Social Housing Regulatory Authority

Project details

  • Date

     November 2, 2014

  • Client

     The Regulations Department

  • Task

     Tenant Audit

  • Category

     Case Studies

The Problem

The Regulations Department identified SOHCO (Emerald Sky Project)) as one of the projects for which Tenant Audit needed to be conducted. The objective of the audit exercise is to determine whether or not the tenants occupying the units qualify for social housing as per prevailing income restrictions for Social Housing that the tenant’s income must be between R1 500 and R7 500 (joint income when cohabiting).

In addition to the above, the law governing social housing provide for certain ratios between tenant income and the rental they pay. The audit also uses the income estimates and current tenant rental figures to determine the extent of compliance with this provision of the Social Housing Regulations.

Finally, the audit also test compliance with the rental portfolio mix, which, in terms of the regulations referred to above, SHIs have to comply with allocation of certain percentage of units to certain income bands (i.e. a 30/70 percent split between units allocated to people earning below 3500 and those earning above 3500 respectively).

The solution

The outcome of this audit will help SHRA to determine the extent of movement in salary scales beyond the target monthly income bands (R1500 to R7500) with the view to not only regularise those tenants that fall outside the prescribed income bands, but also inform any possible policy adjustments to accommodate the rising cost of living vs. changing income trends. The outcome will also help SHRA determine the extent of compliance with the two regulations referred to above, again in view of possible policy change to accommodate changing market conditions.