preconditions.
In the beginning, in preparation, you have to go and build the schools and the mosques and so on. It shouldn't be the case that you ask others to build it, with them saying, 20 years later, we've come to build a mosque. The people don't have a place to congregate, to worship, and then they say, We want to build it now. It can be done. Bring these under the heading of preparation. But don't allow heavy costs. Low costs. It really can be done. If you dedicate time to it, these things can be done. There are people who will invest in these sectors. Of course, in rented [housing], they'll probably be more takers. [But] In this arena, too, they're ready to invest. Set a reasonable profit for them, so that they'll take on the construction of a cooperative. Supervise it. Don't let the past repeat itself. Hundreds of cooperatives collected money from people. Went away. Weren't able to finish it at the agreed cost. There were irregularities, abuses. Now the people are left in limbo. They're neither landlords nor do they have the money in their hands. They've given the money and it's gone. They don't have a house either. Sit together and [discuss this]. If you have any questions, raise them. I'll allocate time myself, here, at the Housing Council, so that we can answer you.
Contrary to the views of some friends - and no doubt their views have changed now, at this meeting - you can set the engine of housing rolling this year. Housing is something that's different from a textile plant, a petrochemical plant, a this-or-that plant, where you have to set the industry rolling. Then, you have to go and be connected up over there and connected up over here, and so on. Let me tell you, anyone of you who is able to bring in foreign investment, too, in the field of construction or new technology, go ahead and do so. The Housing Council will just give you the authorization. You will say, we want to sign an agreement with this or that group in this or that country, so that it will get a factory rolling here. If it's kept informed, it will give you the authorization. That you should imagine that a group of people are sitting in the ministry of housing totally devoted to the issue of housing round the clock, running around and ready to solve all these issues, this isn't even possible. Even if they are sympathetic people - and, God be praised, they are - is such a thing even possible? This is Iran after all. Iran is very big. No-one has the sense that I have now of how big Iran is, because everyone [else] understands it on paper, whereas I've gone and seen it with my own eyes. We have seven, eight, ten provinces that are each the size of a big a country. This is the way you need to think. Each one of you should think that you have a country. You have to think and decide on this kind of scale. You shouldn't think that a bunch of people are sitting and taking care of all the country's affairs, big and small, from our villages to here, and we, for our part, can keep an eye on things. No! Imagine that your province is a country and you're its manager, in charge of everything. Manage things on this basis.
You can use these quick-yielding facilities to produce the material or even to produce parts. It's at your disposal after all. Tell them to set up a part-making plant; concrete-beam making; pillar making; reinforced concrete making; mesh making; whatever. You can give part of these [facilities; i.e. loans] to them to set up this sort of thing. Of course, you have to keep an eye on the quality too. I want to underline again, all the water, sewerage, and communications - bring all of this under the preparations committee. Everyone must consider this as his or her own [work]. A movement has to be set in motion in the country.
Don't say, We don't have it. In this Tehran, for example, there is both a great deal of land in the city itself and outside, in the surrounding townships. Don't go and say, We're going to design a township - with just the design and preparation taking 10, 20 years. In these 20 years, Tehran's whole shape has changed. The demand and the models for housing have changed. Now, to be just on the point of saying, Well, what should do now?
Things have to be done quickly. This is why the governor-general steps in, because the governor-general is the head of the province and has the authority. He has the bodies under his jurisdiction. And the Housing Ministry fully supports the governor-general. You have to go and do this. Everything is in your hands.
Of course, as I said, I hope you'll pay sufficient attention to indigenous planning and architecture. My expectation is that, by the end of the year, we'll see that a heavy train is on the tracks and is advancing at a good speed. In other words, a good outlook for the future of housing should be placed before the people.
We can't have this where a young person doesn't even know what's happening now. What's going to happen. Bunches of people turn up. They strike some kind of deal with some of the public and non- public bodies, with people who provide financial resources and so on and so forth. Then suddenly they produce a 30 per cent, 40 per cent, 10 per cent, 60 per cent fluctuation in the housing market. Someone has prepared everything, sold everything he had, is in debt, has sold his wife's dowry, has made things hard for his wife and kids, has put some money together, is going to go and sign the contract tomorrow and get the house. Suddenly, it jumps up by 30 per cent. He's at his wits end now. His life will fall to pieces. We have to do something to create calm. Housing is a place for calm. Now, it's turned into a cause of anxiety for many. However, housing is for calm, for living and calm. It should make people calm. Now, it's turned into a cause of anxiety. You can do it. You have to consider yourselves in charge.
Employment
The second issue is the question of employment, which we discussed together. The issue of employment is very important. Bear in mind, in particular, that people born in [13]59, 60 to 63, 64 [1980-85], when the population growth was 3 per cent, 4 per cent, 5 per cent, are now entering the job market. They've finished their studies, their military service. Now, they're entering the job market. In other words, the demand is going up in an accelerated way. This is the way you have to look at it. Follow this through. Look at things upstream. Many of the units that you've worked for are now getting up and running. A new company has to be created to collect their products, to give them raw material, to take care of marketing. If they need to export, then, export it. Put this kind of support on your agenda this year. They'll come [to you] later and they may, God forbid, fall down.
The next point is the issue of the payment of salaries and benefits. This year, as you know, salaries and benefits will be concentrated in the Economy and Finance [Ministry]. This is a big new decision. The person in charge of a province's financial resources is the governor-general. Now that we've put the Plan and Budget at your disposal, it's you [who is in charge].
We've had one problem up to now. Funds for current spending are put at the disposal of bodies. Costs other than salaries and benefits are paid. In the last three or four months of the year, everyone comes and says: We don't have salaries and benefits. Constant deficits, [budget] addendums - the volume of current spending is going up rapidly. This is very dangerous for the country. We'll all fall down. By 20 per cent, 30 per cent each year. What's going on? We'll soon reach the point where there'll be no money left for development work. There'll be no money for policy making, for subsidies. You have to manage this.
