R E Q U E S T F O R P R O P O S A L S
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1 P.O. Box 3209, Houghton, 2041 Block A, Riviera Office Park, 6-10 Riviera Road, Riviera R E Q U E S T F O R P R O P O S A L S M A R K E T S U R V E Y T O I N F O R M R E S I D E N T I A L H O U S I N G D E V E L O P M E N T I N B E L A - B E L A M U N I C I P A L I T Y RFP/JHB/007 PROPOSALS TO BE SUBMITTED BY NOT LATER THAN 12 NOON ON MONDAY 13 TH DECEMBER December 2010
2 Terms of Reference Housing Demand and Supply Survey for the Proposed Integrated Sustainable Human Settlement Known as Bela View within the Bela Bela Local Municipality Partnership Project Between: Housing Development Agency; the Department of Local Government and Housing Limpopo Province; and the Bela Bela Local Municipality Project Ref No: RFP/JHB/ INTRODUCTION As part of the Bela Bela Local Municipality (BBLM) Integrated Development Plan, BBLM has committed to development of a plan and methodology for human settlement development within close proximity to the Central Business District within the area of jurisdiction of the municipality. To this end, the Municipality in collaboration with the Housing Development Agency(HDA) the Department of Housing and Local Government Limpopo Province has acquired 72 hectares of land known as Portion of Portion 170 and a Portion of Portion 5 of the farm Roodepoort 46 KR (Proposed Bele View Estate) measuring approximately 72,5785. In order for this plan and methodology to be developed, special attention will be given to conducting the housing demand and supply survey which will assist stakeholders to determine the potential for housing on the identified land and further inform the type of housing developments required in line with affordability levels. This assignment requires the services of a company/researcher/market survey specialist with experience of working in the housing sector. 2. BACKGROUND AND CONTEXT 2.1 Policy Context-Human Settlements Development The National Comprehensive Plan for Human Settlement (2004) shifted emphasis from Housing to Integrated Sustainable Human Settlements, seeking to create non-racial integrated societies that are in well designed and located areas with access to adequate socio-economic infrastructure. The plan targets housing as a key strategy for poverty alleviation, utilizing the provision of housing as a job creation strategy, as an asset for wealth creation, to leveraging growth in the economy and combating crime and improving quality of life for the poor. The Bela Bela Municipality is responding to the above policy context. 1
3 2.2 Core Principles Guiding Housing Developments Based on perspectives from other municipalities, residential development in the inner-city is mainly rental housing. However, there is a move towards encouraging mixed income housing development in and around inner-city. Mixed income housing developments is guided by the following principles: Well located land Provides housing for people with some form of income who will be able to either service the rental requirements or the maintenance of owned property. Access to urban facilities including prioritization of transportation Good quality of housing Creation of economic opportunities Integrated projects-development of sustainable communities by promoting mixed developments approach with residential, commercial, and other amenities brought together per project. Partnerships-Maximize private and public sector resources Housing developments with High/Medium Density : 90 units/ha Mixed Income/Tenure is promoted and mixed markets (Preferred Ratio: 50:25:25) 50% of the land portion should be reserved for subsidised market; 25% for the gap market/social housing/rental (R3501-R10 000); and 25% for the open market. Promote sustainable development and build communities 3. DESCRIPTION OF THE ASSIGNMENT 3.1 Overall objectives The overall objective of the assignment is to conduct a demand and supply investigation in order to examine the potential housing market drawn from proposed mandated areas which are: CBD-Central Bela Bela Surrounding Suburbs and Townships Informal Settlements in and around the town This study will give the Municipality, HDA, DLGH and housing developers some insights into the potential demand that exists for different categories of housing. In addition the study will highlight the affordability issues facing households within the different income ranges and the risks these households face in maintaining the rental/ownership housing. The results of the investigation will also assist the stakeholders, in particular the municipality with its housing strategy. 2
4 3.2 Scope of Work The investigation will be done within the BBLM mandated areas and will cover the following: Mixed Use-Housing Demand Investigation Social housing and other rental programmes demand investigation; and Gap Housing and other ownership programmes demand investigation Mixed Use-Housing Supply Investigation Social housing and other rental housing supply investigation Gap Housing and other ownership programmes supply investigation Demographic analysis Demographic analysis with specific emphasis on issues of affordability Housing Supply Data The investigation should gather data which will provide an analysis of housing supply in general and specific focus must be on popular forms of housing typology such as rental housing supply. Data to be collected and reviewed may include: Spatial Development Frameworks including the Provincial Housing Development Plan, IDPs, Provincial SDF s, and Provincial Social Housing Policy documents, available inner city ownership housing schemes, etc. Housing market information including numbers of rentals units by monthly rental range by location, by bedroom count, together with vacancy rates; home ownership opportunities by price range, by location and with anticipated listing days until sale. Housing preferences of the households in the income range including, tenure type, flat/house sizes, location, and amenities/services; level of understanding of the housing market and its costs that inform these preferences. Available Public/Private Sector owned stock and its status, if any Housing Demand Side Data The investigation should also gather data which will provide an analysis on demand of housing in general terms within various categories. The demand side data may include review of: Population trends - urban to rural; rural to urban out of Province and into Province Stability of employment and levels of employment/unemployment within the area Nature and composition of industries in the area Projected growth/decline of various economic sectors over the next five years An estimation of the number of households that have already accessed government housing subsidies and the estimated backlog of those who have not. 3
