Summer is here in its full glory. What a privilege it is to witness nature unfolding in all her glory! Along with this The Facilitators are witnessing the unfolding of NHBRC activities after a long and difficult “winter recession”. We have experienced a steady increase in new developments as well as in single dwellings.
The NHBRC is only closing 24 December 2010. We want to use this extended period of service by the NHBRC to assist you in your early January 2011 enrolments, renewals or any other NHBRC related activities before 24th December 2010. Our experience is that NHBRC employee’s leave carries through into late January as their leave starts late December. Finalizing activities as soon as possible will ensure that no delays will be experienced when we return early January 2011.
It is now a requirement by the NHBRC and Financial Institutions that Developers also has to be registered with the NHBRC and that all residential units must be enrolled in the name of the Developers and not in the Sub Contractors name. The Sub Contractors employed by the Developers must also be registered as Building Contractors with the NHBRC.
All new homes must be enrolled with the NHBRC, whether build for cash, mortgaged, or in speculation 14 (Fourteen) days prior to construction (The Act – Government Gazette R1406 dated December 1999 – Page 51 (12.1)).
Owner Builders have to apply for exemption not to enroll his house. The Owner is not allowed to commence building his house until he has been exempted in writing by the NHBRC. Please note there are stringent regulations to be exempted as Owner Builder.
The Home Builder is not allowed to start construction until the enrolment certificate has been obtained from the NHBRC for the specified property to be constructed. Should construction commence prior to the issue of the NHBRC enrolment certificate, the enrolment will be regarded as a “Late Enrolment” together with financial guarantees varying between 10% - 30% of the Sales value.
Should the property be occupied for 90 days or more the NHBRC will not enroll it.
Local Council will from now on request NHBRC enrolment certificates before they issue Occupation Certificates.
Attorneys are being instructed by law to ensure NHBRC enrolment certificates for all new houses on or before transfer at the Deeds Office.
Undeclared Late Enrolments to the NHBRC are a criminal offence which can result in a fine of up to R25, 000 plus one year jail sentence. (The Act – Gov. Gazette R19418 Nov 1998 page 30/31 (21(1)(a)(b)).
Do note, regardless of the above The Facilitators are there to assist and resolve any problems you may encounter.
National Tel: 0861 2 ENROL \ 0861 2 36765
Fax: 086 696 3882
Website: www.the-facilitators.com
Monday, 29 November 2010
Tuesday, 23 November 2010
Banks must revise home loan policies
WINDHOEK – The average “man on the street” is denied the basic right of owning his/her own home due to commercial banks that fail to come up with innovative ideas and products to accommodate basic-salary income earners.
According to the Kavango Block Brick (K-Brick) company, a major gap exists where income earners get too much for government housing, yet too little for commercial home financing.
“The direct result is many first-time home buyers are unable to enter the housing market at an early stage in life. Even combined household incomes of N$15 000 per month put you in the so-called ‘poor’ bracket. This is due to the fact that joint incomes are not sufficient for home loan finance for conventional housing as prices are too high.
“Banks are not innovative in their thinking. At the end of the day, the banks and legal practitioners are best friends,” Heinrich Schroeder of K-Brick said.
According to Schroeder, commercial banks need to stay well informed about modern building trends and consult experts in the building industry to be able to provide tailor-made home loan packages for different income earners.
He said: “South African commercial banks have seen the gap and home loan packages are more ‘tailor made’ to accommodate people who have been previously excluded from the housing market.”
An initiative which ABSA Bank South Africa recently undertook was to evaluate different innovative housing systems by hosting and being one of the main sponsors of the 2009 International housing competition involving innovative building systems around the world.
Schroeder, who advocates usage of cheaper and environmentally-friendly housing materials, said focus of the competition was to evaluate the sustainability of various innovative non-conventional building systems which scored high marks with regard to social acceptance and structural performance.