Salaries and benefits are put at the disposal of [changes of] - the Economy and Finance [Ministry] pays it. All the increases and so on go there. They'll deduct it from your funds starting now. The amount that's left in your hands, you need to manage. Whatever you save, part of it will be at you disposal again for giving bonuses and providing services to your employees.
I think it can be done. It is possible to consume little and produce a lot. It really can be done. Some of our systems have become very profligate. Nothing is accounted for. Money for their cars, money for their petrol, money for their water, electricity, fuel, repairs. Never mind about all the stationery - no one even thinks pens and paper are worth anything, although if you add it up for the whole country, you'll see that it adds up to 40bn, 50bn tomans.
A manager - if you can put someone there who thinks well, who knows the administrative system well, who can go from body to body, look at the expenditure and cross things out, saying: No need for this, no need for this, no need for this.
We should give priority to things that support our mission. Whatever is not directly related to our mission should be put aside. Nothing will happen. We should experience this for one year. We should put this on our agenda and pursue it seriously.
We ask some organizations about the number of their personnel and they don't know. Neither the Ministry of Finance and Economic Affairs nor Plan and Budget [Organization] know the exact number of civil servants. Even [government] organizations do not know how many people work there.
We once asked the Ministry of Education to let us know how many people work there. In one report they presented ten different numbers. We asked the same question from another ministry, it gave six different figures. When I review your reports at the provinces, I see that the figures you give on the population of the province on the first page are different from that of the second or eighth page. You should revise these figures and pay attention to the details. This is possible.
All those who receive wages from the government should be registered. Mr Danesh [-Ja'fari, minister of finance] should seriously pursue this issue from all organizations and he should start from his own ministry. There should be an extensive data bank. It should be clear who is working at the electricity office in Birjand today. We should have the information to be able to plan. We should also know how much each person is being paid.
You are responsible to ask organizations about their current budget. You should see how much of the money is being paid on wages and benefits. You should allow that money to be kept at the treasury and the remaining part should be accounted for. You should know why those amounts are spent. Why should an organization spend 170,000 tomans on the recreation and welfare of its employees, while another organization would not even have 30,000 tomans for the same purpose? Is there a difference between employees? Employees are the same. This person is also a human being. He also has children and stomach. He also needs welfare. Prepare accurate statistics and control the costs, so that God-willing the issue would be solved.
Shoddy builders in trouble - Power Construction
EAST LONDON - Against the backdrop of housing delivery protests, building contractors in the Eastern Cape who deliver sub-standard work may have met their match.The Housing and Local Government Department is determined to force such contractors to fix their shoddy work.Power Construction is already being forced to fix its workmanship at both Maclear and Ugie housing projects, department spokesman Mbulelo Linda said yesterday.Linda said Power Construction was given until July to rectify defects.Arcus Gibb, the consulting engineer for Power Construction, responsible for foundation design and supervision, is fixing defects at Ugie.The moves follow several site visits by departmental officials and Elundini Municipality after complaints relating to quality.In response to the complaints, the department compiled a report listing defects and recommendations.The department last week announced sub-standard work in housing projects would be investigated and the contractors forced to effect repairs at these projects.This announcement comes amid housing delivery protests throughout the province.Yesterday Linda said developers bent on shoddy work would be tracked down."Only Power Construction has been identified so far. We are going to look for others in East London, Port Elizabeth, Humansdorp and other places," he added.The constructors would have to do the repairs at their own cost. "It's only when they are untraceable that the department can take funding from the (housing) budget," Linda said."Government cannot afford to carry the costs of repairing shoddy workmanship when it has to deal with huge backlogs," he said.Linda said there was no funding for new projects in some municipalities. The only available funds were those with which to restart stalled projects.The department planned to rope in the National Homebuilders Registration Council to register contractors and do follow-up inspections on their work. The departmental report on the Maclear housing project indicated that after completion of the first batch of houses there was a problem in the bulk water supply to the project.The bulk main burst and beneficiaries could not be moved into the houses that did not have water.The municipality did not have the budget to effect repairs running to around R120000.The report also said Power Construction should have handed over the keys of completed units to the municipality. This was not done and the units were subsequently vandalised.The vandalism mostly affected windows and window fittings. Doors and plumbing were less affected.Other findings of the site visits to Ugie and Maclear included issues with foundations as well as exposed water supply and drainage installations which caused soil erosion."Cracks are evident on most of the slabs, which might indicate a problem with the foundation design or construction." Drainage of basins is inadequate with the end of drainage pipes simply buried in the ground outside the house. This will likely result in blockages as soon as the wash basins are used, the report said, adding that some septic tanks were found to be blocked or missing.
Thursday, February 15, 2007
The Herald Online **News**
The Herald Online **News**
A CRITICAL shortage of engineers in the Nelson Mandela Bay municipality is severely hampering the execution of projects.
Infrastructure and engineering business unit manager Ali Said said yesterday there was a critical shortage of engineers in his department, and even if they advertised positions they did not get responses.
“The rapid decline in the number of officials to manage this unit‘s capital projects is reaching catastrophic proportions. A case in point is the design unit, which now has no personnel after losing the last of its staff in December.”
He said the pivotal role of approving designs submitted by consultants could no longer be done by the municipality and outsourcing was the only option.
Said said the private sector was experiencing the same constraints in obtaining and retaining skilled engineering staff. With major projects such as the 2010 World Cup and Coega making rapid progress, the demand on consultants and contractors would increase even more.
“This metro will have to take serious consideration of the capacity factor, both internal and external, when preparing budgets for future years,” he said.
The meeting was discussing progress made by the business unit on its 2006/2007 capital budget up to December last year. The new municipal financial year begins in July and the fear is that funds will be carried over to the next financial year even though there are priority projects which need urgent implementation.
