1. Government Employees Housing Scheme (GEHS): Progress and Ahievements
Portfolio Committee:
Public Service & Administration/ P,M&E
02 November 2016

2. PURPOSE
The purpose of this presentation is to apprise the Portfolio Committee on: Part A: The scope & mandate of the GEHS Part B: Progress in the implementation of the GEHS

3. PART A: GEHS Scope & Mandate

4. Prevailing Material Conditions
Most public servants face difficulties in accessing housing finance for a variety of reasons…and so live in inadequate housing circumstances with asset poverty
Increases in the housing allowances have not translated into home-ownership
There is failure of the residential property market in addressing affordable housing needs of the Gap market due to persistent structural and systematic dys-functionalities:
Marked underserviced GAP market
Under-supply of affordable housing units
Access barriers to affordable finance (limited products & credit criteria)
Multiple bottlenecks in the development value-chain (supply side)
It is common cause for employers to support employees in accessing affordable homes and ownership by intervening in the supply of housing though defined schemes.
Government employees constitute the largest share of the Gap Market
The rationale of the GEHS is aimed at addressing multiple barriers faced by employees in accessing housing on a sustainable basis

5. Housing Allowance adjustments

6. Employees housing Aspirations: Comfortable, Secure and functional homes

7. Establishment of the GEHS
Public Service Coordinating Bargaining Council (PSCBC) Resolution 7 of 2015: Agreement to establish a Government Employees Housing Scheme
Agreement was signed on 27 May The GEHS came into effect on 01 July 2015 and is implemented incrementally (in phases).
A Project Management Office established within the DPSA is responsible to administer, operate and manage the GEHS in the interim
A PSCBC Consultative Committee on GEHS is active

8. GEHS Strategic Outlook
Vision
All employees in the public service have access to affordable housing opportunities
Mission
To offer sustainable housing solutions to all government employees
Goal and Objectives
Goal: Increase homeownership among employees
Educate and advice employees on housing access
Facilitate access to housing supply;
Facilitate access to affordable housing finance;
Assistance in rental housing
Sustainability Management
Systemic risk mitigation, Sector and market synergies,
Partnerships and intermediation capability
Service and
Operational Programmes
Implementation of housing allowance & saving facility
Employee Enrolment, Profiling, Education & Advise
Affordable housing finance access
Rental Housing Support
Housing Supply Facilitation & Management

9. GEHS Service Programmes
Comprehensive Employee Housing Access Service
Programme 1
Housing Allowance
GEHS Individual Linked Savings Facility
Allowance Administration
Programme 2
Empower Employees
Programme 3
Affordable Housing Finance
Programme 4
Rental Housing
Programme 5
Housing Supply Management
Inter-mediation:
Lenders
FLISP
State Guarantee
Payroll deductions
Education and Advise center
Part A:
Private Rental
Planning support
and
Delivery
Facilitation
Enrolment and Profiling
Part B:
Rental of State/ official Housing
GEHS Entity
Policy Mandate
(Res 7/ 2015)
Strategic Priorities &
Programmes
People
Systems
Procedures
Resources
Services to ALL Employees

10. Overview: Phased GEHS implementation  
Start Design and Development
Phase 0:
Research and Benchmarking Housing Scheme
Policy & Business Case Development
Approval, negotiation and agreement
Partnership Structuring
Initiation of the GEHS
Start – 2015/16
Phase 1:
GEHS PMO:
Recruit personnel
GEHS Kick Start
Enrolment of employees
Implement new
housing allowance
Activate Housing Finance Access
Establish Savings Facility
GEHS Interim Operations and Incubation
Start – 2016/17
Phase 2:
Upscale capacity of GEHS PMO
Activate and Implement GEHS Service Programmes
Establish a dedicated GEHS entity
GEHS Consolidation and Up-scaling
Phase 3:
Migrate the GEHS PMO into the established entity
Service programs of the GEHS in full operation and impact realised.
Manage partners’ participation and performance
Monitoring, Evaluation and Impact Assessment

