The Fund wishes to make its assets not only provide good retirement and insurance benefits, but also directly assist members in securing decent and affordable housing.
In trying to meet this objective, the HGPF has assisted in setting up a non-profit housing association with an investment of R20m. BHA has several projects both for flat rental and the buying of houses.
Should you need more information or wish to start a project (with not less than 10 participants), please contact this telephone number: 011 838 3751.
HOUSING FOR HOSPITALITY & GENERAL INDUSTRY WORKERS
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RETIREMENT FUNDS AND HOUSINGRetirement funds in South Africa presently control assets of R380bn. Half of these assets are the pension savings of people on incomes less than R2,000 per month. The pension funds are investing much of their assets in conventional market related investment vehicles. While this might provide for the economic growth of the pension fund, and with it pension benefits to individual member, these members are rarely assisted in an immediate way through the investment programs.Recently some initiatives have emerged which attempt to balance the need to maximize the investment for pension and the use of assets to assist members with more immediate needs. Of particular relevance is the way that the assets can be mobilized for land and housing development for those on low incomes, and specifically to unlock resources to assist low paid members of Pension and Provident funds with their housing needs.Many of these members are living in inadequate and poor housing. Even with their access to state subsidy the chances of making real progress to adequate housing is often blocked by the inability to gain access to credit at an affordable interest rate.Pension and Provident funds face a challenge in finding ways to use their assets to assist members with immediate housing needs while not jeopardizing their long-term retirement benefits.The Hospitality Industry Pension and Provident Fund, now the Hospitality & General Provident Fund (HGPF) is one of the Provident funds that has embarked on a program to structure ways of assisting its members to gain access to better housing. Increasingly it recognizes that a viable program is most effectively built in co-operation with other funds providing for workers on low incomes.
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THE HGPF HOUSING PROGRAMThe HGPF identified the following as specific problems for its members:From this has emerged a company, the Badiri Housing Association (BHA), to establish a program, preferably as a joint initiative with other funds and or employers, for the following:
- Lack of adequate basic housing for most members
- Lack of information and education about housing and housing choices
- Lack of access to affordable housing finance
- The provision of loans to individuals for housing purposes.
- The development and running of information/educational workshops on housing for members.
- Identifying potential group housing projects for members of the funds.
- Investigation into land availability and the feasibility of housing projects.
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BADIRI HOUSING ASSOCIATION – FUNCTIONSThe association fulfils the following functions:
- To receive loan finance and grants for Pension and Provident funds, employers and other relevant sources of housing finance for packaging into affordable loans to beneficiaries.
- To co-ordinate the provision of affordable loans and the systems for repayment for individual beneficiaries where appropriate in conjunction with established lending institutions.
- To develop and administer other means of obtaining finance for affordable housing for beneficiaries through savings and subsidy.
- To purchase and hold land where appropriate for development on behalf of beneficiaries
- To specify, authorise and monitor land and housing development contracts with developers, project managers and other agents delivering housing for beneficiaries.
- To provide education for beneficiaries about their housing option and to develop membership involvement and consultation in the work of financing and providing housing.
- To ensure that systems exist for the proper management of rented housing developed as part of the Associations program.
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BADIRI HOUSING ASSOCIATION – STRUCTUREThe company is registered as a Section 21 (not for profit) company. In terms of the Company’s Act it has a Board of Directors responsible for the overall management of the association. The Board of Directors are appointed by those with an active material involvement and interest in the company with directors representing both beneficiaries as well as investors. The staffing is kept to the minimum required to effectively carry out the functions.
The staff comprises of:- General Manager – to manage the functions of the Association including the organisational systems, programs, strategies and to develop and co-ordinate the housing delivery programs developed for and with beneficiaries, and to implement decisions of the Board.
- Administrator – to manage and control the administrative and financial matters of the Association.
- Housing Officer – responsible for the monitoring, control and liaison of tenants and residents.
- Project Supervisors / Managers – to manage and supervise the day to day operational functions and maintenance of each project.
- Tenants / Residents Committees have also been established at each project to work closely with BHA management on matters of mutual concern. Committee and General Meetings are attended by a representative of management to ensure continuity and sustainability.
- New tenants / residents are encouraged to join these committees.
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BADIRI HOUSING ASSOCIATION – FINANCINGThe initial project capital of R15 million was provided by HGPF in 1996 and regarded as an investment with the Association, with the specific condition that it provide the members with affordable housing below the market related rates. This amount was in turn invested in the first three main projects, Badiri House, Tanganani Township and Waterford Farm, of which a profile of each is attached hereto. The Association now finances itself by proportionally building its expenses into the various projects and by way of charges for the services it provides. This places a strong onus on the association to ensure that the service it provides gives cost effective value to the objectives of providing the best possible affordable housing for its beneficiaries. In some instances income is derived from organisational grants or subsidies and in other instances on a cost recovery basis.
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BADIRI HOUSING ASSOCIATION – BENEFICIARIES & STAKEHOLDERS / INVESTORSBENEFICIARIES – Low income workers in permanent employment in the Hospitality & General Industry and other sectors, requiring advice and support in obtaining housing, and assistance in mobilising financial resources. While people can be assisted as individuals the greater impact is through their involvement in mobilising group finance through their Pension and Provident Funds, employers and other group sources.STAKEHOLDERS / INVESTORS – Employers, Provident Funds an other organisations able to contribute capital and or material resources towards the housing of low paid workers to ensure that these resources are effectively packaged for the delivery of the good quality products for the beneficiaries
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BADIRI HOUSING ASSOCIATION – FURTHER INFORMATIONFor any further information regarding the Association please contact us at:
Tel: (011) 838 3751
Fax: (011) 838 4194
e-mail: info@badiri.co.za
