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Aim The aim of the Department of Human Settlements is to determine, finance, promote, coordinate, communicate and monitor policy in respect of housing and human settlement. 2

Current Human Settlement Conditions Context: – Rapid urbanisation and migration (rural to urban) – Population growth – household formation and diminishing size Informal settlement growth Lack of access to Basic Services Unbalanced property markets Un-sustainable development choices 3

Settlement Categorization (12,5 million Households in RSA) Formal Settlements: – Formally proclaimed townships with secure tenure – Generally with formal houses – may also have (in)formal structures & backyard dwellings – Surveyed/ pegged/ formal & planned layout/ geotech – Access to one or more formal basic Services supply Informal (free-standing) Settlements (1,2 mil hh) – – – – Un-proclaimed land, therefore no secure tenure Inhabitable ground in many cases (in-situ upgrading limitations) Land not surveyed nor subject regulated use Un-serviced (temporary services: e.g. chemical toilets etc) TOTAL Settlements on Tribal/ Communal Land HOUSING Settlements on Farms (farm-workers) NEED: 2.2 million 4

Basic Services Household Access to water – Remaining needs 3.95mill Households Household access to Sanitation – Current needs 3,2mill households Household access to Electricity (energy) – Current needs 2,6mill households Refuse Removal (once a week) – Current need 4,56 mill households un-served 5

Urbanization And Demographic Trends The “dual residence” of some households (who maintain a rural base while sojourning in urban areas) is a deeply entrenched feature of many households Migration to Urban areas is increasingly permanent Urbanisation is irreversible and GROWING Urban consolidation since the 1960s Informal settlements residents are largely address-less: this is another shackle in the residents’ exclusion NOTE: Phenomenon of “shifting target” in the delivery of services 6

Macro Conditions Impacting on Human Settlements Rapid urbanization and Migration to cities Structural unemployment and informality Economic down-turn: diminishing access to housing finance (credit) More households falling in subsidy income band Diminishing bulk infrastructure spare capacity Social and geographical disparities - inequality Inputs: costs construction materials capacity Built environment governance nexus Sustainability: climate change and related 7

Pillars of the Human Settlements Development Strategy Pillars 1: Statement of Outcomes (expectations) Prevailing reality Mandate (manifesto/ SoNA/ Budget Speech) Sustainability considerations (today’s choices for a better future) Pillars 2: Macro Co-ordination & Alignment Pillars 3: Urbanization & Spatial Management Pillars 4: Key priorities Residential Property development Governance (2009/10) Shelter development: (2009 – 2014) – “Core mandate period” Long term (2009 – 2025) Pillars 5: Transformation: Paradigm shift Pillars 6: Institutional Re-alignment for Implementation 8

Service Delivery Priorities (2014) Accelerate Upgrading of Informal Settlements – Objective: To upgrade well located informal settlements and provide proper services and land tenure to 500 000 households by 2014 Upscale development of Affordable Rental Housing Stock (Urban focus) – Objective: Increase the rate of affordable rental housing delivery of at least 20 000 units per year Land Assembly for Human Settlements – Objective: To set aside 6 250 hectares (net)of well located public land for low income and affordable housing (accommodating approximately 400 000 units by 2014 which is at 60 units per ha on average) 9

Service Delivery Priorities (2014) cont. National Settlement Infrastructure Development – Objective: Accelerated provision and upgrade of bulk infrastructure networks to prioritised settlements by 2014 Facilitate increased supply of affordable housing finance – Objective: To accommodate people whose salaries are too high to get a government subsidies, but who earn too little to qualify for a normal bank mortgage. 10

Translating Programmes into Actions (Programme of Action) Annual Plans/ Targets - 2010-2014 Subject of Delivery agreements Further directive(s) awaited from Presidency 11

Human Settlements & Basic Services Delivery Forum Convener: DG Human Settlements Secretariat: Substance Coordination & Administration (Links to FOSAD & Cabinet Secretariat) Supporting Members: Core Members: – DAC DoHS (Lead on Housing & HS/ – Education Policy) – Health CoGTA (LG/ Services/ Infrastructure) – DST DWA (Service & Infrastructure) – Agriculture, Forestry DoEnergy - (Service & Infrastructure) – Others DoEnviron - (Service & Infrastructure) Partners Entities: Transport (Infrastructure) – HDA – Land Assembly NT (Finance) – NHFC – Finance/ R1bn HLG – DBSA - Infrastructure RD & LR – (Land) – IDT – CSI Partnership DPW – (Land) 12

