PRESENTATION TO THE PORT FOLIO COMMITTEE ON HOUSING

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PRESENTATION TO THE PORT FOLIO COMMITTEE ON
HOUSING

• MRS.BRIDGETTE MABANDLA, MP
• MINISTER OF HOUSING

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STRUCTURE OF PRESENTATION

1. REPORT ON THE NATIONAL HOUSING SUMMIT
2. REPORT ON WOMEN IN HOUSING WORKSHOP
3. UPDATE ON THE COMMUNITY REINVESTMENT (HOUSING)
   BILL
4. UPDATE ON PIE AMMENDMENT BILL

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• REPORT ON THE NATIONAL
• HOUSING SUMMIT
• HELD AT GALLAGHER
• ESTATES IN GAUTENG ON THE
• 19TH AND 20TH NOVEMBER 2003

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1. Objective of the Summit

• The Theme Was
• Re-establishing Partnerships for Sustainable
  Development.
• The objectives were to
• look, listen and decide on what the future
  housing policy and research agenda should entail

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2. Structure of the Summit

• The Summit was conducted on the basis panel
  discussions on specific themes
• The seven themes were
• Theme 1 Urbanisation and informal settlements
• Theme 2 Urban regeneration and social housing
• Theme 3 Housing needs and rights to housing
• Theme 4 Participation and partnerships
• Theme 5 Quality housing delivery systems
• Theme 6 Housing finance
• Theme 7 Capacity building for effective delivery

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3. Theme 1 Urban-rural Linkages and Informal
Settlement

• The Census can provide valuable information for
  policy consideration process.
• The challenges are integrated development,
  addressing affordability, promoting a secondary
  housing market and addressing HIV/AIDS

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Theme 2 Urban Regeneration and Social Housing

• Social housing can play a significant role in
  this regard
• Government Departments will have to approach
  development on coordinated basis
• The current capital subsidy for social housing
  needs revision

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Theme 3 Housing Needs

• Special housing needs for those infected by
  HIV/AIDS and the disabled were one again
  emphasised at the Summit
• Governments housing development strategy is
  moving towards a demand-driven approach as
  apposed to the previous supply driven regime

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Theme 4 Participation and Partnerships

• There is overall support for partnerships and the
  participation of communities
• A request was made for an Office on Women
• BIFSA offered expertise and the ability to
  deliver at scale
• Sustainable housing delivery are not exclusively
  the domain of housing

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Theme 5 Quality Housing Delivery Systems

• Governments shift to quality housing was
  emphasised
• Quality should also include quality environments
• For low-income housing, there is always the
  tension between profit and quality, making
  monitoring of compliance essential.

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Theme 6 Housing Finance

• The Banking Sector indicated a new commitment to
  low-income housing finance through the Financial
  Services Charter (FSC)
• The Government was urged to also look at other
  models that help the poor,
• The capacity of poor households to mobilise
  savings for building their own houses was also
  illustrated
• Government is conscious that the initial
  commitment by the financial sector through the
  Botshabelo Accord has not been fully implemented
  and it welcomed the FSC.

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Theme 7 Capacity Building for effective Delivery

• The importance of capacity building in the
  provision of housing and infrastructure was
  stressed
• The most important point that emerged is the need
  for partnerships in capacity building.

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4. Recommendations from the Summit

• A need for a differentiated and flexible informal
  settlement upgrading/development policy
• An enabling policy environment and a new vision
  for social housing
• A redefinition of the notion of sustainability
  and the introduction of protocols for
  synchronising the activities and investments of
  government departments
• The use of planning instruments and partnerships
  to make land markets work better for the poor

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4. Recommendations from the Summit continue

• Legislation on property and inheritance rights
  for children in a context of HIV/AIDS and
  provision for child-headed households in existing
  housing policy instruments
• A policy framework to more specifically address
  the housing needs of the disabled, including a
  revision of targeted allocation of projects to
  the disabled by 2007
• The establishment of an Office on Women in the
  Department and formal, quarterly meeting to
  ensure ongoing dialogue

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4. Recommendations from the Summit continue

• Partnerships with BIFSA based on the strengths
  and contributions of the different parties
• Representation of the Department of Housing on
  the Public Works Steering Committee
• Simplify PHP documentation and develop a housing
  partnership approach through the PHP

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4. Recommendations from the Summit continue

• Increased consultation with organisations of poor
  people, especially around policy change
• Speed up the issuing of title deeds registration
• Unblock the release of some R47m in housing
  subsidies to the South African Homeless Peoples
  Federation

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5. The Way Forward

• The National Housing Summit, the results of the
  preceding consultation process and the results of
  the recent evaluation of the Housing Subsidy
  Programme by the Public Service Commission will
  now be taken forward in the development of a
  housing policy and research agenda for the medium
  to longer term.

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5. The Way Forward

• This will enable the Department to align the
  Multi Year Housing Development Plan with the said
  agendas and
• The alignment thereof with provincial multi year
  housing development plans will subsequently be
  pursued.

