PORTFOLIO COMMITTEE ON HOUSING 13 MAY 2008
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1 DEPARTMENT OF LOCAL GOVERNMENT & HOUSING PORTFOLIO COMMITTEE ON HOUSING 13 MAY 2008 Integrated Sustainable Human Settlement: Progress Report 7/8 and Annual Performance Plans for 2008/2009 Financial Year By MEC:Maite Nkoana -Mashabane 5/23/2008 1
2 Policy framework 5/23/2008 2
3 Comprehensive Plan: Financial Services Market New credit linked scheme Social amenities Assets management Rectification Sales Relocation assistance Capacity Building Intervention areas Incremental Housing Project linked PHP Individual Informal Settlement Emergency Consolidation Higher density for ownership Special needs Rural Housing Farm worker housing Rural subsidies Indigenous technologies Integrated Planning and Management Social/Rental Housing Social Housing Private rental Hostels Community Rental units Affordable Rental Land Acquisition 5/23/2008 3
4 LIMPOPO PROVINCIAL GROWTH DEVELOPMENT STRATEGY The higher ratio of housing grant investment focus is directed towards growth points : Polokwane municipality Lephalale municipality Mokgalakwena municipality Makhado municipality Tzaneen municipality Baphalaborwa municipality Janefurse municipality Thabazimbi municipality Greater Tubatse municipality 5/23/2008 4
5 National Spatial Development Perspective Efforts to address past and current social inequalities should focus on people not places In localities where there are both high levels of poverty and development potential, this could include fixed capital investment beyond basic services to exploit the potential of those localities In localities with low development potential, Govt spending should focus on providing social transfers, human resource development and labour market intelligence which would enable people to become more mobile and migrate to localities that are more likely to provide sustainable employment or other economic opportunities 5/23/2008 5
6 National Spatial Development Perspective In order to overcome the spatial distortions of Apartheid, future settlement and economic development opportunities should be channelled into activity corridors and nodes that are adjacent to or link the main growth centres Infrastructure investment should primarily support localities that will become major growth nodes in South Africa and the SADC region to create regional gateways to the global economy 5/23/2008 6
7 BACKGROUND AND HIGHLIGHTS INTEGRATED SUSTAINABLE HOUSING & HUMAN SETTLEMENTS (ISHS) AT 31 MARCH 2008 Total per Month R'000 APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR Total Projections 2007/ ,000 10,000 26,605 65,975 65, , , ,415 77,225 52,147 20, ,705 Actuals 2007/ ,549 27,519 33,952 30,176 38,647 96,095 66,024 53,537 43, , , ,164 Actuals as % Projections 0% 43% 275% 128% 46% 59% 95% 65% 53% 57% 226% 551% 97% ISHS SPENDING 2007/08 R' , ,000 80,000 60,000 40,000 20,000 0 APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR Projections 2007/08 Actuals 2007/08 5/23/2008 7
8 IMPACT BACKGROUND AND HIGHLIGHTS According to Statistics SA s Community Survey 2007, formal housing stood at 83.2%, which translates into a housing backlog of 16.8%. Traditional housing reduced from 20.2% to 9%, and informal housing reduced from 7.1% to 5.6%. HIGHLIGHTS housing opportunities created, which includes serviced sites, rural and urban housing units, emergency houses, farmworker houses, Peoples Housing Process (PHP) units, and rental units. In addition, 7158 units are at foundation and wall plate stages(22865) 214 youths trained in construction trades jointly with Umsobomvu Youth Development Programme, and the National Home Builders Registration Council (NHBRC) 3327 deeds processed through Enhanced Extended Discount Benefit Scheme (EEDBS) to promote individual ownership of government houses that were built prior to /23/2008 8
9 BACKGROUND AND HIGHLIGHTS (Conti.) In line with Breaking New Ground (BNG), mixedincome high density integrated human settlements is being developed at Bendor Extension 100 Presidential Project (Mokopane Extension 20) comprising of 1957 housing units and other social amenities is currently underway 500 hectares of land has been acquired within Lephalale Municipal jurisdiction, which is a high growth investment node, to develop different housing typologies and promote integration. To date, the township has been approved comprising of Residential 1 & 2, public facilities and business opportunities for development of integrated sustainable human settlements 5/23/2008 9
10 BACKGROUND AND HIGHLIGHTS (Conti.) We have embarked on a normalization programme which is aimed at regularization of occupation of subsidized houses Conducted housing consumer education awareness in all the five District Municipalities, targeting beneficiaries, officials and councilors The Department hosted a Housing Indaba to elicit best practices in the housing sector, both local and internationally, resulting in the Housing Indaba Resolutions being adopted by the Executive Council of the Province. The Limpopo Housing Act has been passed, and the Housing Advisory Panel has been established 5/23/
