Presentation to Portfolio Committee Human Settlements Development Grant Business Plan 2012/13 17 April 2012

Structure of Presentation Legislative Prescripts Provincial Allocations Key Deliverables for 2012/13 Outcome 8 Other National Imperatives Use of HSDG in Metropolitan Municipalities National Summary

Prescripts & Determinants DORA & Grant Framework PFMA, 1999: Treasury Requirements The National Priorities are determined by: MTSF & Cabinet Lekgotla SONA 2012 Outcome 8 Further Nat’l Imperatives for 2012/13 LEGISLATIVE PRESCIPTS The start of every financial year presents the task of Provincial Human Settlements Departments preparing their annual Conditional Grant Business Plans which, in turn, collates to the preparation of the National Conditional Grant Business Plan. NDHS to comply with National Treasury prescripts as contained in DORA and the Conditional Grant Framework for the 2012/13 financial year. In terms of section 10(1) (a)(iii) of the DORA … Noted that DORA will again only be tabled at the end of April 2012; this has an impact on transfer of funds and by implication expenditure for the 1st qtr of the new financial year. DETERMINING NATL PRIORITIES Note that the Dept has previously made a presentation in respect of its response to SONA. Outcome 8 Accelerate the Upgrading of Informal Settlements: 400 000 HH by 2014 Upscale development of Affordable Rental Housing Stock: Urban focused Land Assembly for Human Settlements National Settlement Infrastructure Development Facilitate increased supply of affordable housing finance List the other Natl Human Settlements imperatives. Rectification both RDP stock 1994-2002 and Pre 1994. FLISP Rural Development Emergency/Disaster Relief National Priority Programme HSDG within Metropolitan Municipalities

Provincial Allocations: 2012/13 PROVINCE ALLOCATION (‘000) Eastern Cape 2,292,858 Free State 961,618 Gauteng 4,003,778 KZN 2,915,298 Limpopo 1,471,617 Mpumalanga 965,126 Northern Cape 339,551 North West 1,050,933 Western Cape 1,725,180 TOTAL 15,725,960 In this regard, it is noted that this occasion presents the first time that a newly-developed Business Plan template has been utilized in the crafting of the HSDG Business Plan. Significant improvements over the preceding template used include the accurate recording of project-level information, as well as detailed cashflows for projects, functional regions and for the province overall. The numbers presented here have been extrapolated from the said b/plans, and confirmed by provinces.   The concern raised in respect of allocations to provinces has been noted previously. It should be noted that the allocation is formula based, and takes a range of aspect into consideration ….

Estimates of Natl Expenditure PROGRAMME SITES UNITS Financial Intervention 3,418 39,692 Incremental Housing 79,377 83,681 Social & Rental Housing 4,890 7,887 Rural Housing 6,597 37,619 TOTAL 94,282 168,880 Priority Projects 18,593 5,995 Provincial-specific Programmes 583 8,617 NATIONAL TOTAL 113,438 183,492 Under the Financial Intervention the following programmes were excluded in terms of the total number of sites and units. State Asset Maintenance Programme Social and Economic Facilities Accredited Municipalities (level 1 & 2): Operational Capital Budget NHBRC enrolment (related to grant) Land parcels procured(IHAHSD) Housing chapters of IDP's

OUTCOME 8

Slum Upgrading PROVINCE SITES UNITS BUDGET (‘000) % of ALLOC. Eastern Cape 6,823 7,455 816,852 35,63% Free State 8,874 7,436 595,989 62,00% Gauteng 11,101 14,618 1,231,251 31,6% Kwa-Zulu Natal 7,007 8,993 831,855 28.53% Limpopo 3,300 377 40,731 2.76% Mpumalanga 7,764 2,527 300,285 31,11% Northern Cape 200 450 66,550 19.60% North West 976 3,463 230,399 21.92% Western Cape 7,731 3,258 407,996 23.65% Total 53,776 44,008 4,521,908   % National Allocation 28,75% Informal Settlements Upgrading: The provinces allocated funds to Informal Settlements under the following National Housing Programmes: Integrated Residential Development Programme Peoples Housing Process (UISP); Informal Settlement Upgrading; and Social and Economic Facilities. To be noted that, while these numbers may appear at odds with the demand pressure vis-à-vis slum upgrading, it should be noted that consensus still does not exist regarding the manner in which deliverables are determined. Hence a number of programme deliverables are not included here …

Slum Upgrading These targets represent sites + units. Importantly, it must be remembered that these numbers do not include other greenfields projects that are undertaken via programmes such as IRDP – as much as 20% of the total allocation.

Affordable Rental Housing Province Sites Units Amount (‘000) % Eastern Cape 641 58,500 2.55% Free State   630  97,239 10.11% Gauteng 580,575 14.5% Kwa-Zulu Natal 2,967 239,689 8.22% Limpopo 250 70,000 4.76% Mpumalanga 944 70,100 7.26% Northern Cape 373 297 34,608 10.19% North West 3,730 432 101,907 9.70% Western Cape 1,007 234,273 13.58% Total 4,103 7,168 1,486,891 % National Allocation   9.46% Noted that some 10% of natl allocation to be spent on rental for the coming year. Of particular interest is the fact that the provinces containing the major metros of Cpt, Dbn, Jhb, etc. have set aside significant commitments for this year.