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REPORT ON THE WORKSHOPONWOMEN IN HOUSING6
November 2003
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To engage stakeholders in the sector on the
challenges and issues which women are
experiencingTo identify a process to address
the challenges
Objectives
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Integrated development of living
environmentsParticipation by women in
development processesNeeds of people with
disabilitieseconomic empowerment of womenPHP as
a development tool
Women as Consumers - issues raised
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Tenure security for rural womenPractical issues
around the R2479 own contributionConsumer
educationAccess to housing finance
Women as Consumers - issues raised
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lack of access for professionalsCommitment to
the 10 target for women contractorsLack of
access to financeStrengthening the role of women
in the PHP processNeed for monitoring
Women as Service Providers - issues raised
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Progressively contributing R2479Monitoring the
10 target Increase PHP support grantDealing
with absconded spousesTitle deeds in name of
both partiesDirectory of women service providers
Interventions for Further Investigation
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Establish task teams to investigate issuesIssues
to be part of the DOH Policy and Research
AgendaForum for women in housingWomen to
participate in policy processes
Recommendations
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COMMUNITY REINVESTMENT (HOUSING) BILL

• Presentation to Portfolio Committee on Housing on
  3 February 2004

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Community Reinvestment (Housing) Bill

• LEGISLATIVE CHALLENGES
• Section 26
• (1) right to access adequate housing
• (2) State compelled to take legislative measures
• e.g. Housing Act of 1997, Home Loan Mortgage
  Disclosure Act of 2000

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Policy Challenges

• Obligations of financial sector under the
  Botshabelo Accord (ROU)
• Target of 50,000 loans/year was not met
• No targeting since 1998
• Institutional mechanism required to
• Replace MIF Servcon
• Facilitate credit-linked subsidies

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Mortgage Indemnity Fund (MIF)

• Mortgage Indemnity Fund (MIF) operated from
  1995-1998
• Charged with the normalisation and stabilisation
  of the mortgage lending environment negotiated
  with community leaders
• Offered indemnity for losses in previously
  redlined areas (but indemnity was not usable
  because of delays in completing the foreclosure
  process)

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Termination Of ROU

• Termination of ROU in July 1998
• Record of Understanding was terminated by Cabinet
  as of July 1998
• There has been no structure for dealing with
  redlining since 1998
• Cabinet confirmed the role for government in
  regulating the housing finance sector to ensure
  access.

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Credit Linked Subsidies
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Recent History Of Community Reinvestment
(Housing) Bill

• Bill submitted to Cabinet early August 2003.
• Cabinet resolved that the mattter be held in
  abeyance pending the drafting of a Financial
  Services Charter. Once this has been completed
  the need for a legislative framework to ensure
  access to housing finance will then be considered.

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Financial Sector Charter

• Was signed towards end of 2003.
• The Financial Charter does speak to the essential
  elements of equity and access. The issues about
  how these relate to housing need to be further
  explored within the Financial Charter process.
• First order retail products (Section 2.27 of
  Charter) means, inter alia, credit for low-income
  housing (minimum income of R500 per month).

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Financial Sector Charter

• The perceptions (real or perceived) of lack of
  access to finance for the low income market needs
  to be addresses and resolved. These include
• The persistent perception around redlining and
  levelling the playing field
• Stretched targets across a disaggregated market
  at the lower end.
• Perceptions around the fairness of operational
  procedures with reference to the housing finance
  and properties in possession. In this regard the
  recent concern of the Banking Ombudsman in
  relation to the manner in which properties in
  possession are handled.

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Financial Sector Charter (Continued)

• Targeted Investment means financing of or
  investment, inter alia, in low income housing
  for households with a stable income in excess of
  R1500 per month and less than R7500 per month.
  This income band will be increased in line with
  inflation on 1 January each year.

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Community Reinvestment The Way Forward

• To establish extensive engagement with the
  Charter process
• Regulations under Home Loan and Mortgage
  Disclosure Act (HLAMDA) to be finalised and
  promulgated as soon as possible.
• HLAMDA to come into operation immediately the
  Regulations are in place.

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Departmental Needs

• Department to revisit discussions which took
  place at recent Housing Summit, the strategic
  response and intent to define the Departments
  Policy and Research Agenda will assist in putting
  access to low income finance in perspective and
  ensure that a meaningful and focussed strategic
  plan is put in place.

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• The Prevention of Illegal Eviction from and
  Unlawful Occupation of Land Amendment Bill
• Presentation to Portfolio Committee on Housing
• Tuesday 3 February 2004

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Background

• Prevention of Illegal Eviction from and Unlawful
  Occupation of Land Act, 1998 (Act No. 19 of
  1998), hereinafter called PIE, came into
  operation on 5 June 1998.
• Objectives of PIE
• To prohibit receipt or solicitation of
  consideration in respect of unlawful occupation
  of land

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Background (Continued)

• To set out processes for the eviction of unlawful
  occupiers by owners of land
• To provide for evictions on an urgent basis
• To set out process for evictions at instance of
  an organ of State
• To provide for a mediation process in the event
  of a dispute

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Background (Continued)

• To provide for offences and private prosecutions
• To provide for jurisdiction of the Magistrates
  Court in eviction proceedings
• To provide for the transfer of powers, duties or
  functions
• To repeal and amend certain laws
• To provide for the making of Regulations.