Of its budget allocation of R749-million, the business unit had by December 20 spent R96-million, about 13 per cent. “Considering 50% of the financial year has passed, 13% is an alarmingly low figure,” said Said. Two options discussed at a recent workshop had been to either hire retired engineers or outsource work to service providers.
Councillor Terry Herbst said: “I know the shortage of engineers is a worldwide phenomenon, but what are we doing to remedy the situation? You cannot run such an essential department without staff,” he said.
A CRITICAL shortage of engineers in the Nelson Mandela Bay municipality is severely hampering the execution of projects.
Infrastructure and engineering business unit manager Ali Said said yesterday there was a critical shortage of engineers in his department, and even if they advertised positions they did not get responses.
“The rapid decline in the number of officials to manage this unit‘s capital projects is reaching catastrophic proportions. A case in point is the design unit, which now has no personnel after losing the last of its staff in December.”
He said the pivotal role of approving designs submitted by consultants could no longer be done by the municipality and outsourcing was the only option.
Said said the private sector was experiencing the same constraints in obtaining and retaining skilled engineering staff. With major projects such as the 2010 World Cup and Coega making rapid progress, the demand on consultants and contractors would increase even more.
“This metro will have to take serious consideration of the capacity factor, both internal and external, when preparing budgets for future years,” he said.
The meeting was discussing progress made by the business unit on its 2006/2007 capital budget up to December last year. The new municipal financial year begins in July and the fear is that funds will be carried over to the next financial year even though there are priority projects which need urgent implementation.
Of its budget allocation of R749-million, the business unit had by December 20 spent R96-million, about 13 per cent. “Considering 50% of the financial year has passed, 13% is an alarmingly low figure,” said Said. Two options discussed at a recent workshop had been to either hire retired engineers or outsource work to service providers.
Councillor Terry Herbst said: “I know the shortage of engineers is a worldwide phenomenon, but what are we doing to remedy the situation? You cannot run such an essential department without staff,” he said.
Wednesday, February 14, 2007
The Herald Online **Business**
The Herald Online **Business**
UP TO 50 000 artisans will be needed over the next two years to meet the needs specifically of the construction industry, Education Minister Naledi Pandor said yesterday.
Addressing a media briefing, Pandor said the pool of artisans would have to continue expanding after that, adding that there was also a need to expand the numbers of students at Further Education and Training (FET) colleges “if we want the skills that we require”.
At the same time, the country would have to find 200 000 jobs a year to accommodate FET students.
Pandor said the skills that did exist were “aging skills”, noting that some of these were now being employed by the provincial and local government departments to provide a range of technical and financial support for municipalities.
Pandor said that a technical team of retired people had been put together to ensure that what was being taught at FET colleges was “absolutely appropriate”.
She said the FET colleges had taken central place in the “skills development terrain”.
“The colleges are now semiautonomous at the same time as substantial resources are being provided for the recapitalisation of the institutions and the development of teaching staff. Most of the recapitalisation funds have been committed, and the remaining funds for 2007 will be used to enhance ICT connectivity in the Eastern Cape and Limpopo colleges.”
In addition, she said bursaries had been provided to more than 20 000 students studying in the fields of scarce skills: Engineering, construction, ICT, business studies, and hospitality.
“They will study in-depth courses, which have been developed together with the relevant industry players, and will emerge ready and able to take up employment in the sector.”
Pandor said that, as the national certificate for vocational training was rolled out by the FET colleges, even more students were going to need places to complete their learning in the workplace before becoming artisans.
“FET colleges are looking at enrolling 400 000 learners per year, at least half of whom will probably be in trade-related fields. We will need 200 000 workplaces per year to accommodate such learners.”
On importing skills, Pandor said this was already happening with for example welders “because we cannot produce those skills in a day.
“If you need to import the skills we need as a temporary measure we will do so while we train our own people.”
At the same briefing, labour director-general Vanguard Mkosana said his department would check on investments by sectoral training authorities (Setas) and was looking at drawing up guidelines for investments in the future following the revelation of the Transport Education Training Authority's investment in Fidentia, a financial services company that has been placed under curatorship.
UP TO 50 000 artisans will be needed over the next two years to meet the needs specifically of the construction industry, Education Minister Naledi Pandor said yesterday.
Addressing a media briefing, Pandor said the pool of artisans would have to continue expanding after that, adding that there was also a need to expand the numbers of students at Further Education and Training (FET) colleges “if we want the skills that we require”.
At the same time, the country would have to find 200 000 jobs a year to accommodate FET students.
Pandor said the skills that did exist were “aging skills”, noting that some of these were now being employed by the provincial and local government departments to provide a range of technical and financial support for municipalities.
Pandor said that a technical team of retired people had been put together to ensure that what was being taught at FET colleges was “absolutely appropriate”.
She said the FET colleges had taken central place in the “skills development terrain”.
“The colleges are now semiautonomous at the same time as substantial resources are being provided for the recapitalisation of the institutions and the development of teaching staff. Most of the recapitalisation funds have been committed, and the remaining funds for 2007 will be used to enhance ICT connectivity in the Eastern Cape and Limpopo colleges.”
In addition, she said bursaries had been provided to more than 20 000 students studying in the fields of scarce skills: Engineering, construction, ICT, business studies, and hospitality.
“They will study in-depth courses, which have been developed together with the relevant industry players, and will emerge ready and able to take up employment in the sector.”
Pandor said that, as the national certificate for vocational training was rolled out by the FET colleges, even more students were going to need places to complete their learning in the workplace before becoming artisans.
“FET colleges are looking at enrolling 400 000 learners per year, at least half of whom will probably be in trade-related fields. We will need 200 000 workplaces per year to accommodate such learners.”
On importing skills, Pandor said this was already happening with for example welders “because we cannot produce those skills in a day.
“If you need to import the skills we need as a temporary measure we will do so while we train our own people.”
