News/Insights

Khosi Makolota was working as a travel agent. But her dream was to develop two stands in Soweto, which she had owned for some time, into a high-quality residential rental property for middle-income tenants. “You know how it is when you’re working for someone, and all the time you’re thinking “You know, I could be doing this thing?”. It was like that,” she smiles.

The journey hasn’t been easy. A single mom to two daughters, aged five and 15, Khosi had resigned from her job three times to focus on developing her property. But each time, she ran out of funds and had to return to full-time employment. Her dedication to realising her dream even led her to put her home up for sale to fund the development.

In 2015, Khosi made the tough decision to focus exclusively on getting Sisana Heights completed. She approached several financial institutions to fund her dream, but without success. Funding is difficult to come by for smaller projects like Khosi’s – and traditional investors are often wary of property developments in Soweto as the rentals tend to be low compared to more high-end areas like Sandton.

Then, Khosi met Henry Chitsulo, owner of Bold Moves and appointed mentor for uMaStandi clients, who told her about uMaStandi – a member of the TUHF Group that specifically funds rental property entrepreneurs in townships. uMaStandi provided both funding and mentorship, helping Khosi to realise her long-term dream in just over six-months.

“We were so impressed by Khosi’s determination and commitment to this project,” says Chitsulo. “So, we tailor-made a mortgage loan for her, and provided training and mentorship to help her achieve her goals quickly.”

With funding from uMaStandi in place, development at Sisana Heights started in earnest in July 2019. Unfortunately, the contractor became ill and passed away soon after, which was a blow to Khosi and her team. However, they were able to restart in October 2019, and construction on the first site has been completed and units are ready for tenanting. The demand is promising, as the ground floor is already fully rented, and tenants are keen to move in.

The first site contains 14 studio apartments. Each unit is intended to house a maximum of two people, aimed at couples or single parents of young children. The open plan studio layout includes a kitchenette, combined living and bedroom area, and a bathroom. The rent ranges between R 2 500.00 and R 3 000.00 per month, depending on the unit’s total floor space.

Sisana Heights is conveniently located close to a mall, clinic and church. Situated just off one of Soweto’s main roads, it also offers easy access to transport, 24-hours a day. And, with South Africa’s continuing challenges around the provision of electricity, the building incorporates energy-storing LED bulbs as well, ensuring residents will have up to 8-hours of light should the building be affected by load shedding.

The training and mentorship uMaStandi provided were extremely valuable to Khosi. “uMaStandi came to my rescue. And working with the team, especially the Portfolio Manager, Victor Mathetha, really opened my eyes that there is more to it than just building the units and collecting rentals to grow my investment as a sustainable rental business.”

Her two daughters have also played an important role in achieving Khosi’s goal. “They have been very supportive. We even do homework here [on site],” she says.

Khosi will be working with uMaStandi to develop her second site as well. “I’ll be taking all the lessons I learned through this project over to that site,” she says. This will add another 14 studio apartments to the property, bringing the total accommodation available at Sisana Heights to 28 units.

Facts

  • Location: 1818 Mvoti Street, Johannesburg, Senaoane, 1818
  • TUHF Product: uMaStandi
  • Original configuration: 2 undeveloped stands
  • Configuration upon completion: 28 residential bachelor studios
TPN


The latest Regulations relating to the Schedule of Services and Framework of Sectors was gazetted and released late last night, the 29th of April 2020. They repeal all previous Regulations issued in terms of the COVID-19 pandemic dealing with the forced lockdown in South Africa. The new Regulations speak only to Alert Level 4 from 01 May 2020.

As part of this process, government will be adopting a ‘risk-based’ approach with more severely affected areas set to face stricter regulations than areas that don’t have as many coronavirus cases. To ensure that the response to the pandemic can be as precise and targeted as possible, there will be a national level and separate levels for each province, district and metro in the country.

As a result, legal advice will differ in each case depending on the severity of the lockdown level in an area. Understandably, landlords and property practitioners have very important questions that need to be answered on what this means for the rental industry. TPN and SSLR Inc. put our heads together to answer your most pressing questions.

The Cabinet will determine the severity of the Alert Levels 1-4 and the extent that they apply to each area. These answers have been prepared under Alert Level 4 and should be utilised only under this instance.

