QUALIFYING CRITERIA
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REQUIREMENTS
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EVIDENCE TO SUBMIT IN APPLICATION
PHASE
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Con. Acc.
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Full Acc.
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1
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Appropriate legal form
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| 1.1 | A company having a share capital, whether public or private, a company limited by guarantee or a not for profit Company, |
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Company registration documents, the memorandum of Incorporation & Articles of Association.
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| 1.2 | A Housing Co-Operative, |
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Registration documents & Constitution of the Co-Operative.
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| 1.1 | A Municipal Owned Entity |
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Certificate of Incorporation
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2
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Not for Profit
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| 2.1 | Are the institution’s income and assets applied solely to advance its main object (the provision of rental or co-operative housing options for low- to medium-income households on an affordable basis, ensuring quality and maximum benefits for residents, and the management of its housing stock over the long term)? |
| 2.2 | Is any portion of the institution’s income or assets paid in any form to any founder, member, shareholder, director, trustee, beneficiary of or holder of any interest in the institution (except reasonable remuneration for goods or services actually delivered to, or at the direction of, the institution? |
| 2.3 | On its winding-up, deregistration or dissolution of the institution, are the net assets given to some other Social Housing Institution? |
| 2.4 | If the institution is a Municipal Owned Entity or Housing Co-Operative, do they distribute any profits to stakeholders and if so, are they used to advance social housing? |
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The institution’s Founding Documents
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3
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Good Governance
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| 3.1 | The applicant’s main object must be the provision of rental or co-operative housing options for low to medium-income households on an affordable basis. |
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The Institution’s Founding Documents
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| 3.2 | The applicant must be independent from other entities (other than as a subsidiary of another SHI) |
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CIPC registered founding Documents
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| 3.3 | There must be operational policies and procedures that adequately cover: |
| • | Property development and management; |
| • | Client services (tenant management). |
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| 1. | Internal Management Policies and Procedures; |
| 2. | Financial Control Policies and Procedures; |
| 3. | Property Development and Property Management Policies and Procedures; |
| 4. | Tenant Management Policies and Procedures. |
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| 3.4 | The applicant must have a policy that describes how the SHI undertakes audits of its compliance and legal requirements. |
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| 1. | Legal Compliance Policy and report. |
| 2. | Valid SARS Tax Clearance Certificate and SARS Tax Exemption Certificate (if appropriate) |
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| 3.5 | The applicant must have a fraud and corruption system in place that deals with reporting, investigation, referral and allegation of fraud, corruption and criminal conduct. |
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| 1. | Anti-Fraud and Corruption Policy |
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| 3.6 | The applicant must have a conflict of interest policy and a system in place. |
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Conflict of Interest Policy
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| 3.7 | The applicant's policies must prohibit the discrimination against any person or persons on any grounds set out in section 9 of the Constitution, including individuals affected by HIV/AIDS and individuals with special needs |
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Anti-Discrimination Policy
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| 3.8 | In respect of SHIs and Municipal Owned Entities: |
| 3.8(a) | The applicant must have policies, procedures and delegation outlining how the governing body exercises control over significant decisions. |
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| 3.8(b) | The policies, procedures and delegation must clearly set out the roles, responsibilities and accountability for the Board, Chair and Chief Executive. |
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| 2. | Code of Conduct of Directors that provides for: |
| 2.3 | Confidential Information |
| 2.5 | Obligations relative to fair dealings with clients/suppliers |
| 2.6 | A system that deals with the breach of the code of conduct. |
| 3. | Letters of appointment of directors providing for a written undertaking to comply with the Code of Conduct and a link to the Board Charter and detailed roles and responsibilities of Directors |
| 4. | Register of Conflict of Interest signed by the Directors. |
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| 3.8(c) | There must be an annual assessment of effectiveness of the governance arrangements. |
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| 1. | Organisational performance management system. |
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| 3.9 | For Housing Co-Operatives: |
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| 3.9(a) | The applicant must have a description of the business of the Co-Operative, including any restrictions on the business of the Co-Operative. |
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| 1. | Constitution of the Co-Operative that includes: |
| 1.1 | The appointment of a minimum and maximum number of Directors; |