He noted that structures were monitored on a daily basis to ensure that construction was in accordance with building regulations and also met the minimum requirements of the National Home Builders Regulation Council (NHBRC).
NHBRC provides a five-year warranty on structural performance. As a direct result of the competition, successful building systems are now listed on ABSA’s approval list for home loan finance, including Namibia’s own innovative Kavango Block Brick.
A similar project consisting of an innovative show village was initiated by the City of Cape Town in 2008.
Schroeder explained that the project was a clear example of the commercial banking sector working in conjunction with the local government to showcase innovative housing, specifically for first-time home buyers who had previously been excluded from the market, either as a result of earning too little for bank finance, yet too much for a government subsidy.
“Such projects, a direct result of South African banks working with the various local government departments, has led to the creation of the ‘GAP’ housing market which Namibian banks need to start addressing as this is the market level which most first-time home buyers fit into. Serious transformation with respect to home loan finance is needed before many Namibians are able to enter the housing market,” the entrepreneur was of the opinion.
Schroeder noted that by introducing a building regulatory body in Namibia, similar to that of the NHBRC in South Africa, the risk factor can largely be shifted from commercial banks, which would hopefully change the mindset of commercial banks to provide finance for affordable housing for all Namibians.
According to Schroeder, commercial banks in Namibia need a serious “shake-up” and the Bank of Namibia needs to put pressure on commercial banks to revise their home loan policies to accommodate the average “man on the street”.
Kavango Block Brick started the long road to success as a small to medium enterprise (SME).
“When approaching one of Namibia’s famous commercial banks for funding, it was clear that Kavango Block Brick was not going to obtain financial assistance. Vision and dedication and not the commercial banks have been the secret of Kavango Block Brick’s success,” he revealed.
According to Schreoder, once success was reached, the Development Bank of Namibia joined hands with Kavango Block Brick to reach the next level.
“K-Brick will be able to deliver in 2011 thanks to the DBN seeing the potential in the internationally-accepted Namibian building technology,” he added.
He advises Namibian SMEs associated with the construction industry to make sure that they have the expertise in line with what they are doing, and ensure they get the correct advice to protect their intellectual property, if they have an invention.
“Ensure you have a clear vision and see the success beforehand. The only way to eat an African elephant is bit by bit. Further advice is to make sure you have no debt.
“Make sure your municipal accounts are up to date and that you have some form of secure income to take care of your family. Forget commercial banks if you have any outstanding debts even if debts are directly related to getting your business off the ground!
“Commercial banks cause many potential emerging SMEs to flap like fish out of the water, as they just cannot get off the ground due to lack of financing,” said Schroeder.
According to the entrepreneur, K-Brick having reached international acclaim is set to demonstrate to the world that Namibians are sitting with the best building systems.
The K-Brick academy will provide training to SMEs in construction to work with the Kavango Block Brick building system.
K-Brick will showcase their different housing options and will launch it in the form of a show village on Namibian soil.
As a launch special, K-Brick will launch a four-bedroom family home that compares to the price of a two-bedroom house.
“It will be a historic occasion, as CNN has been invited to feature our Namibian revolutionary construction system on the programme ‘Inside Africa’,” an excited Schroeder said.
Kavango Block Brick will release its entire product range in the form of an easy-to-follow booklet towards the end of January 2011.
by Irene !Hoaës
www.newera.com.na
_______________________________
The Facilitators are the One Stop NHBRC Service Centre for all Developers, Contractors and Home Owners. For more information visit our website at:
www.the-facilitators.com
_______________________________
According to the Kavango Block Brick (K-Brick) company, a major gap exists where income earners get too much for government housing, yet too little for commercial home financing.
“The direct result is many first-time home buyers are unable to enter the housing market at an early stage in life. Even combined household incomes of N$15 000 per month put you in the so-called ‘poor’ bracket. This is due to the fact that joint incomes are not sufficient for home loan finance for conventional housing as prices are too high.
