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NATIONAL RENTAL HOUSING DEVELOPMENT ENTITY TO BE ESTABLISHED
Cabinet has approved the establishment of a National Rental Housing Development Entity as a public limited company to meet the aims of the Pilot Project on housing, a Presidential Job Summit programme.
The National Rental Housing Development Unit will perform the following functions:
* Manage the various capital contributions;
* Interact with capital providers;
* Evaluate and approve social rental housing projects;
* Interact with capital providers;
* Provide rental housing policy advice;
There is a need to establish an institution that will be a dedicated vehicle to manage and provide the required level of accountability. In addition, such an institution will be a legal persona able to raise capital and ensure security to investors. To this end, the institution will have the requisite skills both in-house and on an outsourced basis to carry out the necessary activities. The National Rental Housing Development Unit will also put mechanisms to check and provide trouble-shooting services on projects, which experience problems.
The Pilot Project on Housing is scheduled to deliver between 50 000 and 150 000 units, 75% of which is earmarked for rental and 25% for ownership. The government has contributed R75m from the poverty relief fund plus R240m in housing subsidies. While the private sector has contributed R1,3b.
Enquiries: Gege Kekana, Tel: (021) 465-7295/6/7, Cell: 083-457-6577
Issued by the Ministry of Housing, 12 September 2000