Polokwane Housing Association

 

PURPOSE 

To deal with the housing need the municipality established the Polokwane Housing Association. The entity’s current focus is to develop and manage social housing and to promote housing delivery for a range of income groups in such a way as to allow integration and cross subsidization. It is the company’s objective to provide social housing in such a way that most appropriately addresses the variety of challenges experienced in the housing sector.

SOCIAL HOUSING PROJECTS - GA RENA RENTAL VILLAGE 

As in other provinces, there has been an enormous demand for residential housing for households within a low-income category in the Polokwane Municipality. In a bid to develop and manage social housing, the Polokwane Municipality, through its entity-Polokwane Housing Associations established Thabatshweu Housing Company t/a Polokwane Housing Association Ga-Rena Rental Village. This is part of the Government’s Breaking New Ground Initiative, to promote housing delivery for a range of income groups (between R3500 and R7500) in such a way as to allow integration and cross subsidization.

BOARD OF DIRECTORS 

•Ms. Ntswaki Baloyi (Chairperson

•Adv. Tshepo Maake (Member)

•Mr. Tumisho Makofane (Member)

•Ms. Prudence Bosch (Member)

•Mr. Sanele Myeza (Member)

•Ms. Linky Fosu (Member)

DIRECTORS’ ROLES AND RESPONSIBILITIES 

The Board of Directors is responsible but not limited to the following:

•Formulation of the entities Vision and Mission and core values

•Determination of SWOT analysis for a clearer understanding of the entity

•Approval and adoption of the entity’s strategic plan

•Approval of the entity’s annual budget  & financial statements

•Reporting and disclosure of the entity performance with Auditors report and Audited Financial Statements in line with legislation and the principles of Good Corporate Governance e.g. Kings Code of Good Corporate Governance.

FINANCIAL MODELLING FOR GROWTH AND SUSTAINABILTY 

•Council approved a financial model based on the positive financial viability of the entity as analysed in the presented financial model. The model also covered aspects of financing required and security.

•Long term financing was obtained including the equity loans and NHFC loan.

•According to project calculations a total of R 60.7 million was required by the company to initially finance the first phase of development.

•All costs have been taken into consideration and calculated by professional teams led by reputable companies such as Price WaterHouse Coopers Auditors and Project Managers.

•The cash flow projections indicated that the entity would be able to repay the providers of finance through its normal operations and cash flow.

•The entity should be a profitable business and should continue to grow whilst at the same time repaying the loan.

In addition the shareholders (owners) will provide guarantees and agree to a mortgage bond being registered over property (land donated to PHA by the Municipality)

FUTURE DEVELOPMENT AND FUNDING FOR PHASE 2 

•The site development plan of the existing land is for 1000 units.

•The government subsidies have been paid for the entire development of 1000 units.

•The funding structure approved and financing thus obtained was for development of 508 units as phase one.

•Phase two development is for 492 units and funding available is at R16 million

•The entity will have to fully cost the development of phase 2 and start negotiating for further funding with stakeholders and Finance Institutions.

•The process of securing funds will be fast-tracked because of the already binding agreement with the Limpopo Provincial Department of Local Government and Housing.

ADMINISTRATION 

The administration and management of day-to-day activities of the entity is done at 35 Landros Mare Street being offices made available by the Polokwane Municipality at a notional rent charge.

The Board has appointed a Chief Executive Officer and 2 Senior Managers (Property Manager and Corporate Services Manager). Also in the entity’s employ there is a Financial Accountant, HR and Admin Officer, Housing Supervisor, Tenant Liaison Officer, Office Assistant.

PROJECTS

•The only existing project is the development of and construction of 508 units at Ladanna ext.

•The 508 units is part of 1000 units that will be developed on the site in terms of site development plans duly approved by the municipality.

•The Municipality donated land being portion 262(a portion of portion 10) of the farm Sterkloop 688,registration division L.S Limpopo Province, Erven 513,514 and 516 measuring 16.3099 ha(“the premises”) to its entity for development of the first initial social housing units.

The rentals approved for the 508 units are as follows:

•One bedroom unit –R1 275 per month

•Two bedroom unit - R1 800 per month

•Three bedroom unit-R2 150 per month

•The breakdown of the 508 units is as follows

•84 one bed room unit

•408 two bedroom unit

•16 three bedroom unit