| 1.2 | The powers and restrictions on the Directors of the Co-Operative; and |
| 1.3 | The structure for decision making and participation of members in decision making |
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| 3.10 | The applicant must display appropriate experience and skills. |
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| 1. | Summary CVs of Board members and key staff |
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| 3.11 | In respect of SHIs and Municipal Owned Entities, the Chairperson must be independent. |
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| 3.12 | The applicant must have an effective governance arrangement that delivers the aims, objectives and intended outcomes in an effective, transparent and accountable manner. |
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| 1. | Complete copies of the last two Board Packs (including the minutes) that provides for and contains: |
| 1.1 | The Monitoring of Company performance |
| 1.2 | The Comparison of the actual performance of the organisation against what was planned in the annual business plan and the long-term business plan; |
| 1.3 | The signed register of conflicts of interest, Agenda, Minutes, Detailed CEO’s report, Financial report, Committee reports and minutes, Department reports, Risk Management reports and a report on performance of the full range of services provided by the institution |
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| 3.13 | The applicant must have a business strategy |
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| 1. | Long-term business plan or strategy that provides: |
| 1.1 | objectives supporting its main object of providing social housing; |
| 1.3 | links to broader policy; |
| 1.4 | strategic goals linked to performance indicators and an annual business and operational plan and budget; |
| 1.5 | Provision for an annual review |
| 1.6 | Organisational structure aligned with the strategy |
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| 3.14 | The applicant must have contracts of key staff that must provide for a written undertaking to comply with the staff Code of Conduct and should include a system that deals with its breach thereof |
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| 3.15 | The applicant must a system of risk management to identify and mitigate key risks |
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| 1. | Risk management policy and procedures |
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| 3.16 | The applicant must meet the indicators and benchmarks set by the SHRA in terms of compliance reporting. |
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| 1. | Compliance reporting requirements |
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4.
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Financial Sustainability
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| 4.1 | The applicant must have effective accounting systems, financial management systems and management accounting procedures? |
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| 1. | Financial control policies and procedures |
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| 4.2 | The applicants most recent audited annual financial statements |
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| 1. | Audited annual financial statements |
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| 4.3 | The applicant must have a cost management system that manages costs effectively. |
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| 1. | Latest available management accounts that include: |
| 1.1 | Date of submission of management accounts |
| 1.3 | Actuals compared to budget and other time periods |
| 1.5 | Review of management accounts by Board sub-committee before presentation to the Board |
| 1.6 | Provisions for yearly items such as audit fees and bad debt written off shown on a regular basis or only at year end |
| 1.7 | Projected cash flows and actual cash flows |
| 1.8 | Detection of deviations at an early stage |
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| 4.4 | The applicant must have a budget for the next financial year that meets the set threshold of the financial performance KPIs set by SHRA |
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| 4.5 | The applicant must have a long-term financial forecast that meets the set threshold of the financial performance KPIs set by SHRA and is linked to a development plan, and shows projected cash flows. |
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Long-Term financial forecast.
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| 4.6 | The applicant must have a comprehensive and accurate financial business plan. |
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| 1. | Long-term Business Plan and Financial Strategy that includes: |
| 1.1 | A comprehensive and accurate financial business plan; |
| 1.2 | A fully costed and modelled development plan; |
| 1.3 | Adequate provision for maintenance and refurbishment of buildings; |
| 1.4 | A demonstration of viability by generating adequate resources from activities and the prudent accessing of external funds to meet the financial obligations of carrying on its affairs. |
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| 4.7 | The applicant must have auditors engaged to review adherence with the financial control policy and other key policies, regulations and legal requirements on at least an annual basis |
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| 1. | Most recent Management Letter from the auditors and Internal Audit report |
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| 4.8 | The applicant must have a reporting system in place that includes regular reporting to lenders and other stakeholders on the overall financial status of the institution |
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| 1. | Compliance monitoring and reporting requirements |
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| 4.9 | The applicant must generate the minimum surplus or yield as determined by the SHRA |
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| 1. | Compliance monitoring and reporting requirements |
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| 4.10 | The applicant must safeguard the public investment in the housing stock it owns and manages through a detailed long-term maintenance plan and annual budget. |
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| 1. | Long-term maintenance plan and budget for the next year |
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5.
