M.Com. (Economics) / Please refer to full text to view abstract

M.Com. ( Business Management) / The dire shortage of low cost housing in South Africa has a detrimental effect on both the social and economic welfare of the country. On comparison of the percentage that housing construction comprises of the Gross Domestic Product in South Africa to the international experience, it becomes clear that this country lags behind the international trend for countries on a comparable level of economic development. Given the multiplier effect that construction causes in the economy, the importance of increased expenditure on housing become paramount.The current shortage of low cost housing, especially amongst the black population is partly the legacy of the policy of separate development followed by the National Party since 1948. Because black people were regarded as temporary citizens insufficient funds were allocated by the fiscus in the national budget. The shortage of low cost housing has increased to the point where the backlog of houses is estimate at 188 000 houses.This is beyond the ability of the fiscus to address. The need to mobilise private sector finance in the quest to eradicate this backlog is clear. Efforts by the government to supply low cost housing has met with limited success due to intervention by the mass based organisations, such as the South African National Civics Organisation. The financial institutions has withdrawn from the low cost housing market because of the losses suffered as a result of the bond boycott. A further factor inhibiting low cost housing development is the plethora of rules and regulations governing township development. The high standard of servicing required for a stand has placed the price of a serviced stand outside the affordability of the financially disadvantaged part of the population. The need to apply third world standard to a third world problem is evident. There is a need for holistic approach to the housing problem, an approach based on the co-operation of all the players in the housing field. Such a strategy can be negotiated at a representative forum such as the National Housing Forum. This can ensure the participation of communities, the government, financial institutions, private sector developers and the representatives of the mass based organisations.

"A significant number of households in need of housing in South Africa can afford to access housing credit, provided that this is available. Such credit is currently not readily accessible by most of such home seekers. Unlocking housing credit is therefore seen as a fundamental requirement in order to facilitate the ongoing improvement of the housing circumstances of such households" (Housing White Paper, 1994). Restricted access and unavailability of housing end-user finance is one of the critical challenges which faces the government in general, and the Department of Housing in particular. Access to end-user finance is limited due to many reasons which the study will identify. This study primarily looks at the access and availability of housing end-user finance to the low income earners. Basically it attempts to explore the impact of Non-Traditional Lenders in the provision of end-user finance to the poor. Non-traditional lenders refer to any lender who is not a traditional retail finance lender/company. The study looks at the National Housing Finance Corporation (NHFC) and the National Urban Reconstruction and Housing Agency's (NURCHA) attempts to mobilise housing credit. It closely pays special attention to the strategies used to mobilise the much-needed credit, their impact and the problems they encounter. This is done with the sole purpose of establishing whether or not it is possible to extend their scope to cater for the low income housing market. To realise this purpose, the study follows the path undertaken by these two institutions in terms of impacting to the poor. Agishana Credit Company's activities were investigated in order to determine Nurcha's impact, and Ithala Development Finance Corporation for the NHFC. Further, a path will be established to determine the impact of these retail lenders on the poor. Thus, Pioneer Park housing project is surveyed to determine Ithala's lending activities as well as Thembalihle (Glenwood 2) housing project for Agishana. It is paramount to indicate that both the NHFC and Nurcha do not lend to a man on the street, but deal with retail lenders. In essence, the NHFC attempts to open the floodgates of housing credit by funding intermediary lenders that on-lend to individual beneficiaries, while on the other hand, Nurcha guarantees activities by these intermediary lenders. This study is divided into five chapters. Chapter one broadly gives an overview of problems regarding access and availability of housing end-user finance and also outlines the research methodology employed. Chapter two identifies and discusses the different housing delivery systems, as well as gives a vivid picture on the functioning of non-traditional lenders. It provides both international and national experiences that proves that it is feasible to provide housing loans to the poor. Chapter three aims at offering historical background of the four institutions. It identifies their missions, sources of funds, nature of clientele, key activities and the strategies they employ with regards to defaults. Chapter four provides the finding and analysis of the surveys conducted. Firstly, a brief background of the case study areas is outlined. Then findings of the study reveal that it is safe to lend to low income households. This proves that there is a potential to successfully lend to this market without running at a loss. Chapter five is a summary of the research findings, conclusions and recommendations. The findings of the study point out that there is a place for provision of housing credit to the poor. To that end, the study recommends that, what is needed to significantly provide housing loans to this market is the amalgamation of the NHFC and Nurcha's activities; establishment of more lending institutions; encouragement of savings for housing purposes; as well as commitment to innovatively devise and introduce new lending products to cater for this market, which is equally met with strategies to level the play field in terms of legislation so that lending institutions can participate in this housing market at scale. / Thesis (M.Arch.)-University of Natal, 2000.

