Madulammoho Housing Association Story

Transcription

1 10 Madulammoho Housing Association Story Madulammoho Housing Association was established in 2004 to provide affordable housing solutions for Johannesburg s inner city community. It is a Section 21 (Not for Profit) company. Using an economic cost recovery model with affordability as the starting point, Madulammoho pioneered a model that meets the housing needs of the very poor. Our housing model allows for people to access different types of affordable rental units according to the tenants income level. Madulammoho was born out of MOULD EMPOWER SERVE (MES), a non-profit, faith based organization that provides a wide range of social services to the city s most vulnerable populations. Together, they apply a holistic approach to serve and empower the community. Madulammoho currently manages seven housing projects in Johannesburg s inner city providing homes for over 2,400 low income earners MHA was established to provide affordable housing solutions for Johannesburg s inner city community MHA opened its first project, New Europa House, which has 58 communal units, 14 self-contained units, and an overnight shelter MHA inaugurated its second project, Cornelius House, which has 67 transitional units and 14 communal units. In the same year MHA started another project, New Regent House, offering 46 bachelor units and 54 communal units MHA opened its fourth project, El Kero House, with 141 communal units and 29 self-contained units MHA established B.G. Alexander, one of our biggest projects to date, a joint venture with JOSHCO. It includes 376 communal units, 6 bachelor units, 15 one bed room units, 12 two bed units and 81 emergency shelter beds. MHA was the recipient of the Platinum Impumelelo Award for Innovative Work in the field of poverty reduction and community development, the Johannesburg Development Agency s Halala Joburg Award for Living Joburg Property Management and Affordable Housing, as well as The Govan Mbeki Award for Best Social Housing Institution of the year. This was an extremely exciting year for MHA as we also had former President, Thabo Mbeki visit our projects MHA was evaluated by the Provincial Department of Housing on corporate governance and was considered one of the top performing SHI s in Gauteng. We upgraded both financial and a property management system to support the company as it continues to expand MHA launched its first new build project outside of Hillbrow, at Fleurhof Views with 286 units with a mix of 96 bachelor units and 190 two bedroom units. MHA received full accreditation by the SHRA and the CEO also received the CEO s special award in recognition of its achievements in social development and housing MHA opened its fifth housing project, Resdoc House which includes 60 communal units and 4 self-contained bachelor units. We also launched Allenby House providing 119 communal units and with catering available for physically challenged tenants B.G. Alexander became home to Cruyff Court, donated by the Netherlands National Football Team. The five a side soccer pitch was christened the Orange Cruyff Court Hillbrow and was officially opened by the Dutch team just before the kickoff to the 2010 FIFA World Cup.

