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FINANCE LINKED INDIVIDUAL SUBSIDY PROGRAMME (FLISP)

FINANCE LINKED INDIVIDUAL SUBSIDY PROGRAMME (FLISP). 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

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FINANCE LINKED INDIVIDUAL SUBSIDY PROGRAMME (FLISP)

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  1. FINANCE LINKED INDIVIDUALSUBSIDYPROGRAMME(FLISP)

  2. 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

  3. 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)

  4. 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

  5. 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%

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