M.Com. (Economics) / The banks role in financing growth and development has come under the spotlight over the past year, as part of a political debate about what role the private sector should be playing to address South Africa's social and economic problems. The introduction of the proposed Community Reinvestment Bill raised the prospect that banks could be forced by government into financing low cost housing. In my opinion community reinvestment must not be pursued through the introduction of legislation by government but rather through sustainable partnerships between government and the private sector which could deal with all aspects of community reinvestment. The main purpose of the study then is to propose a framework for this partnership between government and the private sector in providing housing finance to low income housing consumers. In this way community reinvestment will be multi-faceted, reflecting the need of government to introduce concrete sanctions against racial and geographic discrimination whilst facilitating the establishment of banking capacity and foster banker willingness to support local economic development programmes. An extended literature study was undertaken which literature study serves to document current viewpoints, principles and existing research on the research objective. From the literature study, the reasons for the failure of the United States of America version of the Community Reinvestment Act is stated, the objective of the proposed Community Reinvestment Bill is considered as well as the housing finance system into which government wants to introduce this Bill. The introduction of community reinvestment is not conducive to economic growth and to illustrate this argument, the provision of housing finance by either the banks or government is considered. The attitudes, perceptions and financial behaviour of the low income housing finance consumers was also considered by documenting existing research that has already been done in this regard. A recommendation is made on a possible framework for implementation of community reinvestment in the South African environment.

M.Com. (Economics) / Please refer to full text to view abstract

Research report submitted to the Department of Building, University of the Witwatersrand in partial fulfiment of the degree MSc (Building) by Course Work / The objective of this report is to investigate certain structural imbalances in the South African financial system to assess if the technique of' mortgage securitization may serve to alleviate deficiencies in the provision of housing finance as well as prerequisite in creating a secondary mortgage market in South Africa. (Abbreviation abstract ) / Andrew Chakane 2018

The huge housing backlog that plagues South Africa requires concerted effort to develop capacity for low-income delivery systems that will improve the socioeconomic conditions of low-income people. Social housing, and housing associations in particular are recent housing delivery systems that promise to meet the needs of low-income people in South Africa. It is the intention of this research to investigate to what extent housing associations can improve housing delivery and improve the socio-economic conditions of low-income people. The literature review provides information on national experience in housing delivery. It investigates the difficulties of housing provision and how delivery fails to meet the needs of low-income people in South Africa. An international model of housing associations is used to provide an alternative form of delivery that may assist in reducing the backlog. The research uses integrated development as a framework for housing delivery. This paradigm advocates mixed landuse, and mixed income housing. Thus, it a move against 'housing in the veld" and 'one house one plot' delivery, and encourages housing delivery that is integrated with other functions within the inner city. Two examples of Johannesburg's inner city housing associations, namely Navarone and Jeppe Oval are used as case studies. These two case studies suit an integrated development approach. The survey includes a sample of 30 people from the two housing associations. Data analysis of the socio-economic issues and responses of tenants suggests that housing associations provide better living conditions and therefore a viable option for housing delivery in inner city areas of South Africa. / Thesis (M.Sc.U.R.P.)-University of Natal, Durban, 1998.