2 012 MES & MHA Partnership Impacy MES is a Christian social development organisation that facilitates professional services to vulnerable or at risk individuals, families and communities, empowering them through a holistic service model to become independent and sustainable. In 2005 MHA developed from the housing strategy of MES. Together, the two companies create a meaningful synergy: Madulammoho provides low cost housing and makes facilities available for community work. MES provides supporting services and works together with MHA to strengthen their communities. Services to tenants include access to awareness campaigns and workshops, pastoral support to tenants and youth clubs in the MHA buildings. Social community events bring tenants together and social support services are delivered to tenants in desperate need. During 2011, we worked hard at increasing the communication processes between the two organisations ensuring that both the tenants and MES/ MHA personnel are aware of the different services that are provided in partnership. During the past year, the Spiritual enrichment team of MES has increased their efforts to build relationships with the community, especially the tenants of Madulammoho Housing Association. It is through relationships that the team can ensure the community has access to supportive and spiritual care and is empowered to lead constructive and meaningful lives. The number of room visits to the tenants has increased with 35 % to 1708 for the year. Contributing to their visibility in the community was the organising of social gatherings that included two successful Gospel Concerts and a talent show for the children and youth of the MHA buildings. Currently MES makes use of facilities that are part of MHA developments and the following are highlights of The Ekhaya overnight shelter is part of the Europa House and provides short term overnight shelter accommodation to 120 people per night. The BG Alexander Estate provides a multitude of facilities from where intervention programmes are run to serve the needs of the community. The drop-in centre daily provides a meal to 80 homeless and destitute people. This creates a space where a sense of belonging is nurtured to the most marginalised of the city. The Assessment centre s services have increased in their developmental approach nurturing a sense of ownership amongst individuals and the wider community. Campaigns and workshops to the wider community addressed gender violence, drug and alcohol abuse, and human trafficking and reached a total of 330 people. The centralised assessment centre assisted 466 clients through their helpdesk and intake facility. The Dinaledi crèche provided quality education and care (physically, mentally and emotionally) to 115 children in 2011 of which 29 successfully graduated to primary school. A total number of 389 clients were trained in soft skills programmes and 303 in vocational skills at the Entuthukweni training centre. 105 clients have been directly assisted with job placement. Further to nurturing a sense of responsibility and making a sustainable exit possible, a resource centre has been established providing clients with access to job hunting opportunities. In Port Elizabeth, MES was awarded a capital subsidy grant that allowed us to settle our bridging funding for the purchase of an overnight shelter facility. The grant also includes the renovation of the facility in 2012 to provide overnight shelter accommodation to 120 people along with training and job creation facilities. The expertise of MHA has been greatly appreciated in this process as new energy saving technology and design aspects have been considered in drawing up the plans for the project. In Cape Town, MHA is in the process of tendering for a 500 unit development in Scottsdene and we are keenly looking forward to the possibility of expanding on our current services in Cape Town to also include the tenants and community in this development. Calgro M3 has awarded MES the management of a crèche facility in the new Fleurhof development where MHA has developed 286 units in Together we are looking forward to the unfolding of our partnership in the Fleurhof community. MES values our partnership with MHA and are committed to Changing the heart of our city! in My Four Walls of Safety My four walls of safety Did not exist while I lived on the street My four walls of safety were just a dream While I cuddled my feet My four of walls of safety became a necessity When children were born right there on the street Shelter, warmth and comfort were miles away Strife, hunger and homelessness were the order of the day My four walls of safety soon became a priority As the system of democracy gave each one the opportunity To become a part of the equal dynasty My four walls of safety became the solution To the moral degeneration and the social degradation That came along with my homeless situation Charity begins at home It can never happen when you are alone Here in my four walls of safety I can be counted as a member of the sheltered society Today my four walls of safety are built in the city Today I have a home away from home The battle against homelessness still continues Yet, NTWA KE YA MADULAMOHO -Thato

