PUBLIC HEARING ON VOTE NO.28

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PUBLIC HEARING ON VOTE NO.28 PORTFOLIO
COMMITTEE ON HOUSING

• 9th MAY 2006

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Introduction

• Background
• In developing our plans we recognized that the
  emphasis of housing delivery in Gauteng and
  indeed South Africa had moved beyond the issue of
  numbers to the enhancement of quality and
  building of thriving communities while at the
  same time trying to turn around the apartheid
  spatial development patterns that we had
  inherited
• We had shifted away from quantity to quality
  housing. In the past, in the quest to meet the
  huge demand in housing, we unfortunately
  concentrated on numbers (quantity). We then were
  dealing with the two (quantity and quality) as
  mutually inclusive components of the same
  delivery process.

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Introduction (cont)

• The rapid economic growth and expanded social
  services delivery has led to increased
  in-migration and placed pressure on housing
  budget and available resources
• Gauteng Department of Housing during 2004/5 had
  moved from applying the one size fits all to
  implement principles of the Breaking New Ground
• Department revised its strategic plan document to
  address challenges and build on the desire to
  implement a peoples contract in order to fight
  poverty, create work and continue building a
  better life for all.
• Our focus was and is still on development of
  mixed income and mixed use settlements on well
  located land and to allow people to have access
  to economic opportunities.

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Introduction (cont)

• The number of people in our Housing Demand Data
  Base (Waiting List) is increasing yearly
• In taking further the principle of the Peoples
  Contract, the Department continues with its
  outreach programmes of ensuring that government
  interact with communities who have benefited from
  our programmes.
• Our delivery programme is guided by the Elections
  Manifesto of the ANC which has since been
  adopted by Gauteng Government Executive Council
  as a policy framework guide.

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FIVE PILLARS ON WHICH THE DEPARTMENT IS ANCHORED

• The Gauteng Housing Policy in the new term of
  government rests on 5 key pillars which determine
  our new direction as we break new ground in
  accelerating housing delivery
• Dealing with issues of quantity and quality as
  mutually inclusive components of the same using
  different delivery processes
• Mainstreaming the participatory development
  paradigm
• Transforming settlements, especially the 20 old
  established townships, into sustainable and
  vibrant communities
• Accelerating implementation of the Rental
  Housing Policy in the Province
• Promoting good governance.

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OVERVIEW

• Vision
• A province where all households inhabit quality
  homes
• in vibrant and sustainable communities.
• Mission
• To provide appropriate quality services, tenure,
  housing in targeted precincts and communities
  working in partnership with stakeholders.

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PROVINCIAL STRATEGIC PRIORITIES FOR THE FIVE YEAR
TERM OF GOVERNMENT

• Enabling faster economic growth and job creation
• Fighting poverty and building safe , secure and
  sustainable communities
• Developing healthy, skilled and productive people
• Deepening democracy and nation building
• Building an effective and caring government

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DEPARTMENTAL PRIORITIES DURING THE NEW TERM OF
GOVERNMENT

• Formalisation of informal settlements which can
  be formalised ( basic services and
  infrastructure for all by 2009 The department
  has already registered 474 000 shacks in 372
  informal settlements out of which 40 were locked
  shacks
• Eradication of all informal settlements in
  Gauteng by 2014
• Building of top structures through
• PHP programme
• Community Builders programme (To built 200 000
  top-structures (medium density) over a 5 year
  period
• Formal Housing programme Mainly For 1996/97
  beneficiaries
• MEC priority projects programme For 1996/97
  beneficiaries
• Densification and infill development through
  Social Housing , Medium Density and Inner City
  Regeneration processes

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DEPARTMENTAL PRIORITIES DURING THE NEW TERM OF
GOVERNMENT CONT

• Hostel Redevelopment and Regeneration by 2009
• Promote home ownership through Regularisation and
  transfer of Ownership Process (RETRO)
• Completion of TORPS in former Black areas by
  31March 2006
• Complete RETRO in the former own affairs by 31
  December 2005 for provincial stock
• Complete RETRO in the former own affairs by 31
  March 2008 for municipal stock
• Densification of Housing on well located land
• Provisioning of social and economic amenities to
  all developments to ensure sustainable
  settlements
• Implementation of the Expanded Public Works
  Programme
• Increase intakes for construction specific
  learnerships in pursuance of skills development
  and poverty alleviation

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DEPARTMENTAL PRIORITIES DURING THE NEW TERM OF
GOVERNMENT

• Mobilize Resources through exploration of
  various options, i.e. Public-Private
  Partnerships, DFEA and/or other donor funding
  as well as other departments
• Upgrading of the 20 old established townships
  in Gauteng
• Upgrading of all RDP houses delivered between
  1994 and 2002 financial years i.e. built before
  the introduction of the NHBRC norms and
  standards ( deadline 2010 )
• Provisioning of top structures to all projects
  serviced/ delivered between 1994 and 2005
• Use of Labour Intensive work on all capital
  projects
• Promotion of Good Governance.

