An evaluation of the Financial Sector Charter and the Community Reinvestment Bill and their implications on the delivery of low income housing finance in South Africa.

摘要

This research report is an account of the results of investigations into the critical analysis of theudprivate sector’s Financial Sector Charter (FSC) and the government’s Community ReinvestmentudBill (CRB) in comparing their anticipated advantages towards housing and housing finance forudthe low income sector in South Africa. 2 stages of data gathering were adopted; namelyudinterviews with 5 Banking Council officials and 5 Ministry of Housing officials and audquestionnaire survey with representatives from SACC, NALEDI, SANGOCO, COSATU andudSANCO which are independent organizations, which amongst other duties, generally assist inudserving the social needs of disadvantaged individuals in the society. Multi-criteria analysis andudSWOT analysis techniques were used to analyse the qualitative data.udResults showed that the most critical aspect of the FSC is the establishment of risk sharingudresponsibilities between the government and the private sector, which still needs to be resolved.udThe private sector views the CRB as a forceful mechanism with strict requirements, which wouldudresult in the private sector’s participation in provision of housing finance to the low income sectorudto be ineffective as they would be acting unwillingly. Independent organizations view the CRB asudbeing lenient on the private sector. Evaluation of the CRB and FSC showed that ultimate successudlies in the combined efforts between the government and private sector, which in turn lies in theudsettling of the Memorandum of Understanding on-going negotiations.udKey recommendations for addressing the low income sector housing and housing financeudproblems include; cultural adjustment of the banks towards low income sector individuals,udformation of partnerships in dealing with housing and housing finance problems, establishment ofudefficient secondary property markets through amenities provision and infrastructure upgrading,udidentification of effective default management models, accommodation of new intellectual ideasudand provision of different mortgage securities by banks and the government.