“Banks are not innovative in their thinking. At the end of the day, the banks and legal practitioners are best friends,” Heinrich Schroeder of K-Brick said.
According to Schroeder, commercial banks need to stay well informed about modern building trends and consult experts in the building industry to be able to provide tailor-made home loan packages for different income earners.
He said: “South African commercial banks have seen the gap and home loan packages are more ‘tailor made’ to accommodate people who have been previously excluded from the housing market.”
An initiative which ABSA Bank South Africa recently undertook was to evaluate different innovative housing systems by hosting and being one of the main sponsors of the 2009 International housing competition involving innovative building systems around the world.
Schroeder, who advocates usage of cheaper and environmentally-friendly housing materials, said focus of the competition was to evaluate the sustainability of various innovative non-conventional building systems which scored high marks with regard to social acceptance and structural performance.
He noted that structures were monitored on a daily basis to ensure that construction was in accordance with building regulations and also met the minimum requirements of the National Home Builders Regulation Council (NHBRC).
NHBRC provides a five-year warranty on structural performance. As a direct result of the competition, successful building systems are now listed on ABSA’s approval list for home loan finance, including Namibia’s own innovative Kavango Block Brick.
A similar project consisting of an innovative show village was initiated by the City of Cape Town in 2008.
Schroeder explained that the project was a clear example of the commercial banking sector working in conjunction with the local government to showcase innovative housing, specifically for first-time home buyers who had previously been excluded from the market, either as a result of earning too little for bank finance, yet too much for a government subsidy.
“Such projects, a direct result of South African banks working with the various local government departments, has led to the creation of the ‘GAP’ housing market which Namibian banks need to start addressing as this is the market level which most first-time home buyers fit into. Serious transformation with respect to home loan finance is needed before many Namibians are able to enter the housing market,” the entrepreneur was of the opinion.
Schroeder noted that by introducing a building regulatory body in Namibia, similar to that of the NHBRC in South Africa, the risk factor can largely be shifted from commercial banks, which would hopefully change the mindset of commercial banks to provide finance for affordable housing for all Namibians.
According to Schroeder, commercial banks in Namibia need a serious “shake-up” and the Bank of Namibia needs to put pressure on commercial banks to revise their home loan policies to accommodate the average “man on the street”.
Kavango Block Brick started the long road to success as a small to medium enterprise (SME).
“When approaching one of Namibia’s famous commercial banks for funding, it was clear that Kavango Block Brick was not going to obtain financial assistance. Vision and dedication and not the commercial banks have been the secret of Kavango Block Brick’s success,” he revealed.
According to Schreoder, once success was reached, the Development Bank of Namibia joined hands with Kavango Block Brick to reach the next level.
“K-Brick will be able to deliver in 2011 thanks to the DBN seeing the potential in the internationally-accepted Namibian building technology,” he added.
He advises Namibian SMEs associated with the construction industry to make sure that they have the expertise in line with what they are doing, and ensure they get the correct advice to protect their intellectual property, if they have an invention.
“Ensure you have a clear vision and see the success beforehand. The only way to eat an African elephant is bit by bit. Further advice is to make sure you have no debt.
“Make sure your municipal accounts are up to date and that you have some form of secure income to take care of your family. Forget commercial banks if you have any outstanding debts even if debts are directly related to getting your business off the ground!
“Commercial banks cause many potential emerging SMEs to flap like fish out of the water, as they just cannot get off the ground due to lack of financing,” said Schroeder.
According to the entrepreneur, K-Brick having reached international acclaim is set to demonstrate to the world that Namibians are sitting with the best building systems.
The K-Brick academy will provide training to SMEs in construction to work with the Kavango Block Brick building system.
K-Brick will showcase their different housing options and will launch it in the form of a show village on Namibian soil.
As a launch special, K-Brick will launch a four-bedroom family home that compares to the price of a two-bedroom house.
“It will be a historic occasion, as CNN has been invited to feature our Namibian revolutionary construction system on the programme ‘Inside Africa’,” an excited Schroeder said.
