Challenges to purchase/release of Land

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Challenges to purchase/release of Land
Buildings for Sustainable Human
Settlements Presentation to the Portfolio
Committee on Public Services 10 September 2013
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Outline

• Outcome 8
• HDA Role and Land Assembly Programme
• Land Identification Status
• Land Release Status
• Public land
• Communal land
• Private land
• HDA land
• Challenges
• Way forward

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Outcome 8 targets

• Outcome 8 Sustainable Human Settlements and
  Improved Quality of Household Life
• Release of state land for human settlements
  6250 ha
• Informal settlements upgrading 400
  000 households
• Gap market 600 000 Units
• Rental housing 100 000 Rental Units

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HDA focus areas

• The HDA was established to address the land
  acquisition and assembly process so as to
  accelerate housing delivery and human settlement
  development.
• The two main objectives of the Agency are to
• Identify, acquire, hold, develop and release
  well-located land and buildings
• Provide project management support and housing
  development services

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Programme Support Land Assembly
LAND ASSEMBLY PIPELINE
identify suitable land for human settlements
development Spatial Analysis (IDP, SDF, MHDP)
Site Inspection Town Planning Feasibilities (Lan
d Geo-spatial Services)
acquire such land and/ or facilitate its release
to another organ of State Negotiation Conveyanc
ing Rights/ title Legal transaction
hold such acquired land - with short, medium and
long term outlook Security Maintenance Rates
Taxes Service Charges
prepare acquired land for development and
release Dev Planning Rights/
Bankability Project packaging Investment plan
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Programme Support Land Assembly

• Public sector

• Private Sector

• National
• Public Works
• RDLR
• SOCs Purchase
• Provincial
• Housing Boards
• Provincial Entities Purchase
• Municipal
• Municipal-owned
• Commonages
• Municipal Entities Purchase?

• Private individuals
• Trusts etc.
• Private Companies
• Outright purchase (sale)
• Expropriation
• Donation

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Land released/acquired for human settlements
8
Land Identified and requested for human
settlement development

• DPW 24,266 ha
• DPDLR 16,068 ha
• SOC (mostly Transnet and Denel) 2430 ha at an
  estimated cost of 341m

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(No Transcript)
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Released public land
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(No Transcript)
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SOC properties purchased
SOC properties purchased
SOC Acquired land SOC Acquired land SOC Acquired land SOC Acquired land SOC Acquired land SOC Acquired land SOC Acquired land
Province Municipality Extent (ha) Cost Funding Earmarked for (HS prog) Potential yield (units)
Gauteng CoJ 0.3964 R 18 000 000.00 HDA Rental 750
  CoTshwane 38.1075 R 16 985 000.00 HDA ISHS 1600
Fstate Mangaung 45.93 R 4 950 000.00 Province ISHS 1040
  Matjabeng 2.42 R 450 000.00 Province Rental 240
  Dihlabeng 5.2931 R 2 000 000.00 Province Rental 156
  Moqhaka 51.9184 R 3 450 000.00 Province ISHS 1420
Wcape Swartland 700.7813 R 5 000 000.00 HDA ISHS 100
Ecape Lukhanji 5.1924 R 3 500 000.00 HDA Rental 1420
Total   850.0391 R 54 335 000.00     6726
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Summary of Identified Private Land Per Province
Province Extent (ha) Indicative Price (R)
Gauteng 1711.3445 R386 497 000
North West 544.4413 R93 480 000
Free State 2383.149 R23 487 000
Northern Cape 190.5674 R26 200 000
Limpopo 1045.0628 R74 000 000
Western Cape 1223.7139 R115 890 000
KwaZulu-Natal 109.3294 R79 885 000
Eastern Cape 2020.0152 R473 293 900
Mpumalanga 2970.3998 R74 000 000
TOTAL 12005.1862 R1 411 932 900
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HDA LAND HOLDING
HDA LAND HOLDING HDA LAND HOLDING HDA LAND HOLDING
Province Municipality Extent (ha)
Limpopo Bela Bela 72.5785
Gauteng CoJohannesburg 0.3964
  CoTshwane 38.1075
Fstate Mangaung 45.93
  Matjabeng 2.42
  Dihlabeng 5.2931
  Moqhaka 51.9184
Wcape Swartland 700.7813
CofCape Town 2.4814
Ecape Lukhanji 5.1924
Total   850.0391
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HDA land release/acquisition