The study explores the factors hampering the growth of a sustainable lower middle income (LMI) housing market. The LMI group includes members of the working class who earn between R3,500 and R7,000 per month. The motivation for the research followed an observation made in 2003, that the policies of both the Department of Housing and the traditional banking system excluded this income category from accessing housing assistance. However, during the course of the study, the state started extending subsidy assistance to this income group, through the Breaking New Ground (BNG) policy. The study employed oral and written data collection methods. The housing market participants was divided into three broad categories, namely, demand side participants, supply side participants and the housing market facilitators. Interviews were conducted with both supply side participants and facilitators. On the demand side a questionnaire survey was conducted to establish the experiences of households in respect of the home acquisition process. The research findings revealed that LMI households require a housing typology which is described as a two bedroom detached starter house, within close proximity to a public transport system, and other community facilities for ease of accessibility. The data showed that the LMI households required financial education before getting involved in the home acquisition transaction. In addition, it emerged that professional services offered by the estate agents were not being fully utilized by the LMI households simply because the households were not aware of the responsibility of the agents in the home acquisition transaction process. It is maintained that the LMI housing market is inundated with multi-faceted hurdles from both intrinsic and extrinsic sources. The intrinsic sources include household character, past experiences amongst others, while the extrinsic sources comprise housing stock availability, loan approval criteria, etc. These hurdles require both long and short term interventions addressing the convoluted home acquisition process which involves various facilitators and a costly immovable product. In conclusion, it is recommended that demand side home ownership education is necessary, whereby LMI households are prepared for the home acquisition process. On the supply side long and short term interventions are recommended towards creating enabling environments for the supply of starter houses located close to neighbourhood facilities particularly a reliable transport network. / Thesis (M.Housing)-University of KwaZulu-Natal, Durban, 2009.

The purpose of the study was to investigate and examine the impact of the government housing subsidies in Alexandra, Gauteng, in terms of improving the socio-economic conditions of poor people. The ANC government promised to change the material conditions of people by among other things eliminating poverty when it ascended to power. Access to adequate housing is regarded as a fundamental right in terms of the prescripts of the South African constitution. By implication the government has a developmental duty to provide housing to eligible citizens. A policy decision by government in 1995 to provide housing subsidies to poor households, particularly those earning between R0-3500 rand provided a significant catalyst in the objective to improve the socio-economic conditions of poor people. That is why the study was conducted in the Alexandra Township, given the proximity of the area to affluent suburbs such as Sandton. This also provided a perfect case study to measure the effectiveness of the housing subsidy system and how the system has been managed to maximise the housing delivery impact in terms of outcomes. In terms of research findings, the expectation was that delivery of low cost housing using government subsidies should not have experienced problems on housing delivery backlogs and administrative blockages. The research results revealed that the failure to quickly improve the socio-economic conditions of poor people through providing adequate housing and creating a progressive environment to create and access job opportunities has exacerbated the state of poverty, which perpetuates dependency on state assistance. The research findings further showed that there is no conclusive evidence that many if not all beneficiaries were using their subsidised house as an asset in terms of leveraging it to improve their financial position; and that there is still a high level of dependency on government for assistance even on maintenance of these units, especially after taking ownership. This has exposed a grave lack of knowledge or information on the side of beneficiaries on how to utilise the house as an asset in order to be progressive as far as improving social and economic conditions. The overall research results demonstrated that vi the existing low cost housing funding model (in Gauteng) is not sustainable in terms of delivering subsidised housing units; and significantly improving the quality of life and standard of living of poor people. In terms of limitations, the study took to account that the new government needed enough time to translate policy into concrete implementable ideas as far as housing was concerned, hence the period of study was from 1995 to 2012. This study is important because its findings contribute knowledge in the field of Public Administration and housing literature; and also assists the Department of Human Settlements (DHS) to explore recommended solutions to improve the Housing Subsidy System. Most importantly, the study provides valuable data relating to the impact of government housing subsidies, including challenges on housing allocations and subsidies management. The study concludes with recommendations on what an effective government subsidy programme should look like. This provides an opportunity to review the entire government subsidy system, as recommended in the National Development Plan (NDP) 2030 vision. The government of the day needs to urgently review the existing grant and subsidy regime for housing with a view to ensuring diversity in product and finance options that allows for more household choice and greater spatial mix and flexibility. Moreover, government should ensure that state funding does not support the further provision of non-strategic housing investments in poorly located areas. / Public Administration / D.P.A.