Kavango Block Brick will release its entire product range in the form of an easy-to-follow booklet towards the end of January 2011.
by Irene !Hoaës
www.newera.com.na
_______________________________
The Facilitators are the One Stop NHBRC Service Centre for all Developers, Contractors and Home Owners. For more information visit our website at:
www.the-facilitators.com
_______________________________
Monday, 15 November 2010
Solid move to fix RDP mess
A FORENSIC audit is under way to determine how much money is needed to complete hundreds of RDP houses that were abandoned by contractors, the Limpopo department of local government and housing has said.
The department has appointed the National Home Builders Registration Council to conduct the audit and advise it on the costs and how to handle the project.
The NHBRC, which is a statutory construction body for builders, has charged the department R800000 to give advice on the mess created by construction companies that were paid millions of rands and then disappeared without completing the job.
Departmental spokesperson Clayson Monyela said: "We are doing an audit of the housing projects because we do not know how much is needed to finish them.
"Communities are still phoning in to complain that their houses are incomplete, hence the action we have taken. The NHBRC will report back next month."
Some beneficiaries of RDP houses were left high and dry when their poorly built houses were brought down by winds and storms owing to bad workmanship by the contractors.
Earlier the department had said these houses were death traps, and that some needed to be rebuilt.
Monyela said the course of action would be determined by the NHBRC's findings.
"Should the NHBRC say we must complete the structures, we will abide by their call.
"And if they say we must demolish and rebuild, we will also do so."
Costs are expected to rise and will impact on other beneficiaries because the government will now be expected to push two projects; building new houses while also rebuilding the ones that were abandoned by the contractors.
By Chester Makana
www.sowetanlive.co.za
_______________________________
The Facilitators are the One Stop NHBRC Service Centre for all Developers, Contractors and Home Owners. For more information visit our website at:
www.the-facilitators.com
_______________________________
The department has appointed the National Home Builders Registration Council to conduct the audit and advise it on the costs and how to handle the project.
The NHBRC, which is a statutory construction body for builders, has charged the department R800000 to give advice on the mess created by construction companies that were paid millions of rands and then disappeared without completing the job.
Departmental spokesperson Clayson Monyela said: "We are doing an audit of the housing projects because we do not know how much is needed to finish them.
"Communities are still phoning in to complain that their houses are incomplete, hence the action we have taken. The NHBRC will report back next month."
Some beneficiaries of RDP houses were left high and dry when their poorly built houses were brought down by winds and storms owing to bad workmanship by the contractors.
Earlier the department had said these houses were death traps, and that some needed to be rebuilt.
Monyela said the course of action would be determined by the NHBRC's findings.
"Should the NHBRC say we must complete the structures, we will abide by their call.
"And if they say we must demolish and rebuild, we will also do so."
Costs are expected to rise and will impact on other beneficiaries because the government will now be expected to push two projects; building new houses while also rebuilding the ones that were abandoned by the contractors.
By Chester Makana
www.sowetanlive.co.za
_______________________________
The Facilitators are the One Stop NHBRC Service Centre for all Developers, Contractors and Home Owners. For more information visit our website at:
www.the-facilitators.com
_______________________________
Friday, 05 November 2010
Hefty fines to be imposed on builders who do sub-standard work
Primedia Broadcasting - Eyewitness News
The National Home Builders Registration Council on Thursday warned that builders who continue erecting sub-standard homes will be fined R25,000 per offence or be jailed.
Homebuilders gathered in Cape Town in order to tackle challenges facing the sector and the NHBRC said improving the quality of both the public and private-funded homes remains a top priority.
The council issued a stern warning to home builders to refrain from producing sub-standard work.
It said while it’s been able to solve some disputes it wants consumers to know the track record of their builders. This includes checking that the builder is registered with the NHBRC and adheres to its regulations.