Provincial Human Settlements & Basic Services Delivery Forum Convener: HoD: Human Settlements Secretariat: (Premier’s Office/ HOD’s own) Substance Coordination & Administration Core Members: Supporting Members: DoHS (Lead on Housing & HS/ – National Secretariat Policy) – Premiers Office CoGTA (LG/ Services/ Infrastructure) – SALGA Reg DWA (Service & Infrastructure) Reg DoEnergy - (Service & Infrastruc) Partners Entities: DoEnviron - (Service & Infrastructure) – HDA – Land Assembly Transport (Infrastructure) – DBSA – Infrastructure Health Education Municipalities 13

Progress Analysis The transfer of the Sanitation Unit from the previous Department of Water Affairs and Forestry has been finalised. The Department has ensured that the necessary support service are provided albeit challenges in terms of office space accommodation and other operational resources. The National Housing Code, 2009 was published in February 2010 and disseminated to all provinces, municipalities and stakeholders. Included in the new National Housing Code, 2009 is the new housing assistance programme for farm residents. In some instances policy development processes were delayed owing to further consultations being required and intergovernmental cooperation posed particular challenges in finalising policy instruments. 14

Progress Analysis The Department developed a conceptual document on the implication of the name change from Housing to Human Settlements. An indaba on alternative building technologies is currently being arranged to provide answers to the question raised. The Department through the Chief Directorate Monitoring and Evaluation completed the Beneficiary Occupancy Audit, initiated during the year in seven of the nine Provinces. The Department undertook three Impact Evaluation Studies to determine the impact of various housing programmes on the lives of Beneficiaries. The targeted programmes are the Rural housing Programme, the Social and Rental Housing Programme and the Upgrading of Informal Settlements. 15

Progress Analysis In addition, the Department proceeded with the project-level monitoring process to verify and confirm delivery as reported by Provincial Human Settlements Departments. The Department initiated a process to develop a Human Settlement Index for SA in collaboration with UN Habitat. A significant highlight of the Departmental engagements with stakeholders has been entering into agreements with, the Platinum Mines for possible roll out of projects in Limpopo and North West, Intersite for joint developments of land in and around railway stations, and the DBSA for technical support on priority and blocked projects. Significantly, Department negotiated the signing of the agreement with the Department of Public Works that gives the Human Settlement department first right of refusal on any land being considered for disposal by DPW. 16

Progress Analysis The National Upgrading Support Programme has been established and will in future provide support to municipalities in the in situ upgrading of informal settlements. A project process guide has been developed to guide implementers of projects in the housing process and would also serve as a project management and monitoring tool for project managers. The newly established Housing Development Agency (HDA), following the promulgation of the Housing Development Act, 2008 (Act. 23 of 2008) was operational in the 2009/10 financial year. The Department in collaboration with the Rural Housing Loan Fund has finalised the development of an individual housing subsidy voucher scheme for persons who enjoy functional tenure rights to the land they occupy. 17

Progress Analysis The Department has ensured that operational systems are aligned with changes in housing policy and also implemented change requests received from the nine provincial housing department. A process to develop generic business processes based on documented housing delivery processes has been implemented. Five municipalities are accredited to level one. To date municipal accreditation compliance and capacitation assessment panel has completed level 1 and 2 assessments of all six metro’s and four local municipalities. In the international arena, South Africa was given a voice in the debate on human settlements through the African Ministerial Conference on Housing and Urban Development and the World Urban Forum. 18

Progress Analysis Due to inadequate resources the Department is not able to fill all its vacant posts. The filling of vacancies is done on a prioritized basis and will be done gradually as funding is available such that the new structure will be fully implemented by 2010/11 financial year. 19

Departmental Total per Prog Programmes 1. Administration Preliminary Expenditure as 31 March 2010 Adjusted Allocation Variance % Spent 113,291,349 167,770,000 54,478,651 68% 2. Housing Policy, Research and Monitoring 44,522,303 67,175,000 22,652,697 66% 3. Housing Planning and Delivery Support 96,713,609 169,506,000 72,792,391 57% 12,987,565,598 13,033,695,000 46,129,402 100% 126,256,360 166,659,000 40,402,640 76% 13,368,349,219 13,604,805,000 236,455,781 98% 4. Housing Development Finance 5. Strategic Relations and Governance Total 20