Thesis (MBA)--Stellenbosch University, 2009. / ENGLISH ABSTRACT: Globally microfinance is recognised as an important tool in addressing poverty and in building the assets of poor people. Housing microfinance is emerging as an important tool for assisting poor people to improve their housing conditions and to build their asset values. However, microfinancial institutions are perpetually dogged by small scale financially unviable operations. This study seeks to identify the factors that must be present to ensure that a microfinance initiative is able to scale up significantly, and further investigates the Kuyasa Fund as an example of a microfinance organisation that is scaling up. The McKinsey 7S model is used to evaluate the Kuyasa Fund’s plans for scaling up and the shared values, strategy, structure, skills, staffing requirements, style and systems of the Kuyasa Fund is examined in determining the scalability of the Kuyasa Fund. Overall Kuyasa have either already addressed the critical factors in determining its growth or it is in the process of addressing those factors. The biggest strengths of the Kuyasa Fund in its growth plans are the cohesive strategy and in the compelling strategic intent that represents its shared values. However in the medium and long term the greatest challenge is located in the long-term financing and transformation of the Kuyasa Fund from a non-profit to a for-profit entity that has equity shareholders. In achieving this transformation Kuyasa would be required to balance its development objectives with the requirements of equity holders, who will require prescribed rates of return. Preventing mission drifts and achieving scale will be the most important tensions to balance. To mitigate these risks and to set clear guidelines for its operations, the Kuyasa board developed clear criteria for the evaluation of equity partners and the board also set a trajectory for the transformation of Kuyasa to a company. The intention of these is to guide the Kuyasa operation towards the milestones that must be reached before conversion and to set the criteria to select partners. The Kuyasa Fund’s path to conversion from a small niche player limited to one province to a national role player, transformed into an equity holding company will present interesting material for learning about scaling up development efforts, and not just for microfinance. / AFRIKAANSE OPSOMMING: Mikrofinansiering word wêreldwyd erken as ‘n belangrike hulpmiddel in die stryd teen armoede en in die bou van bates vir arm mense. Behuising-mikrofinansiering is besig om as ‘n belangrike instrument na vore te tree om arm mense te help om hul behuisingsomstandighede te verbeter en hul batewaarde op te bou. Mikrofinansieringsinstansies word egter aanhoudend lastig geval deur kleinskaalse besighede wat nie finansieel lewensvatbaar is nie. Hierdie studie poog om die faktore te identifiseer wat teenwoordig moet wees om te verseker dat ‘n mikrofinasieringsinisiatief beduidend kan uitbrei en ondersoek verder die Kuyasa Fund as ‘n voorbeeld van ‘n mikrofinansieringsorganisasie wat tans uitbrei. Die McKinsey 7S-model word gebruik om die Kuyasa Fund se planne vir uitbreiding te evalueer. Die Kuyasa Fund se gedeelde waardes, strategie, struktuur, vaardighede, personeelvereistes, styl en stelsels word ondersoek om die uitbreidingsmoontlikhede van die fonds te bepaal. Oorhoofs het Kuyasa alreeds die kritiese faktore aangespreek wat hul groei bepaal of hulle is in die proses om hierdie faktore aan te spreek. Die grootste sterkpunte van die Kuyasa Fund se uitbreidingsplanne lê in die samehangende strategie en in die gebiedende strategiese rigting wat sy gedeelde waardes verteenwoordig. In die medium- tot langtermyn is die grootste uitdaging geleë in die langtermyn-finansiering en transformasie van die Kuyasa Fund van ‘n niewinsgewende tot ‘n winsgewende entiteit met ekwiteitsaandeelhouers. Ten einde hierdie transformasie deur te gaan, sal van Kuyasa vereis word om sy ontwikkelingsdoelwitte te balanseer met die vereistes van die aandeelhouers, wat hul eie opbrengskoerse sal vereis. Om koersvas hul missie na te streef teenoor die beplande uitbreiding te behaal sal die belangrikste spannings wees om te balanseer. Ten einde hierdie risiko’s te beperk en duidelike riglyne daar te stel vir sy bedrywighede, het die Kuyasa raad duidelike kriteria ontwikkel om ekwiteitsvennote te evalueer. Die raad het ook ‘n vorderingsplan bepaal vir die transformasie van Kuyasa tot ‘n maatskappy. Die bedoeling hiervan is om die Kuyasa bedryf te lei op die pad na mylpale wat bereik moet word voordat omskakeling kan plaasvind en om kriteria daar te stel om vennote te kies. Die Kuyasa Fund se pad na omskakeling van ‘n klein niche speler, beperk tot een provinsie, tot ‘n nasionale rolspeler, wat getransformeer het tot ‘n ekwiteitsmaaskappy sal interessante leergeleenthede bied oor die uitbreiding van ontwikkelingsmaatskappye en nie net op die gebied van mikrofinansiering nie.