Entities applying for an NHFC loan facility must meet the required Qualifying Criteria and provide relevant supporting documents as prescribed by the NHFC Credit Committee.


Loan description:

  • Long Term Loan for subsidised perpetual rental accommodation.
  • Loan to buy and / or refurbish existing buildings or Greenfield development projects for rental accommodation purposes

Target market:

  • Social Housing Institutions (non-profit companies) and
  • Private Property Practitioners (Landlords, Developers, etc.)

Loan size

  • Depends on realistic cash-flow requirements, market and financial projections, capacity to manage the project and on-boarding the potential market.
  • Finance is limited to 25 - 30% of total development costs (no upper/ lower limit).
  • The 70 - 85% balance will comprise of Restructuring Capital Grant (RCG) from the Social Housing Regulatory Authority (SHRA) and Institutional Subsidy from the Province, and defined equity from applicants who are not non-profit companies

Loan Term

  • 15 years (180months) up to 20 years (240months) term loan
  • Capital and interest repayment moratorium of 6 to 18 months may be applicable*
    *Repayment moratorium applies for the construction phase, interest will, however, be capitalised to the loan.

Qualifying criteria and finance conditions:

  • Borrowing entity:
    • The borrowing entity must be a registered legal entity such as a Pty Ltd, Ltd company or a non-profit company (NPC) such as a Social Housing Institution (SHI).
    • SHIs must be accredited with the Social Housing Regulatory Authority (SHRA).
    • SHIs must qualify for and be allocated Restructuring Capital Grant (RCG) and Provincial Subsidies for the project.
    • Applicants must demonstrate property development expertise and / or property management capacity.
  • End users/Tenants:
    • The End-beneficiaries of the rental accommodation must be persons with a monthly household income between R1 500 and R7 500.
  • Property Tenure Types (Product):
    • The projects must offer family units for rental in refurbished buildings or Greenfield developments.
    • Social Housing Regulatory Authority (SHRA) regulates perpetual rental tenure option for SHIs.
  • Repayment of the loan:
    • Moratorium may be granted on both capital and interest for a period during construction from the date of first disbursement; interest will be capitalized to the loan during the moratorium period.
    • During the remaining term after the moratorium period of the loan capital and interest will be repayable in arrears in monthly instalments.
    • Subject to an early cancellation fee, the Borrower may repay the whole or part of the principal facility, if, no less than 90 (ninety) days prior written, notice is given to the NHFC.
    • The loan is a vanilla amortising loan (over the balance of the loan term).
  • Pricing Rate:
    • Pricing is linked to Prime Lending rate as defined from time to time.
    • Pricing is also determined by the defined overall risk assessment on the borrower’s track and credit records and the merits of the development.
    • A pre-determined facility/administration fee is payable at the time of the first drawdown.
  • Granting Terms / Disbursements:
    • Disbursements are linked to successful delivery of approved project milestones and progress reports


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