PUBLIC HEARING ON HOUSING CONDITIONAL GRANT 2006/07

1
PUBLIC HEARING ONHOUSING CONDITIONAL GRANT
2006/07

• Presented by M Nkoana-Mashabane
• The Honourable MEC of Local Government and
  Housing Limpopo Province
• 23 MAY 2007

2
CONTENTS

• Report on Housing Conditional Grant Budget
  Expenditure 2006/7
• Key objectives
• Housing programmes
• Achievements
• Challenges
• Interventions
• Plans for 2007/8
• Conclusion

3
KEY OBJECTIVES

• The Department identified the following as its
  key objectives
• To provide regulatory framework for housing
  delivery
• To provide capacity and support to municipalities
  with regard to housing delivery in line with the
  Housing Act
• To create integrated and functional settlements

4
Housing Development

• The Housing Development comprises the following
  programmes
• Housing Performance/project management
• Social Housing
• Housing administration and property management
• Housing Sector Performance and municipal support

5
ACHIEVEMENTS

• 12366 houses completed during the financial
  year 2006/7
• Housing Consumer Ntshebele Toll free line has
  been established ,a total of 10 000 calls have
  been received in and outside Limpopo Province
• A total of 66 technical trained project managers
  have been deployed to all municipalities to
  improve on housing project monitoring
• Payment of contracts have been reduced from a
  month to average of 8 days to support financial
  viability of emerging contractors
• Three pieces of well located land have been
  acquired to restructure spatial development and
  to promote integration of communities
• Memorandum of Understanding have been signed with
  Northam Anglo-Platinum Mine in which 300 hundreds
  houses are being constructed
• Multi-Year Settlement Plan to identify growth
  nodes and to guide intervention into space have
  been completed
• Limpopo Housing Act 2006 has been passed to
  pre-empt sale of subsidized houses for 8 years

6
Budget Expenditure 2006/07
INFRASTRUCTURE HOUSING INFRASTRUCTURE HOUSING INFRASTRUCTURE HOUSING

31- March-07                            
R'000 APRIL MAY JUNE JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR Total
Projections 2005/06 18,327 25,871 25,911 25,911 29,491 29,284 36,817 54,761 65,713 29,206 48,180 59,132 55,482 478,175
Actuals 2005/06 8,544 20,347 21,622 21,622 21,802 30,968 34,034 41,425 39,327 59,206 6,882 23,974 69,794 377,925
Projections 2006/07 0 15,819 34,102 34,102 41,086 39,796 63,987 65,385 68,140 77,141 88,392 82,216 75,504 651,568
Actuals 2006/07 0 15,819 34,102 34,102 41,086 39,796 63,987 41,733 43,832 48,045 28,597 36,206 255,533 648,736
Act Spend as of Projection DIV/0! 100.0 100.0 100.0 100.0 100.0 100.0 63.8 64.3 62.3 32.4 44.0 338.4 99.6
Cum Spend as of Total Budget 0.0 2.4 7.7 7.7 14.0 20.1 29.9 36.3 43.0 50.4 54.8 60.3 99.6  
Total per Month
7
Budget Expenditure 2006/7
31-Mar-07



















INFRASTRUCTURE HOUSING
8
KEY STRATEGIC CHALLENGES

• Delivery capacity constraints
• Limited Capacity of Contractors to deliver at
  large scale.
• Material supply constraints (bricks Supply do not
  match the demand )
• Planning Coordination.
• Municipal infrastructure and Sectoral Alignment

9

• Land Constraints
• Limitations in acquiring suitably located land in
  prime areas.
• Migration patterns
• Increased Rate of urbanisation
• Incomplete (Blocked) projects
• Verification/audit and funding mobilization

10
STRATEGIC INTERVENTIONS

• Contracting strategies mix of highly
  capacitated and emerging contractors
• Forward Planning
• Unblocking Blocked/incomplete Projects
• Development of Housing Chapter in municipal IDPs
• Partnering Public Private Partnerships
• Acquisition of well located land for development
  of integrated sustainable communities

11

• 2007/08 Actual Plans
• Per Sub-Programme
• 2007/8 Priorities
• SUB-PROGRAM 1 2 HOUSING SUBSIDY
  PERFORMANCE/PROJECT MANAGEMENT AND SOCIAL HOUSING

Sub-Sub Program Measurable Objectives Performance Measure/ Indicator Baseline 2006/7 (Current commitment) Planned 2007/8 Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4
Upgrading of informal settlement 6000 houses to be constructed 6 000 houses to constructed 5 200 housing units to be completed 6 000 housing units constructed R230,124,000 Installation of services 1000 housing units constructed 3000 housing units constructed 2000 housing units constructed
Housing Finance Linked Subsidy (Pilot project in line with BNG) 300 houses to be constructed 300 houses to constructed Covered under upgrading of informal settlement 300 housing units constructed R8,850,000 60 housing units constructed 100 housing units constructed 100 housing units constructed 40 housing units constructed
Phased Development ApproachPhase1 Planning and Services 2 400 sites to be planned and serviced 2 400 sites to be planned and serviced - 2 400 sites to be planned and serviced R38,400,000 240 sites to be planned and serviced 840 sites to be planned and serviced 840 housing units constructed 480 housing units constructed
Unblocking of blocked projects (Rural and Urban) 8 495 houses to be constructed. To mobilize financial resources for completing incomplete projects 8 495 houses to be constructed. Funds acquired and commenced with completing units not completed Mobilising of funds 8 495 units R325,817,230 1 699 housing units constructed 2 549 housing units constructed 3 398 housing units constructed 849 housing units constructed