Affordable Rental Housing Chart to show provincial contribution. 10% of total allocation toward rental … with major contributors being, Gauteng, KZN and W/Cape.

FLISP Province Units Budget % Allocation Eastern Cape 40 500,000 0.2 % Free State 200 21,000,000 2.18% Gauteng Kwa-Zulu Natal 10,000 0.34% Limpopo 0% Mpumalanga 79 6,557,000 0.68% Northern Cape 21 1,764,000 0.52% North West 144 14,389,712 1.37% Western Cape 250 16,800,000 0.97% Total 934 61,020,712   % National Allocation 0.39% 

Affordable Hsg Finance Province Units Amount (‘000) % Allocation Eastern Cape 449 35,660 1.56% Free State 0% Gauteng 14,294 0.36% Kwa-Zulu Natal 90,000 3.09% Limpopo Mpumalanga 279 18,557 1.92% Northern Cape   4,284 1.26% North West 144 14,389 1.37% Western Cape 500  38,000 2,20% Total 1,372 215,184 % National Allocation The allocation for Affordable Housing Finance is a summary of the Individual Housing Programmes (Credit and Non-Credit Linked as well as the FLISP Programme)

Acquisition of Land Province Amount (‘000) % Allocation Eastern Cape 30,000 1.31% Free State 35,168 3.66% Gauteng 150,000 3.75% Kwa-Zulu Natal 5.16% Limpopo 51,464 3.50% Mpumalanga 3.11% Northern Cape North West 24,919 2.37% Western Cape 2,636 0.15% Total 474,187   % National Allocation 3.02%

Summary of Outcome 8 Priorities Province Informal Settlement Upgrading Affordable Rental Housing Stock Affordable Housing Finance Land Amount (‘000) % Eastern Cape 816,852 35.63% 58,500 2.55% 35,600 1.56% 30,000 1.31% Nat allocation 137,571   160,500 22,929 Free State 595,989 62,00% 97,239 10,11% 0.00% 35,168 3.66% 57,697 67,313 9,616 Gauteng 1,231,251 31,60% 580,575 14,50% 14,294 0.36% 150,000 3.75% 240,227 280,264 40,038 Kwa-Zulu Natal 831,855 28,53% 239,689 8,22% 90,000 3.09% 5.16% 174,918 204,071 29,153 Limpopo 40,731 2,76% 70,000 4,76% 51,464 3.50% 88,297 103,013 14,716 Mpumalanga 300,285 31,11% 70,100 7.26% 18,557 1.92% 3.11% 57,908 67,559 9,651 Northern Cape 66,550 19,60% 34,608 10,19% 4,284 1.26% 20,373 23,769 3,396 North West 230,399 21,92% 101,907 9.70% 14,389 1.37% 24,919 2.37% 63,056 73,565 10,509 Western Cape 407,996 23,65% 234,273 13.58% 38,000 2.20% 2,636 0.15% 103,511 120,763 17,252 Total 4,521,908 1,486,891 215,184 474,187 Nat Total 943,558 1,100,817 157,260 % National Allocation 28,75% 9.46% 3.02%

NATIONAL PRIORITIES

Rectification Province Units Budget % Allocation Eastern Cape 5,700 415,983 18.14% Free State 1,076 41,425 4.31% Gauteng 20,004 34,570 0.86% KZN 3,249 274,590 9% Limpopo 881 60,684 4% Mpumalanga 120 3,960 0.41% Northern Cape 180 11,500 3.39% North West 1,285 52,683 5% Western Cape 1,734 34,355 2% Total 34,229 929,750 47.07% % National Allocation 5.91%  Summary of the two Rectification Programmes Rectification 1994- 2002 and pre 1994

Rural Province Sites Units Budget % Prov Allocation Eastern Cape 5,384   Province Sites Units Budget % Prov Allocation Eastern Cape 5,384 5,060 329,377 14.3% Free State 801 38,849 4% Gauteng 0% KZN 42 13,250 813,406 27.9% Limpopo 12,744 847,694 57.6% Mpumalanga 5,720 318,000 Northern Cape 200 15,000 4.4% North West 2,146 2,206 159,734 15.2% Western Cape Total 7,597 39,981 2,243,560 % National Allocation 14.27% Consist of Rural and Farm worker Assistance

National Priority Target Priority projects   Province Town National Priority Target Provincial Planned % Prov Allocation Eastern Cape Duncan Village 103,458 157,710 6.87% Gauteng Lufhereng 172,430 65,000 1,62% Diepsloot 86,215 40,970 1.02% Sweetwaters 43,107 37,086 0.92% Khutsong 90,526 41,313 1.03% Sub Total 392,277 298,863 4.75% KZN Cornubia 113,804 56,000 1.92% Limpopo Lephalale 274,888 226,531 15.39% Western Cape Drommedaris 59,130 0% Total 943,558 581,394 % National Allocation 3.69% [1] Gauteng has not provided information on the Lufhereng project therefore no allocation is provided.

