Presented by -

Phetola Makgathe

Chief Executive Officer

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CONTENTS VISIONMISSIONOBJECTS OF THE COUNCILGOVERNANCE STRUCTUREFINANCIAL REVIEW

SOURCES OF INCOME STRUCTURE OF INCOME GROWTHINVESTMENT FUND

VALUABLE FINAL PRODUCTSCHALLENGESFUTURE

Eldorado Park

Eldorado Park

To be a world-class Housing Consumers

Protection and Warranty Scheme which strives to satisfy the needs

of South African HousingConsumers and Home Builders

VISION…

- To protect housing consumers by establishing,implementing, regulating quality standards in thehome building industry

- To maintain a warranty fund and to provideassistance to housing consumers undercircumstances where homebuilders fail to meettheir obligations.

- To build capacity of home builders and housingconsumers with specific emphasis on thehistorically disadvantaged

- To provide technical and management support toProvincial Housing Departments and Local Authorities

Mission…

To represent the interests of housing consumers by providingwarranty protection against defects in new homes.To regulate the home building industry.

To provide protection to housing consumers in respect of the failure of home builders to comply with their obligations in terms of the Act.

To establish and promote ethical and technical standards in the home building industry.

-To improve structural quality in the interest of housing consumers and the home building industry.

-To promote housing consumer rights and to provide housing consumer information.

-To communicate with and to assist home builders to register in terms of the Act.

-To assist home builders through training and inspections

The Objects Of Council

OBJECTS OF THE COUNCIL

To represent the interests of housing consumers by providing warranty protection against defects in new homes.

To regulate the home building industry.

To provide protection to housing consumers in respect of the failure of home builders to comply with their obligations in terms of the Act.

To establish and promote ethical and technical standards in the home building industry.

To improve structural quality in the interest of housing consumers and the home building industry.

To promote housing consumer rights and to provide housing consumer information.

To communicate with and to assist home builders to register in terms of the Act.

To assist home builders through training and inspections

Registrations

Standards

Enrolments

Inspections

Complaints

Conciliations

Remedial Work

Fund

PROTECTION

HOME BUILDER HOUSING CONSUMER

NHBRC

C O U N C I L

OFFICE OF THECHIEF EXECUTIVE OFFICER

SUPPLY CHAINAND FUND

MANAGEMENTSECTION

OPERATIONS ANDTECHNICAL SERVICES DIVISION

FINANCE AND INFORMATIONTECHNOLOGY DIVISION

CORPORATE SERVICESDIVISION

TECHNICALSERVICESSECTION

PROVINCIALCUSTOMER

CARECENTRES

HUMAN CAPITALMANAGEMENT SECTION

LEGAL & SECRETARIATSERVICES SECTION

INFORMATIONTECHNOLOGY

SECTION

FINANCEMANAGEMENT

SECTION

INTERNAL AUDITSECTION

COMMITTEES

MARKETING FUND REGISTRATION CLAIMS AUDIT RISKTECHNICALADVISORY

DISCIPLINARY REMUNERATION INDUSTRYADVISORY

FINANCE

MARKETING,COMMUNICATIONAND CUSTOMERCARE SECTION

Operational Structure

C E N T R A LA D M I N I S T R A T I O N

P R O V I N C I A L C U S T O M E R C A R E C E N T E R S

G A U T E N G

L I M P O P O

W E S T E R NC A P E

E A S T E R NC A P E

K W A Z U L UN A T A L

N O R T HW E S T

N O R T H E R NC A P E

F R E ES T A T E

M P U M A L A N G A

Registration Fees

Administration Costs (Non refundable)

750.00

Membership 600.00

Builders Manual 100.00

Total 1450.00

Renewal Fees 600.00

Sources Of Revenue

Enrolment Fees 

Enrolment costs 1.3% of total selling price of a unit

       Land       Improvements

1.3% up to a maximum of R500, 000 selling price

 Late Enrolment Fees

 R150.00 per unit + 1.3% + traveling expenses.AA rates + cost per inspection R250.00 per hour