Good news for the property market:

  • The deeds office is open and will be functioning from 01 May 2020.
  • Sherriff services are to commence for all legal practitioners, thus Court documents, applications, and action can be served.
  • Evictions are allowed! A competent Court may grant an order for eviction. Provided that any order of the eviction shall be stayed and suspended till the last day of Level 4. Unless a Court decides that it is not just and equitable to stay and suspend the order until he last day of the alert level.
  • Permits for the movement of persons may only be issued under very restricted circumstances. These circumstances include:
    • Permits to perform essential work or a permitted service signed by the institution.
    • Permits for the movement of children to travel to another province of metropolitan area or district.
    • Permits to travel to another province or metropolitan area or district for a funeral.

Your questions answered

Question 1: May a tenant move into or vacate a premises during Alert Level 4?

No. We can derive this from provision 16 of the Regulations. The Regulations specifically state:

16(1)Every person is confined to his or her place of residence
16(2)A person may only leave their place of residence to:
a.Perform an essential or permitted service, as allowed in Alert Level 4.
b.Go to work where a permit has been issued.
c.Buy permitted goods.
d.Obtain allowed services.
e.Move children, as allowed.
f.Walk run or cycle between the hours of 06h00 and 09h00 within 5 kilometres of their place of residence.

Therefore, moving into or out of properties is not allowed. Effective communication with the landlord or agent is vital during this time, please do not take the Law into your own hands or be the test case for vacating or moving into a premises.

Question 2: What if my tenant does move during Alert Level 4?

The tenant may be acting illegally in terms of the Regulations and this must be taken into account for any damages that may be suffered by the landlord. There are a few pertinent questions that need to be asked here, such as:

  1. Did the tenant leave without notice?
  2. Did the tenant cancel the lease early as per Section 14 of the Consumer Protection Act?
  3. Was the lease to end anyway?

Depending on the answer to the questions above, there may be different claims that the landlord can institute. The important thing here is that the tenant may not vacate and has acted contrary to the lease, legislation, regulation or declarator.

The landlord may thus have a claim for damages as a result of the early vacation of the premises without any notice; for a reasonable cancellation penalty in terms of the Consumer Protection Act; or for damages based in delict should the tenant vacate illegally at the end of the lease term.

Question 3: May a tenant use the once-off movement to move into a premises?

No. Only persons returning to their residence or work, who was not at their place of residence or work during lockdown, will be able to travel between provinces and metropolitan areas. This is a once-off movement to return to their own residence, not to take occupation of a new property. During the panel discussion with the media, it was hinted that this would need to occur over the 1st of May long weekend and that it is not intended to circumvent the Regulations.

Question 4: May an estate agency trade from their place of business and perform all estate agent functions?

No. An estate agency is not listed under Table 1 of Alert Level 4 for essential work or permitted services. In the previous draft regulations, commercial and residential real estate activity would only be allowed at level 3 and level 2 respectively.

Question 5: May I perform incoming and outgoing inspections?

No. Estate agents, property managers, property practitioners or landlords are not included in the list of essential work or permitted services. They are thus not permitted to travel to, do or conduct any activity in the ordinary course of business. This limits what can occur on a lease premises including moving in and vacating. All inspections must be held off for the moment. A practical solution may be remote or online inspections but this is impossible to implement for a vacating tenant.

Should the tenant vacate the premises and leave the keys at security or another safe place, please do not collect the keys and perform an inspection. This can wait until you are permitted to do so. The tenant will still be liable for the damages when the inspection has been done.

Question 6: What happens to the tenant’s deposit should he vacate?

As the landlord or agent cannot perform an outgoing inspection, damages to the premises cannot be ascertained. This creates a legal problem as in terms of the Rental Housing Act, the deposit must be returned with certain time periods. The Act however also dictates when the deposit must be returned in relation to the inspection having been performed, and should it be illegal to perform the inspection, this must be taken into consideration.

We suggest holding onto the deposit until it is possible to do the inspection. Inform the tenant of this situation and that they will be liable for all damages to the premises, not barring the return of the keys (as this has been illegally done) and even invite them to the inspection when it can be performed. Should there be no damages, the deposit can be returned to the tenant with interest once the inspection has been completed. Should there be damages then the deposit can be utilised to cover those damages.

Question 7: May I have an Attorney prepare an eviction application and evict the tenant from a property?

Yes. An Attorney may prepare, serve and even be granted an Order for the Eviction of a tenant from a premises during Alert Level 4. The Order may however only be executed after Alert Level 4 ends.

Conclusion

This is an unprecedented situation for the residential and commercial real estate industry, not only in South Africa but globally. Clarity, further proposed amendments to the Regulations and challenges to the existing framework is ongoing and paramount. We will continue to speculate, assume and contrast the Law in relation to morality and Ubuntu until specificity is garnered from the Regulations.