11 KEY STRATEGIC CHALLENGES 5/23/
12 KEY STRATEGIC CHALLENGES 1. Limitations in acquiring suitably located prime areas that promote integrated sustainable human settlement Government owned land is peripheral located far from socioeconomic amenities Some municipalities have no land e.g. Lephallale 2. Delivery capacity constraints: Limited Capacity of Contractors to deliver at large scale. Limited capacity of project managers 3. Bulk infrastructure and serviced site Poor infrastructure plans Bulk infrastructure is inadequate and old Sites not serviced by municipalities Financing model for Bulk infrastructure Disparate infrastructure Grants 4. Increased migration to economic growing towns Platinum and chrome mining cluster e.g. Sekhukhune district (Greater Tubatse) Coal and petrochemical cluster (Lephallale corridor) Logistical cluster (Polokwane) 5. Intergovernmental synergy Late announcement and loading of subsidy affecting appointment of contractors and approval of beneficiaries Integration across sectors not yet efficient 5/23/
13 STRATEGIC INTERVENTIONS 5/23/
14 STRATEGIC INTERVENTIONS 1. Forward Planning and Improved capacity Land identification,acquisition and township establishment that promote mixed income housing typologies in growth economic areas, e.g. Polokwane, Lephallale, Greater Tubatse Engagement of external expertise to enhance in-house project management capacity 2. Rural development Focus on high population concentration areas 3. Contracting strategies Multiyear appointment (contractors to the value of over R400m on site in April 2008) Mix of highly capacitated and emerging contractors Financial Performance Guarantees required for contractors with allocation of 500 housing units and above 4. Private-Public partnership Partnership with banks and other private Developers Redevelopment of bulk infrastructure, e.g. DBSA 6. Social cluster coordination and premier-intergovernmental forum Social cluster task team have been established to focus at growth areas Monitoring of resolutions through premier intergovernmental forum 5/23/
15 Annual Performance plans (8/9 Financial Year) Indicative Budget R783,247,000 5/23/
16 Sub-Program Settlement upgrading in line with BNG Annual Performance plans (8/9 Financial Year) Housing Project Management and Social Housing State of Readiness - Civil Engineers have been appointed for installation of services - Contractors for top structure already appointed.. - Township establishment for development of 661 Townhouses and 997 affordable bonded houses have been approved. - Civil Engineers and Architectures are appointed for Engineering and Architectural designs Unblocking of blocked projects Rectification -Sites and beneficiaries have been verified -Cost estimates have been completed by NHBRC 5/23/
17 SUB-PROGRAM Institutional/Rental Stock Service Providers for architectural design and installation of services appointed. Community Residential Unit Rural Housing Emergency Housing Sites and services People s Housing Process Farm owner housing Service Providers for architectural design and installation of services appointed. The sites are demarcated Geotechnical investigation and environmental studies completed. Contractors appointed. Sekhukhune, Waterberg and Mopani districts have been affected by flood disaster Civil Engineers for service installation have already been appointed Development areas identified Farm workers and land have been identified at Baphalaborwa. 5/23/
18 Subprogram Transfer of houses through Discount Benefit Scheme HOUSING ADMINISTRATION AND PROPERTY MANAGEMENT State of Readiness Service provider is already appointed to audit and verify assets to be transferred. Registration and endorsement of Title Deeds for Low-Cost Housing Projects Subsidy Administration Finance/Credit-Linked Subsidies Subsidy Administration Normal subsidies Subsidy Administration Veterans of Military Struggle Advert inviting service providers already placed in march Process of beneficiary identification and approval to be completed during Quarter 1 of 2008/09 Development areas have been identified in municipalities National Department of Housing have a list of beneficiaries provided to provinces 5/23/
19 Subprogram Housing Planning HOUSING SECTOR PERFORMANCE State of Readiness Ten growth points have been identified in terms of Provincial Growth Development strategy. Township establishment process commenced at Lephalale for development of mixed income development and approved Multiyear Housing Plan in place and needs to be reviewed Development of Housing IDP Chapters Bid already initiated Housing Policy Research Research for development of prevention of informal settlement bill in place Municipal Support Capacity Development Housing Demand Database already initiated Councillors,beneficiaries and officials were trained on housing consumer education 5/23/
20 THANK YOU!!!! 5/23/
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