Housing Pre-Finance in North West

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Focus Areas: Housing

The project was funded through Federation's revolved funds and was carried out under the enhanced Peoples’ Housing Process (ePHP). Interaction with government occurred at different levels due to the different disciplines of the government housing department. This included subsidy administration, quality assurance, finance, and project management levels. Applications for housing subsidies were submitted and approved to enable the qualifying beneficiary to benefit from the housing development, with the government reimbursing FEDUP the expenses incurred in the housing construction. Each house has a kitchen, two bedrooms, a bathroom (with bath, hand basins and toilet), and a living room. It has two big windows in the front and a window for every room to allow sufficient lighting and ventilation. The increase in housing size is made possible by the sweat equity of member labour, the savings and UPFI. Through the project there is an ongoing engagement with government at the level of implementation and higher levels. The government has paid for all milestones reached subject to construction quality passing the regulations and building standards. Some of the province’s housing departments are now pushing for policy change to institute minimum RDP units to be between 40 and 45mhouses, (compared to the original 36munits). The project has the potential to be scaled settlement-wide as already most community members are joining the Federation to be part of this development, thus increasing the number of potential beneficiaries for if and when the project is scaled up. Yet rate of construction is slow and complaints have been coming from government and community in this regard. It is a consideration at the level of the Federation and uTshani to look into capital investments at a higher level from different sources including its Alliance partners and other possible capital investors. The government is willing to support the initiative as it encompasses a lot of empowerment exercises, skills transfer as well as active participation and self-help by community members. A formal joint working committee meeting takes place every month to discuss all relevant matters relating to the project and how to broaden the relationship going forward.

Location: North-West, South Africa
Bunita Kohler sdi@courc.co.za (+27) 21 689 9408 View Website
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Project information updated: 20 March 2014

Project in depth

Detailed Information

The project was carried out under the enhanced Peoples’ Housing Process (ePHP), a government housing policy. Project acitivy started in 2011. It saw the alliance of the South African Alliance of Community Organisation Resource Centre (CORC), Informal Settlement Network (ISN), Federation of the Urban Poor (FEDUP) and uTshani, the national urban poor fund, collaborate with the government in order to get subsidies for houses. Interaction with government occurred at different levels due to the different disciplines of the government housing department.
There are 25 saving groups attached to this project, which bodes well for project sustainability.  All capital investment in the project are recoverable due to the contract in place that pays a subsidy amount per beneficiary to the Federation up for every unit built albeit at milestone intervals. There is contribution made by beneficiaries which goes to cover the additional cost required for the construction of the houses. That also goes a long way in ensuring that money that goes into the project is recovered. So far the payment is relatively up to date given the pace of construction and other imperatives and constrains. The project’s inclusion of skills transfer and empowerment of the community means that the there is a sense of long term stability. 


Funding Information



Fully funded

Implementing Partners

Federation of the Urban Poor (FEDUP)

uTshani Fund