DEPARTMENT OF HOUSING

1
DEPARTMENT OF HOUSING

• PRESENTATION TO THE
• PORTFOLIO COMMITTEE
• OCTOBER 2006
• ANNUAL REPORT 2005/6

2
STRUCTURE OF THE PRESENTATION

1. Aim, Vision and Mission of the Department
2. Our Values
3. Our Mandates
4. Housing Legislation and Regulations
5. Our Policy Framework
6. Trends and challenges
7. Specific priorities within the National Housing
   Programme
8. Budget Overview 2005/06
9. Planned activities and achievements per programme
   2005/06
10. Provincial transfers and financial performance

3
DEPARTMENT OF HOUSING
AIM The aim of the Department of Housing is to
determine, finance, promote, coordinate,
communicate and monitor policy in respect of
housing and human settlement. Vision A nation
housed in sustainable human settlements Mission
To establish and facilitate a sustainable process
that provides equitable access to adequate
housing within the context of affordability of
housing, services, and access to amenities and
economic opportunities
4
OUR VALUES

• Our values, based on the constitution, are
• Human dignity, equality, advancement of human
  rights and freedoms
• Non-racialism and non-sexism
• Supremacy of the constitution and the rule of
  law
• Accountability, responsiveness and openness

5
OUR MANDATE

• SA CONSTITUTION
• Section 26 Access to adequate housing a basic
  human right Govt. to ensure environment
  conducive to the progressive realisation of the
  right
• Schedule 4 National and Provincial Governments
  have concurrent legislative competence
• Botshabelo Housing Accord (1994) Signed by all
  housing stakeholders and subsequent white paper
  of 1994
• Reconstruction and Development Programme (RDP)
  set out framework and principles for sustainable
  development

6
HOUSING LEGISLATION AND REGULATIONS
Housing development programme continues to
operate in the following legislative framework

• Housing Act 107 of 1997 (as amended)
• Prevention of Illegal Eviction from and Unlawful
  Occupation of Land Act No. 19 of 1998
• Housing Consumers Protection Measures Act 95 of
  1998
• Rental Housing Act 50 of 1999
• Home Loan Mortgage Disclosure Act 63 of 2000.

7
REGULATIONS AND GUIDELINES

• National Housing Code
• National Norms and Standards For Permanent
  Residential Structures
• Guidelines For Human Settlement Planning And
  Design (Red Book).
• Guidelines For Environmentally Efficient Low Cost
  Housing

8
OUR POLICY FRAMEWORK

• Our overall policy framework continues to be as
  determined by the White Paper on a new housing
  policy and strategy for South Africa, 1994 and
• The Comprehensive Plan for the creation of
  sustainable Human Settlements (September 2004)

9
TRENDS AND CHALLENGES

• Economic Developments
• Unemployment remained high at 26,7 thereby
  forcing unemployed individuals to rely on
  government for assistance including housing
• The oil price continued an upward trend during
  2005/06 putting pressure on petrol price during
  the times of weaker Rand
• As a result, petrol price increased to the
  highest level of R6,03 per litre fueling
  inflation in the 2005/06 financial year.
• Increased inflation required the subsidy
  adjustments annually to ensure that the quality
  of houses is not affected.

10
TRENDS AND CHALLENGES (CONTINUED)

• Economic Developments
• Interest rates continued to decline in 2005/06
  thereby increasing hopes of more affordability in
  the bonded market
• Increased affordability in the bonded market due
  to low interest rates has unintentionally,
  rendered housing unaffordable in the lower to
  middle income level

11
TRENDS AND CHALLENGES (CONTINUED)

• The impact on government and delivery of
  government subsidised houses is to increase the
  price of tendering so as to attract the best
  skilled contractors and employees in the market.
• The increase in input prices may result in
  contractors passing these increases to the client
  rather than compromise on their profits.
• Alternatively, the contractors could compromise
  the rate of delivery in the government subsidised
  market in the sense that contractors may employ
  at half capacity than it is required or
  compromise the quality of construction to cut on
  costs.

