Revised Strategic Plan and Annual Performance Plan 10 May 2016 Mr. M. Tshangana 1

Presentation Overview Introduction Vision and Mission Departmental Goals and Strategic Objectives MTSF Sub-outcomes to achieve the vision Process followed in developing the plans Revised Strategic Plan targets ( ) Summary of APP Priorities per programme APP Targets and performance indicators per Programme Budget Allocation 2

Introduction In line with the NDP, the Human Settlements aims at achieving visible results from effectively coordinated spatial planning systems by 2030 and this is done through : The development of the Spatial Master Plan for Human Settlements that will direct investments to the priority precincts Implementation of Catalytic Projects Prioritizing, targeting and focusing resources (financial and other) towards scale delivery Supporting and encouraging government and private sector collaboration and integration Promoting the participation of Youth and Women in human settlements development programmes Scaling up delivery on the informal Settlements Upgrading Programme 3

Vision and Mission Vision A nation housed in sustainable Human Settlements Mission To facilitate the creation of Sustainable Human Settlements and Improved Quality of Household Life. 4

Departmental Strategic Goals Enhanced efficiency and effectiveness of the department Integrated and responsive human settlements sector planning and policy environment Increased delivery of adequate housing in quality living environments 5

Departmental Strategic Objectives Promote efficient and effective administrative processes A capacitated and diverse workforce in a conducive working environment Effective and efficient legal support Promote internal and external communication on human settlements The ICT infrastructure is reliable, secure and available Development of human settlements policies and programmes for improved alignment Establishment and strengthening of partnerships for human settlements development Provide implementation support on the delivery of adequate housing Improved support and capacity for the human settlements sector Efficient and effective utilization of human settlements grants and monitoring lending patterns by financial institution 6

MTSF Sub-Outcomes to Achieve The Vision In order to achieve the vision of sustainable human settlements and improved quality of household life the DHS will drive effective programmes to achieve the following: Adequate housing and improved quality living environments A functionally equitable residential property market Enhanced institutional capabilities for effective coordination of spatial investment decisions 7

Strategic Planning Process The First Draft of APP was submitted to DPME for assessment as per the Framework requirements (31 August 2015) and to Auditor General A second draft of the APP submitted on the 30 November 2015 took into consideration the comments by the oversight bodies Engagement meetings to address the comments by DPME and AG were arranged The revised strategic plan and the final APP was submitted to AG and DPME for further assessment The Strategic Plan was revised to comply with the DPME requirements on planning The plan is MTSF based but also compliant to the instruction DPME AG’s final findings were taken into consideration in the final APP adopted the executive management of the department 8

Strategic Plan Priorities in line with the MTSF Policy for Coherent and Inclusive Approach to Land for Human Settlements Human Settlements White Paper Housing Code revised Housing Act amended 2200 Informal settlements upgraded Households provided with basic services subsidy housing opportunities provided loans ( FLISP and DFI supported) issued social housing units affordable rental housing opportunities provided 9

Strategic Plan Targets - ( ) Framework on coherent and inclusive approach to land developed Seven evaluations of key human settlements strategic thrust completed Human Settlements White Paper approved Housing Act amended and Human Settlements Legislation approved Housing Code revised and Human Settlements Code approved Approved Human Settlements Master Spatial Plan Guidelines for Human Settlements Planning and Design revised Increase in partnerships and stakeholders participating in human settlements development 10

2016 / 2017 APP- Priorities The Department through the 2016 /17 APP has prioritised the : Achievement of Good Corporate Governance by putting management systems to support institutional performance in critical areas for efficiency Development and Finalization of the White Paper for Human Settlements Revision of the Housing Code Delivery of housing opportunities through: Informal Settlements Upgrading Programme including PHP Provision of technical support to municipalities for informal settlement upgrading Upscaling the delivery of affordable rental housing opportunities Implementation of Catalytic Projects 11

2016 /2017 APP- Priorities ….. Housing of Military Veterans Implementation of human settlements interventions in mining towns Eradication of the title deeds backlog and the transfer of title deeds for new properties in the subsidy market Acquiring, rezoning and release of well located land targeting poor households Implementation of capacity building support programme across the sector Strengthening of partnerships for better delivery 12

Summary of programme 1 targets 2016/17 Compliance with statutory tabling and prescripts and implementation of the approved internal audit plan for good governance Compliance to Human Resource Statutory Requirements and Implementation of the Human Resource Plan Development and roll out of the Legislative Programme Ensuring that the ICT infrastructure is reliable, secure and available Implementation of the approved communication strategy Knowledge and information management systems developed and implemented Ensuring a secure working environment 13

