About Investment

The state subsidises social housing in order to ensure provision of rental housing of exceptional quality, at affordable rentals in well located areas. This is done through capital grant funding called the Consolidated Capital Grant (CCG).

The average cost of construction is R426 000 per unit (including land and bulk services) and the current quantum that the SHRA administers is R328 867 per unit. The grant applicant must provide the remainder of the cost through loan funding and provision of equity of which ODAs are required to provide 20% of equity.

The ideal social housing project is one that aims to restructure cities by providing low to medium income households with housing opportunities in well serviced areas of high economic activity. Investment in social housing projects is also targeted in urban areas that require revitalisation. It is hoped that this state investment will act as a catalyst for private sector investment therefore the overall aim of the social housing programme is one of restructuring and not just housing delivery.

The SHRA will only consider project applications that adhere to the investment criteria and are located in certain urban areas named restructuring zones. These are geographic areas identified by local authorities and supported by provincial government for targeted, focused investment. As per the Regulations, Chapter 5, a summary of the investment criteria is as follows:

To apply for capital grant funding, the first step is to contact the municipal and provincial official for social housing in the respective area. It is a requirement that these officials endorse your project. Thereafter, you must register the project on the social housing pipeline for assessment and accreditation as grants are warded to accredited projects. This can be done by sending an email to projects@www.shra.org.za and the project accreditation pack will be emailed to you.

Other Investment Areas

he Social Housing Investment Programme (SHIP) may invest in social housing projects in accordance with the investment criteria set out in the Social Housing Regulations.
The Sector Development and Transformation (SD&T) Programme administers the Institutional Investment Grants (IIG).

Explore what the SHRA has to offer!