12
TRENDS AND CHALLENGES (CONTINUED)

• Annual growth in the real construction sector
  output accelerated from 8 in 2004 to 14 in
  2005. This growth is supported by the following
  construction industry indicators
• The level of building plans passed and completed
  indicates the intensity of building activity in
  the residential sector. Building plans passed
  recorded 56.7 in 2005 as compared to 35.4 in
  2004. Building plans completed increased from
  -12.4 in 2004 to 30.4 in 2005.
• Business confidence in the building industry
  increased to 23.5 in 2005 as compared to
  19.25 in 2004.
• Haylett Formula shows the building contracts
  price adjustment provisions and is compiled from
  indices of labour, materials, plant and fuel
  prices but does not include profit margins of
  contractors, it has showed an increase of 6.9
  recorded in 2005 as compared to 5.1 in 2004.

13
SPECIFIC PRIORITIES WITHIN THE NATIONAL HOUSING
PROGRAMME

• Accelerating the delivery of housing as a key
  strategy for poverty alleviation
• Utilizing provision of housing as a major job
  creation strategy
• Ensuring property can be accessed by all as an
  asset for wealth creation and empowerment.
• Leveraging growth in the economy
• Promoting social cohesion and improving quality
  of life for the poor.
• Support the functioning of the entire residential
  property market to reduce duality within the
  sector by breaking the barriers between the first
  economy residential property boom and the second
  economy slump.
• Utilizing housing as an instrument for the
  development of sustainable human settlements in
  support to spatial re-structuring.

14
SPECIFIC PRIORITIES

• The Social Contract for Rapid Housing Delivery
  which is the Ministers special programmes. The
  Social Contract is a partnership between
  government and key stakeholders in the building
  and construction sector for the purpose of speedy
  delivery of houses to the nation.

15
SPECIFIC PRIORITIES

• Youth Training Programme in Construction. This
  Programme came about as the departments response
  to the Presidents call to see at least 10 000
  young people participating in the National Youth
  Service Programme. The Minister of Housing made
  available an amount of R 7 million in which
  designated young people will have an opportunity
  to acquire skills and training in a national
  project to construct houses.
• This initiative is the outcome of the partnership
  between theNational Department of Housing,
  National Youth Commission, Umsobomvu Youth Fund,
  NHBRC and Provincial Housing Departments. The NYS
  through the National Youth Commission (NYC) has
  been identified as the appropriate Programme to
  ensure comprehensive skill development and
  application, youth participation to inculcate the
  spirit of nation building among the learners
  involved in the project.

16
BUDGET OVERVIEW ENE 2005
Programme 2005/06 2006/07 2007/08
1 Administration 83,737 92,246 97,948
2 Policy Planning and Research 24,634 26,112 27,418
3 Program Management 95,061 69,893 96,887
4 Housing Sector Performance 130,607 190,258 211,620
5 Housing Equity 5,949 6,306 6,621
6 Housing Development Funding 4,851,724 5,668,648 6,927,081
Total 5,191,712 6,053,463 7,367,575
Net Increase to baseline 19,629 569,535 1,609,451
17
BUDGET OVERVIEW ENE 2005

• Additional funding
• R50 million in 2005/06 for institutional reform ,
  capacity building and accreditation activities
• Decrease of R28,8m as a result of transfer of
  Loans for the previous Housing Boards
• R600 million in 2006/07 (R500 million for various
  aspects of the new plan, R50 million for
  institutional reform and capacity building and
  R50 million for finalising the portfolio of
  Servcon Housing Solutions)
• R1,6 billion 2007/08 (R1,5 billion for various
  aspects of the new plan, R80 million for
  institutional reform , capacity building and
  accreditation activities, and R60 million for
  Servcon).

18
BUDGET OVERVIEW ENE 2005
19
BUDGET OVERVIEW
20
Allocation of funds in respect of Strategic
Priorities / Measurable objectives

• Programme 2 Policy Planning and Research -
  (R24,634,000)
• Adequate housing for all South Africans by 2024,
  through policy, legislation and research that
  enables housing delivery in sustainable human
  settlements.
• Programme 3 Programme Management -
  (R95,061,000)
• Increase access to and improve the delivery of
  adequate housing in sustainable human settlements
  by effectively providing officials with systems,
  knowledge, skills, guidance and funding.
• Programme 4 Housing Sector Performance -
  (R130,607,000)
• Effective monitoring of policy implementation by
  using an effective data bank and housing and
  human settlement information systems that provide
  accurate, strategic and statistically sound data
  to allow for regular evaluation of the impact of
  housing policy, and to support decision-making on
  improvements to housing policy and programmes.

