NATIONAL HOME BUILDERS REGISTRATION COUNCIL Presented by - Phetola Makgathe Chief Executive Officer ANNUAL REPORT 2004/05 01 April 2004 - 31 March 2005

CONTENTS VISION MISSION OBJECTS OF THE COUNCIL GOVERNANCE STRUCTURE FINANCIAL REVIEW SOURCES OF INCOME STRUCTURE OF INCOME GROWTH INVESTMENT FUND VALUABLE FINAL PRODUCTS CHALLENGES FUTURE

Eldorado Park

Eldorado Park

VISION… To be a world-class Housing Consumers Protection and Warranty Scheme which strives to satisfy the needs of South African Housing Consumers and Home Builders

Mission…

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

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

GOVERNANCE STRUCTURE

FINANCIAL REVIEW

Registration Fees Renewal Fees Administration Costs (Non refundable) 750.00 Membership 600.00 Builders Manual 100.00 Total 1450.00 Renewal Fees

Enrolment costs 1.3% of total selling price of a unit · Land 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 Sales Interest Received

STRUCTURE OF INCOME

GROWTH INDICATORS

Valuable Final Products

Registration for new homes

Renewals of registered home builders

Comparison of registrations and renewals

Enrolled Homes

Late Enrolments

Inspections

Complaints

Adequacy of the Current Enrolment Fees AVERAGE COST PER ENROLLED HOME 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 2 558 Fee currently charged (on average) R 4 370 Reserve fee per enrolment R 1 260

Inadequacy of the Current Enrolment Fees AVERAGE COST PER ENROLLED HOME 461 4 370 Fee currently charged (on average) (1 458) 1 260 Reserve fee per enrolment 1 919 2 558 Total fee required (on average) 81 632 Variation margin 1 080 Fee to cover future costs of operation and complaint assessment 44 132 Fee to cover claim from warranty fund 714 Fee to cover initial enrolment cost Subsidy Non-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%