At the same briefing, labour director-general Vanguard Mkosana said his department would check on investments by sectoral training authorities (Setas) and was looking at drawing up guidelines for investments in the future following the revelation of the Transport Education Training Authority's investment in Fidentia, a financial services company that has been placed under curatorship.
Tuesday, February 13, 2007
Eastern Cape lags in using housing budget
By Patrick Cull
Cape Town – The Eastern Cape has been projected to under-spend its housing and local government budget for the current financial year by some R251,7-million, according to figures presented by the national treasury to the National Council of Provinces‘ finance committee yesterday.
It is understood, however, that a special committee has been set up by the province to unlock the bottlenecks and ensure as much of the money as possible is spent before the end of the financial year.
The Eastern Cape housing and local government department has also invited established contractors to attend a briefing for the construction of houses and they will be required to “embrace emerging contractors along appropriate sub-contracting lines”.
An advertisement said the use of established contractors was “intended to ensure greater delivery at scale, as well as higher levels of quality assurance”. It also said projects had already been identified for established contractors using accelerated procurement processes.
The briefing will be held in Bhisho tomorrow.
The national treasury figures also reveal that the department spent 12,1 per cent less in 2006/07 that it did in the last financial year – R621,8-million as opposed to R707,7-million.
The Eastern Cape is the only province that is projected to overspend to that extent, with Mpumalanga, Free State and the Western Cape reporting that they expect to have small amounts of funds left.
With regard to health, the national treasury figures show that the Eastern Cape is projected to under-spend on personnel by R58,1-million and by R29,6-million on its capital budget.
The Western Cape is projected to under-spend by R123,5-million on personnel and by R22,1-million on its capital budget.
Cape Town – The Eastern Cape has been projected to under-spend its housing and local government budget for the current financial year by some R251,7-million, according to figures presented by the national treasury to the National Council of Provinces‘ finance committee yesterday.
It is understood, however, that a special committee has been set up by the province to unlock the bottlenecks and ensure as much of the money as possible is spent before the end of the financial year.
The Eastern Cape housing and local government department has also invited established contractors to attend a briefing for the construction of houses and they will be required to “embrace emerging contractors along appropriate sub-contracting lines”.
An advertisement said the use of established contractors was “intended to ensure greater delivery at scale, as well as higher levels of quality assurance”. It also said projects had already been identified for established contractors using accelerated procurement processes.
The briefing will be held in Bhisho tomorrow.
The national treasury figures also reveal that the department spent 12,1 per cent less in 2006/07 that it did in the last financial year – R621,8-million as opposed to R707,7-million.
The Eastern Cape is the only province that is projected to overspend to that extent, with Mpumalanga, Free State and the Western Cape reporting that they expect to have small amounts of funds left.
With regard to health, the national treasury figures show that the Eastern Cape is projected to under-spend on personnel by R58,1-million and by R29,6-million on its capital budget.
The Western Cape is projected to under-spend by R123,5-million on personnel and by R22,1-million on its capital budget.
Monday, February 12, 2007
The danger of what we don't know
I wrote this article for the current issue of ACCESSHousing (No. 5, January 2007) which is available on the FinMark Trust’s website. I thought it might be a useful way to get back to a regular posting…
By now we should all know that the old saying “what you don’t know can’t hurt you” can’t be right. To know whether a snake is poisonous is useful information when faced with a hissing serpent that is advancing on your ankle. Information makes one better equipped to deal with the situation at hand, to respond appropriately, strategically, and competitively.
An ongoing mission of the FinMark Trust has been explicitly this: to provide critical information into the sector in support of evidence-based policy making, transformation and innovation towards making financial markets work for the poor. In the process of doing this, FinMark hopes that other players will see the benefit of this approach and integrate it into their systems and processes. The information that we generate, through the FinScope[1] survey, as well as through other targeted research initiatives, is not an end in itself, but a tool that promotes effective policy change and stimulates competition and innovation on the part of providers.
While there is increasing recognition that those people outside formal financial services provision collectively represent a substantial untapped market into which services can be provided on a sustainable basis (“the fortune at the bottom of the pyramid”[2]), there is a lack of credible information on what this market looks like, how it operates, what it wants. This is also true in housing.
Key studies in the past few years[3] have addressed some of this gap, but in the process have raised far many more questions. In an environment of (quite understandable) delivery impatience (last year was the worst year on record in subsidised housing delivery, and the delivery of ‘affordable’ stock is meeting only 14% of the estimated demand annually), there is a danger that we will be complacent with what we know and overlook what is inexplicable. And whether such ignorance obscures market opportunities or market realities, the outcome is something that today’s financial sector can ill afford.
These are some of the questions which need to be answered:
What does the ‘affordable market’ look like? It is remarkable that this is something we don’t know. With instruments and periodicals such as the ABSA House Price Index and Residential Property Perspective, the Standard Bank Residential Property Gauge, and the FNB Property Barometer, one would think that information on the supply, churn, and appreciation of the affordable housing market would be in abundance. ABSA’s analysis[4] does have a category for “affordable housing” and defines this as houses between 40-79m² and costing less than R226 000. However, while property prices in the higher income segment are analysed by province and by metro, ‘affordable housing’ statistics are only provided in national averages and no differentiation between ‘new’ and ‘existing’ is offered. FNB’s Property Barometer[5] is a useful addition, basing its analysis on surveys with estate agents. However, while it has recently included township-based estate agents in Gauteng, Cape Town and Durban, their comments are also generalised and neighbourhood specific dynamics are not reported. Standard Bank’s December edition[6] has an excellent section on Soweto, suggesting that there is indeed data to analyse – but what about the rest of the country? Without this critical information, banks cannot know the risks of lending into the ‘affordable’ market – they will be unsure as to whether there is a sufficient secondary (resale) market to support their collateral risk – and this will dampen their enthusiasm. As it is, FSC housing finance attention is on new build. Perhaps with more information, secondary market churn could also be stimulated.