21
Allocation of funds in respect of Strategic
Priorities / Measurable objectives

• Programme 5 Housing Equity - (R5,949,000)
• Increase the level of private sector finance for
  affordable housing by R20 billion by 2010,
  through monitoring and analysing lending
  practices, and by supporting the development of
  appropriate instruments by lending institutions
  and appropriate partnerships between lending
  institutions, government, housing support
  institutions and other lenders.
• Programme 6 Housing Development Funding -
  (R4,843,481,000)
• Disburse and monitor funds for housing delivery
  in compliance with the Public Finance Management
  Act (1999) and Division of Revenue Act
  requirements, to ensure that expenditure matches
  annual delivery commitments.

22
EXPENDITURE AS AT 31 MARCH 2006
PROGRAMME BUDGET R000 Exp. as at 31 Mar 2006 R000 UNSPENT R000 SPENT R000
P1 Administration 97,799 94,892 2,907 97
P2 Policy Planning and Research 22,734 20,116 2,618 88
P3 Programme Management 87,461 76,781 10,680 88
P4 Housing Sector Performance 205,594 198,645 6,949 97
P5 Housing Equity 2,360 2,182 178 92
P6 SA Housing Fund 4,849,724 4,849,300 424 100
TOTAL 5,265,672 5,241,916 23,756 99.55
23
INTERNATIONAL RELATIONS ACHIEVEMENTSPresenter
Mr. P. Chauke
24
INTERNATIONAL RELATIONS ACHIEVEMENTS

• Lead Ministry for UN Habitat (UN Agency for Human
  Settlements)
• Presented RSA Human Settlements policy to the UN
  Habitat 20th Governing Council session in April
  2005, Nairobi
• Led the G77 consolidated position highlighting
  development challenges facing the countries of
  the South (developing and HIPC) during GC20
• Canvassed positions favourable to poor countries
  of Africa, Asia and Latin America
• UN Council for Sustainable Development (CSD)
• Presented RSA Human Settlements policy and
  challenges to achieving the MDGs to the CSD 13
  session in April 2005, New York.
• Cities Alliance
• Department joined the Cities Alliance in January
  2006
• The Cities without slums initiative is aimed
  helping our cities to eradicate informal
  settlements
• Several cities are already enjoying the benefits,
  eg Johannesburg, Ekurhuleni.

25
INTERNATIONAL RELATIONS ACHIEVEMENTS

• NEPAD Programme
• Department participate in all NEPAD activities
  regarding sustainable human settlement
  development in the African region is concerned
• Agreement with Brazil
• Agreement signed with Brazil within IBSA
  Tri-Lateral Cooperation on 13 September 2005
• Two Seminars held in Cape Town (Research, June
  06) and New York (MDGs financing, September 05)
• Staff (DOH, PHDs and Municipality Cape Town
  eThekwini) and Wits academics sent to Brazil on
  information sharing trip
• Agreement with the DRC
• Agreement signed with the Democratic Republic of
  Congo (DRC) in 2006
• DRC Implementation Plan (on housing and human
  settlements) developed and approved by Presidents
  Mbeki and Kabila during the 3rd BNC Review on
  16/03/06 in Kinshasa
• RSA developers will be mobilized to assist with
  the reconstruction of DRC
• DOH to assist DRC in setting up a Housing Bank
  and a Housing Company

26
INTERNATIONAL RELATIONS ACHIEVEMENTS

• Agreement signed with India in April 2006
• India to assist in creating models for viable
  Government Construction companies
• Agreement with Cuba
• Phase one of Cuban architectures deployed in
  South African rural municipalities expired (36
  months 2003 2006)
• New Cuban architectures recruited to replace old
  ones
• - Cuban technical advisors are involved in more
  than 228 PHP projects in 8 provinces.
• - 36 614 housing units completed with Cuban
  assistance
• - 885 communities and 324 NGOs members trained
  in technical and building skills by Cuban experts

27

• POLICY PLANNING AND RESEARCH
• Presenter Mr. D. von Broembsen

28
PROGRAMME 2

• POLICY PLANNING AND RESEARCH

29

• PURPOSE
• To develop sound national human settlement and
  housing policies, supported by research and
  underpinned by an appropriate legislative
  framework.