Departmental Total per Economic Classification Economic Classification Compensation of employees Goods and services Comprises of: Advertising Computer services Consultants and professional service: Business and advisory service Consultants and professional service: Legal cost Contractors Agency and support / outsourced services Travel and subsistence Other Payments For Financial Assets Provincial and Local Governments Departmental Agencies & Accounts Foreign Gov & International Organ Public Corporation & Private Enterprise Households Building & Other Fix Structure Machinery and equipment Software & Intangible Assets Total Preliminary Expenditure as 31 March 2010 156,410,716 252,434,088 Adjusted Allocation Variance % Spent 188,073,312 408,503,815 31,662,596 156,069,727 83% 62% 24,552,742 57,731,090 30,166,239 71,664,837 5,613,497 13,933,747 81% 81% 46,670,806 71,129,478 24,458,672 66% 2,080,934 1,558,416 3,661,900 53,905,143 1,580,966 52,346,727 57% 3% 28,556,388 41,085,348 50,198,363 45,650 12,592,276,000 354,076,000 745,499 43,314 7,208,020 0 4,536,615 573,317 13,368,349,219 32,877,680 55,243,764 89,854,774 74,319 12,592,276,000 389,075,000 1,387,508 58,000 7,706,506 152,000 14,983,540 2,515,000 13,604,805,000 4,321,292 14,158,416 39,656,411 28,669 0 34,999,000 642,009 14,686 498,486 152,000 10,446,925 1,941,683 236,455,781 87% 74% 56% 61% 100% 91% 54% 75% 94% 0% 30% 23% 98% 21

Integrated Housing and Human Settlement Development Grant Voted Amount Preliminary figures from 01 April 2009 to 31 March 2010 Variance R'000 R'000 R'000 Provinces Eastern Cape % Spent 1,313,378 1,313,378 - 100% 962,759 962,758 1 100% Gauteng 3,187,086 3,156,400 30,686 99% KwaZulu Natal 2,180,448 2,245,380 (64,932) 103% Limpopo 996,667 996,667 - 100% Mpumalanga 795,447 760,278 35,169 96% Northern Cape 325,011 325,011 - 100% North West 1,100,055 1,099,950 105 100% Western Cape 1,581,425 1,499,316 82,109 95% 12,442,276 12,359,138 83,138 99% Free State Total 22

Departmental Agencies Departmental Agencies & Accounts Social Housing Foundation Preliminary Expenditure as 31 March 2010 Budget Variance % Spent 262,960,000 262,967,000 7,000 100% 24,966,000 24,966,000 0 100% NHFC 0 1,000 1,000 0% Social Housing Regulatory Authority 0 34,991,000 34,991,000 0% 62,650,000 62,650,000 0 100% 3,500,000 3,500,000 0 100% 354,076,000 389,075,000 34,999,000 91% Thubelisha Homes Housing Development Agency NURCHA Total 23


Programmes purposes Programme 1: Administration – Purpose: Provide strategic leadership and administrative and management support services to the department. Programme 2: Housing Policy, Research and Monitoring – Purpose: Develop and promote human settlement and housing policies supported by a responsive research agenda. Monitor and assess the implementation, performance and impact of national housing policies and programmes. Programme 3: Housing Planning and Delivery Support – Purpose: Support implementation and delivery, build capacity, and liaise and communicate with stakeholders for effective housing and human settlement programmes. Coordinate and monitor the implementation of priority projects and the sanitation programme. 25

Programmes purposes cont. Programme 4: Housing Development Finance – Purpose: Fund housing and human settlement development programmes. Provide financial and grant management services. Promote investment in housing finance. Mobilise and promote financial probity within housing institutions. Manage all matters provided for by the Home Loan Mortgage and Disclosure Act (2000). Programme 5: Strategic Relations and Governance – Purpose: Coordinate the department’s mandate within the intergovernmental relations framework. Manage international relations and promote good governance practices within the department and its public entities. Provide timely and integrated business information to the department. 26

Allocation per Programme 2010/11 to 2012/13 R thousand 1. Administration 2. Housing Policy, Research and Monitoring 3. Housing Planning and Delivery Support 4. Housing Development Finance 5. Strategic Relations and Governance 2009/10 Adjusted appropriation 2010/11 2011/12 2012/13 Medium-term estimates MTEF Baseline 167,770 176,175 182,418 190,915 72,175 45,907 48,168 50,810 250,899 206,831 173,425 183,334 13,380,695 15,598,126 17,898,881 18,991,610 164,659 174,442 180,111 187,169 Departmental total 14,036,198 16,201,481 18,483,003 19,603,838 Change to Baseline 2,165,283 2,281,522 1,120,354 % Change to baseline 15% 14% 6% 27

