Presentation on Housing Co-operatives

1. Presentation onHousing Co-operatives By SAHCA To the National Housing Portfolio Committee Parliament, Cape Town Wednesday , 24 February 2010

2. Definition of a housing co-operative • A housing co-operative is an association of people who collectively own and govern their housing on a not-for-profit basis. Using Co-operative principles which are closely associated with the spirit of 'UBUNTU', here in South Africa. • Why housing co-operatives? • By working together, members of a co-operative can provide themselves with better and more affordable housing than they could as individuals. Within the housing sector, co-operative housing meets the particular need of people wishing to build a community, have a say over how their housing is managed and promote a culture of democracy. A housing co-operative differs from other forms of tenure in that residents share responsibility, ownership and governance of their homes

3. How Housing Co-ops Provide Housing • Promoting housing through greenfields development – new building units; • Conversion of existing public housing stock (hostel to residential redevelopment) • Rehabilitation and renovation of flats and high rise buildings for decent accomodation • Upgrading of informal human settlements through the e-PHP model • Mobilizing capital for housing development • Spillover effects.

4. Coops Sweden: 300,000 units coops Norway: 300,000 units Coops Germany: 1m units Coops : Canada 900,000 units Coops in USA: 1m units Coops SA ,10,000 units Housing co-operatives: Some Examples

5. … Work together … Negotiate together … Innovate together … Learn from each other ... Capital … Power … Ideas … Skills Common Goal, CommonBond Where individuals may lack co-operative members

6. Comparative Advantages Represen- tation Economies of scale Division of labour Bargaining power Security of tenure Member partici- pation Joint innovation Membership value Stability

7. The Triple Role of Housing co-operatives Social role social services community development environment Security of Tenure Economic role Employment Growth Finance LED Opportunity Political role Democracy Social dialogue Freedom of association Empower-ment

8. Affordability and decent housing in co-ops • Member control and democratic management • Self-determination • Profit sharing (if the coop has member share capital ) according to member participation • Concern for community

9. Community Development Social Care Social Services Through Housing Co-operatives

10. Appropriate framework conditions Prerequisites Capital Security of Tenure – coop tenure Vertical and horizontal integration Technolgy Organization Co-op Management training & advice

11. Comparing to other model

12. Comparison continues.

13. Process of establishing a new housing co-op • Information session with affected communities/potential members of the co-op, relevant govt officials and managers of the co-op • Training (capacity-building) of all the above • Finalisation of the constitution and the member user agreements • Registration of the co-op • Co-op established and operated according to values and Principles

14. Who is SAHCA and what does it do? • A national Apex body for housing co-operative. • Formed by primary co-operatives to Unite, Represent and Serve its member organisation in the country

15. Objectives of SAHCA • Educate the public about housing co-operative as another tool for housing delivery in the country. • Promote housing co-operative model in all spheres of government and private sector in the country • Register and train new housing co-operatives • Lobby government to develop a policy that will cater for housing co-operative development and support. • Train the boards and members of the existing housing co-operative members around policy and legislation that govern housing • Develop pilot projects to promote different models in different provinces.

16. Objectives continue. • Mobilise resources like subsidies, grants and land for its members • Forge partnerships with the provincial and municipality in terms of housing delivery • Lobby government on behalf of the housing co-operatives • Create networks amongst housing co-operatives to share knowledge and experiences • Help set up Provincially: • Property development services • Property management service

17. National Membership Stats.

18. Current Programs • Working with the city of Tshwane and the Joburg Metro on collective community housing projects. • Epwp on training unemployed youth to learn housing construction and buildings maintenance • Working with Youth structure at the University of Johannesburg to establish the first student housing co-operative

19. Success of the Movement • The demand by communities that seek assistance to establish housing co-ops is increasing • Part of the task team on e-PHP • Drafting team of the Co-operative Act • Drafting team of the Social Housing Act • Housing Projects facilitations • The housing co-operative strategy developed with NDOH and to be incorporated into the National Co-operative Strategy

20. Challenges • Cross legislations not favourable to the housing co-ops environment • Housing Co-op are self regulatory due to lack of support from municipalities • Bad publicity by previous management companies • Lack of co-op knowledge by gov’t officials • Lack of resources to support the co-op development in the inner cities • Competition with established and supported tenures • DFI ‘s interference • Lack of the resources

21. Recommendations • A subcommitee to investigate challenges mentioned in the meantime all litigations by the NHFC to be suspended • A briefing from the Policy unit within the NDOH on their progress on the draft housing co-op policy • The NDOH to include housing co-ops in its programs for this financial year with SAHCA as its partner • SAHCA to brief the commitee on the progress of issues mentioned above • A visit by the commitee to some of the co-ops during their interaction with the communities

22. Closure • SAHCA on behalf of its members would like to take the oppportunity to thanks the commitee and the chairperson on the sterling job done in ensuring that communities live in sustainable human settlements. • Thank You!