How do people turn money into house? Current housing finance debates are dominated by a concern with three product categories: mortgage, pension-backed, and unsecured or micro loans. There is a growing recognition of incremental housing as a delivery process, but how households actually do this, what makes it easier and what makes it more difficult, remains a mystery. As a result of the mystery, a bias in favour of large scale developer-driven projects on open tracts of land persists, when opportunities for urban infill that is owner-driven might be more sustainable.[7] The Financial Diaries data, explored briefly in this edition of ACCESShousing, shows that most households in the sample were perfectly capable of their own project management on their homes, with or without a programme to help those efforts. This would seem to strengthen the case for housing micro loans, but how widespread are such skills? And critically, from a finance perspective, how can lenders support the process so that the finished product is mortgageable?
How do people turn house into money? Current information systems count the number of subsidised houses complete or under construction, and the number of subsidised beneficiaries (i.e. households with a title deed). With the advent of government’s Breaking New Ground policy, the delivery of sustainable human settlements becomes an area of inquiry. But sustainability is a long term prospect which arises as a result of a confluence of factors. What a subsidy beneficiary does with their house is a critical indicator in this equation. We need to know if people are upgrading their homes, and if so, with what sorts of finance. This will give us a sense of the level of investment in housing and whether households see their homes as an asset – be it social, financial or productive. It will also respond to the R2479 debate that says people must contribute to government’s investment – could investment be happening after the subsidy is allocated? We need to know if subsidised houses are being sold – how, why and at what price. If we don’t understand this we’ll never understand the role housing plays in the economic lives of low income people and whether through its housing subsidy, government is investing in economic growth as well as shelter.
What is actually happening in the FSC space? The FSC update later in this edition tells of the frustration of the Financial Sector Charter Council with the data provided by lenders in respect of the housing loans that have been originated. Clearly these are teething problems which the FSC process will iron out – the information requirements necessitate systems changes (i.e. to capture the relevant data) which are complicated all the more by additional requirements for compliance with Basel 2 and the National Credit Act. The critical need for the information, however, does not go away. Quite simply, we need to understand how low lenders can go[8] in extending housing finance into the target market. An important segment of the target market to watch is those households earning just outside subsidy eligibility: if they can access neither subsidy nor loan, this becomes a critical issue of concern for government seeking to meet its Constitutional obligations in ensuring that all residents in South Africa have access to housing.
Are lending patterns changing in South Africa? On the 24th of November last year, the draft regulations for the Home Loan and Mortgage Disclosure Act (HLMDA) of 2000 were released for public comment.[9] In the six years since it was promulgated, the HLMDA has been effectively dormant without the regulations. The issuing of draft regulations for comment was therefore a significant event. Once approved, the regulations will provide the sector with much needed information on the nature, scale and scope of lending for housing purposes and this will assist in determining where the blockages are in the housing finance value chain. While the Department of Housing considers the various comments it has received, it is hoped that it will also consider how the regulations, once accepted as final and implemented, support the development of a publicly available (and accessible) database. Ideally, all information should be made publicly available to enable researchers to identify trends and to provide incumbent and potential lenders (and other financial service providers) with critical industry information. While such information may currently be regarded as proprietary and confidential, greater disclosure can materially improve competition in the industry and enhance market functioning particularly in under-served market segments.
For policy makers as well as product providers, the lack of information regarding the low income housing sector is a major barrier to effective engagement. Without adequate market information, product providers find it difficult to devise innovative new products for the low income market, or to justify broad based roll-out. For their part, policy makers struggle to define the problem of access with sufficient granularity to develop a targeted response. And access to housing finance and the property market by the poor suffers as a result. The danger of what we don’t know is not only that we’ll overlook a potentially big and vibrant market, but also that we’ll undermine the opportunity for the majority of our population to build their housing wealth.
[1] FinScope is now conducted in nine African countries and Pakistan. For more information go to www.finscope.co.za
[2] See Prahalad (2005) The Fortune at the Bottom of the Pyramid: Eradicating poverty through profits. Wharton School Publishing.
[3] See, for example, research sponsored by the Banking Association in to housing supply and functioning markets, available on their website, www.banking.org.za. The FinMark Trust has also commissioned substantial research, including an analysis of the workings of township residential property markets (2004), the activities of small scale landlords and home based entrepreneurs (2005/06), the causes of default among clients of housing non-bank lenders (2006), and the access frontier of mortgage finance (2006). See the housing finance theme page on www.finmark.org.za
[4]http://www.absa.co.za/absacoza/generated/files/d81b1ae612a7e010VgnVCM1000003511060aRCRD/PropertyPerspective.pdf?F_C_ID=03b8ac45985bc010VgnVCM1000003511060aRCRD
[5] https://www.fnb.co.za/personal/borrow/homeloans/quarterlyReview.html
[6] http://www.ed.standardbank.co.za/research/SAGE_RPRP_011206.PDF
[7] This argument is developed by the Kuyasa Fund in its Delft Housing Needs Analysis. See http://www.finmarktrust.org.za/documents/2005/AUGUST/Delft_report.pdf
[8] A 2006 edition of the housing finance access frontier is currently being developed. For the 2005 edition, entitled “How low can you go?”, see http://www.finmarktrust.org.za/documents/2006/MAY/AccessHF_report.pdf
[9] The draft regulations were published for comment in Government Gazette No 1734, dated 24 November 2006. Comments were received by 29 December 2006 and the Department of Housing is now considering these towards the development of a new draft.
By now we should all know that the old saying “what you don’t know can’t hurt you” can’t be right. To know whether a snake is poisonous is useful information when faced with a hissing serpent that is advancing on your ankle. Information makes one better equipped to deal with the situation at hand, to respond appropriately, strategically, and competitively.
An ongoing mission of the FinMark Trust has been explicitly this: to provide critical information into the sector in support of evidence-based policy making, transformation and innovation towards making financial markets work for the poor. In the process of doing this, FinMark hopes that other players will see the benefit of this approach and integrate it into their systems and processes. The information that we generate, through the FinScope[1] survey, as well as through other targeted research initiatives, is not an end in itself, but a tool that promotes effective policy change and stimulates competition and innovation on the part of providers.