Allocation by Economic classification 2009/10 R thousand Adjusted appropriation 2010/11 2011/12 2012/13 Medium-term estimates MTEF Baseline Compensation of employees 217,394 290,166 313,377 328,855 Goods and services 419,843 309,299 321,929 337,390 Transfers and subsidies Payments for capital assets Total Payments 13,334,854 16,201,481 18,483,003 19,603,838 64,094 159,259 354,237 754,446 14,036,185 16,960,205 19,472,546 21,024,529 28

Programme 1: Administration STRATEGIC GOAL – To provide strategic leadership, administrative and management support services to the Department STRATEGIC OBJECTIVES – Executive Support: To provide Executive Support services to the Director-General – Internal Audit, Risk Management and Special Investigations: To provide independent assurance on the system of internal control and corporate governance 29

Programme 1: Administration (Cont.) STRATEGIC OBJECTIVES – Human Resources Management: Facilitation of strategic human resource management practices and processes in the Department – Corporate Services: To render responsive corporate support function to the department – Information Technology and Systems: To provide IT services and solutions for internal departmental operations – Legal Services: To provide legal services to the Department 30

Programme 1: Administration cont. 2009/10 R thousand 2010/11 2011/12 2012/13 Adjusted Medium-term estimates appropriation MTEF Baseline Minister 1,372 1,816 1,916 2,012 Deputy Minister 1,020 1,496 1,578 1,657 Management 69,688 80,822 83,864 87,558 Corporate Services 86,140 81,520 83,888 87,932 9,550 10,521 11,172 11,756 167,770 176,175 182,418 190,915 8,405 6,243 8,497 Office Accommodation Total of subprogrammes Change to baseline % Change to baseline 5% 4% 5% 31

Programme 1: Administration cont. 2009/10 R thousand 2010/11 2011/12 2012/13 Adjusted Medium-term estimates appropriation MTEF Baseline Compensation of employees 64,096 81,899 88,450 92,682 Goods and services 98,415 91,063 92,089 96,261 Transfers and subsidies Payments for capital assets Total Payments 10 - - - 5,246 3,213 1,879 1,972 167,767 176,175 182,418 190,915 32

Programme 2: Housing Policy, Research and Monitoring STRATEGIC GOAL – To manage the development, promotion, monitoring and evaluation of sustainable human settlements policies and programmes supported by responsive research STRATEGIC OBJECTIVE – Policy: To develop and promote national sustainable human settlement and housing policies – Research: To manage and coordinate responsive research – Monitoring and Evaluation: To monitor the performance and evaluate the impact of policies and programmes 33

Planned Outputs Policy – Maintain and promote the National Housing Code – Develop contract documents and application forms for Farm Residents programme – Review and finalise Inclusionary Housing Programme – Finalise Finance Linked Subsidy Programme (FLISP) – Conduct structured workshops with stakeholders on National Housing Code and Regional Policy Model 34

Planned Outputs (Cont.) Research – Produce four research reports on the following themes: Sustainable human settlements, demand, supply and land tenure – Produce number of research reports on the identified themes in the research agenda – Produce four research reports on trends in the broader macro and micro environment and determine the impact thereof 35

Planned Outputs (Cont.) Monitoring and Evaluation – Implement monitoring and evaluation impact assessment policy guidelines – Produce four monitoring and evaluation reports on performance of national housing – Produce four technical construction reports – Produce two occupancy audit findings reports – Produce two impact evaluation reports 36

Programme 2: Housing Policy, Research and Monitoring cont. R thousand Management 2009/10 Adjusted 2010/11 2011/12 2012/13 Medium-term estimates appropriation MTEF Baseline 2,700 2,519 2,662 2,867 Policy Development 10,167 9,841 10,514 11,058 Research 14,990 15,872 16,541 17,446 Monitoring and Evaluation 44,318 17,675 18,451 19,439 Total of subprogrammes 72,175 45,907 48,168 50,810 (26,268) 2,261 2,642 Change to baseline % Change to baseline -36% 5% 5% 37

Programme 2: Housing Policy, Research and Monitoring cont. 2009/10 R thousand 2010/11 2011/12 2012/13 Adjusted Medium-term estimates appropriation MTEF Baseline Compensation of employees 23,004 27,353 29,540 31,017 Goods and services 47,685 18,101 18,291 19,438 Transfers and subsidies Payments for capital assets Total Payments - - - - 1,486 453 337 355 72,175 45,907 48,168 50,810 38

Programme 3: Housing Planning and Delivery Support STRATEGIC GOAL – Provide implementation and delivery support, build capacity, liaise and communicate with stakeholders and manage intergovernmental and international relations for housing and human settlement programmes STRATEGIC OBJECTIVE – Human Settlement Planning: Manage human settlement programmatic planning frameworks and support the implementation of human settlement development design and spatial planning – Stakeholder Mobilisation: To manage relations, engage and collaborate with sector stakeholders 39

