“Learning Hubs” launched in three South Africa cities

By Barry Pinsky, Executive Director

The Equal Spaces Project in South Africa recently launched three “Learning Hubs” with over 30 participants in three South African cities. Two of us also connected by skype from Canada. The new video-conference facilities are hosted by the National Association of Social Housing Organizations (NASHO) in Johannesburg, and two social housing institutions – Communicare in Cape Town and SOHCO in eThekwini.

Learning Hub in action at NASHO in Joburg

Speaking from the NASHO offices, Julie Shouldice, Head of Cooperation in South Africa for Global Affairs Canada noted that “While social housing seems to be a bricks and mortar business, it relies very much on exchanges, interactions and collaboration. The learning hubs will allow for many more opportunities to meet. Canada is very proud to be part of this project and appreciates the hard work done by many others to get it going.”

Anthea Houston, CEO of Communicare, pointed out that “This is an important moment for social housing to thrive in South Africa. There has been a shift in awareness about the social injustice of locating people in dormitory suburbs while well-located social housing is combatting the legacy of apartheid planning. The learning hubs should accelerate this work by helping people learn from other experiences in the country.”

Smangele Moloi, Manager of Social Housing from the City of eThekwini reinforced the importance of social housing in the face of rapid urbanization and its link to the New Urban Agenda that emerged from Habitat III. She is “looking forward to using this new technology to work together.”

John Mofokeng from NASHO and Jo Ferris-Davies from the Rooftops Canada Equal Spaces team, also outlined plans for Learning, Innovation and Networking programs using the three hubs. One of the very exciting ideas is to help all categories of social housing employees to meet, share experiences and develop new ways of going about the business of providing decent, affordable housing. Due to the costs of travel, this has often been restricted to senior managers, but can now include other staff such building supervisors, community development workers and credit controllers.

Not unexpectedly, there were a few technical glitches and everyone needs to get used to the technology. An upcoming workshop to share ideas for a gender equality strategy for the social housing sector will be a good test. We’ll let you know how it goes in our next post.

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Barry Pinsky Receives Award from Governor General By Scott Jackson, President, Rooftops Canada

 

The Board of Rooftops Canada is very proud to announce that our Executive Director, Barry Pinsky, has been awarded the Meritorious Service Medal by the Right Honourable David Johnston, Governor General of Canada. The Meritorious Service Awards “recognize outstanding accomplishments that set an example for others to follow and bring benefit to our country.”

The award recognizes Barry’s role in Rooftops Canada and international development on behalf of the co-operative and social housing movements in Canada. Under his leadership, Rooftops Canada has mobilized over $40 million to support overseas housing, rights and economic development organizations in Africa, Asia, Latin America and Eastern Europe. This has leveraged hundreds of millions of additional dollars in housing and development activity, primarily in Sub-Saharan Africa. As a result, tens of thousands of families in the global South have secure tenure, better homes and stronger communities.

“Barry had a vision that enabled our movement to help more people to achieve decent affordable housing,” says Nicholas Gazzard, CHF Canada’s executive director. “We are all  proud and honoured to see Barry recognized.”

According to Barry, “While it is wonderful to be singled out, none of this would be possible without the engagement of many deeply committed Rooftops Canada staff, board members, advisors, young professionals and volunteers. The support of co-op and social housing organizations across Canada has been critical to our success. We have also enjoyed a long-standing and very productive relationship with the Government of Canada’s international assistance programs. I have also had the opportunity to work with so many amazing overseas partners. ”

“Mazingira Institute in Nairobi congratulates Barry on a well-deserved honour” says its executive director Davinder Lamba. “With Barry’s guidance, Rooftops Canada has always been responsive to issues coming from its African partners. We have appreciated working together for many years to secure housing and land rights in the region.”

Prior to working full-time for Rooftops Canada, Barry helped coordinate the development of many housing co-ops in Montreal, Peel-Halton Region and Toronto. He has received the CHRA International Award, the CMHC Award for Outstanding Contribution to Co-operative Housing, and he was named a “Wisdom Keeper” by the Habitat International Coalition (HIC). He has participated in many official Canadian delegations to UN Habitat events and presented at numerous workshops and conferences.

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Social Housing Portfolio Diversification in South Africa

By Jo Ferris-Davies

On May 24, the Equal Spaces Project and the National Association of Social Housing Organizations held a full day workshop in Johannesburg for social housing institutions (SHIs) interested in developing for profit housing within their overall housing portfolio.  Key financial institutions and representatives of the Social Housing Regulatory Authority also participated.  It was a remarkable meeting – on a number of different levels. The financial concepts being bandied required a very sophisticated knowledge base. The materials were dense and it was a challenge to keep up with the discussion and its implications while also facilitating the discussions.