Disaster Relief Province Sites Units Budget % Allocation Eastern Cape 327 121,572 5.30% Free State 1,674 102,572 10,67% Gauteng KZN 1,680 82,790 2.84% Limpopo 99 5,709 0.39% Mpumalanga 60 3,600 0.37% Northern Cape 16,949 4.99% North West 139 120 8,073 0.77% Western Cape 29,700 1.72% Total 3,960 370,965   % National Allocation  2,36% The information was sourced from the Emergency Housing Assistance Programme

PROVINCIAL PRIORITIES

Provincial Priorities Eastern Cape Slums 35.63% Rental 2.55% FLISP 1.10% Aff. Finance 1.50% Land 1.30% Rect. 17% Rural 14.30% Disaster 5.30% Priority 3% Other 18.32% Northern Cape Slums 2.07% Rental 2.28% FLISP 0.52% Aff. Finance 1.10% Land 0% Rect. 3.39% Rural 4.40% Disaster 5.74% Priority 0% Other 80.50%

Provincial Priorities Free State Slums 27.70% Rental 6.41% FLISP 2.18% Aff. Finance 2.29% Land 3.66% Rect. 4% Rural 4.00% Disaster 3.16% Priority 0% Other 46.29% Mpumalanga Slums 4.72% Rental 7.00% FLISP 0.68% Aff. Finance 1.90% Land 4% Rect. 0.41% Rural 4.00% Disaster 0.37% Priority 0% Other 77.4200%

Provincial Priorities North West Slums 7.17% Rental 6.72% FLISP 1.37% Aff. Finance 1.00% Land 2.30% Rect. 5% Rural 15.20% Disaster 0.77% Priority 6.52% Other 53.95% Limpopo Slums 1.27% Rental 4.60% FLISP 0.00% Aff. Finance 0.00% Land 4% Rect. 4.00% Rural 57.60% Disaster 0.39% Priority 0% Other 28.44%

Provincial Priorities KZN Slums 10.66% Rental 17.78% FLISP 0.34% Aff. Finance 3.09% Land 3.75% Rect. 9% Rural 27.90% Disaster 2.84% Priority 1.60% Other 23.04% Western Cape Slums 12.71% Rental 15.44% FLISP 0.97% Aff. Finance 0.00% Land 0.15% Rect. 2.00% Rural 0.00% Disaster 1.72% Priority 0% Other 67.01%

Provincial Priorities Gauteng Slums 21.80% Rental 38.27% FLISP 0.00% Aff. Finance 0.36% Land 3.75% Rect. 0.86% Rural 0.00% Disaster 0.00% Priority 7.32% Other 27.64%

USDG/HSDG Allocations in Metros TOTAL (‘000) Amount % of Allocation Buffalo City 499,474 241,170 10.52% 740,644 Nelson Mandela 592,870 400,971 17,49% 993,841 Mangaung 485,967 197,365 20,52% 683,332 Ekurhuleni 1,290,748 848,027 21% 2,138,775 Jo’burg 1,212,537 726,379 18.1% 1,938,916 Tshwane 1,051,070 700,731 17.5% 1,751,801 eThekwini 1,287,561 751,819 25.7% 2,039,380 Cape Town 971,980 1,059,429 61.3% 2,031,409 7,392,207 4,925,891   12,318,098 % National Allocation 31,32%

NATIONAL SUMMARY

Summary: HSDG-2012 PROGRAMME BUDGET % ALLOCATION Outcome 8 5,860,256 37% Slum Upgrading 4,521,908 29% Affordable Rental Housing Stock 1,486,891 9% Affordable Housing Finance 215,184 1% Acquisition of Land 474,187 3% National Priorities 4,186,689 27% Rectification 929,750 6% FLISP 61,020 <1% Rural 2,243,560 14% Disaster 370,965 2% Priority Projects 581,394 4% Other 5,679,015 31% Total 15,725,960 I HAVE INCLUDED THE TABLE HERE AS IT DOES NOT DISPLAY WELL IN THE NOTES. There is a shortfall of 1,505,827 We have the same problem in the National Plan.

Summary: HSDG – 2012/13 HSDG: National Slums 24.00% Rental 9.00% Aff. Finance 1.00% Land 3.00% Rect. 6.00% FLISP 1.00% Rural 14.00% Disaster 2.00% Priority 3.00% Other 37.00% Other consist of the following programmes: Extended Enhanced Discount Benefit Scheme State Asset Maintenance Social and Economic Facilities Accreditation Operational Capital Budget Blocked Projects NHBRC Housing Chapters of IDP Project Linked IRDP Phase 1 and 2 excluding Informal Settlements PHP excluding Informal Settlements Consolidation subsidies both blocked projects and excluding blocked projects. Provincial Specific (programmes (policy) developed by province ie Backyard Rental.

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