Affordable housing South Africa gets boost from French finance institution: "NHFC"
Affordable housing received a boost when Agence Française de Développement (AfD) entered into a loan agreement with the National Housing Finance Corporation (NHFC) on Thursday.The loan agreement is worth 20 million euros (R225 million), the NGFC and AfD said in a joint statement."The funding is intended for social and private rental projects supported by the NHFC," they said.Speaking at the signing ceremony, NHFC chief executive officer Samson Moraba said his organisation would continue to look to partnerships with the private and public sectors to deliver on its mandate."The demand for housing, in the affordable target market supported by the NHFC, continues to be far greater than the supply thereof and the Corporation continues to seek out opportunities to enhance delivery," he said.The project aimed to partly or fully finance activities that had been pre-identified by the AfD."The projects meet the NHFC criteria for social mix; close proximity to areas of employment and transport; and high urban density," the NGFC said AfD said.AfD chief executive officer Jean-Michel Severino said that until recently, downtown Johannesburg had experienced a period of disinvestment and deterioration."We believe the implementation of renovation policies and projects, such as the social housing initiative by NHFC, will attract residents, tourists, businesses and investors to revitalise this urban area," Severino said.The AfD credit line to NHFC would support the rehabilitation of central Johannesburg by, for example, funding corporate programmes such as the Affordable Housing Company (Afhco).
Afhco has been funded by the NHFC for its provision of low-cost housing and urban renewal in Johannesburg.The NHFC said it continued to be a funder of social housing institutions and in the current year had provided funding to projects in all provinces where such projects were being built."AfD as an institution is not new to us as we have enjoyed a healthy and vibrant relationship with them," Moraba said."Together, we have in the past together organised a very successful seminar that attracted influential stakeholders in low-income housing, both national and international."According to Severino, addressing the urgent need for affordable housing in South Africa was one of the imperatives of the AfD."Our funding to public and non-banking bodies such as the NHFC aims to fulfil this," he said.The NHFC was established by the government in 1996 as a development finance institution with the principal mandate of broadening and deepening access to affordable housing finance for the low- to middle-income households.It provides funding support for the residential property market, particularly when finance is not readily available.The funding commitment announced by AfD during its four-day visit to South Africa amounted to R3.5 billion."This was towards socio-economic initiatives by the Desmond Tutu HIV Foundation, Global Rating, Central Energy Fund, Transnet and the Development Bank of Southern Africa," it said in the statement.The AfD also met Capitec Bank and the Airports Company of South Africa. - Sapa
Showing posts with label nhfc. Show all posts
Showing posts with label nhfc. Show all posts
Low cost housing developer - Seakay may go bust
Low cost housing developer - Seakay may go bust
Johannesburg - Seakay, the country's largest developer of low-cost housing, is edging towards liquidation after government failed to pay it R218m for contract work - an amount for which the construction firm is preparing to sue.
Gerry Holtzhausen, executive director for Seakay, told Fin24.com the company had delivered two summonses for amounts totalling R218m to government's department of human settlements, led by Tokyo Sexwale, for the non-payment of contracts for the last two years.
"At this stage we have our hands tied behind our backs. We can't get an overdraft facility and the NHFC [National Housing Finance Corporation] is also threatening to foreclose us and liquidate us," said Holtzhausen. The NHFC is a government created financing institution.
Seakay is unable to apply for another loan owing to existing debt of R128m from the NHFC. Seakay ceded its entire debtors' book as security and has none left to give other banks.
"Government is not paying at all - and I mean at all," said Holtzhausen in an interview.
"It is more committed to 2010 [than to housing and health] and it has had to 'top slice' departments [to fund and accelerate 2010-related works] so that they can't sit with egg on their face. All the money is going to 2010-related work," he said.
Seakay's summonses relate to construction work on the N2 gateway project in Cape Town worth R133m, and an R85m sum for the Gauteng department, even though the actual contract value is R100m. "Contracts signed with government say [it will] pay in 47 days," said Holtzhausen.
More than 80% of Seakay's business is exposed to government-funded work. About 10 000 jobs related to Seakay's contract work are at risk.