Jo Ferris Davies with workshop participants

Jo Ferris Davies with workshop participants

The South African SHIs had several reasons for considering portfolio diversification despite some potential risks. First, like social housing providers everywhere, they want to grow their business without government funding. Second, with additional cash flows from for profit housing, they can develop more affordable housing or very importantly re-invest into their own maintenance and capital reserves.  Most SHIs have very inadequate capital reserves for long term maintenance of their housing so this is very compelling notion.  Finally, it provides the sector with greater access to lenders – by extending relationships to the equity investment market.

The local consultant engaged by the Equal Spaces Project focused her presentation on for profit affordable rentals as the best alternative to diversify an SHI’s portfolio.  In South Africa, oWorkshop particpants 2ffice and commercial space are risky investments. Middle and affluent residential are also risky with high vacancy and default rates. Development and sales of housing are particularly difficult due to a down turn in the local economy here in South Africa. Overall reported mortgage numbers declined significantly in 2016 due to affordability and down payment issues. Developers are of the opinion that only one in four potential purchasers can secure a mortgage.

The remaining sweet spot for diversification is affordable rental housing.  Broadly speaking when looking across the country, rents need to be targeted in the $350 to $800/ month range. This in the housing “gap” between government subsidized housing and private market ownership.   Especially attractive are one and two bedroom units as people choose to share the space to make the unit more affordable.  Often, “non-traditional” households lease these units.

Recognizing that housing development is a boom or bust sector, it was advised that SHIs build up their capabilities by developing affordable rental units.  With an appropriate development and marketing infrastructure in place, the SHI could transition into housing sales when the market.is strong.

Social housing providers in South Africa, as is the case elsewhere, have very weak equity positions. This is a huge challenge for providers wanting to develop for profit affordable housing to diversify their portfolio. The workshop considerWorkshop particpants 1ed layering financial instruments with several tranches of equity investments. This model definitely has risks. The SHI has to secure the right investment at the right price in the right neighborhood close to transportation. And, they must have the ability to efficiently manage the housing minimizing any bad debts and vacancies.

When I asked the question “is it worth proceeding based on these very real risks” – the answer provided was it was a greater risk to not proceed.  Heady times indeed.

As a next step we will follow up with SHIs to encourage them over the next six months to prepare a business model to develop affordable for profit housing rentals. We will offer to critique these before organizing a workshop with actual equity investors who will hear each “pitch” and provide feedback to the SHIs. This will help them develop partnership relationships with investors. We intend to support four or five SHIs to take a leadership role for the sector.

Finally, I would like to thank Steve Pomeroy from Focus Consulting in Ottawa who provided support to the project on a volunteer basis working very closely with our South African financial consultant.

 

 

 

 

 

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South African Study Visit Offers Valuable Insights and Inspiration

By: Jo Ferris-Davies, Senior Technical Advisor, Rooftops Canada

I was very fortunate to accompany a study visit of senior South African social housing sector representatives to Toronto in March. It was a wonderful opportunity to check the pulse of our social housing sector in Canada through the eyes of South Africans with whom I am now working as part of the Rooftops Canada Equal Spaces project.

I left Johannesburg with flowers and trees blooming everywhere and arrived in Toronto to a city of grey.  Despite cold, damp weather Toronto shined.  At the end of our daily program, I led several neighborhood walking tours pointing out various landmarks including social housing.   Seeing the city through the delegates’ eyes reminded me why Toronto is such a great city.  We take for granted that we have an affordable, functional transit system.  We forget that walking late alone at night in the city is a dangerous practice in so many places in the world.  Seeing the diversity of the population and experiencing day to day courtesies from ordinary citizens made me proud to be a Torontonian.

Over the past few years, Canadian social housing providers have been transforming our sector to be more business-like. Great efforts have been made to establish shared services.    The purpose of the study visit was to learn from examples of Canadian based shared services and back office practices in both management and development of social housing.

We drew on speakers from across Canada to illustrate what they had put in place and explain the benefits to their sector.   All of the speakers were fabulous. – both informative and inspirational.   They reminded me of just how creative, imaginative, and efficient our sector can be.  Many of the South African participants have since reported that they implemented immediate changes upon returning to their communities and work places.  All were influenced by what they heard and saw.

Study visit delegates from NASHO and the SHRA during presentation in TCH building at 230 Sackville St.