Until then, effective communication is the key. Landlords, estate agents and tenants must communicate – we will all get through this, but only together.

Michelle Dickens
MD of TPN Credit Bureau

STB-investment-story

TUHF Limited has secured a R700 million investment from Standard Bank through the bank’s Debt Capital Markets team

This development follows TUHF’s successful execution of the Mortgage backed Securitisation of R650 million in December 2018. This new facility will be invested through the Vuselela Warehouse SPV, a special purpose vehicle, through which TUHF will continue its securitisation programme.

Speaking on this announcement, TUHF CEO Paul Jackson, said: “Our successful asset securitisation programme demonstrated two things for us. Firstly, that a securitisation product is something that the capital markets have an appetite for and, secondly, the strength of market confidence in our business.”

“TUHF offers commercial property finance loans funded through a combination of bilateral facilities and off-balance sheet securitisation structures. Asset securitisation structures form an important part of our funding architecture going forward. The Standard Bank warehouse facility gives us great impetus on the securitisation front. The assets funded by the warehouse facility will exit into the next securitisation programme. New assets will then come through the warehouse facility as we look to repeat this performance in the coming years.” adds Jackson.

The warehouse will be refinanced by the sale of the assets to the next securitisation and the process will be repeated as TUHF grows its loan book.

In 2019 TUHF’s loan book performance calculated since inception (over 17-years) was assessed in line with IFRS 9, an accounting standard on adequacy of loan loss provisions focusing on three crucial measures including; probability of default, loss given default and exposure default. The outcome shows a low expected credit loss ratio indicating that TUHF’s commercial performance over time is extremely competitive.

“Standard Bank has been TUHF’s transactional commercial bankers since 1993, showing a long-term and successful relationship with the bank, where the bank remains impressed with our loan book performance and have expressed a keen interest in our property market niche.” says Jackson.

Inner-city property investment and development is based on multi-sector economies and high demand for well-located accommodation. This is a key driver for urban regeneration, neighbourhood revitalisation, urban diversification and local economic development, which have a knock-on impact on improving further local socioeconomic activity and inclusion.

“This deal not only demonstrates the confidence that Standard Bank has placed in our business – but shows that the inner-city property market is a solid and sustainable investment. It vindicates the inner-city as our investment destination which is consistent with our business growth objectives,” concludes Jackson.

Leroy-Slava

@Fourteenth brings colourful affordable accommodation to Boksburg CBD

Intuthuko Equity Fund and purchase plus construction finance.
Location

Boksburg, Johannesburg

February 2020 – A project funded by TUHF, @Fourteenth is a bright new residential complex that offers affordable accommodation within the Boksburg CBD.

Situated opposite the Boksburg Municipality Customer Care Centre on Trichardts Road, the building was originally a mixed-use structure containing retail facilities on the ground floor and residential units on the first and second floors. However, the building had not seen successful retail undertakings for some time and was rundown. When the building was put on the market for sale, local resident and property entrepreneur, Leroy Slava, recognised an opportunity and set upon a project to not only give the building a facelift, but a new purpose.

“I own property not far from @Fourteenth that I rent out and for years, when I had been near that part of town to oversee my other property, I had driven past the original building and noticed the rapid turnover of retail tenants. I often wondered if the building would have been better suited to a different use,” says Slava. “So, when the building came up for sale in 2018 I saw this as an investment opportunity; to buy the building and convert it to a full residential rental building. I contacted TUHF for property finance as I knew this was exactly the kind of inner-city property project that TUHF has the appetite to invest in.”

“We had spoken to Leroy before about similar opportunities and were thrilled when this project met our criteria so that we could move forward,” says Khumbulani Chikomo from TUHF. “Leroy knows the Boksburg inner city, has demonstrated his property management skills and has a good track record of providing good customer service and maintaining his properties well.”

TUHF provided financing to the value of R 8.3 million for purchase of the property as well as construction, refurbishment and professional fees to complete the conversion in full. The retail floor had to be converted to create residential units, and the original residential units had to be reconfigured from large 100 m2 units to smaller units of various sizes in order to increase capacity and ensure maximum impact.

“The experience of working with TUHF has been great,” says Slava. “I rent out and manage a few smaller properties, but this was my first conversion development project and property of this scale, so it was a real learning opportunity for me too, and the team from TUHF was very supportive and helpful.”