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Problems arising from the Interpretation and
Implementation of PIE

• Definition of land needs to be widened to
  include a portion of land and buildings and
  structures on land as well as to make specific
  reference to residential and commercial land.
• Nothing in Act which prohibits a person from
  arranging or organising a person to occupy land
  without the owners consent.

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Interpretation and Implementation of PIE
(Continued)

• The prohibition in PIE against receiving money
  for arranging or organising the unlawful
  occupation of land is too restrictive and needs
  to be widened to include all illegal proceeds
  related to unlawful occupation
• The majority decision of the Supreme Court of
  Appeal cases of Bekker and Ndlovu handed down on
  30 August 2002 which brought tenants and
  mortgagors under the Jurisdiction of PIE

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Judgement in Ndlovu/Bekker Cases

• By a majority of 3 to 2 judges, the Supreme Court
  of Appeal held
• That tenants who remain in the premises after a
  lease has been lawfully terminated are in the
  same position as unlawful occupiers of land and
  that the procedures in PIE must be followed when
  evicting them.
• That mortgagors who default on their mortgage
  payments and stay in the premises after the Bank
  has foreclosed are also in the same position as
  unlawful occupiers of land and that the
  procedures in PIE must be followed when evicting
  them.

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Ndlovu/Bekker (Continued)

• When the Prevention of Illegal Eviction from and
  Unlawful Occupation of Land Bill was debated in
  Parliament it was not the intention of the
  legislators to extend the provisions of the Bill
  to include tenants and mortgagors.

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Proposed Amendments to Act

• In view of the Ndlovu/Bekker judgement the Act
  needs to be amended to exclude tenants and
  mortgagors from the operation of the Act,
  because
• The judgement has resulted in landlords and
  developers withdrawing from the rental housing
  market because of the added difficulties in
  evicting tenants when the lease has been lawfully
  terminated.
• It can be argued that the written agreements
  between landlords and tenants and mortgagors and
  mortgagees (Banks) are violated if landlords or
  banks have to comply with the more onerous
  provisions of PIE when evicting defaulting
  tenants and mortgagors, respectively.

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Proposed Amendments (Continued)

• The proposed amendments to exclude tenants and
  mortgagors from the provisions of the Act will
• Eviction should occur after an order of court has
  been issued.

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Proposed Amendments (Continued)

• Add certainty to the manner in which categories
  of unlawful occupiers are to be evicted
  unlawful occupiers of land will be evicted under
  PIE tenants who hold over will be evicted under
  the Rental Housing Act and mortgagors who hold
  over will be evicted in terms of the mortgage
  agreement.
• Generally restore confidence to the housing and
  banking sectors.

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Summary of Proposed Draft Amendment Bill

• Definitions of land, Minister, and unlawful
  occupier have been amended.
• New definitions of occupy and possession have
  been inserted.
• The application of the Act has been amended to
  specifically exclude any proceedings
• For the eviction of any tenant or former tenant
  or any person occupying land through the title of
  such tenant or former tenant

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Summary of Proposed Draft Amendment Bill
(Continued)

• By a mortgagee for the foreclosure of the bond
  and the eviction of a mortgagor or of any person
  holding title through the mortgagor
• To any land acquired by way of a sale in
  execution or judicial sale of property.
• Prohibition of arranging or organising or
  permitting anyone to occupy land without the
  consent of the owner or person in charge of the
  land.

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Summary of Proposed Draft Amendment Bill
(Continued)

• Prohibition of receiving payment of money as fee
  for arranging occupation of land is extended to
  include receiving rent. The money or rent
  includes membership fees, legal costs,
  administration costs, services, services
  connection fees or payment for any socio-economic
  infrastructure.
• Money collected as rental money which was not
  paid to landlord is forfeited and paid back to
  the landlord.

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Summary of Proposed Draft Amendment Bill
(Continued)

• Some technical difficulties are rectified, such
  as deleting any reference to the Court serving
  notices when this is clearly not the Courts
  duty.
• Consequential amendments arising from the above
  amendments and additions.

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Other Initiatives of Department of Housing to
Ease the Plight of Evictees

• Department of Housing has developed an approved
  Emergency Housing Programme
• The Department is also working on a framework to
  manage the interface between actions taken at
  different spheres of government dealing with
  unauthorised occupations and due process for
  managing evictions.

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THIS PRESENTATION INCLUDED FOUR ISSUES AS
REQUESTED
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THANK YOU