• HDA doing project packaging of land for
  mixed/rental housing development on request from
  provinces with support of municipalities
• Buildings being released to Social rental housing
  sector for development management
• Release / development by HDA dependent on
• Provinces/municipal requesting HDA support with
  implementation
• Infrastructure availability/provision
• Capacity to develop land/buildings locally
• Planning for land land/project pipeline
  interface

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Contributing to creating Sustainable Human
Settlements

• Most land released is made available to
  municipalities or HDA
• Land release is conditional to
• Land being used for human settlement development
  only
• Land development being concluded within a defined
  period
• HDA has monitoring role together with DHS to
  ensure land released is developed for human
  settlements

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Approach to Release of Communal Land for Human
Settlements

• Obvious challenges
• Land consideration payable- some traditional
  leaders require compensation
• Tradeability in the open market
• Security to obtain finance or mortgage
• Approach
• Communal Land is state land allocated to
  traditional authorities
• DRDLR is the nominal owner
• Community Resolutions required prior to release
  of land for development- sometimes problematic to
  secure due to community dynamics
• Informal land rights holders also recognised e.g.
  for grazing, agriculture etc.
• Community must agree to envisaged development

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Summary Public Communal land release

• Exceeded Outcome 8 target of 6250ha
• 32 000 potential housing opportunities from the
  7315ha of Outcome 8 land specifically
• With SOC 38909 units from 8165ha requested
• Land release primarily from DRDLR
• Some strategic land released from NDPW
• Public enterprises land acquisition requires
  compensation/funding
• Provincial state land departments
  involvement/alignment in the process is happening
  but needs more attention
• 17 of land requested from State departments has
  been released to date

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Key challenges experienced in the release of land
for human settlements
Challenges Mitigation measures
Private land Capital funding required for land acquisitions Working with DHS and provinces to improve forward planning align required funding for land linked to a Nationally agreed strategy
Public land Land release turn-around time Verification of ownership of land Competing interests on the land Land claims on some prioritised properties Changes within Departments (staff plans) Mandate to release with other Departments Key approvals and sign-off required to ensure compliance of state land release Joint Co-ordinating Committee (JCC) monitors and assist with engagements between govt. departments. Different govt. departments have competing interests on the same land negotiation of these interests HDA/DHS identify and request NDW/RDLR/PE/SOC need to approve release
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Key challenges experienced in the release of land
for human settlements
Challenges Mitigation measures
HDA land release Infrastructure planning availability Land/project pipeline interface Local capacity Engagement with other govt dept. to ensure positioning alignment of planning for project development Assistances to provinces with planning, preparation technical capacity to facilitate project development
General Lack of planning and preparation for the acquisition and release of land Working with DHS and provinces to improve forward planning align required funding for land linked to a Nationally agreed strategy Support work provided by the HDA to province and municipalities to assist with planning, preparation, systems procedures, and technical capacity Limited to provinces that choose to utilise the support and involve the HDA
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The Way Forward

• Despite the challenges the HDA has exceeded the
  Outcome 8 target of 6 250 ha of public land
  released for human settlement development
• A National Land Assembly Strategy for Human
  Settlements and accompanying land pipeline is
  being developed to
• Facilitate forward planning for land based on
  human settlement needs/priorities
• Justify proper funding and release of land by all
  spheres
• Position and align support and role of the HDA in
  the process
• Ensure focus on National priorities Mining
  towns, SIPs, Priority projects, Informal
  settlement upgrading
• Avoid missed opportunities