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DEPARTMENTAL PRIORITIES DURING THE NEW TERM OF
GOVERNMENT - cont

• Urban Regeneration
• Business Plans to ensure Integrated Development
  had been developed for the three identified
  areas, being Alexandra, Evaton and Bekkersdal.
• The lead agency for Kliptown is the NHFC the
  housing initiatives in Kliptown includes medium
  density Social Housing (1200), giveaway units (1
  400 units) and the spatial linkage of Kersiesdorp
  to Kliptown.

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PERFORMANCE REVIEW 2004/05
OBJECTIVE TARGET ACHIEVEMENTS AS AT 31 MAR 2005
Formalisation of informal settlements - Serviced stands 51 000 43 690
Peoples Housing Process 3 251 3 369
Relocation Assistance 1 336 2 297
TORPS 15 000 16 766
In-Situ Rightsizing Servcon Programme - 6 803
Formal Housing 4 452 5 132
MEC Priority Projects 14 000 14 547
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PERFORMANCE REVIEW 2004/05
OBJECTIVE TARGET ACHIEVEMENTS AS AT 31 MAR 2005
Rental and Social Housing Programme 150 Units GPF 2301 units 592 Social Housing Units GPF - 2614 units
Affordable Rental Accommodation 10 000 UNITS 54 Hostels 828 Hostel units completed in six different hostels Emergency intervention done in 33 Hostels
Housing Occupancy Audit 217 RDP Units 217 RDP Units audited
Beneficiary Education 80 000 Beneficiaries 73 363 beneficiaries educated on housing related skills
Empowerment - BBBEE 70 Women 30 Disability 5 Youth 5 BBBEE 61 Women 13 Disability 0 Youth 0
Job Creation 233 54 8000 jobs created via Essential Services 870 jobs through PHP

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PERFORMANCE REVIEW 2004/05 cont.
OBJECTIVE TARGET ACHIEVEMENTS AS AT 31 MAR 2005
HOUSING OPPORTUNITIES PLANNED 89 039 92 604
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LEVEL OF EXPENDITURE AS AT 31 MARCH 2005
Budget Expenditure Over / Under Expenditure
R,000 R,000 R 000
TOTAL BUDGET 1, 440,226 1,394,135 ( 96.8) 46,091 (3.2)
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LEVEL OF EXPENDITURE AS AT 31 MARCH 2005
PROGRAM Budget Expenditure Over / Under Expenditure
R,000 R,000 R 000
Prog 1. Administration Prog 2. Housing Planning Research Prog 3. Housing Performance / Subsidy Programme Prog 4. Urban Renewal and Human Settlement Redevelopment Prog 5. Housing Asset Management TOTAL 78,614 7,219 1,015,448 258,237 80,708 1,440,226 78,064 7,090 1,010,107 222,114 76,760 1,394,135 550 129 5,341 36,123 3,943 46,091
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BUDGET FOR 2005/06 FY
PROGRAMME DESCRITION Main Appropriation (1) Current Payments (2) Transfers and subsidies (3) Payments for capital assets (4) Amounts specifically and exclusively appropriated (4)
R000 R000 R000 R000 R000
Administration 82 276 71 098 8 238 2 940 8 2 38
Housing Planning Research 8 331 8 061 270
Housing Performance / Subsidy Program 1 200 645 22 667 1 169 160 8 818 1,176,657
Urban Renewal Human Settlement 305 503 1 213 299 528 4 762 4,130 (Human Settl.) 125, 000 (Bekk Evt) 8,000 (Alex Land)
Housing Assets Management 51 232 20 367 30 780 85 30 780
TOTAL 1 647 987 123 406 1 507 706 16 875 1,352,805
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BUDGET ALLOCATION 2005/06
Budget R,000 2005/06 R000
Equitable share ( Province) 295,182
Conditional Grants (National) - Housing Fund - Human Settlements - Land Distribution Alex 1,340,676 4,130 8,000 1,352,805
Total Budget 1,647,987
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LEVEL OF EXPENDITURE AS AT 31 MARCH 2006
Budget Expenditure Available Balance
R,000 R,000 R 000
TOTAL BUDGET 1, 764,295 1,673,206 R91,089
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LEVEL OF EXPENDITURE AS AT 31 MARCH 2006