The council’s Portia Mabunda said builders who fail to comply will be forced to rebuild the house at their own expense and can also be jailed.
(Edited by Lindiwe Mlandu)
Malungelo Booi
www.eyewitnessnews.co.za
_______________________________
The Facilitators are the One Stop NHBRC Service Centre for all Developers, Contractors and Home Owners. For more information visit our website at:
www.the-facilitators.com
_______________________________
The National Home Builders Registration Council on Thursday warned that builders who continue erecting sub-standard homes will be fined R25,000 per offence or be jailed.
Homebuilders gathered in Cape Town in order to tackle challenges facing the sector and the NHBRC said improving the quality of both the public and private-funded homes remains a top priority.
The council issued a stern warning to home builders to refrain from producing sub-standard work.
It said while it’s been able to solve some disputes it wants consumers to know the track record of their builders. This includes checking that the builder is registered with the NHBRC and adheres to its regulations.
The council’s Portia Mabunda said builders who fail to comply will be forced to rebuild the house at their own expense and can also be jailed.
(Edited by Lindiwe Mlandu)
Malungelo Booi
www.eyewitnessnews.co.za
_______________________________
The Facilitators are the One Stop NHBRC Service Centre for all Developers, Contractors and Home Owners. For more information visit our website at:
www.the-facilitators.com
_______________________________
NHBRC Insurance Needs Complete Overhaul
The operations and ambit of the National Home Builders Registration Council (NHBRC), which was set up 10 years ago to protect unsophisticated consumers against unscrupulous developers in the social housing context, urgently need to be reviewed and amended, says Leon Cohen MD of Rabie Property Group, one of the country’s top, award-winning developers.
He said while the NHBRC was initially set up to protect consumers of homes costing less than R250 000, this was soon extended to include all residential developments, regardless of value, while the NHBRC still capped its exposure to R500 000 per unit.
“The last set of NHBRC financial statements to be made public were for 2008 and these reflected the NHBRC had in excess of R2.5 billion invested.
“With further enrolments and interest that amount should now be in excess of R3,5billion.
“There is no way the NHBRC can ever spend all this money as they must be earning about R180million in interest alone on the funds they hold. The 2008 financial statements reflect that they paid out a paltry R4,5million in that year to remedy defects,” he said.
He points out the NHBRC’s risk was further reduced by the fact that developers with a bad track record are prevented from registering with the Council and that those developers that refused to rectify defects were suspended from their developer’s list.
“Since 2003 Rabie Property Group has, like many other developers, paid in excess of R40million to the NHBRC for which it has received little or no benefit.
“It is highly unlikely that any claims against reputable developers will ever have to be paid out by the NHBRC as any such problems are sorted out by the developer who has a reputation to uphold and who wishes to stay in business.”
Cohen says that over five years ago, the NHBRC promised to reduce enrolment fees but to date they still have not done so.
“In addition, Section 23(9) of the Housing Consumers Protection Measures Act, 95 of 1998 provides that the Council Advisory Committee must after five years after commencement of the Act, submit proposals to the Council for recommendation to the Minister regarding introducing outside insurers. This has also not been forthcoming.”
In the early years the NHBRC, he said, continuously quoted the United Kingdom and Australia as providing examples of similar institutions.
“However, those institutions are only in respect of single and double story buildings – not for high rise, large sectional title projects where a full professional team is involved and where these consultants all have their own professional indemnity anyhow. In these instances the NHBRC serves no purpose as many of the building contractors for these developments are listed on the JSE.”
Cohen said unlike other organizations such as SAPOA which provide a hugely valuable service to the property industry, the NHBRC appeared only to be interested in collecting money and running an expensive overhead structure which at the end of the day impacted negatively on property prices and the consumer.
“Furthermore there continues to be a total lack of communication and meaningful interaction by the NHBRC with regards to developers even though promises have been made by them to improve this.”