While there is increasing recognition that those people outside formal financial services provision collectively represent a substantial untapped market into which services can be provided on a sustainable basis (“the fortune at the bottom of the pyramid”[2]), there is a lack of credible information on what this market looks like, how it operates, what it wants. This is also true in housing.
Key studies in the past few years[3] have addressed some of this gap, but in the process have raised far many more questions. In an environment of (quite understandable) delivery impatience (last year was the worst year on record in subsidised housing delivery, and the delivery of ‘affordable’ stock is meeting only 14% of the estimated demand annually), there is a danger that we will be complacent with what we know and overlook what is inexplicable. And whether such ignorance obscures market opportunities or market realities, the outcome is something that today’s financial sector can ill afford.
These are some of the questions which need to be answered:
What does the ‘affordable market’ look like? It is remarkable that this is something we don’t know. With instruments and periodicals such as the ABSA House Price Index and Residential Property Perspective, the Standard Bank Residential Property Gauge, and the FNB Property Barometer, one would think that information on the supply, churn, and appreciation of the affordable housing market would be in abundance. ABSA’s analysis[4] does have a category for “affordable housing” and defines this as houses between 40-79m² and costing less than R226 000. However, while property prices in the higher income segment are analysed by province and by metro, ‘affordable housing’ statistics are only provided in national averages and no differentiation between ‘new’ and ‘existing’ is offered. FNB’s Property Barometer[5] is a useful addition, basing its analysis on surveys with estate agents. However, while it has recently included township-based estate agents in Gauteng, Cape Town and Durban, their comments are also generalised and neighbourhood specific dynamics are not reported. Standard Bank’s December edition[6] has an excellent section on Soweto, suggesting that there is indeed data to analyse – but what about the rest of the country? Without this critical information, banks cannot know the risks of lending into the ‘affordable’ market – they will be unsure as to whether there is a sufficient secondary (resale) market to support their collateral risk – and this will dampen their enthusiasm. As it is, FSC housing finance attention is on new build. Perhaps with more information, secondary market churn could also be stimulated.
How do people turn money into house? Current housing finance debates are dominated by a concern with three product categories: mortgage, pension-backed, and unsecured or micro loans. There is a growing recognition of incremental housing as a delivery process, but how households actually do this, what makes it easier and what makes it more difficult, remains a mystery. As a result of the mystery, a bias in favour of large scale developer-driven projects on open tracts of land persists, when opportunities for urban infill that is owner-driven might be more sustainable.[7] The Financial Diaries data, explored briefly in this edition of ACCESShousing, shows that most households in the sample were perfectly capable of their own project management on their homes, with or without a programme to help those efforts. This would seem to strengthen the case for housing micro loans, but how widespread are such skills? And critically, from a finance perspective, how can lenders support the process so that the finished product is mortgageable?
How do people turn house into money? Current information systems count the number of subsidised houses complete or under construction, and the number of subsidised beneficiaries (i.e. households with a title deed). With the advent of government’s Breaking New Ground policy, the delivery of sustainable human settlements becomes an area of inquiry. But sustainability is a long term prospect which arises as a result of a confluence of factors. What a subsidy beneficiary does with their house is a critical indicator in this equation. We need to know if people are upgrading their homes, and if so, with what sorts of finance. This will give us a sense of the level of investment in housing and whether households see their homes as an asset – be it social, financial or productive. It will also respond to the R2479 debate that says people must contribute to government’s investment – could investment be happening after the subsidy is allocated? We need to know if subsidised houses are being sold – how, why and at what price. If we don’t understand this we’ll never understand the role housing plays in the economic lives of low income people and whether through its housing subsidy, government is investing in economic growth as well as shelter.
What is actually happening in the FSC space? The FSC update later in this edition tells of the frustration of the Financial Sector Charter Council with the data provided by lenders in respect of the housing loans that have been originated. Clearly these are teething problems which the FSC process will iron out – the information requirements necessitate systems changes (i.e. to capture the relevant data) which are complicated all the more by additional requirements for compliance with Basel 2 and the National Credit Act. The critical need for the information, however, does not go away. Quite simply, we need to understand how low lenders can go[8] in extending housing finance into the target market. An important segment of the target market to watch is those households earning just outside subsidy eligibility: if they can access neither subsidy nor loan, this becomes a critical issue of concern for government seeking to meet its Constitutional obligations in ensuring that all residents in South Africa have access to housing.
Are lending patterns changing in South Africa? On the 24th of November last year, the draft regulations for the Home Loan and Mortgage Disclosure Act (HLMDA) of 2000 were released for public comment.[9] In the six years since it was promulgated, the HLMDA has been effectively dormant without the regulations. The issuing of draft regulations for comment was therefore a significant event. Once approved, the regulations will provide the sector with much needed information on the nature, scale and scope of lending for housing purposes and this will assist in determining where the blockages are in the housing finance value chain. While the Department of Housing considers the various comments it has received, it is hoped that it will also consider how the regulations, once accepted as final and implemented, support the development of a publicly available (and accessible) database. Ideally, all information should be made publicly available to enable researchers to identify trends and to provide incumbent and potential lenders (and other financial service providers) with critical industry information. While such information may currently be regarded as proprietary and confidential, greater disclosure can materially improve competition in the industry and enhance market functioning particularly in under-served market segments.
For policy makers as well as product providers, the lack of information regarding the low income housing sector is a major barrier to effective engagement. Without adequate market information, product providers find it difficult to devise innovative new products for the low income market, or to justify broad based roll-out. For their part, policy makers struggle to define the problem of access with sufficient granularity to develop a targeted response. And access to housing finance and the property market by the poor suffers as a result. The danger of what we don’t know is not only that we’ll overlook a potentially big and vibrant market, but also that we’ll undermine the opportunity for the majority of our population to build their housing wealth.
