[PPT] - 500,000 Affordable Homes Program De Deli livery ry fram amework PowerPoint Presentation

SLIDE 1

500,000 Affordable Homes Program

De Deli livery ry fram amework ework and poli licy interven rventio tions ns

November 2018

SLIDE 2

Big 4 Agenda

Nov-18 CONFIDENTIAL 2 INTRODUC ODUCTIO ION Over the next five years and founded on social impact, the Government of Kenya will implement the big four agenda targeting four priority initiatives

Jobs creation at scale Infrastructure investment Competitive utility costs Governance Security Technology innovation 500,000 affordable homes 15% of GDP from the manufacturing sector 100% Food and Nutrition Security 100% Universal Health Coverage (UHC)

Job creati ation at scale le Infrast rastructu ructure re inve vestme stment Comp mpeti titi tive ve util ilit ity y cost sts Gove vernan rnance ce Secu curi rity ty Tech chnolo logy y innovati vation

SLIDE 3

Why is housing a part of the Big 4 Agenda?

Nov-18 CONFIDENTIAL 3 INTRODUC ODUCTIO ION

1

Housing ranks high after food as a fundamental human need.

2

Our Constitution in Article 43 (1)( b) recognizes the right to accessible and adequate housing, and to reasonable standards of sanitation.

3

Kenyans in urban area spend a considerable part of their income on rent, for instance, Nairobi residents spend more than 40% of their income on rent, well above the recommended 30%.

4

The cheapest home formally built by a developer in 2012 cost more than $15,000, which is more than 10 times the average annual income of $1,340.

5

Available lower income housing is not adequate and does not promote a quality of life that we want as evidenced by the fact that 6.4M Kenyans were living in slums representing about 56% of the country’s urban population.

SLIDE 4

Affordable housing and economic development

Nov-18 CONFIDENTIAL 4 INTRODUC ODUCTIO ION

The e afford ffordable ble hous using ing progr rogram m can n have e an impa pact on the e broa

ader

er economy

nomy beyond

nd the e deliv livery ery of homes mes Impa pact on GDP GDP Forma rmaliza lization ion

f the

e infor forma mal l sec ecto tor Job

b crea

reation ion

Estimate that the contribution of real

estate and construction to GDP will increase from the current 7% to 14% by 2022.

Between USD 1.5 and USD 3

induced in the economy for every USD 1 invested

Increased construction activity can

become an important source of revenue through processing of permits, approvals, and other related activity

Ringfencing strategies will ensure

that the Jua Kali sector are able to supply inputs to the affordable housing program

Light industries will also have the
pportunity to provide construction

materials such as cement

Construction of housing is labor

intensive

Labor can capture up to 10.5% of the

value created by the spend on affordable housing

We estimate that for every unit

constructed, there are 3 – 5 new jobs created

Up to 8 indirect jobs created per unit

Impa pact on GDP GDP Job

b crea

reation ion

SLIDE 5

The current housing deficit is 1.9M and growing

Nov-18 CONFIDENTIAL 5 INTRODUC ODUCTIO ION ▪ It is estimated that Kenya ya has an annual al housin sing deman mand of 250,0 ,000 annuall ally y with an estim imated ated supply ly of 50,0 ,000 p.a. (80% deficit) targeting the high-end market. ▪ In 2010 the deman mand for urban an housi sing was estim imated ated at around 80,0 ,000 units a year, with demand projected to incr crease ase to near arly ly 300 00,0 ,000 unit its s a year by 205 050. . By comparison, in 2013 only ly 15,0 ,000 housin sing constr structi ction permi rmits ts were re issued in Nairo robi, , where most demand exists and most of these were for high-income apartments. ▪ Only ly 2 percen rcent t of formal rmally ly constr structe cted house ses s are targeted ted to the lower inco come segme ments s of the market, which account for the largest share of demand. ▪ Fur urthermore more, , estim imat ates es of hou

usi

sing g deman emand are for new ew hou

usi

sing g only nly and d do

not

speak ak to the high igh quali alitat tative ive housin sing defi ficit cit in Kenya ya esti timate mated at 1.8 mn mn. . ▪ The high igh cost t of formal rmal housin sing mean ans s that t home me ownersh rship ip is out t of reach ach for most st urban an Kenyan yans s with vast majority of this population finding housing through rental markets (91% in Nairobi) ▪ Kenya has an estimated 25,000 mortgages