Cohen said at the very least the NHBRC should pay no claim bonuses or rebates to those developers who had contributed to the fund for years but against whom few if any claims had had to be paid out by the NHBRC.
“Furthermore, there is a dearth of skills in the development sector and the SETA has failed to adequately address the shortage due to lack of funds. It would benefit both the industry and job creation if the NHBRC was to earmark some of its funds to this greatly needed area and look at the reintroduction of apprenticeship training which was so successful years ago.”
Cohen added that a further anomaly was that in most cases the developer was the seller and the link between the contractor and the consumer and were themselves not responsible for the construction of the building.
“Yet developers and not contractors are the party obligated to contract with the NHBRC,” he said.
http://wap.cbn.co.za
_______________________________
The Facilitators are the One Stop NHBRC Service Centre for all Developers, Contractors and Home Owners. For more information visit our website at:
www.the-facilitators.com
_______________________________
He said while the NHBRC was initially set up to protect consumers of homes costing less than R250 000, this was soon extended to include all residential developments, regardless of value, while the NHBRC still capped its exposure to R500 000 per unit.
“The last set of NHBRC financial statements to be made public were for 2008 and these reflected the NHBRC had in excess of R2.5 billion invested.
“With further enrolments and interest that amount should now be in excess of R3,5billion.
“There is no way the NHBRC can ever spend all this money as they must be earning about R180million in interest alone on the funds they hold. The 2008 financial statements reflect that they paid out a paltry R4,5million in that year to remedy defects,” he said.
He points out the NHBRC’s risk was further reduced by the fact that developers with a bad track record are prevented from registering with the Council and that those developers that refused to rectify defects were suspended from their developer’s list.
“Since 2003 Rabie Property Group has, like many other developers, paid in excess of R40million to the NHBRC for which it has received little or no benefit.
“It is highly unlikely that any claims against reputable developers will ever have to be paid out by the NHBRC as any such problems are sorted out by the developer who has a reputation to uphold and who wishes to stay in business.”
Cohen says that over five years ago, the NHBRC promised to reduce enrolment fees but to date they still have not done so.
“In addition, Section 23(9) of the Housing Consumers Protection Measures Act, 95 of 1998 provides that the Council Advisory Committee must after five years after commencement of the Act, submit proposals to the Council for recommendation to the Minister regarding introducing outside insurers. This has also not been forthcoming.”
In the early years the NHBRC, he said, continuously quoted the United Kingdom and Australia as providing examples of similar institutions.
“However, those institutions are only in respect of single and double story buildings – not for high rise, large sectional title projects where a full professional team is involved and where these consultants all have their own professional indemnity anyhow. In these instances the NHBRC serves no purpose as many of the building contractors for these developments are listed on the JSE.”
Cohen said unlike other organizations such as SAPOA which provide a hugely valuable service to the property industry, the NHBRC appeared only to be interested in collecting money and running an expensive overhead structure which at the end of the day impacted negatively on property prices and the consumer.
“Furthermore there continues to be a total lack of communication and meaningful interaction by the NHBRC with regards to developers even though promises have been made by them to improve this.”
Cohen said at the very least the NHBRC should pay no claim bonuses or rebates to those developers who had contributed to the fund for years but against whom few if any claims had had to be paid out by the NHBRC.
“Furthermore, there is a dearth of skills in the development sector and the SETA has failed to adequately address the shortage due to lack of funds. It would benefit both the industry and job creation if the NHBRC was to earmark some of its funds to this greatly needed area and look at the reintroduction of apprenticeship training which was so successful years ago.”
Cohen added that a further anomaly was that in most cases the developer was the seller and the link between the contractor and the consumer and were themselves not responsible for the construction of the building.
“Yet developers and not contractors are the party obligated to contract with the NHBRC,” he said.
http://wap.cbn.co.za
_______________________________
The Facilitators are the One Stop NHBRC Service Centre for all Developers, Contractors and Home Owners. For more information visit our website at:
www.the-facilitators.com
_______________________________
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