FINANCE LINKED
INDIVIDUAL
SUBSIDY
PROGRAMME
(FLISP)
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First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
OVERVIEW OF FLISP
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Provides a once off down payment (Deposit)
Must have had a loan approval from a bank
May only be used to reduce principal loan amount
Available to qualifying beneficiaries
Currently applicable to housing developments with units not exceeding R300K
Administered by National Housing Finance Corporation on behalf of Provincial
MEC’s of Human Settlements
May be used only for residential property
NHFC will
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Standadise, streamline and centralise processes
Enter into legal agreements with Provinces.
Act as one stop shop for provinces and banks : implementation of programme
Conclude agreements with the banks
Management and disbursement of FLISP funds
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WHO QUALIFIES FOR FLISP
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SA Citizens or in possession of Permanent Resident Permit
Must be legally competent to contract
Have not received the benefit of the housing subsidy before
Has not owned a house before
Married or co-habiting
If single, must have financial dependants
Subsidy ranges from R10 050 (R15K Income) to R87 000 (R3501)
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FUNDING ARRANGEMENT
• Minister of Human Settlement annually allocate to each province
funding for FLISP
• NHFC to provide MEC with business plan
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To cover current medium term expenditure framework
Preliminary estimates for implementation of FLISP: Yearly in August
Final figures by January each year
• NHFC to report to relevant MEC’s at agreed intervals:
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Status of payments
Financial aspect linked to subsidy
Consolidated statements to PHD’s
• Provincial Dept will pay funds into an operating account @ NHFC
• MEC to approve subsidy applications, NHFC will then:
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Issue formal guarantees to lender
On registration, subsidy to be transferred to bank
NHBRC certificate to be provided on registration
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SALE OF PROPERTY BY
BENEFICIARY
• In the events of a sale of the unit prior to the prescribed period the
FLISP must be refunded as follows:
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Year 1: 12.5% reduction
Year 2: 25%
Year 3: 37.5%
Year 4: 50%
Year 5: 62.5%
Year 6: 62.5%
Year 7: 75%
Year 8: 87.5%
Year 9: 100%
Add business unit name on slide master | Monday, 13 April 2015 | Business Confidential | Slide No. 5