SOURCE: State Department for Housing and Urban Development, World Bank

Annual demand for housing 1.000 170.000 Annual supply for housing 80.000 49.000 Annual housing supply vs demand country wide Number High end Low end

SLIDE 6

We require solutions to enhance supply and facilitate demand

Nov-18 CONFIDENTIAL 6 INTRODUC ODUCTIO ION

Developers have limitations on

the number of units they can build because there are no guarantees on who will buy

Instead of building thousands
f units, they limit their risks

and build only limited numbers

Buyers lack adequate funding to take

up units

They do not qualify for mortgages

because of lumpy cash flows

Existing mortgages are too costly due

to high interest rates and short repayment periods

SUPP PPLY LY SIDE DE DEMAND AND SIDE DE

SLIDE 7

The affordable housing program incorporates supply, demand, and enabling environment interventions

Nov-18 CONFIDENTIAL 7 INTRODUC ODUCTIO ION Demand Enablers Supply



proven demand master plan and mega city approach

 mixed use developments with provision of social infrastructure and amenities 

affordable developer financing



Provision of land and bulk infrastructure



Infrastructure funding under K.U.S.P



Tax incentives

 Tax breaks ( Zero rating of

Stamp duty for first time home owners



Standardised designs and/or processes

 Tenant Purchase Schemes

(TPS)



KMRC (extending Mortgages tenures)



Housing Portal to assist in identifying the end buyer

SLIDE 8

The affordable housing program currently targets three income segments

Nov-18 CONFIDENTIAL 8 INTRODUC ODUCTIO ION Income Range: KES 50,000 – KES 99,999

▪

Share of Formally Employed: 22.62% Income Range: KES 15,000 – KES 49,999

▪

Share of Formally Employed: 71.82%% Income Range: KES 0 – KES 14,999

▪

Share of Formally Employed: 2.62% Social Low cost Mortgage Gap Middle to High Income Income Range: KES 100,000 +

▪

Share of Formally Employed: 2.85%

▪

Private Sector will meet this demand

SLIDE 9

Affordable housing program max. unit costs

Nov-18 CONFIDENTIAL 9 INTRODUC ODUCTIO ION

Social housing (Max. Selling Price) Affordable Housing (Max. Selling Price) 1 room KES 2 room KES Bedsitter KES 1 bedroom KES 2 bedroom KES 3 bedroom KES

600,000
1,000,000
n/a
n/a
n/a
800,000
1,000,000
2,000,000
3,000,000
n/a
n/a
n/a

To enhance range of affordability, we have the maximum cost for each unit to be delivered under the program

SLIDE 10

Key priority areas

INTRODUC ODUCTIO ION

Enha hanc nce e affo ford rdability ility of homes mes by addres ddressing ing inter teres est t rate te and d tenu nure re Reduc duce e cos

st

t of cons

nstru

truction tion per r squa uare re meter ter Cost t of home me owners nership hip %/Years Cost t per r squa quare e meter ter KSh Hous usin ing g progr

gramme

mme Mark rket t rate te

31,328 44,754

30%

0% 10 7 8 25

Saccos Hous usin ing g Fund nd Interest Tenure Hous usin ing g spre read for

r the

he affor fforda dable ble homes mes pilla llar by land nd owners nership hip Hous usin ing g spre read Units Priv ivate te Nation tional Tota tal l units its Count unty

150,000 500,000 200,000 150,000 Nov-18 CONFIDENTIAL 10

SLIDE 11

Key priority areas

INTRODUC ODUCTIO ION

Close

se the

e low-in income me hous using ing gap p by 60% 60% Crea eate e 350, 0,00 000 0 jobs bs in the e cons

nstru

ruction ion sec ecto tor Inc ncre rease e cons

nstru

ruction ion sec ecto tor r cont

ntrib

ribut ution ion to GDP Jobs

bs crea

eated ed Thousands Contr ntribut ibution ion to GDP KSh Billions

2018 350 000 2022 50 000 +600% 2018 905 452 2022 +100% 2018 170 000 2022

Low income

me hous

using ing gap Thousands

Nov-18 CONFIDENTIAL 11

60%

70 000

SLIDE 12

PROJECT PIPELINE

SLIDE 13

Project pipeline

Nov-18 CONFIDENTIAL 13 AFFOR ORDA DABLE HOUSING SING PROGRA GRAM

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

▪

Park road (1,640)