5 3.2.3 Demographics Analysis Generally, non-full subsidy housing is targeted for people who are employed, or who have potential to pay for their accommodation. The data to be analysed in this area should provide: Numbers of households within defined income bands and changes anticipated over the next five years within each band, based on economic status of the country and individual strategy. Demographic profile of the households with joint monthly incomes between: a) R800 - R1,500; b) R1, R3,500; c) R3,501 - R7,500; d) R7,501 - R15,000; and e) 15,000+ Living in the study area including numbers in various housing tenure types, current rents paid, current ownership costs including debt payments, utilities, municipal rates and maintenance; Determine disposable income and typical non-housing related expenditures of the households in the intended income range. Current location of households in the target range; transportation and parking costs; availability and/or lack of services and social facilities in those areas. Assuming a housing cost of 30% of income as affordable, estimate the number of households in the target income range living in affordable and unaffordable housing. 3.3 Results to be achieved and reports to be delivered Results The Service provider is expected to achieve the following: A report on demand and supply assessment in order to ascertain an appropriate housing market for the proposed Bela View Integrated Sustainable Human Settlement. A report on demographic analysis Final Deliverables Anticipated final deliverables are as follows: 4 copies of the report on the market survey investigation submitted in hard copy and in CD-ROM-all raw data must also be submitted. A briefing workshop and the presentation workshops with the representatives of HDA; DLGH and the BBLM. 4
6 3.4 Specific Activities and Project Time Frames Activities It is expected that the Service Providers work plan will include both quantitative and qualitative information gathering techniques, including interviews with key stakeholders. Prior to the investigation, the task team expects a desktop study to be done to collect and review information that already exists on the area that can serve to inform the investigation, for example: Provincial Housing Development Plan Integrated Development Plan of the Municipality Housing rental strategy for the metro (if it exists) Housing waiting list information Census indicators Employers surveys Information from the banks relating to gap market Information from rental organizations and private developers Information from estate agents Local authority information on public rental accommodation facilities (including demand Information, and patterns and risks that exist in this sector) Provincial and municipal plans for the area that could affect the project The service provider will also define the logistics of the investigation in terms of selecting respondents, describing all proposed sources of information to complete the study, sampling and other features of the methodology for the study, and the system for the collection and analysis of the data. The data collected must be valid and reliable in terms of the purpose of the study Structure and phasing of the work The proposed structure and phasing of the investigation is detailed in the Table below. The service provider will have to develop a detailed methodology on how each phase will be approached: Phase Project activities Pre-Inception Inception Meeting (10 January 2011) Inception report (02 February 2011) PART 1 Desktop Review: - Collection and analysis of existing data. - Identify variables and hypotheses from existing research. - Briefing Workshop - Agree on specific objectives of the project. - Refine variables. - Service provider to estimate time required in days and should outline the approach and methodology 5
7 PART 2 PART 3 PART 4 - Formal investigations - Data capture and analysis - Service provider to confirm time required in days and should outline the approach and methodology - Presentation of Draft Report at a workshop - Service provider to confirm time required and should demonstrate how progress update or interim reporting will be done towards the final product - Service provider to confirm delivery date of draft report- 16 th February Presentation of Final Report - Service provider to confirm time required - Service provider to note delivery date of the final report is 31 March Time Frame The appointment will be made on the 15 th December 2010 and the assignment will commence on the 10 January 2011 and end on the 31 March Geographic Areas to be covered The assignment will be undertaken in and around the mandated areas of the Bela Bela Local Municipality. Specific attention will be paid to the following areas: 1) CBD-Central Bela-Bela 2) Surrounding Suburbs and Townships 3) The informal settlements in and around the Bela-Bela Town 4. LOGISTICS 4.1 Responsible Institution A Task Team comprising of the HDA, Limpopo Department of Local Government and Housing, and officials from the Bela Bela Local Municipality will be established and the three will be jointly become the responsible body for the assignment. The HDA will lead the Task Team. The task team will meet the service provider at mutually agreed times at the beginning of the assignment and in between for reporting. 6
8 5. PROPOSAL EVALUATION CRITERIA This proposal will be evaluated on the basis of the following criteria: 5.1 Functionality CRITERIA SUB-CRITERIA WEIGHTING/ POINTS Company profile and Qualifications, Capacity, Level of 30 individual team members CVs Experience and knowledge Previous work in: 30 Housing sector Research/market surveys Strategy Objectives and competitive output 20 and Methodology to be followed Innovation Innovation 20 TOTAL 100 The following criteria will be used for points allocation for price and BEE compliance on a 80/20 point system:- 5.2 Price and BEE CRITERIA SUB-CRITERIA WEIGHTING/ POINTS Price Price of the bid 80 BEE Equity holding by HDI 5 Percentage of management positions 5 held by HDI s Percentage of labour force positions 5 occupied by the Disabled Percentage of labour force positions occupied by the Women 5 TOTAL PROPOSAL SUBMISSION 6.1 The Housing Development Agency will be responsible for the procurement of the service provider. Service Providers must be registered on the HDA data-base. 6.2 Proposal with methodology should not exceed 5 A4 pages. CVs of experts who will undertake the work will be submitted as an annexure to the proposal. 6.3 Proposals with budget should be submitted electronically on or before the 13 th December 2010 by 12h00 to address: naomi.edwards@thehda.co.za; cc: maki.thellane@thehda.co.za. 7
9 6.4 The service provider must demonstrate their reputation, knowledge and expertise in line with the terms of reference and should ensure that its team has relevant expertise and have necessary equipment and support to undertake the work. 6.5 The service provider will adhere to agreed reporting requirements which will be outlined on the work plan. The proposal should demonstrate how progress update will be given including two ½ day work sessions for presentation of the findings. The HDA does not bind itself to accept any particular bid/proposal, and reserves the right not to appoint the service provider. All decisions of the HDA in respect of the appointment or non-appointment of Bidders are final. Enquiries for this proposal may be directed to: Ms Maki Thellane Technical Support Manager The Housing Development Agency Block A, 6-10 Riveria Road, Killarney, 2193 Tel: Mobile:
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