DEFINING THE OUTLOOK OF THE Corporation

DEFINING THE OUTLOOK OF THE Corporation

HOUSING PORTFOLIO COMMITTEE PRESENTATION

13 APRIL 2005

HOUSING PORTFOLIO COMMITTEE PRESENTATION

13 APRIL 2005

Opportunitiesand ProspectsOpportunitiesand Prospects

– To meet and satisfy the rising demand/needs for decent housing/shelters in the target sector by direct means

– To optimise government resources in leveraging housing finance;

– To deepen access to finance to lower end of the market.

– Additional financing capacity thru Dedicated Banks and Co-operative - partnerships? Refinancing?/ Bridging loans?

ANY OPTION SELECTED WILL HAVE COST IMPLICATIONS ON GOVERNMENT.

Summary – Market ContextSummary – Market Context NHFC MandateNHFC Mandate

Job SummitJob Summit

Financial Services CharterFinancial Services Charter

Dedicated BanksDedicated Banks

Co-Operative Banks Co-Operative Banks

Retail Lenders and Social Housing InstitutionsRetail Lenders and Social Housing Institutions

Other Housing AgenciesOther Housing Agencies

Existing Laws and Regulation – PFMA vs. Banks Act; HLMDA; Existing Laws and Regulation – PFMA vs. Banks Act; HLMDA; Resbank.Resbank.

Appropriateness to achieve lending and facilitationAppropriateness to achieve lending and facilitation

Mandate (current “objects”)Mandate (current “objects”)

• To support engagement of the banking sector in the target market

• To undertake funding as a wholesale intermediary

• To underwrite wholesale funds to retail intermediaries

NHFC Mandate (current “objects”)

NHFC Mandate (current “objects”)

• To undertake proactive programmes aimed at building capacity at the retail level

• To identify, assess, price, monitor and manage risks associated with placements of wholesale funds with retail intermediaries.

Outlook of the Corporation…

Financing Direct and Indirect

• Supporting integrated housing development

Facilitation• Underwriting funding

– Guarantees – Brokering for Issues of shares– All matters incidental

• Investments• Subsidy Mobilisation• Providing liquidity support for housing and

housing finance• Undertake research • Warehousing land and property for

housing development

Government Agent

• Manage and mobilise grant funding and other special deposits

• Promote and support govt. priority projects/programmes

• Advice and assist with overall housing policy to promote the growth of housing and housing finance institutions

Technical Assistance

• For Delivery of housing and housing finance

• Training to ensure sustainability of programmes and sector development

• Promote, establish and support creation of technical competence and capacity in institutions e.g.– Establish technical assistance funds– Partnerships