1 / 8

500,000 Affordable Homes Program

500,000 Affordable Homes Program. Incentives, Legal & Regulatory Framework February 2019. PASSED LEGISLATION & INCENTIVES. PENDING/ONGOING LEGISLATION. … cont ( Pending/Ongoing Legislation). … cont ( Pending/Ongoing Legislation). PENDING/ONGOING PROPOSED INCENTIVES.

carlisle
Download Presentation

500,000 Affordable Homes Program

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 500,000 Affordable Homes Program Incentives, Legal & Regulatory Framework February 2019

  2. PASSED LEGISLATION & INCENTIVES CONFIDENTIAL

  3. PENDING/ONGOING LEGISLATION CONFIDENTIAL

  4. …cont (Pending/Ongoing Legislation) CONFIDENTIAL

  5. …cont (Pending/Ongoing Legislation) CONFIDENTIAL

  6. PENDING/ONGOING PROPOSED INCENTIVES • The Specially Permitted Procurement Procedure Method (SPPPM)- fast track procurement to facilitate AHP • Tenant Purchase Scheme (TPS) under the Housing Fund • Kenya Mortgage Refinance Company (KMRC) –Government body designed to extend financing to mortgage lenders targeting affordable housing. • One Stop Shop (OSS) – Ensure fast tracked approvals and Land Transactions • 15% tax waiver on Housing Co-operatives. • National Cooperative Housing Union (NACHU) is in the process establishing a regulated mortgage Sacco in a model set to see the Board access mortgage funding from KMRC. • UN-Habitat has advised GoK to formulate policies that will ensure 23,000 SACCO’s have access to serviced land, professional expertise and reduced tax on building materials in order to facilitate provision of mass affordable housing to low income earners. CONFIDENTIAL

  7. PRINCIPLES OF LEGAL FRAMEWORK Commitment Agreement This agreement governs the provision requiringacommitmentfeeofupto10%oftheprojectcostof aparticulardevelopmenttobedepositedbythedeveloperintoadesignatedescrowaccountasadvisedby SDHUD. Development Framework Agreement ThisagreementprovidesaguidelineofthefundamentalheadsoftermstobeaddressedandprovidedintheProjectAgreementas projectdetailsemerge.Itworksasan“interimAgreement”forurgent worksto commencependingfinalnegotiationsandexecution oftheProject Agreement. $ $ Escrow Agreement Thisgovernstheuseofthecommitmentfeewhichthesuccessfuldeveloper,privateinvestororcontractor shallprovide,pending negotiationsandsigningoftheProject Agreement. Offtake Agreement This agreement is issued by the GoK in favour of the developer, private investor, or contractor as an undertaking for the purchase on behalf of the GoK of the completed housing units within a specified period from the date of construction completion, this time period being determined on a project-by-project basis. Letter of Support This is a letter that may be issued by GoK through the National Treasury, in favour of the developer, private investor, or contractor and its financiers to provide that the GoK will ensure that the Housing Fund is not wound up so long as it has continuing outstanding obligations. The Letter of Support will only be issued in appropriate circumstances. Project Agreement This agreement governs the relationship between the GoK and the developer, private investor, or contractor, and sets out in detail the terms and conditions for the development and delivery of each Project. CONFIDENTIAL

  8. Thank you Disclaimer: The purpose of this Presentation is to provide recipients with information on proposed program approach for the 500,000 Affordable Homes Program. This presentation is subject to change as the development framework is challenged and subjected to stakeholder engagement and market sounding.

More Related