12
SUB-PROGRAM 3 HOUSING ADMIN AND PROPERTY
MANAGEMENT
Sub-Sub Program Measurable Objective Performance Measure/ Indicator Baseline 2006/7 (current commitment) Planned 2007/8 Budget Planned Quarter 1 Quarter 2 Quarter 3 Quarter 4
1. Housing subsidy Administration To approve housing subsidies All subsidies approved 13 268 subsidies 6 000 subsidies As indicated under project management 4 169 housing subsidies processed 1 831 housing subsidies processed
2. Transfer of Housing Assets (Discount Benefit Scheme) To provide transfer of housing stock Properties to be transferred 4770 properties 3 339 residential housing assets to be transferred R8,06m 600 properties are discounted Profiling and Establishment of legal tenants (Appointment should have been done by March 2007) 900 properties are discounted 1200 properties are discounted 639 properties are discounted Identification and verification of properties to be discounted during 2008/09
3. Audit of Assets To provide accurate assets register Credible asset register - All assets recorded in asset register R5m Appointment of service provider Audit the assets Audit the assets Audit report and asset register
SUB-PROGRAM 4 HOUSING SECTOR PERFORMANCE AND
MUNICIPAL SUPPORT
Sub-Sub Program Measurable Objective Performance Measure/ Indicator Baseline 2006/07 (Current Commitment) Planned 2007/08 Budget Planned Quarter 1 Quarter 2 Quarter 3 Quarter 4
1. Policy To develop policy guideline and relevant legislation One act passed Rental housing regulation promulgated Limpopo housing development bill approved Draft rental housing regulation in place/ developed Limpopo housing amendment Act passed Rental housing regulation promulgated Promulgation of the Limpopo Housing Act Implementation of rental housing regulations
13
Sub-Sub Program Measurable Objective Performance Measure/ Indicator Baseline 2006/07 (Current Commitment) Planned 2007/08 Budget Planned Quarter 1 Quarter 2 Quarter 3 Quarter 4
2. Planning To review and develop provincial multiyear housing plan Review of municipal IDP Housing Chapters Reviewed housing development plan and municipal IDP chapters Provincial Housing Development Plan and municipal IDP chapters Development and implementation of Provincial housing sector plans R3m Review Provincial Housing Development Plan Review Provincial Housing Development Plan Develop final Provincial Housing Development Plan and review municipal IDP chapters Implement Provincial Housing Development Plan and review municipal IDP chapters
3. Municipal Support To enhance capacity and provide support to Municipalities in housing provision 1 Municipalities accredited 120 emerging contractors trained Approved capacity building business plan. 1 Municipalities accredited 18 emerging contractors trained Draft capacity building business plan. 1 Municipalities to be accredited 40 emerging contractors to be trained Provincial and municipal officials to be trained. R2m R1,4m R2m Capacity assessment for 1 identified Municipalities and level one accreditation business plan roll out. Theoretical training Procurement of services Identification, Invitation for applications, Development of business plan and signing of service level agreement for 11Municipalities. Theoretical training Capacity building business plan roll out monitoring and review Monitoring of level one accreditation business plan roll out. Practical training Capacity building business plan roll out. Monitoring and review Review of progress, level one accreditation and report on assessment of readiness, level two accreditation Practical training Impact Assessment, compilation of final report. Approval of capacity Business plan for 07/08.
14
Sub-Sub Program Measurable Objective Performance Measure/ Indicator Baseline 2006/07 (Current Commitment) Planned 2007/08 Budget Planned Quarter 1 Quarter 2 Quarter 3 Quarter 4
4. Sector capacity building To enhance capacity of service providers in the housing sector. To conduct consumer education Training of emerging contractors Awareness of housing policies 10 emerging contractors trained Service provider has been appointed by NDoH to render housing consumer education - Training of 10 emerging contractors Roll out of the consumer education programme Training of 10 emerging contractors Roll out of the consumer education programme Training of 5 emerging contractors Roll out of the consumer education programme Training of 5 emerging contractors Roll out of the consumer education programme
5. Procurement of land for housing development To acquire strategically located land Strategically located land procured - - Identify strategically located land for development Acquire 1 portion of land Acquire 1 portion of land
15
Cash flow Projection Plan
Cash flow amount required Transfer date
Apr-07 29,326,725 25 March 2007
May-07 31,933,545 25 April 2007
Jun-07 36,495,480 25 May 2007
Jul-07 53,765,663 25 June 2007
Aug-07 57,024,188 25 July 2007
Sep-07 52,136,400 25 August 2007
Oct-07 84,200,286 25 September 2007
Nov-07 89,153,244 25 October 2007
Dec-07 74,294,370 25 November 2007
Jan-08 57,350,040 23 December 2007
Feb-08 50,181,285 25 January 2008
Mar-08 35,843,775 25 February 2008
16
Conclusion

• THANK YOU