“They went above and beyond, not just in terms of helping to establish financial feasibility but also in terms of advising on risk management. In particular, the service providers that TUHF recommended –– were a pleasure to work with.”

The building not only showed promise to be economically sustainable but fully meets TUHF’s vision of achieving ‘impact through scale’. Besides the Municipality’s Customer Care Centre, the building is situated close to the Boksburg Public Library, two schools, retail facilities, several local businesses and one of Colgate Palmolive’s satellite offices. This makes it ideally located to have a positive impact on the area and provide good quality residential space with access to all the necessary amenities.

The newly renovated @Fourteenth consists of 31 residential units, ranging from bachelor studios to 2-bedroom apartments. The refurbishment was completed recently and opened for tenanting in the first week of February 2020 – and Slava as the owner and landlord is confident that the new @Fourteenth will offer a good return on investment.

“I’m especially proud of the fact that I received an invitation to enter the 2019 Investor of the Year Awards from the SA Property Investors Network for this project – and had made it to being named a finalist for the Award. And the support and guidance I received from the team at TUHF went a long way to making that possible too. I expect @Fourteenth to be fully tenanted in the coming months – and I’m already looking forward to my next project with TUHF,” concludes Slava.

Pressage-Nyoni
Pressage-Nyoni

Pressage Nyoni, Liaison Officer

Johannesburg, Gauteng

Entrenched in the inner city, Pressage has lived in Johannesburg’s inner-city since 1987, joining ActStop Civic Organisation that year. Since then he has been extensively involved in the city’s urban development and regeneration. In 1992 Pressage joined the 7 Buildings Project, becoming General Manager of the company until 2000. He then added experience in property administration and financial management to his skills in inner-city development activism. Pressage has worked with TUHF since 2003, joining permanently in 2004.

investors header image

TUHF takes a long-term view to developing inner cities in South Africa. Despite the many challenges, the prospects for inner city residential property remain strong. The demand is ever increasing: South Africa needs safe, low-income rental housing close to people’s places of work and TUHF is poised to meet this need on ever-increasing scales.

TUHF Limited hosted a one day conference on Wednesday, 30 October 2019 gathering industry players from the public and private sector involved in inner city development including inner city property investors, development agencies, listed property funds, property managers, brokers and the media. 

The conference created a platform for sharing thought-leadership between various inner city parties to activate growth, by discovering future investment opportunities and common benefit for all inner city players. 

Presentations:

  National Inner City Trends – Prof Francois Viruly

  National Inner City Market Research – Hayley Ivins-Downes

  Site Disruptions in the Construction Industry: Reasons and Challenges – Andile Zondi

TUHF home header image

Considering the sensational nature in which content is shared by news and especially on social media, our formal communication related to recent events in the inner city is as follows.

The TUHF Group takes the recent unrest in the inner city of Johannesburg very seriously. It is a result of criminal action by a small group of people, ostensibly targeting foreign owned businesses, but spilling over indiscriminately. We condemn the unrest in the strongest possible sense. These random acts of violence and theft targeted hardworking people, both local and foreign. It also seeks to undermine the enormous socio-economic progress achieved in the inner city by its residents, its entrepreneurs and its investors.

TUHF, through its inner-city officer, Pressage Nyoni, and its property professionals maintained constant communication with SAPS, JMPD, the Metro’s MMC for Safety and Security and most specifically, its clients during this period. The reaction of our clients to protect their property and that of the enforcement agencies are to be commended.

We know, from this oversight and our reliable sources that –
–   Affected TUHF Funded areas include – Hillbrow, Yeoville, Turffontein, Rosettenville, Malvern and Jeppestown.
–   The targets of the looting and arson were mostly commercial spaces.
–   This criminal activity was clearly orchestrated, and our current concern is that the source of the orchestration is currently unknown.TUHF will continue to cooperate with the authorities in their efforts to identify where the source.

From a TUHF investment perspective, we are aware of some damage to only two financed properties, estimated to be less than R100 thousand. While this is small relative to our portfolio of approximately R2 billion investment in Joburg, it does not detract from the seriousness of the situation. TUHF’s financed buildings are mostly residential in nature and our clients were extremely proactive in protecting their properties. Lastly all our properties are comprehensively insured with additional SASRIA insurance.

We are continuing to monitor the situation, taking action where appropriate: –
–   Closely monitoring the situation by cooperating with our clients, city agencies and officials and other inner-city players and representatives
–   Publicly calling on all the agencies of government to follow the Presidents television address to stop this re-occurring and to convict perpetrators
–   Monitoring rent collection and other operational activities of our clients
–   Continuing to invest in Local Economic Development, Livelihoods and the further Regeneration of our target areas within the objective of Inclusive Growth and Transformation.

