NATIONAL HOME BUILDERS REGISTRATION COUNCIL

1. NATIONAL HOME BUILDERS REGISTRATION COUNCIL Presented by - Phetola Makgathe Chief Executive Officer ANNUAL REPORT 2004/05 01 April 2004 - 31 March 2005

2. CONTENTS • VISION • MISSION • OBJECTS OF THE COUNCIL • GOVERNANCE STRUCTURE • FINANCIAL REVIEW • SOURCES OF INCOME • STRUCTURE OF INCOME • GROWTH • INVESTMENT FUND • VALUABLE FINAL PRODUCTS • CHALLENGES • FUTURE

3. Eldorado Park

4. Eldorado Park

5. VISION… To be a world-class Housing Consumers Protection and Warranty Scheme which strives to satisfy the needs of South African Housing Consumers and Home Builders

6. Mission…

7. To represent the interests of housing consumers by providing • warranty protection against defects in new homes. • 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 the Act. • To establish and promote ethical and technical standards in the home building industry. • To improve structural quality in the interest of housing consumers and the home building industry. • To promote housing consumer rights and to provide housing consumer information. • To communicate with and to assist home builders to register in terms of the Act. • To assist home builders through training and inspections

8. OBJECTS OF THE COUNCIL • To represent the interests of housing consumers by providing warranty protection against defects in new homes. • 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 the Act. • To establish and promote ethical and technical standards in the home building industry. • To improve structural quality in the interest of housing consumers and the home building industry. • To promote housing consumer rights and to provide housing consumer information. • To communicate with and to assist home builders to register in terms of the Act. • To assist home builders through training and inspections

10. GOVERNANCE STRUCTURE

12. FINANCIAL REVIEW

13. Registration Fees Administration Costs (Non refundable) 750.00 Membership 600.00 Builders Manual 100.00 Total 1450.00 Renewal Fees 600.00

14. Enrolment Fees • Enrolment costs 1.3% of total selling price of a unit • ·Land • ·Improvements • 1.3% up to a maximum of R500, 000 selling price • Late Enrolment Fees • R150.00 per unit + 1.3% + traveling expenses. • AA rates + cost per inspection R250.00 per hour • Subsidy Enrolments • 1,75% • Document Sales • Interest Received

15. STRUCTURE OF INCOME

16. GROWTH INDICATORS

17. Valuable Final Products

19. Registration for new homes

20. Renewals of registered home builders

21. Comparison of registrations and renewals

22. Enrolled Homes

23. Late Enrolments

24. Inspections

25. Complaints

27. Fee to cover initial enrolment costs R 714 Fee to cover claim from Warranty Fund R 132 Fee to cover future costs of operation and complaint assessment R 1 080 Variation margin R 632 Total fee required (on average) R 2 558 Fee currently charged (on average) R 4 370 Reserve fee per enrolment R 1 260 Adequacy of the Current Enrolment Fees AVERAGE COST PER ENROLLED HOME

28. Non-Subsidy Subsidy Fee to cover initial enrolment cost 714 714 Fee to cover claim from warranty fund 132 44 Fee to cover future costs of operation and complaint assessment 1 080 1 080 Variation margin 632 81 Total fee required (on average) 2 558 1 919 Fee currently charged (on average) 4 370 461 Reserve fee per enrolment 1 260 (1 458) Inadequacy of the Current Enrolment Fees AVERAGE COST PER ENROLLED HOME

29. ANNUAL ENROLMENTS CLAIMS PERCENTAGE Enrolments VS Claims 2000/2001 2001/2002 2002/2003 2003/2004 77 522 680 133 303 773 173 917 759 265 178 962 963 582 1 134 062 4 381 037 10 888 243 1.24% 0.85% 2.52% 4.1%