Interestingly although we designed an interactive program around back office practices and shared services, many of the presentations and site tours reflected a community development approach to working with tenants and stakeholders.   When Betty Ann Baker talked about the property management efficiencies of Niagara Penninsula Homes, she also talked about innovative social enterprises to support tenants develop small local based businesses.  When Lori Anne Gagne presented the back office set up of Victoria Park Homes, she also showcased all the programs they have with outside agencies to bring critical skills and programming for their tenants.  When we toured TCHC and Regent Park – the notion of mixed income communities and focused community development practices  caught the interest of delegates.  These learnings were some of the unintended consequences of the visit.

Canadian hosts and resource people with SA visitors at Victoria Park Community Homes

We will soon meet again in Johannesburg to distill exactly what the sector here will focus on in terms of a back office approach to management and development.  But I can say that already one social housing institution has created a full time community development position.  Another has adopted the idea of a mixed community – low income social housing mixed with for sale units, and commercial space – as a strategic direction for its board.   The changes for some have been immediate and profound.  I will update readers of the Rooftops Canada blog as we work through the changes the sector wants to implement in South Africa.  Interesting times.

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Sharing best practices: South African study visit to Toronto and Hamilton

By: Brad Lester, Overseas Program Manager, Rooftops Canada

SA visitors with Don McBain, Kevin Albers and Woodgreen’s CEO Anne Babcock

We were sorry to see our South African study visitors return home on 25 March after an exciting and exhausting week in Toronto and Hamilton. Three of our visitors, Kelikile Kwinana, Phakamile Ximiya and Rheena Hansarajh, represented the Social Housing Regulatory Authority (SHRA) which provides capital grants and capacity building support to social housing institutions which it also accredits. Pasana Mbonane, John Mofokeng, Gafee Vengadajellum, Andrew Wiseman and Anthony Lloyd represented the National Association of Social Housing Organizations (NASHO). Rooftops Canada is working with both the SHRA and NASHO on the Equal Spaces to End Social Apartheid Project. Global Affairs Canada is the primary funder and a project partner.

Frank Lewinberg led the visitors on a social housing tour

Following a tour of downtown Toronto, the study visitors dug into the main theme for the visit, Exploring Best Practice, Management Systems and Back Office Tools for Growth and Management of Social Housing. There are about 28,000 social housing units under management in South Africa with plans to double this number in the next few years. Some of the existing social housing institutions will have to grow very quickly and new ones are needed. The study visitors looked at mechanisms to provide services to social and co-op housing organizations in Ontario and British Columbia (BC) that could be used in South Africa. This included examples such as:

  • private sector company than manage about 20% of Toronto Community Housing’s 58,500 units
  • ongoing training, bulk purchasing and other support from the Ontario and British Columbia Non-Profit Housing Associations
  • BC Housing, a provincial housing agency, working with BC Non-Profit Housing Association and supporting social housing groups that are assuming management of BC Housing projects
  • Co-op housing linked companies such as Homestarts and Niagara Peninsula Homes that provide a full range of management services to individual housing co-ops
  • Victoria Park Community Homes, a large social housing provider that provides services to smaller providers in the Hamilton area and Cahdco, an offshoot of Centretown Citizens Ottawa that provides development services to other social housing agencies; and
  • Indwell an innovative charity in Hamilton and the London [Ontario] Development Corporation both using new models for affordable housing partnerships.

Our visitors with James Calderone from Homestarts

The visitors also shared experiences with Ken Albers from M’akola Housing Society based in Victoria BC, and Don McBain from Ontario Aboriginal Housing Society in Northern Ontario. Both groups service numerous small First Nations social housing projects in scattered communities from a central base. This model may be very useful for some of the more sparsely populated regions of South Africa.

Victoria Park Community Homes demonstrating their IT system

 

The many sessions combined site visits, “show and tell” from both Canadian and South African participants, and many workshops facilitated by Jo Ferris-Davies. She is one of our senior advisors based in Johannesburg and accompanied the visitors. She will also be following up with them in South Africa.

Braving the weather during site visits

 

 

There were far too many people and organizations to mention and to thank each one for volunteering their time and experience to make the visit a success. We would however like to especially thank Toronto Community Housing for hosting many of the sessions in one of the wonderful new social housing buildings in the Regent Park redevelopment; Victoria Park Community Homes for hosting a terrific day in Hamilton; and all of the people that flew into Toronto from BC, Ottawa and Northern Ontario.

