DEFINING THE OUTLOOK OF THE Corporation HOUSING PORTFOLIO COMMITTEE PRESENTATION 13 APRIL 2005 HOUSING PORTFOLIO COMMITTEE PRESENTATION 13 APRIL 2005

Opportunities and 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 Context  NHFC Mandate  Job Summit  Financial Services Charter  Dedicated Banks  Co-Operative Banks  Retail Lenders and Social Housing Institutions  Other Housing Agencies  Existing Laws and Regulation – PFMA vs. Banks Act; HLMDA; Resbank.  Appropriateness to achieve lending and facilitation

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”) 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