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NATIONAL HOME BUILDERS REGISTRATION COUNCIL BUDGET VOTE 28, 10 MAY 2006

NATIONAL HOME BUILDERS REGISTRATION COUNCIL BUDGET VOTE 28, 10 MAY 2006 PNS Makgathe CEO: NHBRC V I S I O N TO BE A WORLD-CLASS ORGANISATION WHICH PROTECTS HOUSING CONSUMERS AND REGULATES THE HOME BUILDING INDUSTRY OBJECTS OF THE ACT To regulate the home building industry.

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NATIONAL HOME BUILDERS REGISTRATION COUNCIL BUDGET VOTE 28, 10 MAY 2006

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  1. NATIONAL HOME BUILDERS REGISTRATION COUNCILBUDGET VOTE 28, 10 MAY 2006 PNS Makgathe CEO: NHBRC

  2. V I S I O N TO BE A WORLD-CLASS ORGANISATION WHICH PROTECTS HOUSING CONSUMERS AND REGULATES THE HOME BUILDING INDUSTRY

  3. OBJECTS OF THE ACT • To regulate the home building industry. • To provide protection to housing consumers in respect of the failure of home builders to comply with their obligations in terms of this Act. • To establish and promote ethical and technical standards in the home building industry. • To improve structural quality in the interests of housing consumers and the home building industry.

  4. OBJECTS OF THE ACT (Cont…) • To represent the interest of housing consumers by providing warranty protection against defined defects in new homes. • To promote housing consumer rightsand to provide housing consumer information. • To communicate with and assist home builders to register in terms of this Act. • To assist home builders, through training and inspection, to achieve and maintain satisfactory technical standards of home building.

  5. OBJECTS OF THE ACT (Cont…) • To regulate insurers as contemplated in section 23(9)(a) of the Act; and • In particular, to achieve the stated object of this section in the subsidy housing sector.impact of HIV/AIDS on new and existing housing developments

  6. M I S S I O N The NHBRC’s Mission is: • To provide excellent customer care service to all stakeholders in the home building industry • To benchmark NHBRC’s technical standards against national and international norms • To build capacity of Home Builders with particular focus on uplifting of the Historically Disadvantaged Individuals • To promote quality and innovative construction in the home building industry • To grow and sustain the warranty fund

  7. M O T T O QUALITY IS OUR PRIORITY

  8. Special Ministerial Projects in Support of BNG / Sustainable Human Settlement SUSTAINABLE HUMAN SETTLEMENT Pilot Project in Modimolle Municipality 500 Units x 50m² Hardcore Poor • 284 Slabs have been cast • 50 Superstructures have been completed • 31 Roofs have been completed • 20 Houses have been painted

  9. Special Ministerial Projects in Support of BNG / Sustainable Human Settlement SUSTAINABLE HUMAN SETTLEMENT Pilot Project in Modimolle Municipality 200 Units x 50m² Medium Cost Units • Final Geo-tech report received by NHBRC

  10. Innovative Hub – Thorntree Soshanguve NHBRC – ABSA PARTNERSHIP Innovative or Alternative Housing Delivery Systems - 200 Units Competition - 1800 Roll-out plan

  11. Innovative Hub – Thorntree Soshanguve • Subsidy Category 45m² • Affordable Category – Cost upto R180 000 PARTICIPANTS • Subsidy Category - 8 • Affordable Category - 9 • Late Entrants – 5 Announcement of winners by the Minister will be on the 24 May 2006

  12. National Youth Programme • Bela-Bela in Limpopo • Eastern Cape • Mpumalanga and Freestate are in the pipeline

  13. Houses Built between 1994-2000(Forensic Audit)

  14. Lessons learnt in Forensic Audits • NHBRC should provide more training to emerging home builders. The quality of construction is not yet at the desirable level. • Housing consumers should be educated about the implications of alterations and additions (that are not certified by competent persons) to existing structures. • Housing consumers should also be educated about the importance of proper maintenance of houses

  15. REGISTRATIONS

  16. RENEWALS

  17. Assumptions – Revenue. Normal Housing

  18. ENROLMENTS

  19. Assumptions – Revenue Cont.

  20. LATE ENROLMENTS

  21. REVENUE PATTERN

  22. Operational Costs

  23. INSPECTIONS

  24. Training (Internal) Subsidy employment costs (full-time project inspectors) Emerging contractors, youth & homeless R 8.8 million R 20,0 million R 17,0 million EXPENDITURE Strategic Additional Budget Expenditurecompared to Actual Expenditure 2005

  25. EXPENDTURE PATTERN

  26. Income Statements - Budget Summary – Rm.

  27. Income Statements - Budget Summary – Rm.

  28. Normal and Subsidy Income Statements – Rm.

  29. Normal and Subsidy Income Statements – Rm.

  30. Non-subsidy and Subsidy Income Statements – Rm.

  31. Key Challenges • Approval of subsidy enrolment fees • Administrative non-compliance of subsidy enrolments • Technical non-compliance in the subsidy sector • Non-payment and/or late payment of enrolment fees • Appointment of relevant staff (e.g. Project Inspectors) due to the non-payment of enrolment fees • Identification of relevant home builders for training • Late enrolment of houses (Non-Subsidy) • Approval of Regulations

  32. Solutions to Challenges • Review of subsidy enrolment process completed. However, DoH still to approve the enrolment fees • Training of HBs in conjunction with PHDs • Extension of warranty products including “Additions & Alterations, Roof leaks etc” – research in progress • Establishment of satellite offices in geographically large provinces • Establishment of Provincial Customer Care Committees & Home Builder Associations • Closer working collaboration with PHDs

  33. THANK YOU Tel.: (011) 317 0010 phetolam@nhbrc.org.za Bryanston, Johannesburg

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