Summary of programme 2 targets 2016/2017 Development of Multi Year plan for Human Settlements An approved Human Settlements Master Spatial Plan Revised Guidelines for Human Settlements Planning and Design (Red Book) A Draft White Paper for Human Settlements A framework for the revision of the housing code A Revised Accreditation Framework Provinces and Metros supported in the implementation of PHP Policy Mobilisation and strengthening of stakeholder participation in Human Settlements Development 14

Summary of programme 3 targets title deeds backlog eradicated hectares of well-located land acquired, rezoned, and released for new developments targeting poor households 15 catalytic projects implemented 9 human settlements interventions implemented in mining towns 500 Feasibilities conducted on informal settlements 444 Informal settlement upgrading plans developed households provided with basic services housing opportunities provided including Military Veterans Title deeds for new home owners in the subsidy market issued 15

Summary of programme 3 targets Social Housing units delivered affordable rental opportunities delivered Projects under implementation monitored and verified (HSDG and USDG) Evaluation studies (Affordable Housing, Access Evaluation) conducted DFI operational integration completed youth, women, military veterans participating on human settlements skills development programmes 16

Summary of targets programme 4 Approved Human Settlements Grants Frameworks HSDG & USDG quarterly performance reports Annual report on the performance of financial institutions and their lending patterns State Finance Products for the affordable market revised 17

APP - Programme 1 Strategic Objective2016/2017 TargetPerformance Indicators To Promote efficient and effective administrative processes 100 % compliance with statutory tabling and prescripts Percentage compliance with statutory tabling and prescripts Unqualified audit report 2015/16Unqualified audit report 100% adherence to Cabinet and Cluster schedule as per approved protocol Percentage adherence to Cabinet and Cluster schedule as per approved protocol 100% implementation of the approved internal audit plan Percentage implementation of the approved audit plans 100% implementation of the approved risk management plan Percentage Implementation of the approved risk management plan 100% implementation of approved Departmental anti-fraud and corruption Percentage implementation of approved Departmental anti-fraud and corruption 100% PAIA information requests processed % of PAIA information requests processed 18

APP - Programme 1 Strategic Objective2016/2017 TargetPerformance Indicators A capacitated and diverse workforce in a conducive working environment 100% compliance to HR Statutory Requirements Percentage compliance to HR Statutory Requirements 100% Implementation of the HR Plan Percentage implementation of HR Plan Effective and efficient legal support 100 % of` litigation matters received and attended to Percentage of litigation matters received and attended to 100% of contracts processed within reasonable time frame Percentage of contracts processed within reasonable time frame The ICT infrastructure is reliable, secure and available 90 percent availability of HSS Database Systems to provinces Percentage availability of the HSS Database Systems to provinces 90% availability of IT ServicesPercentage availability of IT Services 19

APP - Programme 1 Strategic Objective2016/2017 TargetPerformance Indicators Promote internal and external communication on human settlements 100 %implementation of the approved communication strategy Percentage implementation of the approved communication strategy consumers reached through various communication platforms Number of consumers reached through various communication platforms 20

APP - Programme 2 Strategic Objective2016/2017 TargetPerformance Indicators Development of Human Settlements Policies and Programmes for improved alignment An approved National Human Settlements Development Plan for Provinces 1 st draft of the revised Guidelines for Human Settlements Planning and Design (Red Book) approved for consultation Revised Guidelines for Human Settlements Planning and Design Approved Human Settlements Master Spatial Plan title deeds backlog eradicated Number of title deeds Backlog eradicated 2455 hectares of well-located land acquired, rezoned, and released for new developments Number of Hectares of well-located land acquired, rezoned, and released for new developments 21

APP - Programme 2 Strategic Objective2016/2017 TargetPerformance Indicators Development of human settlements policies for improved alignment and compliance A draft White Paper for Human Settlements Approved Human Settlements White Paper A framework for the code developed Human Settlements Code approved Revised Accreditation Framework Establishment and strengthening of partnerships for human settlements development Five Provinces and four Metros supported on the implementation of PHP Policy Number of Provinces and Metros supported on the implementation of PHP Policy Mobilisation and strengthening of stakeholder participation on Human Settlements Development Reports on stakeholder participation in Human Settlements Development 22

APP - Programme 3 Strategic Objective2016/2017 TargetPerformance Indicators Provide implementation support on the delivery of adequate housing provided 500 Feasibilities conducted on Informal Settlements Number of Informal settlements assessed 444 Informal settlement upgrading plans developed Number of Informal settlement upgrading plans developed 9 human settlement interventions implemented in mining towns Number of human settlement interventions implemented in mining towns households upgraded to phase 2 Number of households upgraded to phase subsidy housing opportunities provided Number of housing opportunities provided Social Housing units delivered Number of Social Housing units delivered Community Residential Units (CRU) Number of Community Residential Units (CRU) delivered 23

