Social Housing Foundation Major Research and Findings 2008-2009. Presentation to the Parliamentary Portfolio Committee on Housing 26 August 2009. Cost Benefit Analysis RDP vs Social Rental Housing.
Presentation to the Parliamentary Portfolio Committee on Housing
26 August 2009
There is a great deal of focus on the short-medium term budgetary or public “fiscal” costs of housing development
But what are real long term costs to government and society when we consider the broader economic, social and distributional impact of investing in various housing modes?
This study compared the full range of costs and benefits of public investment in social rental housing with those of RDP housing.
The primary purpose of this assignment was to assess:
the costs benefit comparison of social rental housing versus RDP housing
the broader economic and fiscal implications of both delivery models
The primary objective was to assess the most appropriate direction for government housing investment given scarce resources and the policy priorities, i.e. “the best spend of the last Rand”.
As such the CBA focuses on the cost and benefits of the two housing delivery models to society as a whole rather than individual households.
The secondary objectives of this assignment were to:
Determine and quantify (where possible) the key economic effects;
Understand the broader social and distributional effects; and
Assess the performance of the two housing delivery models against an agreed policy framework
refers to housing built under the capital subsidy scheme, either individual or project-liked subsidies.
is characterised by large scale housing delivery, typically of a free-standing nature on individual erven.
Social Rental Housing
refers to rental housing built under the institutional and new social restructuring grant subsidies.
is typically medium to high density housing delivered on an institutional basis (i.e. institutional management, typically by a social housing institution - SHI).
Policy analysis objectives
Social & Distributional input:
1. Financial Analysis
2. Economic Analysis
3. Distributional effects
4. Policy implications
Six case studies were undertaken …
Primary projects: Braamfischerville and Roodepoort
Supplementary projects: Potsdam, Amalinda, Mhluzi / Tokologo and Hope City
Projects selected on the following basis:
Should represent a typical RDP or SRH project
Should have been in existence / operational / occupied for at least a year
Selection should offer a range of housing project examples with respect to location and city size
Selection should provide a pair (RDP and SRH projects) within the same geographic area / municipal boundary