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NSSF Rent-to-own Houses to Reduce Affordable Housing Shortage

The NSSF Lubowa housing project: A rent-to-own arrangement exists for buyers interested in these beautiful homes. Image source: Twitter/@CultonScovia

UGANDA, Kampala | Real Muloodi News | The National Social Security Fund (NSSF) has presented its affordable mixed-use housing project in Temangalo, Wakiso District, 17 kilometres from the heart of Kampala, already at 25% completion, with phase one set to be finished in June 2024.

The Fund’s overarching goal is to provide mixed-use affordable housing tailored to suit diverse economic groups to meet Uganda’s rising need for affordable housing.

The funds can now be used to secure affordable housing due to the NSSF Amendment Act 2021, which grants members who are 45 years old and have paid for 10 years access to 20% of their earned benefits.

Rent-to-Own

NSSF managing director Richard Byarugaba stated that the Temangalo project will eventually include 3,500 dwellings of a wide variety, community amenities including education, health and social facilities, a huge neighbourhood green park and related infrastructures, such as roads, electric power, sewage drainage, and water supply with retail and commercial spaces.

Phase 1 of the project is currently 25% complete with 350 of the 550 units that have been built so far have been put to use.

“To accommodate different income classes and to cope with the increased demand for affordable housing within the country with a starting price of about Shs90 million, you can also use your NSSF money and the rest will be from the rent,” Byarugaba noted.

This implies that it might be 20% of your savings, or around USh18 million, right away. To pay off the mortgage, the remaining USh72 million (about 80%) will be spread out over 10 years.

He added: “This is an advantage for us because you have your savings with us. We can look at your age, how much money you get and be able to calculate. Banks can see your bank accounts but can not see your savings. For us we know your savings and your salary. The information we have about you can help us track the housing units you want to get. This too involves the private sector.”

Housing Units

It has 550 units, including a soccer field, a water treatment plant, 100 townhouses, 50 villas, and 200 flats. It also has infrastructure and facilities including green areas, playgrounds for the public, and soccer fields.

“We have impeccable titles to all the land that the Fund purchased in 2008. The Fund is also the registered proprietor and is in possession of all the land titles. The houses will be on the market for sale in 2024,” he added.

Mr Byarugaba added that the Fund develops projects for the open market to generate a return that is provided to its members in the form of interest each fiscal year.

He explained: “Whereas we encourage members to invest in owning a home, the NSSF Board’s fiduciary obligation is to ensure there is secure, profitable and effective financial management which is the basis of the Fund’s investment strategy. We must ensure a proper long term asset mix, diversification and prudent risk management to achieve our overall investment objective which is to earn a return.”

Other NSSF Housing Projects

Other real estate initiatives by the Fund include the Citadel Place in Mbuya–a cutting-edge contemporary housing development with 40 luxury apartments, the Solana Lifestyle and Residences in Lubowa--a multi-award-winning satellite city with 160 affordable housing units, and the Offtaker Project in Kyanja.

The 32-story Pension Towers–a clever and contemporary business complex, and the currently under construction Mbale City House are also under the Fund’s commercial construction.

Two further contemporary retail and office structures are Mbarara and Jinja City Houses, as well as Workers House and Social Security House in the centre of Kampala.

Assets

The Fund now oversees assets worth more than USh17.2 trillion invested in fixed income, stocks, and real estate in East Africa.

As the biggest Fund in East Africa, they plan to increase the number of its assets under control to USh20 trillion by 2025.

READ MORE LIKE THIS:

Rent-to-own Scheme as a Solution to Owning a Home

NSSF’s Solana Housing Project Wins Two International Property Awards in London

Inside NSSF Housing Projects: What Will it Cost to Own One?

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