FLISP Housing Subsidy Program: Qualifications, Funding, & Guidelines
Learn about the FLISP program, a subsidy for first-time homebuyers in South Africa, including eligibility criteria, funding arrangements, and guidelines for beneficiaries. Discover how FLISP assists in reducing the principal loan amount and facilitating home ownership.
FLISP Housing Subsidy Program: Qualifications, Funding, & Guidelines
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Presentation Transcript
OVERVIEW OF FLISP • Provides a once off down payment (Deposit) • Must have had a loan approval from a bank • May only be used to reduce principal loan amount • Available to qualifying beneficiaries • Currently applicable to housing developments with units not exceeding R300K • Administered by National Housing Finance Corporation on behalf of Provincial MEC’s of Human Settlements • May be used only for residential property • NHFC will • Standadise, streamline and centralise processes • Enter into legal agreements with Provinces. • Act as one stop shop for provinces and banks : implementation of programme • Conclude agreements with the banks • Management and disbursement of FLISP funds
WHO QUALIFIES FOR FLISP • SA Citizens or in possession of Permanent Resident Permit • Must be legally competent to contract • Have not received the benefit of the housing subsidy before • Has not owned a house before • Married or co-habiting • If single, must have financial dependants • Subsidy ranges from R10 050 (R15K Income) to R87 000 (R3501)
FUNDING ARRANGEMENT • Minister of Human Settlement annually allocate to each province funding for FLISP • NHFC to provide MEC with business plan • To cover current medium term expenditure framework • Preliminary estimates for implementation of FLISP: Yearly in August • Final figures by January each year • NHFC to report to relevant MEC’s at agreed intervals: • Status of payments • Financial aspect linked to subsidy • Consolidated statements to PHD’s • Provincial Dept will pay funds into an operating account @ NHFC • MEC to approve subsidy applications, NHFC will then: • Issue formal guarantees to lender • On registration, subsidy to be transferred to bank • NHBRC certificate to be provided on registration
SALE OF PROPERTY BY BENEFICIARY • In the events of a sale of the unit prior to the prescribed period the FLISP must be refunded as follows: • Year 1: 12.5% reduction • Year 2: 25% • Year 3: 37.5% • Year 4: 50% • Year 5: 62.5% • Year 6: 62.5% • Year 7: 75% • Year 8: 87.5% • Year 9: 100%