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Effective Tenant/Membership Management
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| 5.1 | The applicant must have sufficient management arrangements and resources, and staffing resources to deliver excellent tenant/membership management service |
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| 1. | Organisational structure – current and planned and job descriptions of key staff |
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| 5.2 | The applicant must have a Tenant/Membership Management Plan in place |
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| 1. | Tenant/Membership management Plan that has an effective system of control to manage tenant’s complaints. |
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| 5.3 | The applicant must have tenant management policies in place. |
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| 1. | Tenant management policies and procedures that include: |
| 1.3 | a dispute/conflict resolution system that creates understanding of internal and external avenues for appeal; |
| 1.4 | an exit and termination system that makes provision for managing coordinated boycotts of rental; |
| 1.5 | The marketing of units; |
| 1.6 | a fair, open and transparent application process; |
| 1.7 | The screening of prospective clients in order to establish eligibility and affordability; and |
| 1.8 | a tenant/end-user training programme; |
| 1.9 | a tenant/membership consultation and empowerment programme; |
| 1.10 | support arrangements and a referral system to deal with identified support; |
| 1.11 | a community engagement and neighbourhood involvement plan; |
| 1.12 | a periodic tenant/membership satisfaction survey |
| 1.13 | information and communication that is appropriate to the tenants/customer about the standards of housing services and how to access these housing services |
| 1.14 | ensures a communication strategy is in place that includes the provision of information regarding applications criteria and tenant management services for potential applicants and tenants and how tenants can communicate with the SHI; |
| 1.15 | a complaints management system that creates awareness and understanding of internal and external complaints mechanisms; |
| 1.16 | training to tenants/members to sustain tenancies and to build capacity to be more effectively involved |
| 1.17 | Tenant Training Material |
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6.
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Efficient Property Management
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| 6.1 | The applicant must have a housing portfolio plan that takes into account maintenance, acquisition, disposal, managing property life cycle, efficient use of housing stock. |
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| 1. | The Housing Portfolio Plan should include: |
| 1.1 | A long term maintenance plan linked to an annual budget that makes provision for periodic large scale works to buildings, reactive maintenance and unit turnover maintenance; and |
| 1.2 | The comprehensive inspection of housing stock , done at least every three years. |
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| 6.2 | The applicant must have policies and procedures in place for property management |
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| 1. | Property management policies and procedures that include: |
And Stipulate:
| • | a control system to ensure that maintenance complaints and vacancies are turned over in the prescribed timeframes and at a good quality as prescribed; |
| • | that a comprehensive inspection of housing stock will be done at least every three years; |
| • | that a complaints management system be in place that must indicate number, type, costs, quality and turnover time; |
| • | that a tenant/membership satisfaction survey must be conducted and that the tenants must indicate their satisfaction with the condition and maintenance of the property; |
| • | that the SHI must indicate what action it will undertake to improve the maintenance services; |
| • | that a rent setting policy that calculates rentals in a way which is consistent with the terms of grant funding for the development of properties, and complies with directives of SHRA in this regard; |
| • | that a rent increase system that ensures that tenants are advised of increases in rents in the manner set out in their leases; |
| • | that a vigorous rent collection system is in place and deals effectively with rental arrears; |
| • | that there must be a systematic attempt to improve the efficiency, economy and effectiveness of its service delivery on an on-going basis. |
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| 6.3 | The applicant must have a control system in place to ensure that maintenance complaints and vacancies are turned over in the prescribed timeframes and at a good quality as prescribed in the maintenance and vacancy policies. |
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| 1. | Property management report |
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| 6.4 | The applicant must have management arrangements and staffing resources that are sufficient to deliver excellent property management service. |
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| 1. | Organisational structure - current and planned |
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| 6.5 | The applicant must meet the thresholds of the property management KPIs as set by the SHRA. |
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| 1. | Quarterly Compliance monitoring reporting requirements |
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7.
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Property Development
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| 7.1 | The applicant must have a policy that stipulates how planning and costs of development are to be established |
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| 1. | Property development policies and procedures that includes: |
| 1.1 | Working with the spheres of government and other stakeholders; |
| 1.2 | Development of new homes that meet the economic and social needs of the communities and which are sustainable environments where people want to live; |
| 1.3 | plans to produce accommodation of a particular quality; |
| 1.4 | tenants’/membership homes meet the standard set out in the social housing programme guidelines; |
| 1.5 | maintaining the homes to at least the standard set out in the social housing programme guidelines after this date; |
| 1.6 | standards of design and quality that applied when the home was built, and were required as a condition of publicly funded financial assistance; |
| 1.7 | plans to maintain the homes it built to at least the standard set out in the social housing programme guidelines; |
| 1.8 | using its housing assets for financial leverage. |
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| 7.2 | The applicant must demonstrate that it is able to effectively initiate and develop a sustainable and viable project. |
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| 1. | Property development plan that is linked to a 20 year maintenance plan and annual budget; |
| 2. | Dummy Quick Scan A, B & C |
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