Which services does NURCHA provide?

NURCHA and our associate partners provide bridging finance loans to support qualifying developers and contractors who are undertaking affordable housing projects. These projects include:

  • The development of serviced sites
  • The construction of housing for ownership or rental
  • Large scale mixed land-use, mixed income groups or mixed tenure projects as envisaged in the national policy for sustainable, integrated human settlements.

NURCHA can provide between 70% and 95% of the bridging finance required for the project (calculated on the peak working capital requirement) to qualifying applicants.

How to qualify for NURCHA’s services

Project Requirements

The selling price of the housing package (serviced site and house, VAT inclusive) should average R350 000. In the case of mixed developments with a range of houses, there can be a limited percentage of houses with selling prices between R350 000 and R500 000. These figures are reviewed by NURCHA from time to time.

Applicant requirements

The developer or contractor applying for a NURCHA financing product should:

  • Have a minimum of three years’ experience in the affordable housing market
  • Have audited company financial statements for a minimum period of two years
  • Provide NURCHA with the company’s current quarterly management accounts
  • Contribute the first 5% to 30% of the bridging finance requirement of the project, dependant on the value of the security provided by the developer. Sunken costs, such as the professional fees expended in the project as at the date of application, may be considered as part of the applicant’s contribution to the peak bridging finance of the project. The purchase of raw land will only be considered as part of the applicant's contribution under certain circumstances.
  • Provide NURCHA with adequate collateral for the loan, such as personal suretyships supported by the assets listed in their personal and company balance sheets and a first covering mortgage bond registered to NURCHA over a fixed property, or a cash deposit as security.

NURCHA reserves the right to decline projects deemed not financially or technically viable.

Documentation that must accompany your application

Documentation required will vary for different legal entities and is dependant on the role of the parties involved in the project, ie developer/contractor, land owner, surety, directors or members etc.

Applicants that qualify will be provided with the applicable list of documentation required.

Costs and fees

Typical costs that you would incur include:

 

  • Interest – interest on the loan is charged at a competitive rate for the term of the loan. Interest is due and payable
    monthly in arrears on the outstanding loan balance.
  • NURCHA initiation fee
  • Management fee – in the event that additional management input is required by NURCHA

The interest rate and the raising fee are determined by a matrix analysis of the applicant as well as the project, and is part of the assessment process.