▪

Makongeni (20,000)

▪

Shauri Moyo (5,300)

▪

Starehe (3,500)

▪

Mavoko (5,500)

▪

Social housing (15,000)

▪

Counties (48,000)

▪

Nairobi and Mombasa County (78,700)

▪

Legacy Project (TBD)

▪

Counties 2 (45,000)

▪

Nairobi Regeneration (20,000)

▪

Police 1 (10,000)

▪

NSSF Land Mavoko P1 (20,000)

▪

Cooperatives 1 (20,000)

▪

Private developers 1 (40,000)

▪

Counties 3 (45,000)

▪

Redevelopment of Nairobi Old Estates 1 (20,000)

▪

Police 2 (10,000)

▪

NSSF Land Mavoko P2 (20,000)

▪

Cooperatives 2 (10,000)

▪

Private Developers 2 (20,000)

▪

Counties 4 (45,000)

▪

Redevelopment of Nairobi Old Estates 2 (20,000)

▪

Police 3 (10,000)

▪

NSSF Land Mavoko P3 (10,000)

▪

Cooperatives 3 (10,000)

▪

Private Developers 3 (20,000)

▪

Counties 5 (45,000)

▪

Redevelopment of Nairobi Old Estates 3 (20,000)

▪

Police 4 (10,000)

▪

Cooperatives 4 (10,000)

▪

Private Developers 4 (20,000) Master planner to support with identification of locations for the funnel projects and development of implementation schedule Lot 1 Lot 2 Lot 3 Lot 4 Lot 5 FY 1 Total: 177,640 FY 2 Total: 155,000 FY 3 Total: 125,000 FY 4 Total: 115,000 FY 5 Total: 105,000

SLIDE 14

Project pipeline – Lot 1 projects

Nov-18 CONFIDENTIAL 14 AFFOR ORDA DABLE HOUSING SING PROGRA GRAM

Lot 1 projects are further grouped into four categories representing a total development program of 177, 7,64 640 0 units its ▪ Park Road ▪ Starehe A & B ▪ Shauri Moyo A, B, C, D ▪ Makongeni ▪ Mavoko ▪ 47 Counties and Towns ▪ 18 signed counties ▪ Other counties in various stages of reviewing MoU ▪ Transitional housing ▪ Kibera B C, D ▪ Mariguini ▪ Kiambiu

Total al Unit its: s: 35,94 ,940 Total al Unit its: s: 15,0 ,000 Total al Unit its: s: 48,0 ,000 Total al Unit its: s: 67,8 ,800

▪ Bahati ▪ Maringo ▪ Ziwani ▪ Jericho ▪ Lumumba ▪ Gorofani ▪ Bondeni ▪ Shauri Moyo ▪ Hobley ▪ KPC/KPRL

Lot t 1A: : Flagship ip Proje jects Lot t 1B: Flagship ip Socia ial l Housin ing Proje jects Lot t 1C: Countie ies and Towns Lot t 1D: Nairo robi and Mombasa County ty Proje jects ts Lot t 1E: Legacy Proje jects ts

▪ Wote ▪ Voi ▪ Kisumu

Total al Unit its: s: TBD

SLIDE 15

Rural housing

Nov-18 CONFIDENTIAL 15 AFFOR ORDA DABLE HOUSING SING PROGRA GRAM

One of the major challenges of housing in rural areas is the quality of building materials. We have constructed 92 appr prop

priate

riate buildin ilding g technolo nology gy (ABT) T) cent ntre res acros ross the he count