With 16 years of consistent growth downtown and TUHF’s significant contribution to urban regeneration, we are confident in the resilience of our clients and inner-city residents. We are equally confident that the inner cities of our major metros, TUHF’s target areas, remain a viable and sustainable investment destination.

Please contact us directly should you wish to discuss the situation or to ask questions at 010 595 9000.

Click here to download PDF

TUHF extends KZN Footprint

Inner city property financier, TUHF Limited’s KwaZulu Natal office recently extended their financing footprint to new areas in the Durban South Basin.  This follows significant growth over the last 4 years.

The new areas in which TUHF KZN now finances are Seaview, Clairwood, Wentworth and the Industrial area of Jacobs.

This is in addition to the existing areas in which the TUHF KZN office operates – Albert Park, Bluff, Durban Central, Overport, Pietermaritzburg Central, Pinetown Central, Umbilo and Warwick Avenue.

These residential nodes surrounded by multi-sector economic opportunities and the stock in the area lend itself to a typical TUHF project and adheres to the concept of live, work and play. “Durban South is the perfect opportunity for property entrepreneurs to invest in as it is currently an unsaturated node with many opportunities for purchasing, refurbishment or conversion of property unlocking more value for the entrepreneur and providing decent and affordable accommodation,” said Sivan Govender, Regional Mortgage Manager for TUHF Limited.

“We’ve done our research and all information indicates that these areas are suitable for single occupation, young couples and families that seek to live near their workplace.  If you’ve been waiting for an opportunity to invest in inner city property, come talk to us,” said Sabir Yusuf, Portfolio Manager for TUHF KwaZulu Natal.

TUHF’s KwaZulu Natal offices opened its doors in Durban in 2010, and since then has experienced significant growth from one loan registered in 2011 to over 2 000 decent and affordable residential units on their loan book today.

Speak to the TUHF KZN Team if you have queries and one of our Portfolio Managers will reach out to you.

Contact TUHF Durban on 031 306 5036 or e-mail info@tuhf.co.za.

More about TUHF

TUHF-GRADUATION

The inner city investment case is under threat due to the consistently above inflation increases that have been imposed through council charges over the last 10 years.  These increases affect low income households living in the inner city directly and when rental including council charge recovery become unaffordable to tenants, the investment case for downtown suffers.

 

“Low income earners who are tenants of flats in the inner city are paying similar for electricity, water and sewer charges as families living in affluent suburbs.  This is not to mention the large areas, specifically townships, who are breaching electricity and don’t pay council at all. The City, COJ in particular, needs to deal with the size of the overhead and important efficiencies in service delivery. If they collected what was due to them they should have sufficient revenue to meet their service delivery obligations without putting pressure on regular payers. We need an effective and cost efficient organisation” said Paul Jackson, CEO of TUHF Limited, an inner city property financier.  “We have seen improvements in billing and we are pleased to see that that COJ is taking the issue seriously, but there are questions to be asked around the future of inner city property investment when affordability of tenants are squeezed in this way.”

 

To this end, TUHF Limited recently hosted a thought leadership event or TUHF Talk addressing the Rising Council Charges in Affordable Housing in the Inner City.

Nic Barnes, Chairman of the Johannesburg Property Owners and Managers Association (JPOMA) was one of the speakers and used the illustration based on an average building that members of JPOMA would own. A family with an average household income of R12 000 is paying R3 988 for rent in addition to R1 183 for municipal charges per month. That is almost half of their total household income paying towards rent and council charges. What is more alarming is the general trend over the last 10 years. This makes inner city housing “unaffordable” and subsequently “un-investable”.

 

The above illustration shows that landlords have maintained their increases in proportion to the household income, whereas council charges have increased by 100%.  Source: Average of JPOMA properties.

 

As panellist at the event, inner city entrepreneur Nthabiseng Mabasa, Director at Ratcom, said “The City [COJ] increases the value of your property so that you can pay higher rates and this causes fights with tenants because of increases passed on to them. They are already under pressure with their monthly budgets and cannot afford these consistent increases”. Pressage Nyoni, Liason Officer at TUHF, shared the same sentiments saying “The rates also impact landlords who cannot afford to maintain buildings and are preventing new property owners from entering the market.”

 

What can Inner City Landlords do?

