1. ANNUAL PERFORMANCE PLAN 2014/15 1

2. 2014\15 PROGRAMME 3/12/20162 Focus of this year is the creation of an enabling environment for social housing and a change in approach to delivery. Delivery of social housing units Planning Well managed and sustainable SHIs Capacitated stakeholders 2 MOVING FROM REACTIVE APPROACH Call for proposals Grant submissions PRO-ACTIVE APPROACH Pipeline of Projects Aligning grants to the pipeline Creating an enabling environment

3. 2014\15 PROGRAMME 3/12/20163 Organisation wide Building internal capacity Reducing reliance on external consultants Reducing risk and building internal control environment Implementing new structure and revising processes Investment Programme Two Call for Proposals (5A and 5B). 5A to be advertised within the month. Currently contracting on SHIP 4B Move to pipeline planning Increase RCG quantum Regulatory Programme Automating accreditation and other compliance functions Legal enforcement framework Retrospective regulation Institutional Investment Programme Supporting Provinces ito social housing delivery Supporting and resuscitating Provincial Steering Committees Aligning grants to project pipeline Assisting Provinces to develop rental housing strategies Research and capacity building 3

4. APPROVED ANNUAL PERFORMANCE PLAN FOR 2014/15 3/12/20164 The SHRA’s target for 2013/14 was 5429 but only achieved approval of 2279 units. There have been a number of inadequate applications and withholding of applications as the quantum has not increased leading to project viability concerns. The current signed off APP targets are shown above. There is only one indicator as funding for the Institutional Investment programme has not been provided and the operational budget deemed insufficient. 4

5. PERFORMANCE TARGETS, BUDGET & MTEF 3/12/20165 5 Financial YearUnits Approved Institutional Grants Accredited Entities 2014/155 6683955 2015/165 9795060 2016/176 3305065 Financial Year Operational BudgetCapital Budget (Rm) 2014/1533 480827 543 2015/1634 5601 195 860 2016/1736 3921 287 049 These figures will have to be revised due to the SHRA’s request for a virement between capital and operational budget and virement to NHFC – see next slide.

6. SHRA’S BUDGET 3/12/20166 Since 2012 the entity has made generous investments in the social housing sector but in 2014, given the challenges the entity faced, performance on the expenditure has hampered due to the SNG forensic investigations undertaken. At the request of the NDoHS, the SHRA has agreed to a R230m virement to NHFC against the 2015 capital grant allocation. As a result of insufficient operational budget to fund operational requirements, the entity has dependent on the capital grant. The entity has submitted a formal virement application to the NDoHS to move a portion of the capital budget for operational purposes. 2012201320142015 Capital Grant BudgetR226 169 000R647 401 000R904 103 000R827 543 000 Capital Grant ExpenditureR515 042 857R978 919 516R143 958 961Current FY 2012201320142015 Operational Grant budgetR19 305 000R21 096 000R32 151 000R33 480 000 Operational Grant expenditureR34 538 240R37 486 100R52 253 162Current FY 6

7. REVISED APPs 2014/15: OPTION 1 AND 2 3/12/20167 7 OPTION 1 – APPROVE SHRA’S REQUEST FOR INCREASE IN OPERATIONAL BUDGET PLUS VIREMENT TO NHFC OPTION 2 – APPROVE SHRA’S REQUEST FOR INCREASE IN OPERATIONAL BUDGET Capital budget (Rk) Target number of units for approval No. of II grants No. SHIs accredited No. recovered units Current827 5435668No target Revised548 75337003055300 Capital budget (Rk) Target number of units for approval No. of II grants No. SHIs accredited No. recovered units Current827 5435668No target Revised778 75353283055300