untry

ry to promote use of local materials in building construction. Resea earch and nd Trainin ining Region gion spec pecif ific ic solu lution tions Matof tofali li Machin hine ▪ Developed with Numerical Machining Complex ▪ Used for manufacture of stabilized soil blocks ▪ Improves walling construction ▪ Reduces construction cost by 30% ▪ Machines to be distributed to ABT centers Fund nding ing ▪ Funding for rural housing to continue from NHC ▪ Offering funding at competitive interest rates of 7% from Housing Fund ▪ Developed with Numerical Machining Complex ▪ Used for manufacture of stabilized soil blocks ▪ Improves walling construction ▪ Reduces construction cost by 30% ▪ Machines to be distributed to ABT centers ▪ Train youth, women, and children in use of building materials ▪ Conduct research on improving local materials for sustainable construction ▪ Modernizing construction practices while preserving cultural values ▪ Improving fire resistance

n makuti roofing and

use of coral stones in coast region ▪ Modernizing roofing in Masai land for water harvesting while maintaining cultural design ▪ Discouraging use of burning bricks in western region which deplete our forests

SLIDE 16

Slum upgrading and social housing

Nov-18 CONFIDENTIAL 16 AFFOR ORDA DABLE HOUSING SING PROGRA GRAM

Case Study: Slum Upgrading

▪ In every community, we work with settlement executive committees which represent community interests and ensure that those living in the community are beneficiaries ▪ Completed 822 houses in Kibera Soweto A ▪ Sold to those living in the slum and were registered in 2005 ▪ Enumeration was done to confirm and verify the right beneficiaries ▪ Homes were sold as rent-to-own with 25 years tenure and 3% interest rates ▪ One room sold at KES 600k – KES 2,500 per month ▪ Two rooms sold at KES 1M – KES 4,500 per month ▪ Three room sold at KES 1.35M – KES 6,500 per month ▪ Next projects include Kibera B, C, D followed by Mariguini and Kiambiu ▪ Enumeration for Kibera B is completed and verification is ongoing ▪ 498 slums in the country have been mapped and will work with County Governments to improve housing conditions ▪ The Housing Fund will be consolidating financing solutions to ensure social housing projects are delivered

Next Steps

SLIDE 17

DEVELOPMENT FRAMEWORK

SLIDE 18

Key design principles

November 18 CONFIDENTIAL 18 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

Open en Space Access & Movemen ement Safe fety ty & Securit rity Crea eating ing Commun munitie ities Build lding ing Tec echno hnolog logy Smart rt T echno nology logy

SLIDE 19

Design principle: open space

November 18 CONFIDENTIAL 19 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

Open en Space Playground Public Realm Networks Pocket Park Gathering Space Active Spaces Sports Facility

SLIDE 20

Design principle: access and movement

November 18 CONFIDENTIAL 20 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

Access & Movemen ement Green Verge Cycling Path Pedestrian Friendly Treelined Avenue

SLIDE 21

Design principles: safety and security

November 18 CONFIDENTIAL 21 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

Safe fety ty & Securit rity Security Management Access Control Perimeter

SLIDE 22

Design principle: community facilities

November 18 CONFIDENTIAL 22 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

Clinic Retail Centre Schools Community Centre Commun munity ity Facilities ilities

SLIDE 23

Design principles: building technology

November 18 CONFIDENTIAL 23 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

Build lding ing T echno nology logy Pre-cast Panel Frame & In-Fill InSitu Formwork

SLIDE 24

Design principles: smart technology

November 18 CONFIDENTIAL 24 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

Waste Management Gas Reticulation Renewable Energy Smart rt T echno nology logy Water Transportation Telecommunication Payment System

SLIDE 25

Typical land breakdown

November 18 CONFIDENTIAL 25 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

Residentia idential 50% 50% Comm mmunit unity Faciliti ilities es with h Reta tail il 10% 10% Open n Space 15% 15% Utilities lities, Roads, ds, and d Serv rvic ices es 25% 25%

SLIDE 26

Typical site master planning

November 18 CONFIDENTIAL 26 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

SLIDE 27

Modular design approach

November 18 CONFIDENTIAL 27 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

SLIDE 28

Modular and traditional construction

November 18 CONFIDENTIAL 28 DEVEL ELOPM PMEN ENT FRAMEWOR EWORK

Stru ructur ural l Frame me & In-fill ill

Structural slab,

columns / beams;

Block

in-fill with traditional stone

Mix of off-site and on-

site construction methods

Maximise local content

and contractors engagement Pre re-Cast Fra rame me

reduced wet

works trades on site;

created in factory

conditions for increased quality;

logistical opportunities

through just in time principles;

standardisation principles

reflected in design In In-Situ itu System em

Most widely used in

current supply chain;

relatively low skill labour

required;