3 014 News Update Internship In May 2012, Gregory Yonick began his six month internship with the Madulammoho team as a communications officer. During his six month placement, Gregory will be developing communications to strengthen inter departmental relations, increase tenants engagement and awareness of available services, as well as improving the ties between Madulammoho and MES. Through these initiatives Madulammoho Housing Association will continue to build healthy and safe communities. Madulammoho Goes Green As energy costs continue to rise in South Africa, Madulammoho Housing Association is going green to further reduce the tenants expenses. Fleurhof Views is Madulammoho Housing Association s newest housing project outside the inner city, providing affordable housing for approximately 964 occupants within 286 units. Unlike other Madulammoho housing projects, Fleurhof Views is the first location to take environmentally conscious steps in producing the tenants hot water, using nine energy efficient and environmentally friendly heat pumpscompared to other Madulammoho projects which use element heated conventional geysers. Using these nine hot water pumps provide a number of benefits for both the tenants and the environment. The initial estimated energy savings obtained by using the energy efficient heat pumps is approximately kwh per month or approximately kwh per year. When comparing these heat pumps to the conventional geysers there is a savings of up to 60% on hot water. Moreover, tenants will continue to save more with each passing year, as shown in the graph below. This is extremely advantageous for tenants as it allows them to spend less of their income on housing costs. Furthermore, these heat pumps will enable Madulammoho Housing Association to reduce its carbon footprint by 1022 tons. Therefore, not only are the tenants of Madulammoho Housing Association prospering from the cost reductions provided by new hot water pumps, but so is the environment since Fleurhof Views is making less of a carbon footprint. In striving to follow the best possible practices Madulammoho Housing Association plans to implement this green and cost effective hot water producing technology within all our future projects. 15 Asset Management Report Neil Erasmus New Developments Esselin Towers A detailed geotechnical study has confirmed that this building site is suitable for the development of an 11 storey building that will consist of 42 two bed and 54 bachelor apartments. Madulammoho applied for the rezoning of the property and we have now received the approvals for the relaxation in parking requirements, a changed Floor Area Ratio (FAR) and the approval letter for the exemption to the new energy efficiency regulations. The feasibility of this project will largely depend on the cost of construction as the site is not very accessible and situated in an already developed area with neighbors on three sides which will have to be considered at all times during construction. Fleurhof Views 286 newly built residential units have received practical completion at the end of February Fleurhof Views is now 80% occupied and filling up fast. Madulammoho has installed a heat pump hot water supply system in an effort to play our role in the conservation of energy. Madulammoho has installed numerous playground equipment pieces positioned in front of the buildings where adult supervision is always present. We have upgraded the kitchen units by changing the formica tops to granite counter tops. Madulammoho believes that the longevity of the residential units will improve due to the higher specifications that were used.

4 Jabulani Views The construction of 300 self-contained units in Jabulani has commenced in December The project is well on the way and practical completion is expected in February Jabulani Views is conveniently located next to the main BRT route running through Soweto, Jabulani Mall, public sports grounds and an amphitheater. Madulammoho is planning on applying all the lessons learnt from the project at Fleurhof Views which includes the change in design specifications and heat pump installations. Scottsdene Estate Madulammoho will be applying for a Restructuring Capital Grand from the Social Housing Regulatory Authority (SHRA) for the development of 500 residential units in Scottsdene in the Cape Province. Madulammoho has designed a very interesting and unique Site Development Plan (SDP) that will provide for lots of green spaces, playgrounds and even a skateboard park. Madulammoho expects to receive project funding approval by the end of May Reactive Maintenance / Existing Projects Madulammoho s in-house maintenance team is offering a daily maintenance service to all its projects in the City. The maintenance program is mainly taking care of the everyday reactive maintenance issues but also shares in the responsibility of planned maintenance objectives. Planned Maintenance A planned maintenance program has been developed by using the Building Condition Audits (BCA) that was designed for all of Madulammoho s buildings. This program is divided into four quarters and monitors the maintenance budget as well as the progress of scheduled work. 17 Independent Auditor s Report To the members of Madulamoho Housing Association (NPC) We have audited the annual financial statements of Madulamoho Housing Association (NPC), which comprise the statement of financial position as at 29 February 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes, and the directors report, as set out on pages 6 to 21. Directors Responsibility for the Annual Financial Statements The company s directors are responsible for the preparation and fair presentation of these annual financial statements in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities, and in the manner required by the Companies Act 71 of This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of annual financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor s Responsibility Our responsibility is to express an opinion on these annual financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the annual financial statements are free from material misstatement. An audit involves performing procedures to obtain audited evidence about the amounts and disclosures in the annual financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the annual financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the annual financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the annual financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the annual financial statements present fairly, in all material respects, the financial position of Madulamoho Housing Association (NPC) as at 29 February 2012, and its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities, and in the manner required by the Companies Act 71 of Other matter Without qualifying our opinion, we draw attention to the fact that the supplementary information set out on pages 22 to 23 does not form part of the annual financial statements and is presented as additional information. We have not audited this information and accordingly do not express an opinion thereon. DVM Audit Tax Accounting Inc Chartered Accountants (S.A.) Registered Auditors: Prof IJ de Villiers 21 June 2012

