Select Committee on Public Services 28 & 29 June 2011

SHRA Objectives Linkages with Provinces Challenges with Provinces Service Delivery, job creation and poverty alleviation Contents 2Select Committee on Public Accounts

The mandate of the Social Housing Regulatory Authority (SHRA) is derived from the Social Housing Act 16 of 2008 CHAPTER 3 SOCIAL HOUSING REGULATORY AUTHORITY Establishment of Social Housing Regulatory Authority 7. (1) There is hereby established a juristic person to be known as the Social Housing Regulatory Authority. (2) The Public Finance Management Act applies to the Social Housing Regulatory Authority. (3) The Social Housing Regulatory Authority is accountable to the Minister and Parliament. The Act further sets out the composition of SHRA in Section 8 and the functions of SHRA in Section 11 SHRA 3Select Committee on Public Accounts

SHRA 4Select Committee on Public Accounts Mandate To invest in social housing and be able to regulate the sector Vision Affordable rental homes in integrated urban environments through sustainable institutions Mission The SHRA will regulate and invest to deliver affordable rental homes and renew communities

Select Committee on Public Accounts5 SHRA SHRA “reason for being”…. Restructuring Social, Economic and Spatial Re-structuring LiveWorkPlayPray

Select Committee on Public Accounts6 SHRA SHRA Business Model SHRAInvestmentCapitalCapacitationRegulationAccreditationRegulation Accredited Service Providers

Select Committee on Public Accounts7 SHRA SHRA High-level Process

Select Committee on Public Accounts8 Objectives

Select Committee on Public Accounts9 Linkages with Provinces The Social Housing Act states the following pertaining to Provinces:- Roles and responsibilities of provincial government 4. (1) Every provincial government, through its MEC, must— (a) ensure fairness, equity and compliance with national and provincial social housing norms and standards; (b) ensure the protection of consumers by creating awareness of consumers‘ rights and obligations; (c) facilitate sustainability and growth in the social housing sector; (d) mediate in cases of conflict between a social housing institution or other delivery agent and a municipality, if required; (e) submit proposed restructuring zones to the Minister; (f) monitor social housing projects to ascertain that relevant prescripts, norms and standards are being complied with; (g) approve, allocate and administer capital grants, in the manner contemplated in the social housing investment plan, in approved projects; (h) ensure that the process contemplated in paragraph (g) is conducted efficiently; (i) administer the social housing programme, and may for this purpose approve— (i) any projects in respect thereof; and (ii) the financing thereof out of money paid into the accredited bank account of the province as contemplated in section 18(3): and (j) develop the capacity of municipalities to fulfil the roles and responsibilities contemplated in section 5. (2) A provincial government may not interfere with the governance or management of social housing institutions. (3) Subject to section 11(3)(k), the Regulatory Authority may not interfere with the monitoring of social housing projects.

Select Committee on Public Accounts10 Linkages with Provinces The Social Housing Act states the following pertaining to SHRA and Provinces:- Chapter 11: SHRA must (f) support provincial governments with the approval of project applications by social housing institutions; (g) assist, where requested, in the process of the designation of restructuring zones; (h) enter into agreements with provincial governments and the National Housing Finance Corporation to ensure the co-ordinated exercise of powers; and (i) perform any other function or exercise any other power that the Minister may prescribe.

Select Committee on Public Accounts11 Challenges with Provinces Delivery demands placed by Outcome 8 ( social housing units, CRU, private sector, institutional). This requires R12bn. DORA funds earmarked for social and rental housing sitting with provinces (approx R1,2bn for 2011/12) which may not be spent or spent elsewhere. Establishment and growth of Restructuring Zones. Skill/capacity at provinces to manage social housing/rental programmes. Lack of understanding of rental programmes. Rental Tribunals not aligned with SHRA programme and vice-versa. Slow turnaround times regarding payments to SHI’s. Social Housing not prioritised in some provinces. Provinces not make their own land available for rental housing.

Select Committee on Public Accounts12 SHRA Response Establishment of the National Social/Rental Housing Task Team Draft of Agreement with provinces Engagements with provinces (Eastern Cape, Western Cape, KZN, Gauteng, Free State) Complete development of full rental suite of products for Outcome 8. Meetings with Rental Tribunals (Gauteng, Western Cape, KZN) Development of SHRA Outreach Programme to create awareness and deepen understanding of rental products.

Select Committee on Public Accounts13 Service Delivery, Job Creation, Poverty Alleviation Service Delivery:- Social and Rental housing products represent a critical aspect of service delivery, so much so that the President included it in his State of the Nation address (as well as launching Emerald Sky) Social housing brings about spatial, economic and social restructuring which deliberately seeks to undo the last vestiges of apartheid planning. Currently only households earning below R3,5k qualify for RDP units and the banks only cater for household income of R15k. There is this a huge divide which is not catered for. Social Housing seeks to address this by creating accommodation options for individuals earning R1,5k to R7,5k. Social housing helps alleviate the proliferation of informal settlements by allowing migrant workers who have RDP units in their homelands to live in cities in decent accommodation.

Select Committee on Public Accounts14 Service Delivery, Job Creation, Poverty Alleviation Job Creation:- Social Housing Institutions create job opportunities (including women and youth) Developers create job opportunities by employing HDI and PDI professionals to undertake technical work. Contractors create job opportunities by employing local labour (semi- skilled and unskilled) including women and youth *** Social Housing projects must set aside a % of units for people with disabilities. Many projects have creches and youth centres which employ individuals from the projects themselves. Some projects use unemployed individuals to perform light maintenance work of their own project.

Select Committee on Public Accounts15 Service Delivery, Job Creation, Poverty Alleviation Poverty Alleviation:- Social Housing contributes directly to poverty alleviation by creating housing opportunities close to employment opportunities and transport nodes. This allows more disposable income to be used for better education and health. In a Cost Benefit Analysis conducted in 2009 it was found that most beneficiaries of social housing units improve their overall quality of life. They tend to be more productive by not getting sick and staying out of work. Beneficiaries get a good sense of security for their children because of enclosed grassed play areas and controlled access.

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