About Social Housing

Social housing can mean different things to people, with no single, simple definition. In South Africa, social housing often refers to a specific government programme aimed at promoting affordable rental accommodation in well-located urban areas, i.e. close to jobs, schools and social amenities. These subsidized social housing projects are constructed and managed by Social Housing Institutions (SHI) or Other Delivery Agents (ODA) for households earning between R1,850 and R22,000 per month. Social housing providers (not-for-profit SHIs or for-profit ODAs) receive a government grant to reduce the capital costs, which allows them to charge below-market rentals to tenants, while planning for additional loan finance (usually from private financial institutions) to pay for the remaining capital costs, while the rentals charged to tenants are projected to meet the ongoing management and maintenance costs.

By providing low- and middle-income households with affordable rental accommodation in well-located urban areas, the social housing programme aims to promote social mobility, urban integration and inclusive economic development. Social housing apartments usually take the form of medium-density housing rather than free-standing houses so as to utilise accessible urban locations, where land is expensive and a compact built form is desirable. The SHI or ODA – as the institutional owner of the flats – is responsible for maintenance and repair of the housing stock to ensure sustainability and enable successive generations of tenants to have access to affordable accommodation, they may also provide supplementary services such as security, childcare, play areas or jobseeker support, thereby enhancing livability. Social housing may also be clustered with other kinds of housing in larger precincts to foster more diverse and mixed neighbourhoods.

Social housing projects are highly regulated under the Social Housing Act (No. 16 of 2008) and related policy frameworks such as the Social Housing Policy (NDHS, 2005) and the Housing Code (NDHS, 2007). To receive the government subsidy, social housing projects must be located in Restructuring Zones, which are identified by local municipalities and supported by provincial government and the National Department of Human Settlements. The regulations also stipulate norms and standards for social housing projects; minimum requirements for cross-subsidisation; a racial integration within projects; While the aim is to reach down deeply into the market (thus catering for low- income households), projects also need to achieve an income mix, with middle-income beneficiaries ideally earning from different racial backgrounds, good cross-subsidisation; sound financial management, regular income, good credit records and the ability to pay a deposit equal to three months' rental. The regulations place a limit on rental increases over time.

The Social Housing Regulatory Authority (SHRA) is the regulatory body responsible for regulating, capacitating, and investing in the social housing sector. It administers the subsidies available to social housing institutions and monitors compliance with norms and standards. Municipalities have a role in facilitating social housing in their areas, including making public land available at discounted prices. There is a broad array of other stakeholders engaged in the social housing sector, including developers, social housing institutions, property managers, development finance institutions, and financiers, research agencies, and representative bodies. At a provincial level, co-ordination is provided by a Provincial Steering Committee (PSC). At the national level, the National Association of Social Housing Organisations (NASHO), the umbrella body of 21 social housing institutions (SHIs), works to support the growth and professionalisation of the sector through advocacy, information and training. They are supported by civil society organisations, such as the Development Action Group and Ndifuna Ukwazi, who have long advocated for more social housing provision in our towns and cities.