DESCRIPTION BUDGET TOTAL YEAR TO DATE AVAILABLE BUDGET OF EXPENDITURE OVER BUDGET
DESCRIPTION R '000 R '000 R '000 OF EXPENDITURE OVER BUDGET
Programme 1 Administration 82,394 78,017 4,377 95
Programme 2 Housing Planning Research 9,255 7,514 1,741 81
Programme 3 Housing Performance / Subsidy Programmes 1,182,245 1,179,506 2,739 99
Programme 4 Urban Renewal Human Settlement Redevelopment 385,161 305,382 79,779 79
Programme 5 Housing Asset Management 105,240 102,787 2,453 98
Total 1,764,295 1,673,206 91,089 95
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8. PERFORMANCE REVIEW 2005/06
OBJECTIVE TARGET ACHIEVEMENTS AS AT 28 February 2006
Formalisation of informal settlements - Serviced stands 29 750 30 135
Peoples Housing Process 1 440 1 414
Relocation Assistance 650 273
TORPS 7 200 17 000
In-Situ Rightsizing Servcon) - -
Formal Housing 2 294 Serviced Stands 9 607 Houses 4 114
MEC Priority Projects 6 868 6 243
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DEPARTMENTAL PRIORITIES TILL 2008/9

• The Department of Housing has refocused its plan
  and the following has been prioritised
• Formalisation and Eradication of Informal
  Settlement
• Development of Social and Mixed Income
  Settlements
• Regeneration of Twenty Old established Townships
• Affordable Rental Accommodation
• Urban Regeneration

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DEPARTMENTAL PRIORITIES TILL 2008/9

• This will be achieved through
• Fast tracking of top structure delivery
• Provision of Housing in targeted areas in line
  with GDS and Global City Region approach.
• Renewal of 20 old established township
• Social Housing program to be refocused to include
  affordable rental low and middle income earners
• Job Creation through housing development
• SMME/ BBBEE - Empowerment and Participation

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DEPARTMENTAL PRIORITIES TILL 2008/9

• Current approach
• Housing delivery driven by national and
  provincial priorities
• Creation of sustainable human settlements
  through the identification and development in
  well located land
• Emphasis on sustainability and quality of life
  through the provision of housing and other social
  and economic amenities.

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DEPARTMENTAL PRIORITIES TILL 2008/9

• Key Interventions to realize our objectives
• The Department of Housing has regionalized its
  operations and teams have been appointed for each
  municipality.
• Capacity at regional and local level will be done
  via Programme Management Office based at
  municipal level.
• Implementation and promotion of mixed income
  settlements in each Municipal area in line with
  the principles of the Breaking New Ground - Two
  of these projects already underway in Cosmo City
  and Oliventhoutbosch.
• Plan to engage and mobilize established
  developers to get involved in government drive
  housing projects.

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ENVIRONMENTAL CHALLENGES IMPACTING ON SERVICE
DELIVERY

• Insufficient funding
• Need of increased funding to meet the
  targets as per the Breaking of New Ground
  strategy
• Housing Backlog
• The department has a backlog for the serviced
  stands which have no top structure at the tune of
  - 120 000
• Land Invasions
• Illegal land invasions and capacity challenges
  within most local municipalities

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ENVIRONMENTAL CHALLENGES IMPACTING ON SERVICE
DELIVERY (continued)

• Migration patterns
• The migration of households into Gauteng is
  estimated at 25 500 households per annum.
• Provincial Population Growth
• The Provincial Population growth is estimated at
  27 000 households per annum.
• Unemployment
• 28 of the economically active population of
  Gauteng is unemployed and thus unable to pay for
  services.
• HIV/Aids
• The impact of HIV/Aids has resulted in an
  increasing number of child-headed families with
  no contractual rights.

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BUDGET ALLOCATION 2005/06
Budget R,000 2005/06 R000
Equitable share ( Province) 295,182
Conditional Grants (National) - Housing Fund - Human Settlements - Land Distribution Alex 1,340,676 4,130 8,000 1,352,805
Total Budget 1,647,987
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CROSS CUTTING ISSUES

• Broad Based Black Economic Empowerment
• BBEE 70
• Gender
• The Department has set a target of 30 of all
  procurement from women (Both Ownership and
  Participation). The department has created a
  database for all women contractors.
• Disability and Youth
• The Department has set a target of 5
  respectively of all procurement from disabled
  people and Youth (Both Ownership and
  Participation). The Department is currently
  developing a database to cater for each of the
  targeted sector.
• HIV/AIDS
• The HIV/AIDS Policy developed in 2004/05 will be
  implemented in 2005/06

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WAY FORWARD

• We need to have proper plans and re-prioritised
  approach that speaks to the principles of the
  Breaking New Ground policy.
• Theres a need for greater integration of plans
  and funding for Human Settlements in all spheres
  of government and private sector
• Better coordination and integration of planning
  process and implementation between province and
  municipalities to realize our key priorities
  with focus on the following
• Utilization of Municipal Infrastructure Grant
• Utilization of Land Acquisition Grant
• National Infrastructure Support Grant
• Reinforcing diversity of housing and settlement
  types, in increasing choice, through densities,
  locations, tenure options, housing credit and
  delivery routes.
• Intervening in land and rental markets to ensure
  that equitable development and integration is
  achieved.
• Harnessing the resources of the private sector to
  deliver at scale through the intended PPP
  approach

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• THANK YOU.