HELP / FAQ

What does the Social Housing Foundation (SHF) do?

The SHF is the custodian-organisation for social housing in South Africa; responsible for developing the social housing sector. SHF's core activities include developing credible social housing institutions (SHIs) and co-operatives, as well as simultaneously expanding social housing capacity.

Who is The Social Housing Foundation (SHF) accountable to?

The National Department of Housing (NDOH) of the South African government.

Who does SHF serve?

The subsidized housing market, comprising low-to-moderate income families.

I would like to set up a social housing institution (SHI), where do I start?

Contact Us. SHF is here to guide you through every step of establishing an SHI. Before you start, there's a lot to learn about how social housing really works. Read How to set up an SHI for an outline of the fundamental steps.

How do I apply for donor funding?

This differs from one donor to another. Make sure you've done your homework before you apply. Foreign donors like the European Union (EU), Rooftops (Canada) and others each have their own specific application process and qualifying criteria. SHF has knowledge of each donors requirements and can assist you in your application. For guidance, Contact Us.

What is the first step in getting support from SHF?

Take The SHF Way - whatever the support it is that you need, step one is always to put your request in writing on a letterhead (if you have one) and send it to us (Contact Us). Our Customer Relationship Management (CRM) division follows through and acknowledges every written request.

We own a building, how do we convert it into social housing?

A feasibility study is necessary. Send us your written request and we'll assesses the viability of the conversion. If your building is considered potentially suitable, a case worker will be assigned and arrange an in-depth feasibility study. If your building is suitable and you decide to go ahead, the same case worker will guide you through the process to successful conversion.

What kind of buildings are suitable for conversion into social housing?

Office blocks, hostels, hotels, warehouses, existing apartments (flats).

I have existing housing stock, how do I turn it into social housing?

SHF has a tried and tested route we advise you to follow. Contact Us.

What qualifies as housing stock?

Any communal living complex where people could move in and start living eg. townhouses, apartments or flats, hostels, etc.

Where can I apply for financial assistance in setting up a social housing project?

You'll need to make two applications: (1) To the National Housing Finance Corporation (NHFC) for finance to build the housing units, and (2) To us, the SHF, for financial and technical support for establishing the Social Housing Institution (SHI) and for capacity building.

How do NHFC loans work?

The NHFC works like a bank. Loans are repayable (usually over 20-years) with set interest rates. The amount lent is determined by how many units you intend building, size of the units, the area, building costs, etc. Once you've deducted the tenant subsidies, the balance of the loan amount is what you have available to build with (eg. Total NHFC loan = R 100 000. Subtract R25 000 for tenant subsidies. R75 000 remains to cover your costs to build housing units).

How do government subsidies work?

The government subsidy is essentially a tenant subsidy. A subsidy (per tenant) is included in the loan amount received from the NHFC for building housing units. As tenants move, SHIs need to re-apply for tenant subsidies. When tenants move on (migrant laborers, for example, who transfer from one province to another), their new SHI needs to re-apply, on their behalf, for their government housing subsidy.

How do I register my company as a social housing institution (SHI)?

A legitimate SHI needs to be registered as a Section 21 Company (not-for-profit). Read How to set up an SHI.

Can research previously done for other projects be shared with us?

Yes, existing research is accessible. Simply Contact Us detailing the research you need. Whether it has been done by us or someone else, we'll share with you what we know.

Can SHF assist me with the establishment of a housing co-operative or social housing institution (SHI)?

Yes. SHF can guide you through every step of establishing a co-operative or an SHI. Before you start, there's a lot to learn about how social housing works. Read How to set up an SHI for an outline of the steps.

Can SHF guide me in writing a business plan?

Yes, although we won't write it for you. Instead, we provide a business plan template we advise you follow. Once you've done the groundwork and have a draft of your business plan, SHF can assign a case worker to coach you in refining your business plan (giving you feedback from SHFs internal panel which critically evaluates your plan).

How do I apply for tenant training?

Simply Contact Us via this site or send your request in writing on a letterhead.

Can SHF advise how to manage tenants successfully?

Yes. We have seen the best and worst of how its done. Ineffective tenant management and rental collection are major reasons why SHIs and social housing projects fail. SHF offers coaching and training on how to do it successfully.

What does tenure mean?

Tenure is the kind of right, title or condition under which property is held. In social housing, there are various tenure options (excluding individual ownership).

What are the tenure options?

Rental, rent-to-buy, instalment sale and co-operative.

What is a housing co-operative?

A democratic housing association in which members co-operate to realise the agreed goals of the co-operative.

What's the difference between a social housing organisation (SHO) and a social housing institution (SHI)?

An SHI and an SHO are the same thing. At SHF we speak more often of an SHI.

How does social housing development work in South Africa?

By two clear processes which go hand-in-hand. First, establishing and developing social housing institutions (SHIs). Concurrent with this process, we develop housing stock which SHIs manage.

Is social housing subsidized in South Africa?

Yes. Housing stock development is funded by institutional subsidies from government and supplemented by available loan funding (capacity building grants, for example).

What is the definition of social housing in South Africa?

Until new legislation is passed (scheduled for early 2005) redefining social housing, SHFs working definition is:

High quality and well-located subsidized housing managed by viable sustainable, independent institutions on participatory management principles. Social housing serves the subsidized housing market (low-to-moderate income families) providing different tenure options (with the exception of full ownership).

When did social housing begin in South Africa?

The concept of social housing is relatively new in South Africa compared to Europe, although the earliest forms of social housing appeared here in the 1920s. After World War II, the South African economy took a severe downturn; social housing became one solution to aid white South Africans rendered vulnerable and poor after the war. Aspects of social housing have been present since. The real turning point came with government's commitment to developing social housing in 1993 with the formation of the National Housing Forum (Read more about the history and evolution of housing in South Africa at www.housing.gov.za).

Is social housing totally state driven in South Africa?

No. The private sector is involved with public-private partnerships are on the increase.

Who is the intended market for social housing in South Africa?

Currently, social housing is primarily aimed at low-to-moderate income families. New legislation (scheduled for early 2005) will redefine the market.

Does social housing reach the poorest section of society?

In the South African context, social housing is ever-transforming. Legislation to redefine the target market for social housing (scheduled for early 2005). Revised legislation will inevitably steer SHF and the social housing sector to increased inclusion of the poor.

© The Social Housing Foundation | All rights reserved | Printed from www.shf.org.za/xtra/index.html