[1] FinScope is now conducted in nine African countries and Pakistan. For more information go to www.finscope.co.za
[2] See Prahalad (2005) The Fortune at the Bottom of the Pyramid: Eradicating poverty through profits. Wharton School Publishing.
[3] See, for example, research sponsored by the Banking Association in to housing supply and functioning markets, available on their website, www.banking.org.za. The FinMark Trust has also commissioned substantial research, including an analysis of the workings of township residential property markets (2004), the activities of small scale landlords and home based entrepreneurs (2005/06), the causes of default among clients of housing non-bank lenders (2006), and the access frontier of mortgage finance (2006). See the housing finance theme page on www.finmark.org.za
[4]http://www.absa.co.za/absacoza/generated/files/d81b1ae612a7e010VgnVCM1000003511060aRCRD/PropertyPerspective.pdf?F_C_ID=03b8ac45985bc010VgnVCM1000003511060aRCRD
[5] https://www.fnb.co.za/personal/borrow/homeloans/quarterlyReview.html
[6] http://www.ed.standardbank.co.za/research/SAGE_RPRP_011206.PDF
[7] This argument is developed by the Kuyasa Fund in its Delft Housing Needs Analysis. See http://www.finmarktrust.org.za/documents/2005/AUGUST/Delft_report.pdf
[8] A 2006 edition of the housing finance access frontier is currently being developed. For the 2005 edition, entitled “How low can you go?”, see http://www.finmarktrust.org.za/documents/2006/MAY/AccessHF_report.pdf
[9] The draft regulations were published for comment in Government Gazette No 1734, dated 24 November 2006. Comments were received by 29 December 2006 and the Department of Housing is now considering these towards the development of a new draft.
Housing remains a top government priority
Compiled by the Government Communication and Information System---------------------------------------------------------------Date: 15 Jan 2007Title: Housing remains a top government priority---------------------------------------------------------------Housing provision is one of government's top priority areas as the need for adequate housing remains a pressing issue for South Africans, Xolile Bengu from the Department of Housing profiles interventions in this regard.Nothima Kala's house stands proud, and serves as a symbol of a new beginning for the Joe Slovo Informal Settlement near Port Elizabeth's KwaDwesi Township, in the Eastern Cape. After all, Kala, the 75-year-old pensioner built her first home assisted by her neighbours. The house stands tall as one of the many houses built under the Federation of the Urban and Rural Poor (FEDUP) Programme. It, (programme) aims to facilitate the building of houses by communities.FEDUP is supported by the People's Housing Process (PHP) - a government programme which provides funds to communities through a registered association for training, project management and the overall building of houses.The programme also encourages communities to work together to save and build their own houses. By working together the communities gain skills as the construction work will be done its members themselves. The interaction of the community while building their houses has a positive ripple effect of bringing them closer to one other. One of the effects could be the reduction of crime and other social ills.FEDUP is represented in all nine provinces and has helped communities build 20 000 houses in South Africa since 1996. It administers the daily and monthly savings of members, and to date has accumulated R10 million from its 80 000 members, which has an estimated impact on over 500 000 beneficiaries.They are hoping to repeat their successes at the Joe Slovo Informal Settlement by streamlining their savings facility. The facility will see 1 600 residents of the informal settlement owning their own houses by the end of 2007.FEDUP helps beneficiaries choose housing plans they can afford and invites the local authorities for quality inspections. The NGO is also responsible for communicating the various phases of projects to relevant authorities.Joe Slovo community members are determined to have at least 300 houses complete by May 2007. The initiative is in fact the second phase of what began more than eight years ago, with some bureaucratic delays preventing further development. The community has 320 landowners; other residents were given land y the Communal Property Association.The community managed to build 120 houses in 1998 with FEDUP's help, but there were delays as a division among themselves occurred on whether they needed to hand over their land ownership to the local Nelson Mandela Bay Municipality. The municipality could not provide basic services to private land owners. This meant that 359 sites were left incomplete, at either a foundation or structure level, and some original members fell away as they died or were unemployed. They eventually agreed to retain ownership and hired a private engineer to provide water and sewerage infrastructure and asked for a proposal to be done for housing development. FEDUP revived the project of completing the homes and created a new fund for savings named the Urban Poor Fund (UPF), which broke away from the original Utshani Fund, also administered by the NGO. The Joe Slovo Informal Settlement model of saving towards an average 56 square meter house - two bedrooms, a lounge and bathroom, and costs an average R30 000 to build - comprises daily savings with no minimum or maximum setting to the UPF. The average daily saving is estimated by FEDUP to be R30, but people have been known to save as little as R1.In addition to this all members are required to pay a compulsory once-off payment of R750, and an additional R5 monthly contribution to the UPF.Additional needs such as electricity are outsourced by the owner and not covered by the fund. The house is built on the original informal house site. The rotating fund has a constant flow of capital, and thus ensures that everyone who has contributed will have their house. There are three signatories for each community to keep track of the savings by community members. The R750 enables UPF to begin building homes while people wait for their subsidy to be approved. The community saves on material costs by establishing long term agreements with suppliers in their bulk buying.The houses need 20 community members to be built, and the group consists mainly of women. The builders are trained through Fedup's Utshani Fund exchange programme.Their biggest project has been the KwaZulu-Natal province Piesang River programme that had 1 000 double and triple story homes built on a previous informal settlement community. The houses range from 69-90 m2, depending on affordability by the home owner. FEDUP South Africa Coordinator, Rose Molokoane said their biggest hurdle in achieving more of their goals has been delays in the releasing of government subsidies by provincial and municipal departments of housing.She cited Joe Slovo as an example of how 960 subsidies (worth R37 000 each), had been approved last year but funds had not been provided."We want the Department of Housing to speedily release the subsidies. It would enable us to cover the costs of building the houses and make the process quicker to finish. We find it difficult at the moment to complete homes as everything must be done according to the availability of our funds," Molokoane said.She said what could be done would be to fund a house while it's in the process of being built. FEDUP, Molokoane said, could then pay for the foundation and the top structure could be funded by the department or if the house needs a roof that could be what the subsidy is released for." Minister of Housing Lindiwe Sisulu recently acknowledged FEDUP's work, saying it was an effective way of ensuring housing delivery for South Africa's poor communities. FEDUP's Utshani Fund was awarded the Best Savings Group by the National Home Builders Registration Council (NHBRC) along with the Department of Housing.Other NGO's have also achieved ground breaking successes. Habitat for Humanity-South Africa (HFHSA) built more than 1 700 houses in 18 communities in the Western Cape, KwaZulu-Natal, Gauteng and the North West Province. The effort has seen 10 000 people owning their own houses.The beneficiaries are required to pay back no interest charged by the Habitat loan, and help build their houses along with volunteers. The money paid by beneficiaries goes to the Fund for Humanity to help others.Irish Philanthropist Niall Mellon through the Niall Mellon Township Initiative (NMTI) has also contributed to sustainable housing in South Africa. The NMTI encourages international and local volunteers to contribute and help build houses in informal settlements. The Department of Housing has managed to build more than two million houses in 12 years, with an annual churn out of 250 000 houses.With the backlog estimated at 2, 4 million, government has realised that public and private partnerships are crucial in meeting their objective of having a "nation free of slums by 2014." - BuaNews
DID YOU KNOW?