Programme takes longer

than alternatives;

More demanding for on

site logistics;

Multiple trades linked on

delivery

SLIDE 29

FINANCING FRAMEWORK OVERVIEW

SLIDE 30

The financing framework for affordable housing supports both the supply and demand side

Nov-18 CONFIDENTIAL 30 FINANC NANCING ING FRAMEWOR EWORK

Homes

TPS BUYERS

SUPPLY HOUSING FUND DEMAND MORTGAGE REFINANCING

DEVELOPERS

Development Cost Payments

DEBT & BORROWINGS HOUSING FUND FINANCIERS

Construction Finance

KMRC

FINANCIERS MORTGAGE BUYERS CASH BUYERS BANK SYNDICATED FACILITY INVESTORS, BANKS & DFIs BANK

TPS Cash Management & Custody Wholesale Funding Homes Homes Homes

BANKS

Home Loans Mortgage Refinancing

CONTRIBUTIONS

Construction Finance Offtake Agreement

Targeted at households with monthly income between 50,000 – 99,999

SLIDE 31

The Housing Fund is the suitable mechanism for providing funding support for both developers and home owners

PROPOSE OSED D SOLUTI UTION ON Nov-18 CONFIDENTIAL 31

The Housing Fund will be the Bulk Purchaser of housing units from developers, thereby mitigating the offtake risk. The Housing Fund will be the Long Term Financier offering homeowners affordable and accessible funding to buy homes primarily through a National Tenant Purchase Scheme SUPPLY Y SIDE DEMAND D SIDE

SLIDE 32

Mandate and primary functions

Nov-18 CONFIDENTIAL 32 HOUSING SING FUND ND

Princ inciple iple Descript iption ion Capita pital l mobiliza ilizatio tion n ▪ The e Hous using ing Fund nd will l mobilize ilize capita pital l from

m Govern

ernment ment (thro throug ugh h 3% employer ployer/emplo employee e cont ntrib ribut ution, ion, Develo elopme pment t Fina nance Ins nstitut itution ions, Afford fordable able Hous usin ing g Home e Owners ners Savin ings gs Plans ns from

m the

e Home e Owner ners and Local Banks to fulfil its mandate. Bulk lk Purc rchaser r (De-risking developers) ) ▪ Offe fer r cert rtainty ainty of sales les in the he form

rm of an off-ta

take e under derta taking ing that will allow the developers access construction financing. ▪ Purcha rchase the e housing using units its for r cash h once constru

nstruction

ction is compl mplete te to allow low the e develo elope pers rs to rec ecycle cle their eir capital pital and develop more units. Long ng-Ter erm m Fina nanc ncier ier (Enabling homeowners) ▪ Allow

w ordin

dinary y Kenya nyans ns to save e for r an affo ford rdable le home me via a Savings ings Plan which they can use as a down payment towards their affordable house. ▪ Offer home buyers the ability to purchase their homes via an affor fforda dable ble 25-yea ear r Tena nant nt Purc rcha hase e Sche heme me. ▪ Target intere terest rate tes betw tween en 3% and d 7% ▪ Allow

w Kenya

nyans to purcha rchase affo fordab rdable le houses uses nation tionwide wide through the Housing Fund while paying a monthly rate nearly equal to their current rental expense The Housing Fund will mobilize capital, offer certainty of sales in the form of an off-take undertaking to developers, and provide accessible finance for home buyers through a National Tenant Purchase Scheme

SLIDE 33

Mandate and primary functions

Nov-18 CONFIDENTIAL 33 HOUSING SING FUND ND

The Housing Fund will mobilize capital, offer certainty of sales in the form of an off-take undertaking to developers, and provide accessible finance for home buyers through a National Tenant Purchase Scheme Housing Fund

Funding & Support

Employer/Employee Contributions, Exchequer, DFIs, & Other Investors Developer 1 Developer 2 Developer 3

SUPPLY SIDE DEMAND SIDE

Home Owner 1 Home Owner 2 Home Owner 3

Offtake undertaking and cash Housing Units Principal & Interest Housing Units & Tenant Purchase Scheme

