NATIONAL URBAN RECONSTRUCTION AND HOUSING AGENCY

NURCHA IS A SECTION 21 COMPANY ESTABLISHED IN 1995 BY AGREEMENT BETWEEN THE SOUTH AFRICAN GOVERNMENT and THE OPEN SOCIETY INSTITUTE (OSI) OF NEW YORK.

Nurcha’s Mission Statement

Nurcha initiates programmes and take considered risks to ensure the sustainable flow of finance for low income housing.

We work in partnership with all role players in the low and middle-income housing markets to maximise housing options in a way that promotes social and economic development.

Nurcha’s vision

An organisation that is regarded as a partner of "First Resort" for those seeking innovative solutions to housing finance challenges.

OUR FOCUS THUS FAR HAS BEEN

* TO ATTRACT BANK FINANCE

* FOR LOW INCOME HOUSING

* BY SHARING RISKS WITH BANKS

* FOR PROJECT BRIDGING FINANCE LOANS


OTHER ACTIVITIES INCLUDE

* DIRECT LOANS TO DEVELOPERS (JVDF)

* FINANCING OTHER LENDERS

* RENTAL GUARANTEES

* NATIONAL SAVINGS PROGRAMME


FUNDING NURCHA

OPERATIONAL FUNDING

FOUNDING GRANT (1995)

* SA Government )

) R38,3 million

* OSI )

ADDITIONAL COMMITMENTS

* OSI (up to) R45 million

SAVINGS PROGRAMME

* SA GOVERNMENT )

* USAID ) Equal shares

* OSI )

FUNDING NURCHA

GUARANTEE FUND

BUILT ON OSI’S $50 MILLION CHALLENGE

SOURCE R MILLIONS

SIDA 41,5

OSI 39,5

SA GOVT 25

Futuregrowth 20

Norad 10

TIGF 8,5

USAID 8,5

CMDA/EU 5

Rockefeller foundation ,5

158,5

FUNDING NURCHA

JOINT VENTURE DEVELOPMENT FUND

Department of Housing 75

ADDITIONAL FUND: CREATIVE FINANCING

OSI (up to) 60


WHAT HAS NURCHA ACHIEVED?

SINCE INCEPTION (OCT 1995)

WE HAVE:

* APPROVED 487 PROJECT APPLICATIONS

* CONTAINING 160 000 HOUSES

* 102 000 HOUSES BUILT ON NURCHA SUPPORTED PROJECTS

* ISSUED GUARANTEES WORTH R300 MILLION

* PAID CLAIMS OF R3,2 MILLION

* AT LEAST 250 EMERGING CONTRACTOR PROJECTS SUPPORTED

* FINANCED THE BUSINESSES OF SEVERAL LEADING WOMEN

CONTRACTORS


THE NATIONAL SAVINGS PROGRAMME

GOALS

OVER TIME (SAY THREE YEARS) TO:

* ENCOURAGE HUNDREDS OF THOUSANDS OF PEOPLE TO ACCUMULATE SAVINGS TO CONTRIBUTE TO THEIR HOUSING.

* TO ENCOURAGE BANKS TO PROVIDE SAVINGS (AND LENDING) FACILITIES TO THE INFORMALLY EMPLOYED.

* TO ARRANGE SMALL HOUSING LOANS FOR A PROPORTION OF SAVERS

* TO REWARD SOME SAVERS BY DIRECTING HOUSING SUBSIDIES THEIR WAY

* TO ARRANGE OTHER "HOUSING BENEFITS" FOR SAVERS

PROGRESS ON SAVINGS PROGRAMME

SINCE JANUARY 2001 WE HAVE:

* AGREEMENTS WITH ITHALA, PEP BANK, STANDARD BANK (EC) THEBA BANK, SACCOL AND AGISHANA

* SIGNED UP 25 000 SAVERS

* PROPOSED A SAVINGS LINKED SUBSIDY PROGRAMME TO THE DEPARTMENT OF HOUSING

* HAD SOME PROVINCES ALLOCATE SUBSIDIES TO REWARD SAVERS

* ESTABLISHED A NETWORK OF FIELD WORKERS RECRUITING SAVERS

* RUN MORE THAN 250 COMMUNITY WORKSHOPS TO ENCOURAGE SAVINGS.