Sexwale may help
"We've worked our way through the ranks and gone very high up; we've now asked for a meeting with Sexwale," said Holtzhausen.
Government asked Seakay in 2008 to support its own expenses until after the 2009 April general election, whereafter repayment would be made.
According to Holtzhausen, about R2.2bn in funds was transferred from Gauteng's treasury and handed to the Gautrain development, a high-speed rail public transport system. "All departments in Gauteng are cash-strapped."
Seakay's growing debtors' book has also heightened employee stress levels. Holtzhausen has reported site vandalism as well as the kidnapping of a contract manager.
He said it was a Catch 22 situation: the group did not wish to antagonise government as it would need it as a future source of work, but it was a listed company with shareholders. "Many smaller construction companies have closed doors because of non-payment by government."
Sexwale may look kindly on Seakay's proposals, which include a one-bar (lump sum) payment a year instead of rolling money coming in every month. "If we get cash flow stream on 90 days, we can build twice as many houses in one year.
"Tokyo [Sexwale] is going to make an announcement on housing in the next 60 days. Hopefully he's taken our bait, and if that happens it'll turn housing delivery and Seakay around."
Keywords - Seakay, Tokyo Sexwale, bust, bankrupt, low cost housing, developer, Human settlements, liquidation, nhfc, National Housing Finance Corporation, forclose, Gerry Holtzhausen, non-payment, N2 gateway
Johannesburg - Seakay, the country's largest developer of low-cost housing, is edging towards liquidation after government failed to pay it R218m for contract work - an amount for which the construction firm is preparing to sue.
Gerry Holtzhausen, executive director for Seakay, told Fin24.com the company had delivered two summonses for amounts totalling R218m to government's department of human settlements, led by Tokyo Sexwale, for the non-payment of contracts for the last two years.
"At this stage we have our hands tied behind our backs. We can't get an overdraft facility and the NHFC [National Housing Finance Corporation] is also threatening to foreclose us and liquidate us," said Holtzhausen. The NHFC is a government created financing institution.
Seakay is unable to apply for another loan owing to existing debt of R128m from the NHFC. Seakay ceded its entire debtors' book as security and has none left to give other banks.
"Government is not paying at all - and I mean at all," said Holtzhausen in an interview.
"It is more committed to 2010 [than to housing and health] and it has had to 'top slice' departments [to fund and accelerate 2010-related works] so that they can't sit with egg on their face. All the money is going to 2010-related work," he said.
Seakay's summonses relate to construction work on the N2 gateway project in Cape Town worth R133m, and an R85m sum for the Gauteng department, even though the actual contract value is R100m. "Contracts signed with government say [it will] pay in 47 days," said Holtzhausen.
More than 80% of Seakay's business is exposed to government-funded work. About 10 000 jobs related to Seakay's contract work are at risk.
Sexwale may help
"We've worked our way through the ranks and gone very high up; we've now asked for a meeting with Sexwale," said Holtzhausen.
Government asked Seakay in 2008 to support its own expenses until after the 2009 April general election, whereafter repayment would be made.
According to Holtzhausen, about R2.2bn in funds was transferred from Gauteng's treasury and handed to the Gautrain development, a high-speed rail public transport system. "All departments in Gauteng are cash-strapped."
Seakay's growing debtors' book has also heightened employee stress levels. Holtzhausen has reported site vandalism as well as the kidnapping of a contract manager.
He said it was a Catch 22 situation: the group did not wish to antagonise government as it would need it as a future source of work, but it was a listed company with shareholders. "Many smaller construction companies have closed doors because of non-payment by government."
Sexwale may look kindly on Seakay's proposals, which include a one-bar (lump sum) payment a year instead of rolling money coming in every month. "If we get cash flow stream on 90 days, we can build twice as many houses in one year.
"Tokyo [Sexwale] is going to make an announcement on housing in the next 60 days. Hopefully he's taken our bait, and if that happens it'll turn housing delivery and Seakay around."
Keywords - Seakay, Tokyo Sexwale, bust, bankrupt, low cost housing, developer, Human settlements, liquidation, nhfc, National Housing Finance Corporation, forclose, Gerry Holtzhausen, non-payment, N2 gateway
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