Out of the 22 000 houses Housing Minister Lindiwe Sisulu promised to build by July 2006 as part of the N2 Gateway Project, only 2 000 have actually been built to date.
Further, due to poor planning, those units that have been built are 40m², rather than the 30m² allowed by the Treasury. The consequence has been massive over-runs.
The projected cost per unit before construction was R80 000; once construction had started, however, it was established that the units would cost R120 000 each.
By mid-2006 there was an expenditure over-run of some R35 million.
Further, due to poor planning, those units that have been built are 40m², rather than the 30m² allowed by the Treasury. The consequence has been massive over-runs.
The projected cost per unit before construction was R80 000; once construction had started, however, it was established that the units would cost R120 000 each.
By mid-2006 there was an expenditure over-run of some R35 million.
Sunday, February 11, 2007
Standard rolls out R700m low-cost housing plan
October 17, 2006By Roy CokaynePretoria - The low-cost housing market received another boost yesterday with Standard Bank launching a R700 million affordable housing development in Springs.The Hlanganani Village affordable housing development initiative, located next to Sharon Park Ext 1 in Springs, will house about 4 000 families and is in line with Standard Bank's stated aim of easing access to finance and providing effective development finance for affordable housing.It follows Nedbank and the French government development agency, Agence Française de Dèveloppement, last week signing a E40 million (R378 million) subsidised loan agreement that is expected to provide housing finance for about 4 000 low-income households.Talk Radio 702 and First National Bank, in association with construction firm M5 Developments and the Gauteng housing department, are also involved in an initiative to provide 702 houses to low-income earners within the Cosmo City.Cosmo City is a mixed-use, integrated housing development near Kya Sands in northern Gauteng where the housing department is providing subsidies for the construction and servicing of 9 000 units.In terms of the financial services charter, the industry has made a commitment to provide R42 billion in loans for low-cost housing by 2008.Research by the Banking Association of SA has revealed a massive demand for affordable houses, with a current shortfall of 650 000 units.Sim Tshabalala, Standard Bank's chief executive of personal and business banking, said there were major challenges in providing affordable housing because of regulatory constraints, a lack of available land, increased building costs and a shortage of developers.
top.DisplayAds('SquarLAV',17,561);
Tshabalala stressed that confronting the affordable housing challenges was about partnerships. Partners from commerce, the government, civil society and developers had come together for the Hlanganani development with the aim of overcoming the obstacles to provide affordable and accessible housing for those either priced out of the market or excluded for historical reasons from the formal housing sector.Residents of Hlanganani Village will have access to clinics, sports facilities, recreational areas, shopping areas, transport infrastructure and a secure environment.Servicing of the Hlanganani Village site will commence in January and developer partner Inyanga Trading 102 will start building the first phase of the village, comprising 562 units, in March. The first occupants are expected to move into units in July, with further phases of the development completed over the following 36 months.Linda Sing, Standard Bank's director of affordable housing, said people earning R6 000 a month would have the opportunity to own their own home at Hlanganani Village.Sing said freestanding and sectional title units were available and units were priced from R179 000 for a 36m2 unit.She said 150 homes had been sold since sales began last month, many to Standard Bank staff who had taken advantage of a window of opportunity. Sales were now open to the public and buyers were being assisted with access to home loans and finance-linked subsidies.
top.DisplayAds('SquarLAV',17,561);
Tshabalala stressed that confronting the affordable housing challenges was about partnerships. Partners from commerce, the government, civil society and developers had come together for the Hlanganani development with the aim of overcoming the obstacles to provide affordable and accessible housing for those either priced out of the market or excluded for historical reasons from the formal housing sector.Residents of Hlanganani Village will have access to clinics, sports facilities, recreational areas, shopping areas, transport infrastructure and a secure environment.Servicing of the Hlanganani Village site will commence in January and developer partner Inyanga Trading 102 will start building the first phase of the village, comprising 562 units, in March. The first occupants are expected to move into units in July, with further phases of the development completed over the following 36 months.Linda Sing, Standard Bank's director of affordable housing, said people earning R6 000 a month would have the opportunity to own their own home at Hlanganani Village.Sing said freestanding and sectional title units were available and units were priced from R179 000 for a 36m2 unit.She said 150 homes had been sold since sales began last month, many to Standard Bank staff who had taken advantage of a window of opportunity. Sales were now open to the public and buyers were being assisted with access to home loans and finance-linked subsidies.