Programme 3: Housing Planning and Delivery Support Cont. STRATEGIC OBJECTIVE cont. – Programme Implementation Support: The provision of support to provinces and municipalities to unblock stalled projects – Rental Housing and PHP: To manage the implementation of the PHP and rental / social housing programmes and to provide regulatory support and oversight over the rental/ social housing and PHP sectors – Capacity Building: To develop & secure capacity in the sector – Priority Projects: To coordinate the achievement of sustainable human settlements in identified national priority projects – Sanitation: Ensure sanitation delivery through policies and regulations 40

Planned Outputs (Cont.) Human Settlement Planning – Develop & maintain human settlement planning frameworks & instruments. – Support the implementation of human settlement development design and spatial planning at provincial level. – Support the implementation of human settlement and housing development planning frameworks at municipal level. – Support rendered to municipalities in the preparation of human settlements sector plans. 41

Planned Outputs (Cont.) Human Settlement Planning cont. – Appropriate Human Settlements sector officials & Municipal Councilors, adequately skilled and trained to facilitate compilation of human settlements chapter of IDPs. – Participation and annual review of Municipal IDPs. – Promote the institutional alignment of planning with other sectors. Institutional alignment with other sector departments maintained. Participation at quarterly performance reviews of PHD’s. Render advisory services and assistance in respect of human settlement design and spatial planning 42

Planned Outputs (Cont.) Stakeholder Mobilization – Manage the liaison and involvement of Sector Stakeholders for the delivery of human settlements by re-tooling the Social Contract for human settlements – Ensuring the alignment of norms and standards across sectors to improve intergovernmental coordination. – Implementation of the Framework of engagement of the Social Contract – Manage the engagement and signed Memorandum of Understanding’s in partnership projects and collaborate on Human Settlements projects with sector stakeholders. Targeted agreements signed with stakeholders. Engage provincial departments in supporting the implementation process on identified projects. Implementation of Partnership agreements. Cooperation with National and Provincial Departments on National Govan Mbeki Human Settlements Awards 43

Planned Outputs (Cont.) Stakeholder Mobilization cont. – Manage the mobilization for empowerment and support to Women and Youth in Human Settlements programmes Implementation of Women in Human Settlements programme. Women in Human Settlements Mentorship programme model approved. Support to National and Provincial Women in Human Settlements initiatives. Implementation of Youth in Human Settlements (YHS) Framework. 44

Planned Outputs (Cont.) Programme Implementation Support – Produce a report on number of information sessions conducted with Provinces on the strategy to unblocked stalled projects. – Agreement concluded and finalized with Provinces on strategy to unblock stalled projects. – Introduce an Early Warning System to identify slowly moving projects. – Provide support for informal settlement upgrading projects. – Manage the National Upgrading Support Programme (NUSP). – Produce report on the reasons for projects being blocked. – Compile a priority list of blocked projects to be undertaken by Provinces. – Produce a report on recovery plans/ intervention undertaken in respect of identified blocked projects. 45

Planned Outputs (Cont.) Rental Housing and PHP – Facilitate, support and manage the development of 100 000 public and private rental housing units in provinces in line with the National Rental Housing Strategy. – Nine Provincial Human Settlements departments supported in the delivery of at least 20 000 units by 2013 pending Provinces allocation to implement People’s Housing Process based on the approved Growth and Implementation Strategy for People’s Housing Process. – Develop guidelines on accessing of housing assistance for housing cooperative sector 46

Planned Outputs (Cont.) Rental Housing and PHP cont. – Provide regulatory support and oversight on the performance of institutions in the rental housing sector: Provide support in the establishment of the Social Housing Regulatory Authority; Oversight of Social Housing Regulatory Authority activities and functions; Update and maintain a database of Social Housing Institutions and projects; Provide technical support and information to the Rental Housing Tribunals; and Turnaround distressed institutions. 47

Planned Outputs (Cont.) Capacity Development – To manage training and skills development programme – Training and Skills Development programmes implemented for: Government officials (500) Beneficiaries (500 000) Emerging contractors (50) Councilors (300-600) Sector institutional policies and strategies developed and implemented. – Sector professional development programme developed and implemented. 48

Planned Outputs (Cont.) Capacity Development cont. – To support professional development within the sector. – Scholarship awarded to qualifying applicants (120). – Professionalization strategy developed and implemented by 2010/11 financial year – Business Plan for Professional Body developed and approved by 2010/11 financial year – Streamlining of Human Settlements qualifications to create a career path in preparation for the Human Settlements practitioners. 49