MEASURABLE OBJECTIVE Adequate housing for all
South Africans by 2014, through policy,
legislation and research that enables housing
delivery in sustainable human settlements.
30
OBJECTIVES POLICY PLANNING

• Develop and manage sustainable human settlement
  policy and promote and maintain human settlement
  integration
• Establish effective national housing policy and
  strategy
• Develop, coordinate and monitor the
  implementation of housing framework legislation

31
PLANNED ACTIVITIES FOR 2005/06

• HUMAN SETTLEMENT POLICY AND INTEGRATION
• Housing land policy
• Policy for farm-worker dweller housing
• Programme for aligning IDPs and housing sector
  plans
• Energy efficient housing Pilot Project (with
  DANIDA)
• Substantive inputs to multi-lateral processes
• Governing Council 21, CSD13
• MoU Democratic Republic of the Congo

32
PLANNED ACTIVITIES FOR 2005/06

• NATIONAL HOUSING POLICY AND STRATEGY
• Special Housing needs assistance policy
  (HIV/AIDS)
• A new Variation manual
• Higher density housing policy investigation
• Developing guidelines for sustainable housing
  development by revising the National Housing
  Code
• Revisit the Rural Subsidy Programme
• Back yard rental policy intervention
• New housing typologies and designs
• A multi year planning dispensation

33
PLANNED ACTIVITIES FOR 2005/06

• FRAMEWORK LEGISLATION
• Social Housing Act
• Regulations to the Social Housing Act
• Review of national, provincial and local
  legislation impacting on the Comprehensive Plan,
  with specific reference to the Sectional Titles
  Act and the Estate Agency Affairs Act.

34
PLANNED ACTIVITIES FOR 2005/06

• Amendments to various acts administered by the
  Department in accordance with need Including-

• An efficient and implementable Housing Act that
  complies with DORA and PFMA - An
  equitable PIE Act that is constitutional and
  unambiguous and allows for the orderly
  eviction of unlawful occupiers- An efficient
  Housing Consumers Protection Measures Act that is
  unambiguous and serves the interests of
  housing consumers - An efficient and
  implementable Rental Housing Act that gives
  Rental Housing Tribunals the power to
  enforce their rulings- An efficient and
  implementable Less Formal Township Establishment
  Act.

35
CHIEF DIRECTORATE RESEARCHPresenter Dr. Sokopo

• The Chief Directorate Research initiates,
  undertakes and manages research on human
  settlements and housing.

36
STRATEGIC OBJECTIVE RESEARCH

• To establish internal and external research
  networks and foster a research culture within the
  Department to progressively improve the
  relevance, alignment, quality, and usefulness of
  research activities so that the Department is
  able to maintain a leading role in national, and
  international, debates around human settlements
  and influence practice to more efficiently and
  effectively fulfil the housing mandate.

37
PLANNED ACTIVITIES FOR 2005/06

• RESEARCH
• Research on informal settlement upgrading and
  support
• Promoting alternative technologies and improved
  housing design
• Level of socio-economic and ethnic integration in
  SA
• International experience in densification and
  integration
• Study on housing ex servicemen
• International research seminar

38
ACHIEVEMENTS 2005/06
The key policy developments embedded in the
Comprehensive Plan include

• A policy to upgrade informal settlements
• In phases
• Involving the community as a whole
• Starting with a socio-economic survey, community
  facilitation and participation in the planning
  stages
• Through installation of emergency and basic
  services
• Securing tenure arrangements
• With ownership and/or rental options

The policy and guidelines have been approved by
MINMEC and are being implemented through a number
of provincial pilot projects which will inform
policy and programme enhancements.
39
ACHIEVEMENTS 2005/06 (CONTINUED)

• A housing land acquisition and release strategy
  will serve to prioritise the release of public
  land and the acquisition of private land for low
  cost housing projects. A special dispensation is
  currently being designed for this purpose.
  Servcon Housing Solutions (Pty) Limited will
  acquire a new mandate as special purpose vehicle
  for land acquisition. This project may vest in
  another programme.
• A policy and programme to assist farm workers and
  occupiers in accessing adequate housing has been
  completed and it is envisaged that provinces will
  commence with a number of pilot projects to test
  the programme and refine the policy.
• New improved housing typologies have been
  developed and will be introduced as soon as the
  necessary approval processes have been completed.
  