5 STATEMENT OF FINANCIAL POSITION DETAILED INCOME STATEMENT OPERATING EXPENSES Figures in Rands ASSETS Non-Current Assets Investment property 98,327,302 32,015,001 Property, plant and equipment 1,763,974 1,302,272 Investment in joint ventures 15,920,367 13,620,559 Operating lease asset 6,449,788 6,897, ,461,431 53,835,428 Current Assets Inventories - 8,761 Trade and other receivables 354,769 4,665,278 Retention deposits 9,759,102 - Cash and cash equivalents 16,543,329 15,280,826 26,657,200 19,954,865 Total Assets 149,118,631 73,790,293 EQUITY AND LIABILITIES EQUITY Accumulated reserve 76,194,213 31,448,436 LIABILITIES Non-Current Liabilities Other financial liabilities 38,967,065 15,877,701 Deferred income 18,950,702 20,080,798 Conditional government grant 4,150,440 3,626,041 Trust funds 320, ,498 62,388,207 40,025,038 Current Liabilities Trade and other payables 9,411,320 2,241,263 Provisions 496,029 75,556 Conditional government grant 628,862-10,536,211 2,316,819 Total Liabilities 72,924,418 42,341,857 Total Equity & Liabilities 149,118,631 73,790,293 Figures in Rands REVENUE Cost Recoveries Operations 4,825,818 4,111,055 Rental Income 6,687,545 6,210,355 Lease fee 32,000 39,600 Donor funding 432, ,963 Administration and management fees 315, ,032 Project management fees 41, ,161 12,335,483 11,487,166 Operating surplus 1,607,566 2,527,205 Other income Deferred income - Europa 157, ,484 Deferred income - Rec Doc 133, ,578 Other income - 70,440 Subsidy received - Fleurhof 43,202,788 - Extra ordinary income Fair value adjustments (47,259) 4,180,135 43,446,59 4,541,637 Other non operating expenses Depreciation (232,502) (173,216) Lease rentals - Operating lease expense (484,607) (299,977) (717,109) (473,193) JMJV Project Deferred Income - JMJV 839, ,034 Impairment loss - JMJV Investment (152,875) (69,016) 686, ,018 Net Finance Cost Finance costs (1,344,948) (1,018,491) Interest received 1,067, ,665 (277,430) (326,826) Surplus for the year 44,745,777 7,038,841 For a full financial report please your request to info@mh.org.za Figures in Rands Access Card 90,836 55,139 Accounting Fees Advertising 44,155 69,742 Auditors remuneration 55,993 55,130 Bad debts 43,411 31,147 Bank charges 82,387 63,860 CIDA Expenses 29,513 32,551 Cleaning 581, ,311 Commission paid 7,850 6,800 Computer expenses 38,676 15,313 Coupon expense 24,806 5,660 Donations Employee costs 3,787,323 2,808,400 General Expense 38,433 - Gifts 1,881 - Insurance 70,554 61,188 IT expenses - 29,731 ITC Credit Checks 5,731 3,158 Lease rentals - Contractual amounts 94,447 74,676 Legal expenses 7,980 7,377 Loss on disposal of asset 933 Motor vehicle expenses 29,810 18,598 Other expenses 26,503 22,081 Printing and stationery 60,284 68,419 Professional fees 56,085 31,026 Project Investigation 23,540 - Repairs and maintenance 1,220, ,307 Security 641, ,007 Smart card expenses 13,944 5,234 Staff welfare 700 2,414 Subscriptions 125, ,537 Telephone and fax 154, ,027 Training 19,358 9,049 Travel - local 88,426 29,821 Utilities 3,260,611 3,135,616 10,727,917 8,959,961 Operating surplus 1,607,566 2,527,205

6 16 kapteijn street, hillbrow, johannesburg, south africa private bag x33, hillbrow, 2038, south africa telephone: +27 (0) facsimile: +27 (0) company reg no:2004/012568/08 pbo no Photographer: Graham de Lacy -