Planned Outputs (Cont.) Priority Projects – To manage the identified national priority projects. – To represent the Department at monthly project steering committee meetings. – To provide technical support and policy interpretations to the implementers of the projects to ensure that the projects meet the national minimum norms and standards. – To manage the administrative processes as set out in the intergovernmental agreements to facilitate delivery. 50

Planned Outputs (Cont.) Sanitation Unit/programme – Policies strategies, norms and standards for provision of sanitation developed – Municipalities and sector departments supported in planning and implementation of sanitation – Skills development and capacity building coordination in the sanitation sector – Health and Hygiene activity plans developed and reviewed – Programmes to improve citizens and stakeholders awareness understanding and prioritization of sanitation implemented 51

Planned Outputs (Cont.) Sanitation Unit cont. – Desktop analysis to establish baseline information to inform targeted advocacy programmes conducted – Support municipalities to identify and register sanitation projects in the EPWP – Supporting SMMEs to register cooperative with DTI – Participating in Global Forums and support sanitation programme in Africa 52

Programme 3: Housing Planning and Delivery Support cont. R thousand Management Programme Implementation Support Rental Housing and People's Housing Process Stakeholder Mobilisation Capacity Development Priority Projects Human Settlement Planning Sanitation Services Total of subprogrammes Change to baseline % Change to baseline 2009/10 Adjusted appropriation 19,553 9,249 19,392 16,161 34,012 59,331 11,808 81,393 250,899 2010/11 2011/12 2012/13 Medium-term estimates MTEF Baseline 3,134 14,696 21,025 17,208 28,407 12,607 12,077 97,677 206,831 3,447 16,449 23,629 20,651 32,666 14,139 13,214 49,230 173,425 3,638 17,449 24,968 21,793 34,776 14,846 13,909 51,955 183,334 (44,068) (33,406) 9,909 -18% -16% 6% 53

Programme 3: Housing Planning and Delivery Support cont. 2009/10 R thousand Compensation of employees Goods and services Transfers and subsidies Payments for capital assets Total Payments Adjusted appropriation 2010/11 2011/12 2012/13 Medium-term estimates MTEF Baseline 57,486 83,563 90,248 94,760 135,502 65,233 78,573 83,941 5,130 4,000 4,000 4,000 52,781 54,035 604 633 250,899 206,831 173,425 183,334 54

Programme 4: Housing Development Finance STRATEGIC GOAL – Provision and administration of funding for the development of sustainable human settlement programmes and the creation of an enabling environment for access to affordable finance STRATEGIC OBJECTIVE – Financial Services : To provide financial administration and supply chain management services and provincial debtors support – Funds Management : To provide overall Budgetary and Grant Management services – Housing Equity : Promote investment in sustainable human settlements and administer HLAMDA 55

Planned Outputs (Cont.) Financial Services – To manage Financial Support, Internal control and compliance checking – To manage the provision of Supply Chain – Management Services – Provide Debtor System Support to Provinces Funds Management – Provide budget management services – Provide grant management services 56

Planned Outputs (Cont.) Housing Equity – Provide secretariat function for Office of Disclosure in terms of the Act – Manage and promote private sector partnership engagements for investments for human settlements and infrastructural development – Facilitate, monitor and report on performance of investments in human settlements 57

Programme 4: Housing Development Finance cont. 2009/10 2010/11 2011/12 2012/13 Adjusted appropriation 2,417 3,213 3,403 3,618 Financial and Funds Management 36,496 43,828 43,359 45,615 Housing Equity 13,431 13,328 13,659 14,280 12,442,276 15,026,763 17,222,368 17,938,701 386,075 277,194 266,092 239,396 100,000 350,000 750,000 R thousand Management Human Settlement Development grant Contribution Rural Households Infrastructure Development - Medium-term estimates MTEF Baseline Sanitation Grant 350,000 Housing Disaster Relief Grant 150,000 133,800 13,380,695 15,598,126 17,898,881 18,991,610 2,217,431 2,300,755 1,092,729 17% 15% 6% Total of subprogrammes Change to baseline % Change to baseline - - 58

Programme 4: Housing Development Finance cont. R thousand 2009/10 Adjusted appropriation 2010/11 2011/12 2012/13 Medium-term estimates MTEF Baseline Compensation of employees 28,325 33,076 35,722 37,508 Goods and services 23,053 26,486 24,080 25,356 13,328,351 15,437,757 17,488,460 18,178,097 966 100,807 350,619 750,649 13,380,695 15,598,126 17,898,881 18,991,610 Transfers and subsidies Payments for capital assets Total Payments 59