40
ACHIEVEMENTS 2005/06 (CONTINUED)

• A policy and programme to provide primary social
  and economic infrastructure in low Income housing
  developments has been approved and will
  contribute towards enhancing the quality of the
  living environments by providing for community
  needs.
• A comprehensive manual was developed for the
  adjustment of the housing subsidy amount to cater
  for extraordinary development conditions.
• A comprehensive new coordinated multi year
  housing development planning dispensation was
  developed and launched.
• A higher density housing development programme
  was developed and completed but the approval and
  introduction thereof was put on hold pending the
  findings of a broad rental market evaluation
  project.
• The Housing Subsidy Scheme Project Linked
  Subsidies was adjusted to provide for alignment
  with the Labour Tenants Strategy and to provide
  houses and services to projects undertaken
  through the said programme. Programme approval
  is awaited.

41
PROGRAMME MANAGEMENTPresenter Mr. J. Wallis

42
PROGRAMME 3PROGRAMME MANAGEMENT

43

• Purpose
• Manage National Housing and Human Settlement
  Programs to enable, support and promote the
  implementation of projects
• Measurable Objectives
• Increase access to and improve the delivery of
  adequate housing in sustainable Human Settlements
  by effectively providing officials, structures
  and systems with knowledge, skills, guidance and
  funding

44
PLANNED ACTIVITIES 2005/06

• HIV Guidelines
• Public Sector Hostels
• Medium Density Housing
• Farm Worker Housing
• Impact of Subsidy Dispensation on Women
• Enhance subsidy qualification criteria
• Child headed households

45
PLANNED ACTIVITIES 2005/06

• Recurrent Service Costs
• Shared Accommodation guidelines
• Tenure Options
• Amended National Norms and Standards
• Phasing Out Programme
• NHBRC Warranty Cover
• EPWP

46
PLANNED ACTIVITIES 2005/06

• Rectification of houses 1994-2002
• Accreditation Framework
• Deregistration of Missing Beneficiaries
• Repetitive use of names of dependents
• Enhanced Extended DBS
• Finance Linked Individual Subsidy Scheme
• Operational Capital Budget

47
PLANNED ACTIVITIES 2005/06

• Fast Tracking Housing in areas of stress
• Human Settlement Redevelopment Programme
• Presidential Pilot Project on Housing
• Housing Consumer Education
• Seminars/Workshops on policy

48
PLANNED ACTIVITIES 2005/06

• Skills Audit in Municipalities
• Framework for Professionalisation
• Cuban Programme
• Scholarship Programme

49
ACHIEVEMENTS 2005/06

• Enhanced Phasing Out Program
• First Time Home Buyers Interest Subsidy Scheme
• NHBRC Warranty Cover
• Human Settlement Redevelopment Program
• Presidential Pilot Project on Rental Housing
• Deregistration on missing beneficiaries
• Prevention of repetitative use of dependants
  names
• Enhanced Extended DBS

50
ACHIEVEMENTS 2005/06

• - New Procurement Regime
• - Rural Housing enhancement
• - Guidelines for new subsidy bands and
  increase of quantum
• - Accreditation Framework and Promotion
• - EPWP Regulating Framework
• - Rectification of houses post 1994
• - Impact of subsidy dispensation on women
• - Guidelines for unblocking
• - Credit linked individual subsidy

51
ACHIEVEMENTS 2005/06

• New Hostels Program
• New PHP guidelines
• Guidelines for a phased development approach
• Framework for social/econ amenities
• Alignment of infrastructure policy
• Operational expenditure budget
• Payment of Top Structure prior to registration
• - Fast Tracking in areas of stress