APP - Programme 3 Strategic ObjectiveTargetPerformance Indicators Provide implementation support on the delivery of adequate housing provided 15 catalytic projects implemented Number of catalytic projects implemented Enhanced sector monitoring and evaluation 75% of projects monitored and verified (HSDG and USDG) Percentage of projects monitored and verified 2 evaluation studies (Affordable Housing, Access Evaluation ) completed Number of evaluation studies completed 24

APP - Programme 3 Strategic ObjectiveTargetPerformance Indicators Provide implementation support on the delivery of adequate housing provided Single DFI operational integration completed Single Development Finance Institution established 4 Shareholder Compacts of the human settlements entities aligned to the MTSF targets Number of Shareholder Compacts of the human settlements entities aligned to the MTSF Improved support and capacity for the human settlements sector Nine (9) Provincial departments and eight (8) municipalities supported in the implementation of capacity development programmes 2760 youth, women, military veterans trained on human settlements skills development programmes Number of youth, women, military veterans trained on human settlements skills development programmes 25

APP - Programme 4 Strategic ObjectiveTargetPerformance Indicators Efficient and effective utilization of human settlements grants, and monitoring lending patterns by financial institution Approved Human Settlements Grants Frameworks Quarterly reports on HSDG & USDG performance submitted Reports on HSDG & USDG quarterly performance Annual report on the performance of financial institutions and their lending patterns developed Approved annual report on the performance of financial institutions and their lending patterns 26

2016 MTEF Allocation The budget of the Department was negatively affected by the economic downturn.

Budget Reductions over 2016 MTEF R1.6 billion cut to the Human Settlements Development Grant in the 2016/17 financial year; R807 million reduction of the Urban Settlements Development Grant as follows; – R236.4 million in 2016/17 financial year; – R235.8 million in 2017/18 financial year; and – R335 million in 2018/19 financial year. 28

Budget Reductions over 2016 MTEF The goods and services budget was reduced by: – R6.6 million in 2016/17; – R10.8 million in 2017/18; and – R41 million in 2018/19. Compensation of employees was reduced by: – R28.9 million in 2017/18; and – R43.1 million in 2018/19. 29

Net Budget Based on Allocation Letter Economic Classification2016/172017/182018/19Total Compensation of employees Goods and services Grants and transfer payments Payment for Capital assets Total

Compensation of Employees 2016/172017/182018/19 Costs to company establishment Allocation after budget cut Shortage The current staff establishment consists of 893 positions. Of these 646 are funded positions, of which 605 are filled and 41 are vacant. Of the 893 positions 247 are unfunded. The Department will have to implement measures as to ensure that the Department will be able to meet the shortage, otherwise other severe measures will have to be implemented.

Impact of the Reduction on the Human Settlements Development Grant Provinces 2016/ / /19 R`000 DORA 2015 Published Allocation Revised Allocation Reduction Total Allocation by province EASTERN CAPE FREE STATE GAUTENG KWAZULU-NATAL LIMPOPO MPUMALANGA NORTHERN CAPE NORTH WEST WESTERN CAPE Total

Impact of the Reduction on the Urban Settlements Development Grant 2016/ / /19 Original Allocation Revised Allocation Reduction Original Allocation Revised Allocation Reduction Original Allocation Revised Allocation Reduction ProvincesMetros EASTERN CAPEBuffalo City Nelson Mandela Sub Total FREE STATEMangaung GAUTENGEkurhuleni Jo'burg Tshwane Sub Total KWAZULU- NATAL eThekwini WESTERN CAPECape Town Grant Total

Allocation by Programme for the 2016 MTEF period Programme 2016/17 R` /18 R` /19 R` Administration Human Settlements Policy, Strategy and Planning Programme Delivery Support Housing Development Finance Total

Operational allocation by Programme for the 2016 MTEF period Programme 2016/17 R` /18 R` /19 R` Administration Human Settlements Policy, Strategy and Planning Programme Delivery Support Housing Development Finance Total

Allocation over MTEF by economic classification according to latest allocation letter Total allocation R` /172017/182018/19 Indicative allocation Departmental Operational Compensation of employees Goods and services Payment for Capital assets Payments for financial assets --- Grants and transfer payments Grants Human Settlements Development Grant Urban Settlements Development Grant Municipal Human Settlements Capacity Grant--- Entities Social Housing Regulatory Authority: Operational Social Housing Regulatory Authority: Restructuring Capital Grant Social Housing Regulatory Authority: Institutional Investment Grant Housing Development Agency Community Schemes Ombuds Services National Housing Finance Corporation Rural Housing Loan Fund Departmental Transfers Bursaries Scheme UN Habitat Transfer to Households46 50 Total

Recommendation It is recommended that the Select Committee notes the Annual Performance Plan for 2016/2017 and the Revised Strategic Plan for It also recommended that the Select Committee notes that reporting on the APP will also include the number of beneficiaries allocated in projects 37

THANK YOU “We have come a long way – Celebrating 20 Years of Freedom!” 38