Programme 4: Housing Development Finance cont. Details of transfers 2009/10 R thousand Human Settlement Development grant National Housing Finance Corporation 2010/11 Adjusted appropriation 2011/12 2012/13 Medium-term estimates MTEF Baseline 12,442,276 15,026,763 17,222,368 17,938,701 1 1 1 1 262,967 6,621 7,018 7,368 44,991 151,772 120,473 86,497 - 49,500 49,500 51,975 Housing Development Agency 49,650 69,300 89,100 93,555 Housing Disaster Relief Grant 150,000 133,800 - - Social Housing Foundation Social Housing Regulatory Authority Rural Housing Loan Fund Total 12,949,885 15,437,757 17,488,460 18,178,097 60

Delivery of Housing opportunities Estimated Delivery Prelim Units delivered in 2009/10 2010/11 2011/12 2012/13 2013/14 EC 28,633 23,400 23,400 24,463 26,058 FS 18,829 21,462 21,462 22,438 23,901 GP 39,922 48,553 48,553 50,760 54,071 KZN 27,376 26,626 26,626 27,837 29,652 LP 23,079 22,613 22,613 23,641 25,182 MP 8,291 8,181 8,181 8,553 9,111 NC 6,257 6,512 6,512 6,808 7,253 NW 35,141 30,954 30,954 32,361 34,472 WC 32,371 31,698 31,698 33,139 35,300 219,899 220,000 220,000 230,000 245,000 Total 61

Indicative allocations for 2010/11 to 2013/14 Provinces EC FS GP KZN LP MP NC NW WC TOTAL 2010/11 R'000 1,598,646 1,300,691 3,771,831 2,714,109 1,234,750 975,863 273,260 1,288,770 1,868,843 15,026,763 MTEF 2011/12 R'000 1,802,873 1,380,185 4,322,945 3,149,500 1,415,163 1,118,449 313,187 1,578,161 2,141,905 17,222,368 2012/13 R'000 2013/14 R'000 2,561,647 1,340,021 4,068,497 3,327,629 1,648,567 1,250,327 426,941 1,314,907 2,000,165 17,938,701 2,825,632 1,254,992 4,599,734 3,622,362 1,483,172 1,258,795 443,050 1,370,983 2,156,304 19,015,023 62

Programme 5: Strategic Relations and Governance STRATEGIC GOAL – To co-ordinate the department’s mandate within the inter governmental relations framework, manage international relations, and promote good governance practices within the department and its public entities. Provide timely and integrated business information to the department. STRATEGIC OBJECTIVE – Entities Governance and Oversight: Provide oversight management of housing institutions, including monitoring, analyzing and reporting on financial and non-financial performance and corporate governance 63

Programme 5: Strategic Relations and Governance STRATEGIC OBJECTIVE – Management Information Services: To provide solution driven management information services to the Department – Intergovernmental Relations and International Relations: Develop and manage intergovernmental programme for coordination, alignment and integration in the development of human settlements – Strategic Management: To manage the development of Departmental Strategic and Performance Plans – Transformation: To develop and manage transformation programme in compliance with the national policy frameworks, international human rights instruments and directives – Communication Services: To manage the communication and public relations functions. 64

Planned Outputs (Cont.) Entities Governance and Oversight – – – – – Approved Entities strategic, business plans by the Minister. Annual Report on Entities Performance (financial /Non Financial ). Number of established/ dissolved Entities. Annual Report on performance of Board of Entities. Annual Report on contribution of housing entities contribution to government priorities 65

Planned Outputs (Cont.) International Relations – Develop and implement the programme of international engagements – Implementation of agreements, action plans and project plans with key strategic countries/partners: Angola (Support to Human Settlements development in Angola) DRC (Revise co-operation agreement for practical outcomes) IBSA (collaboration through learning networks, interactive platforms etc between practitioners) Netherlands (Support for SHRA establishment, capacity development, and retooling of social rental housing Denmark (finalise energy efficiency pilot project) Cuba (Cuban Technical Support Programme) China (fast track the Thabachweu 170 unit housing project) World Bank and Cities Alliance (Support for Informal Settlements Upgrading Knowledge networks, syndicated learning groups for finance, planning and social cohesion) 66

Planned Outputs (Cont.) International Relations cont. – Implementation of agreements, action plans and project plans with key strategic countries/partners: cont. UN Habitat (Human Settlements indicators/index) AMCHUD (conclude the Secretariat Work for final hand over) – Participate in strategic international forums to articulate South Africa’s position vis a vis human settlements issues: UN Habitat Governing Council World Urban Forum Cities Alliance African Ministerial Conference on Housing and Urban Development (AMCHUD) UN General Assembly 67