“We are taking the matter up with city councils, but in the meantime, landlords need to be proactive in the way that they deal with these rising charges,” said Jackson.

Below is a list of actionable steps property owners can consider:

 

Accurate measuring and matched billing

Check metering and rating standards for your area to ensure you are not over paying for rates, water, electricity and waste collection. Ensure your property is correctly zoned and rated for the purpose that it is used and that you are being charged the right tariffs for commercial and residential areas. Ensure that you are accurately metered and not connected to adjacent properties’ metering.

 

Employee and tenant training

Tenants are less likely to wastefully consume electricity, hot water and heating if they are pre-paying for what they consume. Prepaid meters give tenants real time control over electricity and water consumption based on pre-purchased electricity credits.

In addition, landlords can instil and drive a culture of low consumption and encourage proactive reporting of wasteful usage or leaks.

 

Regular maintenance

Dripping taps or pipes and lights left on during the day are latent things that can increase your bill.  Do an audit of our properties to ensure that there are no leaks and consider installing timers or motion detectors on lighting.

 

Consider green solutions

Energy efficiency, like property rental, is a long-term game with many green strategies will require upfront investment that will realise greater savings over months and years.

While there are many different solutions and energy saving devices, as an owner you need to be sure you choose the right energy saving strategies for your building, as no two buildings are the same.

Consider replacing baths with showers to reduce excessive hot and cold water usage.  Consider making deep basins available elsewhere for tenants who wash laundry by hand.  Dual flushing toilets will reduce the amount of water used per flush.

 

Engage your networks

Contact your local councillor to make him or her aware of the issues you are experiencing as a landlord and consider joining property networks such as JPOMA who lobby these issues at a larger scale.

Download the presentations from the TUHF Talk below:

Nic Barnes – The Impact of COJ Charges

Sqiniseko Mbatha – What you need to know: Practical Greeening

Chantelle Gladwin-Wood – THE SECTION 118(3) MONSTER – August 2019

With a number of inner city players in the commercial and industrial property sector, there is a range of funding options available to assist entrepreneurs looking to purchase.

To understand the funding you’re trying to access, you need to first understand the sector you’re operating in and the funding criteria that applies to that particular sector.

Property for example, is a long-term investment. TUHF operates as an SME property financier, that offers a 15-year mortgage product that funds conversions and refurbishments aimed at residential use in urban areas. An entrepreneur approaching TUHF you are expected to contribute 20% of your own equity towards a building project and the other 80% is raised by TUHF. The purchase price of the building, the costs of refurbishment or conversion and the equity a client can contribute from their own pocket, informs how much finance they qualify for.

To make accessibility even easier for entrepreneurs, TUHF’s lending criteria is largely focused on the perception of entrepreneurial characteristics of a potential client than their property nuance and credentials, affording them equal opportunity to enter the market.

“These entrepreneurial qualities include an open-minded attitude that is willing to take advice and someone who is self-disciplined and manages the cash flows of the property to the benefit of the property, not for personal use. Other sought-after characteristics include someone who keeps their tenants happy by keeping the property clean and well maintained, providing all round good customer service; is committed to doing everything in their power to ensure the success of the deal; is up-to-date on utilities; and directly involved in the property management, even if there is an external service provider,” according to TUHF CEO, Paul Jackson.

The distinction between inner-city property financiers and traditional commercial banks is how risk is assessed. TUHF’s ability to ‘spot potential, where others don’t’, enables the financier to support SMEs and projects in areas of decline in urban centres. The future of the affordable housing market remains promising; entrepreneurship is realised as a key driver of economic growth. Through these partnerships, TUHF has created jobs, revitalised urban neighbourhoods, combatted inequality and unemployment and, as an effect, stimulated the economy.

To address the procurement of finance, at the most favourable terms for entrepreneurs, we need to promote partnerships between the private and public sector and share the risks of funding projects. This will help the sector by providing budding entrepreneurs sustainable entry into the rental housing market. It’s very important for government to remove barriers and put in place inclusive urban development plans and policies.

On 22 February 2019, the City of Johannesburg adopted the Inclusionary Housing Policy. The policy seeks to, ‘Promote accommodation opportunities for low-income and lower-middle-income households and households who otherwise may not have afforded to live in well-located areas – close to jobs, schools and public transportation.’

According to the COJ, the framework enables a move towards a more inclusive, efficient and effective city as it provides requirements and conditions for inclusionary housing and details the different options available to developers and associated incentives to implement this housing programme.

Download article: SA Affordable Housing – July – August 2019