 Subsidy Enrolments

1,75%

Document SalesInterest Received

Sources Of Revenue

Total Revenue 2003/2004

265,178,962

16,077,805

55,628,946

3,115,573

535,190

1,668,171

6,120,111

Annual fees Enrolment Registration Fees Subsidy income

Investment Income Other income Late Enrolments

0

200

400

600

800

1000

R' M

illion

Revenue Warranty Fund Investments

Warranty Fund 63 118 204 353 602

Revenue 34 97 146 182 293

Investments 45 104 195 366 566

1999/00 2000/01 2001/02 2002/03 2003/04

A valuable final product (VFP) isdefined as a product or service thatcan be exchanged for the goods or

services of the society. In theNHBRC’s case, the final valuable

product would be what the NHBRCgives back to the client for the

enrolment fees, registration fees andrenewal fees.

Valuable Final Products

0

1000

2000

3000

4000

5000

6000

No

. of

reg

istr

ati

on

s

Registrations 1454 2563 2648 2818 4946

1999/00 2000/01 2001/02 20002/03 2003/04

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

No. o

f ren

ewals

Renewals 2685 3083 3022 3990 7786

1999/00 2000/01 2001/02 20002/03 2003/04

0

1000

2000

3000

4000

5000

6000

7000

8000

Total Number of registrations

Registrations Renewals

Registrations 1454 2563 2648 2818 4946

Renewals 2685 3083 3022 3990 7786

1999/00 2000/01 2001/02 2002/03 2003/04

0

10000

20000

30000

40000

50000

60000

Enrolments 19657 30104 35568 43332 55289

1999/00 2000/01 2001/02 20002/03 2003/04

0

1000

2000

3000

4000

5000

6000

Num

ber

Late Enrolments 3681 5090 4957 4808 4016

1999/00 2000/01 2001/02 2002/03 2003/04

0

20000

40000

60000

80000

100000

120000

Num

ber

Inspections

Inspections 43444 56264 65786 87500 109627

1999/00 2000/01 2001/02 2002/03 2003/04

0

500

1000

1500

2000

2500

No. o

f Com

plain

ts

Complaints 2117 2190 2011 1791 2048

1999/00 2000/01 2001/02 2002/03 2003/04

2004R

Available-for-sale investmentsOpening balance 348,608,459

Additions during the year 211,879,861 Disposals during the year (2,666,233)Revaluation increase 8,123,190

Closing balance 565,945,278

Trading investmentMarket value 565,945,278

Cash investments 227,647,900 Bonds:- Short Term < 7 years 246,951,611 - Medium Term 7 to 12 years 72,282,045 - Long Term > 12 years 19,063,722

565,945,278

Investments in securities

Investment Fund at March

Adequacy of the Current Enrolment Fees

Fee to cover initial enrolment costs 

R 714

Fee to cover claim from Warranty Fund 

R 132

Fee to cover future costs of operation and complaint assessment 

R 1 080

Variation margin 

R 632

Total fee required (on average) R 2 558Fee currently charged (on average) 

R 4 370

Reserve fee per enrolment R 1 260 

AVERAGE COST PER ENROLLED HOME

Inadequacy of the Current Enrolment Fees AVERAGE COST PER ENROLLED HOME

4614 370Fee currently charged (on average)

(1 458)1 260Reserve fee per enrolment

1 9192 558Total fee required (on average)

81632Variation margin

1 0801 080Fee to cover future costs of operation and complaint assessment

44132Fee to cover claim from warranty fund

714714Fee to cover initial enrolment cost

SubsidyNon-Subsidy

Enrolments VS Claims

ANNUAL

ENROLMENTS

CLAIMS

PERCENTAGE

2000/2001 2001/2002 2002/2003 2003/2004

77 522 680 133 303 773 173 917 759 265 178 962

963 582 1 134 062 4 381 037 10 888 243

1.24% 0.85% 2.52% 4.1%