52
ACHIEVEMENTS 2005/06

• Housing Professional Body
• Consumer Education
• Housing Policy Workshops/seminars (3455/31)
• - Emergency Housing
• - Sanitation, Health and Hygiene
• - Call Centre Training
• Housing Education and Training Standards (NQF6)
• Housing Scholarship
• Cuban Programme

53
PROVINCIAL ALLOCATION (HSRDP)
PROVINCE 2005/06
  R000
EASTERN CAPE
FREE STATE 9,475
GAUTENG 4,129
KWAZULU-NATAL
LIMPOPO 1,418
MPUMALANGA
NORTHERN CAPE
NORTH WEST WESTERN CAPE
NORTH WEST WESTERN CAPE 9,373
TOTAL 24,395
54

• HOUSING SECTOR PERFORMANCE
• Dr. V. Khabo

55
PROGRAMME 4

• HOUSING SECTOR PERFORMANCE

56

• Purpose
• Monitor the implementation and performance of
  national housing Policy and programmes, and
  evaluate and assess their impact on
  beneficiaries, the environment and on the role of
  the three spheres of government.
• Measurable Objective
• To undertake effective monitoring of policy
  implementation processes by using an effective
  data bank and housing and human settlement
  information systems to provide accurate,
  strategic and statistically sound data to allow
  for regular evaluation of the implementation of
  housing policy and to support decision making on
  enhancements to housing policy and programmes.

57
PLANNED ACTIVITIES FOR 2005/06

• Develop monitoring, evaluation and impact
  assessment system based on the BNG Housing Plan
• Create and develop publications to advise
  management and stakeholders
• Establish effective and efficient communication
  channel between three tiers of Government

58
PLANNED ACTIVITIES FOR 2005/06

• Develop, manage and maintain housing information
  systems (HSS, HUIMS, NHSDB)
• ensure an effective library and resource service
• Manage the provision and maintenance of the
  Housing Subsidy System to accredited Local
  Governments and
• Manage the level of quality of data continuously
  to ensure accurate and reliable data.

59

• PLANNED ACTIVITIES FOR 2005/06

• Effective monitoring of the construction sector,
  quality of houses, alternative building
  technologies and capacity
• Monitor and evaluate the housing finance sector,
  effectiveness of housing finance products and the
  impact of the economy on the housing sector
• Monitor the performance of Housing Support
  Institutions against the BNG Housing Plan,
  founding mandates and products offered

60
ACHIEVEMENTS 2005/06

• Produced an inception report on a Monitoring,
  Evaluation and Impact assessment Framework and
  System based on the BNG Housing Plan
• Produced reports on the impact of the Housing
  Subsidy Scheme on the beneficiary, the township
  establishment process and participation of
  beneficiaries in the planning processes of
  housing projects
• Published quarterly reports regarding the
  progress and performance of the housing delivery
  process.

61
ACHIEVEMENTS 2005/06 (CONTINUED)

• Completed development of the new Allocation
  Formula for the division of the IHHSD grant
  (provincial allocations) approved by MINMEC on
  06 Dec 2005
• Compiled and published updated Housing Investment
  Potential Atlas
• Compiled and published Housing management
  Information Handbook
• Published Housing Fact Sheets
• Compiled and distributed the NDOH Spatial Viewer
• Published Study Report on Urbanisation.

62
ACHIEVEMENTS 2005/06 (CONTINUED)

• Designed and launched a New-look AMCHUD website
• Redeveloped the housing website
  (www.housing.gov.za) launched a new website for
  International Housing research Network (IHRN)
• Re-designed HUiMS portal with access to updated
  reports
• Developed a database for the Waiting List project
  in the City of Cape Town

63
ACHIEVEMENTS 2005/06 (CONTINUED)

• Roll out of upgrade of Housing Subsidy System
  aligned with policy
• 80 improvement in the verified alignment of
  financial and non-financial reporting
• Developed and made available an analytical tool
  for online and off-line data analysis and mining

64
ACHIEVEMENTS 2005/06 (CONTINUED)

• Successfully organised a Housing Indaba
  Conference for the Social Contract for Rapid
  Housing Delivery during September 2005 in Cape
  Town.
• In conjunction with the Research Unit,
  successfully organised the International
  Research Seminar during June in Cape Town.
• A Housing and Economy Publication was produced,
  advising management on activities within the
  Construction, Economics and Finance Sector and
  how they have impact on the Delivery of
  Government Subsidised Housing.