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Women, Children and Social Housing

By: Jo Ferris-Davies

One of the reasons I decided to work and move to South Africa was to make a difference.  I think this is something everyone who works in social housing can relate to. I have always been impressed with the commitment of staff and volunteers working in co-ops and non-profit housing.  No matter what their role, everyone understood working in social housing was ultimately all about supporting a vision of social equity and justice.

woman-daughter-steenberg-cape-town

The Equal Spaces project will study the benefits of social housing for women and children

One of the projects I am co-managing here will, I believe, help make a big difference in South Africa. Just to back up though… there is very little research in Canada on the socioeconomic impacts for women and children living in well-located, affordable social housing.  We know this through the experience of ONPHA’s (Ontario Non-Profit Housing Association) broad based advocacy campaign on ‘Opening Doors’.  ONPHA hired a top notch advertising company with deep roots in social justice.  They asked the hard questions – “how do you know social housing is improving the lives of tenants?”.   When ONPHA went to look for the answers, there was very little available research. Of course there were stories about how a non-profit or co-op was instrumental to changing a resident’s life, but there wasn’t much quantitative research to back up ONPHA’s provincial campaign about why we need  more affordable housing beyond the waiting list numbers.

In South Africa, we are also asking these questions. How is social housing improving the security and socioeconomic well-being of women and children? How can women increasingly play senior roles in managing social housing?  How can we ensure that systems are in place so women’s voices are included when developing social housing?   How can we ensure that more women are employed in housing construction?   In a nutshell, we are looking at social housing through a gender lens and asking the hard questions.

Social housing provides safe play areas

Social housing provides safe play areas

The Equal Spaces Project has hired a gender specialist to help us develop a gender equality strategy for social housing in South Africa to address these questions. No doubt, it will start with a better understanding of the demographics – how many women are living in social housing in South Africa?  How many women-led families with children are living in SHIs? The gender strategy will go well beyond this to help the South African social housing sector to routinely think and take action with a consistent gender lens applied to their day to day work.

As this initiative unfolds, we will continue to report on the process and direction this strategy takes so that everyone can share this experience.

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Early Days: Engaging with Metros in South Africa

By: Lizette Zuniga, Senior Technical Advisor, Rooftops Canada

Over the past few months, my work on the Equal Spaces: Social Housing to End Spatial Apartheid in South Africa Project has led me to engaging with public, private sector and community stakeholders in several South African metros. These people represent departments and organizations working on key precinct level land release, urban regeneration and social housing initiatives.

In eThekwini (Durban), we have been helping municipal officials and other actors to review future municipal land release on six large precinct sites. This includes looking at the development potential and proposing reasonable conditions for public, private and social housing partnerships.

In Cape Town, I am helping with an accelerated proposal for a transitional shelter solution to re-house homeless people currently occupying land that has been allocated to a social housing institution for social housing development. This is an important pilot initiative because many South Africans have been driven both by apartheid era evictions and by poverty to occupy inner city vacant land or extremely run-down apartment, office and industrial buildings. Finding viable alternatives to re-house people is a necessary first step for urban regeneration.

I have also been part of a reference group led by an advocacy coalition which is pushing for alternatives that will support allocating a premium Cape Town site owned by the Province for social housing development rather than sale to the highest market bidder. We are developing a win-win set of principles to redevelop the site using cross-subsidies to maximize the number of social housing units and reduce the contended land value subsidization.  This involves using the site’s “as of right” maximum development potential to achieve financial viability for urban intensification with a mix of mid-rise social housing and ownership “sectional title” units (condos in Canada) for sale. The approach is based on a joint venture or business partnership with a private market developer to achieve an optimum combination of revenue sources.

South African study visit to Toronto’s Regent Park urban regeneration project which combines high density social housing, affordable rental and condominium developments.

South African study visit to Toronto’s Regent Park urban regeneration project which combines high density social housing, affordable rental and condominium developments.

Soon to be announced changes in the government program that supports building social housing are making this work very interesting. For the first time in many years and after much lobbying, the national government is expected to increase the main capital grant for social housing and adjust the target income bands. Social housing in South Africa is entirely financed by capital grants and mortgage financing with no operating grants. I recently finished updating NASHO’s financial sustainability model with the new grants, applicable income bands and current development and construction costs.  We hope to address new challenges and opportunities. These include securing adequate financing for high density social housing projects in apartment buildings with elevators which are so critical for urban intensification in areas with rising land values; and still have the rental revenues to fund long term replacement reserves with no operational subsidies.

This preliminary work is also helping the Equal Spaces Project team better understand the local constraints and opportunities. Very importantly, it is also guiding a process that I am managing to formally select four of South Africa’s eight metros to be the main focus of the Equal Spaces urban regeneration program. The application and selection process is well under way, and I will report on it in my next post.

 

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