Affordable Housing Registered Members’ Savings (affordable housing HOSP)

Regular savings contributions towards a home

Home Owner 1 Home Owner 2 Home Owner 3

SLIDE 34

Funding sources

Nov-18 CONFIDENTIAL 34 HOUSING SING FUND ND

The Housing Fund will have funding from various sources

Short-term credit lines from banks, DFIs, and other financial institutions
Issuance of asset-backed securities to institutional investors to fund the NTPS,

issued in 3 classes:

1. Short-term notes (0-5 years)
2. Medium-term notes (5-10 years)
3. Long-term notes (10-20 years)
Contributions from employers and employees (3%)
Other GoK funding (e.g. short-term loan, etc.)

Debt bt and d Borrow rrowings ings Othe her r GoK Fund nding ing Emplo loyer/ r/ Emplo loyee e Contr ntribut ibution ion

SLIDE 35

HOUSING PORTAL

SLIDE 36

Overview – Demand Consolidation

Nov-18 CONFIDENTIAL 36 HOUSING SING PORTAL

The housing portal project will be a platform that connects individuals to the Housing Fund
The portal will be real live evidence of demand aggregation
It will also allow individuals to see progress towards home ownership and provide a real connection to the dream of home ownership
At the end of development, the portal will house the online National Tenant Purchase Scheme allowing home owners to be allocated homes through a lottery

system

The system registers aspiring home owners and allows them to make payments to the Housing Fund in the fashion of a home savings plan
It accepts payments from mobile money, bank accounts, credit and debit cards
It also allows access to the Housing Fund through a variety of platforms including: USSD, mobile app, mobile web, and web portal

Individual Registration Page

Admin Login Page

SLIDE 37

Registration Options

Nov-18 CONFIDENTIAL 37 HOUSING SING PORTAL

Mobile – USSD
Dial *xxx# to Register Details
Mobile – WebApp
Visit mobile.nyumbani.go.ke (eg)
Web-based
Visit www.nyumbani.go.ke (eg)
Huduma Centres – with web-enabled

stations that allow:

Registration
Update of Details
Upload of KYC documents

Welcome come to NYUMBANI REGISTR TRATI TION 1.

1. Regist

ster er 2.

2. Exit

SLIDE 38

Payments

Nov-18 CONFIDENTIAL 38 HOUSING SING PORTAL

Wallet Driven
Mobile Accessibility
Integrated payment gateways for

contributions to HOSP via:

MPESA
Bank Transfers
Credit Cards
Other payment platform integrations
International payments integrations

enable family abroad to assist with contributions

SLIDE 39

Property Developers

Nov-18 CONFIDENTIAL 39 HOUSING SING PORTAL

Online registration
User access
Ability to upload:
Descriptions of Projects in pipeline
Description of Completed Projects
Breakdown of housing typologies
Price points per type
GIS/Mapped locations
Images – including renderings, floor plans

and/or walk-throughs

Access to
Overview of demand
Customer profiles by category

Property Development Summary page

SLIDE 40

LEGAL FRAMEWORK

SLIDE 41

Principles of legal framework

LEGAL GAL FRAMEWOR EWORK Nov-18 CONFIDENTIAL Escrow row Agree reeme ment This governs the use of the commitment fee which the successful developer, private investor or contractor shall provide, pending negotiations and signing of the Project Agreement. Proje ject ct Agree greeme ment This agreement governs the relationship between the GoK and the developer, private investor, or contractor, and sets

ut in detail the terms and conditions for the development

and delivery of each Project. Deve velo lopment t Frame amework rk Agree reement This agreement provides a guideline of the fundamental heads of

f ter

terms to be addressed and provided in the Project Agreement as project details emerge. It works as an “interim Agreement” for urgent works to commence pending final negotiations and execution of the Project Agreement. Commit mmitme ment t Agree reeme ment This agreement governs the provision requiring a commitment fee of up to 10% of the project cost of a particular development to be deposited by the developer into a designated escrow account as advised by SDHUD.

$

Offtake ake Agree reeme ment 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. Lette ter of Support rt 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

f Support will only be issued in appropriate circumstances.

$

41

SLIDE 42

Thank you

Disclaimer mer: 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.