65
ACHIEVEMENTS 2005/06 (CONTINUED)

• 8 analytical reports on performance as well as
  financial reports were completed in all 8 Housing
  Support Institutions
• Business plans in all 8 institutions were
  evaluated and recommendations for approvals were
  submitted to the Minister
• A framework document for the revision of
  institutions mandate in line with BNG and DPSA
  framework was developed.

66
ACHIEVEMENTS 2005/06

• A review of Housing Support Institutions role in
  supporting the implementation of the
  Comprehensive plan was also undertaken. As a
  result of this review the Minister has approved
  the disestablishment of Servcon Housing Solutions
  at the end of its mandate in March 2006, the
  extension of NURCHA and the Rural Housing Loan
  Fund, a review of the mandate of Thubelisha Homes
  to provide technical assistance in housing
  delivery, and the establishment of a new Social
  Housing Regulatory Authority to replace the
  Social Housing Foundation

67
HOUSING EQUITYMr. A. Osman
68
PROGRAMME 5HOUSING EQUITY
69

• Purpose
• Eradicate discrimination and unfair practices to
  do with access to housing finance, by
  implementing and administering the Home Loan and
  Mortgage Disclosure Act 63 (2000) and its
  regulations.
• Measurable Objective
• Increase the level of private sector finance for
  affordable housing by 42 billion by 2008,
  ensuring that this will be achieved through
  monitoring and analysing lending practices and
  supporting the development of appropriate
  instruments by lending institutions and
  development of appropriate partnerships between
  lending institutions, government, housing support
  institutions and other lenders.

70
STRATEGIC OBJECTIVES

• To promote transformation in financial services
  associated with housing finance to low to medium
  income households
• To facilitate and ensure the availability and
  accessibility of affordable housing finance
  instruments/products and savings schemes to low
  to medium income households.

71
STRATEGIC OBJECTIVES (CONTINUED)

• To identify possible discriminatory lending
  patterns in housing finance to low to medium
  income households by implementing the Home Loan
  and Mortgage Disclosure Act.
• To monitor that financial institutions meet the
  targets they set in terms of the financial
  services sector charter.

72
PLANNED ACTIVITIES FOR 2005/06

• Engage with financial institutions to
• ensure that they transform the way in which they
  engage with the target market (immediate and
  on-going)
• develop affordable housing finance instruments
  (31st December 2005)
• Explore risk sharing mechanisms to enable
  mobilising credit at scale (31st December 2005)
• Identify and resolve impediments to a properly
  functioning property market (immediate and
  on-going)
• ensure appropriate consumer education programs
  (31st December 2005)
• ensure expanding points of representation (31st
  December 2005)

73
PLANNED ACTIVITIES FOR 2005/06

• finalise and gazette regulations to implement the
  Home Loan and Mortgage Disclosure Act (30th June
  2005)
• receive, capture analyse information disclosed
  by financial institutions (31st December 2005)
• submit annual reports to Minister and other
  stakeholders. (31st March 2006 )

74
ACHIEVEMENTS 2005/06

• The draft Regulations are developed and referred
  for consultative process with the Governor of
  South African Reserve Back and the Minister of
  Finance as per legislation.
• Setting up the infrastructure required for the
  monitoring task
• Managed the negotiations on the FSC and MOU
• Finalise and gazette regulations
• Receive, capture and analyse information
  disclosed, information from Financial Institutions

75
HOUSING DEVELOPMENT FUNDINGChief Financial
Officer
76
PROGRAMME 6HOUSING DEVELOPMENT FUNDING
77

• Purpose
• To fund National Housing and human settlement
  programmes in terms of the housing Act (1997).
• Measurable Objective
• Disburse and Monitor funds for housing delivery
  in compliance with the Public Finance Management
  Act of 1999 and Division of revenue Act (DORA)
  2005 requirements to ensure that expenditure
  matches annual delivery commitments.

