Publication Date: 26/10/2015

The South African Department of Human Settlements (DHS) declared October – Habitat Month as the International community celebrated International Habitat Day on Monday, 5 October 2015. Habitat Day reflects on the current state of our cities and towns and all citizens basic human right to appropriate shelter.

Habitat Day is marked by a theme which promotes Habitat’s focal areas such as: inclusive housing amongst other considerations. It was thus appropriate that the DHS and The Banking Association South Africa Plenary Session take place during this momentous month.

The process of the signing of a Memorandum of Understanding (MoU) has been an on-going process which commenced following the signing of a Social Contract in October 2014, between DHS and private and public sector stakeholders.

Social Contract

The Social Contract for Rapid Housing Delivery was conceptualised to support the implementation of the Breaking New Ground (BNG). The Social Contract for Sustainable Human Settlements is a statement of intent to work together for a common goal, whilst appreciating and understanding the relationships between us. It provides a framework for partnerships and targeted resource mobilisation, and articulates our commitment to develop answers collectively for a shared future.

As a signatory to the Social Contract , the DHS and The Banking Association South Africa, together with other public and private sector stakeholders  committed themselves to jointly undertake to work together to deliver in the next 5 years:

  • 1.5 million housing opportunities, including 110 000 affordable housing opportunities for the gap market, 70 000 affordable rental opportunities, undertake 50 catalytic projects and install basic services and infrastructure in 2000 informal settlements, while laying a foundation that will ensure that by 2030 all South Africans live in adequate housing
  • Eradicate the backlog of title deeds for pre and post 1994 housing stock
  • Develop proposals to improve on-going coordination between the National Department of Human Settlements and The Banking Association South Africa (b) Develop proposals that promote and enhance the delivery of sustainable human settlements in both urban and rural areas
  • Collaborate with the multiple stakeholders within the housing supply and demand value chains in order to promote point b. above
  • As the Affordable Housing market segment is both commercially viable and sustainable, the sector will actively compete for business within this market segment
  • We undertake to adhere to legislative frameworks that promote good lending practice e.g. the Code of Banking Practice, the National Credit Act, the Consumer Protection Act etc.

MoU Signing – October 2015

The Aim and Purpose of the MoU

  • The MoU shall endure for a period of 3 (three) years and
  • To establish a mutually beneficial relationship, and to encourage cooperation
  • To collaborate in the translation of the Social Contract into an enhanced operational programme and project delivery plan which will be coordinated through the creation of an Accelerated Delivery of Affordable Housing working committee (ADOAH) whose aim is to:
  • Develop proposals to improve on-going coordination between the DHS, The Banking Association and other key stakeholders through the working groups that are to be established on specific areas of focus and attention
  • Develop proposals and an implementation strategy that will promote sustainable human settlements in both urban and rural areas in the identified programmes;
  • Increase and fast track the investment, financing, supply and delivery of affordable housing stock on well-located land, which promotes spatial integration and equity;
  • Increase the number of approved end user housing loans (both mortgage and non-mortgage) for affordable housing, in both the new and resale affordable housing markets segment; and
  • Set a clear programme and project delivery targets and outcomes for all stakeholders, and to actively monitor and provide semi-annual reports on progress being made in respect of these objectives.
  • In order to give effect to the aims of the ADOAH 3 technical working committees have been established:
  • Development finance work streamTT Chair:  Samson Moraba – Chief Operating officer, National Housing Finance Corporation
  • Affordable rental work streamTT Chair: Neville Chainee – DHS Dep Director
  • Functioning of the market work stream

TT Chair: Pierre Venter – General Manager at The Banking Association South Africa