11. GEHS benefits: Employees: Government (as the employer):
Access to housing support services of the GEHS & affordable finance
Improved socio-economic benefits from home ownership
Overcome asset poverty
Government (as the employer):
a more stable and secure workforce with the social benefits of home ownership and security (enhanced employee benefits)
Increased workforce productivity
RSA National impact:
GDP growth from increased activity in the affordable housing sector
Supports economic growth and achievement of National Development Plan priorities
Diminish gap in the housing market & broadened property ownership

12. PART B: GEHS Progress and Achievements

13. 1. GEHS Interim Operations and Key Milestone
GEHS Project Management Office established in DPSA
Implemented the new Housing Allowance
Implemented the Individual-Linked Savings Facility
GEHS Customer Care & Employee Support
HR Units in all Departments trained/ orientated on GEHS implementation
GEHS Information sessions for employees (per department)
Established Enrolment System & Support Call Centre
GEHS Website Walk-in centre, website
Housing Advisory Service and Financial capability (incremental)
Active Housing Finance Access Service: Loans & subsidies
Engagements with Banks & Lenders
Facilitate housing supply – Developers, spheres of Govt. Etc.
Prepared business case (feasibility study) to Establish GEHS Entity

14. 2. Increased GEHS Housing Allowance
1,1 million Employees
(Level 1-10) are eligible to receive the housing allowance subject to meeting specific conditions
Before GEHS: Housing Allowance (R900)
Home-owners
employees
Rental Accommodation
employees
GEHS Housing Allowance (R1200pm)
GEHS: Home-owners (includes Communal land)
employees
GEHS: Tenants (employees in rented housing)
employees
Over R2bn already accumulated by employees (tenants) in the GEHS Savings facility

15. 3. Increased access to affordable housing finance by government employees
The GEHS arranges housing finance for employees and facilitates access to finance.
DPSA and Public Investment Corporation (PIC) have partnered to provide home finance opportunities for employees on affordable terms
The PIC has invested R11bn (funding line) in SA Home Loans to enable delivery of affordable housing finance
Employees apply for home loans directly from SA Home Loans. To date over R1,4bn in home loans has been approved
Negotiations with Banks are at advanced stage for delivery of affordable housing finance to employees
Proposed inclusion of GEHS in the Human Settlements FLISP Policy will increase employees access to finance.

16. 4. Administration Enablement
GEHS Savings Facility established: PSCBC Res 7/2015
Employees save a portion of the housing allowance
Administered by GEHS Office, funds managed by Treasury
Interest is earned on saved funds (+R2bn already saved)
Employees withdraw funds only for home-ownership
Employee enrolment system and support call center
Employee Information Sessions:
22 National Departments (± employees)
23 Provincial Departments (± employees)
51x GEHS policy and benefits Training sessions for Human Resources practitioners in all Depts.

17. 5. Other achievements: Partnerships
IGR Protocols/ Agreements with public bodies:
Public Investment Corporation
RISIMA Housing Finance corporation (Limpopo)
ITHALA Limited (KZN)
Rural Housing Loan Fund – housing loans in rural areas
Housing Development Agency (pending)
Estate Agency Affairs Board (pending)
Negotiations with Banks and Property Developers are underway
Joint workings with Dept. of Human Settlements

18. GEHS Project Management Office
Established in DPSA (October 2013)
GEHS PMO Mandate:
Investigate options and Design the GEHS
Support and inform negotiations in the PSCBC
Administer, operate and manage the GEHS in the interim THEN migrate into future “GEHS entity”
MTEF GEHS Project implementation Plan
Business Case on the feasibility of establishing the GEHS Entity

19. GEHS Planned Milestones (2016/17)
Employees Outreach programme
Mobilise and support employees Enrolment
Resolve housing allowance exceptions/ anomalies
Process withdrawals from savings facility (wef 01 Oct 2016)
Open Customer walk-in centers (Pretoria and Provinces)
Facilitate housing supply: developers, land-owners, DHS
Widen Housing Finance Access service (more lenders)
DPSA, Human Settlements & Treasury to finalise:
GEHS Institutional arrangements beyond the Project Office
Resourcing of the GEHS

20. For Service. For Dignity