78
PLANNED ACTIVITIES FOR 2005/06

• The Integrated Housing and Human Settlement
  Development Grant is the amalgamation of aspects
  of the Human Settlement Redevelopment (which
  previously fell under Programme Management) the
  previous Housing Subsidy conditional grants
• To accommodate the funding required for
  implementing the new comprehensive plan for the
  development of sustainable human settlements
• Will in the first year fund the current business
  and new pilot projects across the country
• National Department assisting provinces in
  finalising plans and targets in line with
  Comprehensive plan for 31 March 2005 target date
  for submission of these plans.

79
PLANNED ACTIVITIES FOR 2005/06

• Transfer of funds according to payment schedule
  to provinces
• Monitoring of expenditure on provincial level
• Amending Housing subsidy grant framework
• To provide a effective and efficient debtor
  system.

80
PROVINCIAL ALLOCATIONS (IHHSDG)
PROVINCE 2005/06 2006/07 2007/08
  R000 R000 R000
EASTERN CAPE 581,218 761,994 952,554
FREE STATE 398,618 522,601 653,293
GAUTENG 1,340,676 1,757,666 2,197,223
KWAZULU-NATAL 799,659 1,048,376 1,310,555
LIMPOPO 397,650 521,331 651,705
MPUMALANGA 321,123 421,002 526,286
NORTHERN CAPE 79,917 104,774 130,976
NORTH WEST 467,880 613,405 766,806
WESTERN CAPE 456,740 598,800 748,548
TOTAL 4,843,481 6,349,949 7,937,946
81
TRANSFERS OF PROVINCES
82
SUMMARY OF THE HOUSING DELIVERY TARGETS AND
FUNDING ALLOCATIONS FOR THE NINE PROVINCIAL
HOUSING DEPARTMENTS Chief Financial Officer
83
NUMBER OF SERVICED SITES AND HOUSING UNITS
COMPLETED
Prov Number of sites completed 2005/06 Number of units completed 2005/06
EC 2 951 16 874
FS 2 901 17 635
GP 35 901 23 409
KZN 14 721 21 601
LP 24 840 21 973
MP 597 14 389
NC 3 374 5 293
NW 21 070 14 445
WC 9 270 2 040
Total 115 175 137 659
84
NUMBER OF HOUSING PROJECTS APPROVED
PROV Total number approved 02/03 Total number approved 03/04 Total number approved 04/05 Total number approved 94/95 to 04/05 Total number approved 05/06
EC 20 26 33 457 3
FS 141 31 47 609 26
GP 231 38 366 1 048 74
KZN 36 47 83 552 14
LP 58 63 103 479 98
MP 122 54 9 335 41
NC 15 36 4 250 7
NW 4 18 31 221 36
WC 70 19 104 555 22
Total 697 332 780 4 506 321
85
NO OF SUBSIDIES REPRESENTED BY APPROVED PROJECTS
PROV Total number approved 02/03 Total number approved 03/04 Total number approved 04/05 Total number approved 94/95 to 04/05 Total number approved 05/06
EC 16 849 20 811 13 882 278 008 2 189
FS 17 510 15 039 14 089 131 133 8 770
GP 404 432 39 086 54 045 1 082 147 56 373
KZN 23 437 43 397 42 776 351 625 13 766
LP 18 223 32 681 17 503 178 487 27 456
MP 7 861 2 341 340 156 174 1 153
NC 4 161 7 452 1 763 48 466 812
NW 1 790 7 570 23 543 177 831 14 778
WC 32 952 8 143 77 354 306 543 12 449
Total 527 215 176 520 245 295 2 710 414 137 746
86
EXPENDITURE AS AT 31 MARCH 2006
PROGRAMME BUDGET R000 Exp. as at 31 Mar 2006 R000 UNSPENT R000 SPENT R000
P1 Administration 97,799 94,892 2,907 97
P2 Policy Planning and Research 22,734 20,116 2,618 88
P3 Programme Management 87,461 76,781 10,680 88
P4 Housing Sector Performance 205,594 198,645 6,949 97
P5 Housing Equity 2,360 2,182 178 92
P6 SA Housing Fund 4,849,724 4,849,300 424 100
TOTAL 5,265,672 5,241,916 23,756 99.55
87
INTEGRATED HOUSING AND HUMAN SETTLEMENT
DEVELOPMENT GRANT EXPENDITURE AT 31 MARCH 2006
88
I THANK YOU