Planned Outputs (Cont.) Intergovernmental Relations – Develop and implement an IGR framework – Facilitate and provide support to the municipalities prioritized for accreditation to perform human settlements/housing functions – Conduct municipal accreditation capacity and compliance assessment to determine state of readiness for accreditation – Co-ordinate and manage the work of the accreditation capacity and compliance assessment panel – Support government initiatives to improve state of local government – Coordinate the provincial housing/human settlements department quarterly performance and delivery reviews – Coordinate national department quarterly visits in various provinces 68

Planned Outputs (Cont.) Intergovernmental Relations cont. – Coordinate the departmental annual IGR Human settlements planning, alignment, coordination with sectors, provinces and key municipalities – Coordinate convergence of mandates in support of sustainable human settlements development through implementation of the Macro-coordinating and Alignment Framework – Participation and compliance in forums and activities related to implementation of the government’s Programme of Action and other government strategic priorities 69

Planned Outputs (Cont.) Management Information Services – Maintain the data contained in the data warehouse to ensure accessibility to information – Provide an effective database administration function & provide Integrated Business Information – Publish Housing & Human Settlement Journal to ensure simpler, faster and targeted access to business information reports – Provide a GIS environment to support spatial analysis and products & Develop information products and tools – Provide effective library & Knowledge services to the department – Provide a collaborative online environment via intranet & provide a PAIA service 70

Programme 5: Strategic Relations and Governance cont. 2009/10 2010/11 2011/12 2012/13 Adjusted appropriation 4,111 4,048 4,182 4,349 Management Information Services 56,522 67,357 68,161 70,884 Inter-governmental and International Relations 22,625 27,020 27,581 28,612 Communication 55,119 47,825 50,360 52,123 Housing Institutions 11,457 12,672 13,418 14,031 Strategic Management 6,575 8,169 8,699 9,107 Transformation 7,250 6,351 6,710 7,013 Contributions 1,000 1,000 1,000 1,050 164,659 174,442 180,111 187,169 9,783 5,669 7,058 R thousand Management Total of subprogrammes Change to baseline % Change to baseline Medium-term estimates MTEF Baseline 6% 3% 4% 71

Programme 5: Strategic Relations and Governance cont. 2009/10 R thousand Compensation of employees 2010/11 2011/12 2012/13 Adjusted Medium-term estimates appropriation MTEF Baseline 44,483 64,275 69,417 72,888 115,188 108,416 108,896 112,394 Transfers and subsidies 1,363 1,000 1,000 1,050 Payments for capital assets 3,615 751 798 837 164,649 174,442 180,111 187,169 Goods and services Total Payments 72

Challenges Responses Lack of a shared understanding of the BNG plan across provinces and between provinces and National Department Refine the role of municipalities in the housing delivery chain as well as to establish the necessary mechanisms for the rollout of accreditation, as provided for in the Housing Act (1997). By Provide assistance and monitoring support to provinces and municipalities in their planning of priority housing projects 73

Challenges BNG expanded the mandate of the Department without giving the department the political directive to pursue its policy intentions, thus the department’s jurisdiction did not change though what it wanted to deliver changed. Responses The Department of Housing has been reconfigured to be the Department of Human Settlements. This was in part, government’s gearing to respond to the challenges experienced by the department in the implementation of BNG ideals in the past five years The reconfiguration of the department captures the ideologies of BNG, gives the department the political directive and vigour to trigger change in society and build settlements that have social and material elements to support livelihoods. 74

Challenges Responses Inadequate intergovernmental It will also look at how best to coordination for accelerated housing coordinate investment between delivery. sector departments, critical public and private role players, and the three spheres of government. Lack of capacity to monitor and evaluate the implementation of housing programmes. Direct support to provinces and municipalities on the implementation of projects, supporting projects where there are blockages, and facilitating cooperation with the private sector. 75

Challenges Responses Creating a functioning housing market that allows low income households to capitalise on the equity provided by the free house, while minimising the distortions housing subsidies create for households in other segments of the housing market. Capital grants will be limited and will have to be supported by the institutional subsidy programme for rental housing institutions. To accommodate continuous support to the social housing sector, the allocation for the Social Housing Foundation has been retained until the regulator has been established. To ensure an increase in the supply of rental housing to accommodate increased urban immigration, the allocation formula of the integrated human settlement grant has been adjusted. Further changes to the allocation mechanism are being pursued to take into account capacity challenges in certain provinces and related municipalities 76


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