PUBLIC HEARING on HOUSING CONDITIONAL GRANT 2006/07 Presented by: M Nkoana-Mashabane The Honourable MEC of Local Government and Housing :Limpopo Province 12 SEPTEMBER 2006

Contents 2006/7 Expenditure Conclusion Key Objectives Achievements Housing programmes Challenges Interventions Conclusion

Key Objectives The Department identified the following as its key objectives: To provide regulatory framework for housing delivery To provide capacity and support to municipalities with regard to housing delivery in line with the Housing Act To create integrated and functional settlements

Achievements 5 293 houses completed during 1st quarter Project Management Unit has been established with assistance of private service provider to manage all contractors and capacitate department project managers Payment of contracts have reduced from a month to average of 8 days to support financial viability of emerging contractors The new structure makes provision of four housing programs viz Housing project management, Housing Sector performance, Social Housing and Housing Administration and Property management run by General managers and already appointed . In partnership with NHBRC the department has launched a mixed income development housing projects in Bela-Bela during June month in which 100 youth are trained in construction and bricklaying 50 PHP houses were allocated to women for construction in five districts during August 2006 32% of the department contractors were awarded to women contractors

Housing Development The Housing Development comprises the following programmes: Housing Performance/project management Social Housing Housing administration and property management Housing Sector Performance and municipal support

Spending Trends

Programme: Housing Performance /Project management Rural and Urban Housing Target :29 240 5012 houses completed 5055 roof and finishes 4910 wall plates 6121 foundations

Programme:Social Housing People Housing Process Annual Target:3922 281 houses completed 444 wall plates 435 foundations

continued Institutional Housing (Rental ) Target :508 20 blocks are roofed 13 blocks have slabs 27 blocks are at foundation level 1block completed Each block have 6 or 4 units

Programme:Housing Sector Performance and Municipal support Polokwane Municipality is being accredited as level one Development of Multi-year Housing Development plan in progress Establishment of Housing Customer line for reporting fraud and consumer awareness in progress Limpopo Housing Development Bill-Public hearing are continuing

Programme:Housing administration and property management Housing transfer Annual target:4770 3718 legal tenants have been profiled and ready for lodgement with deed office 71 deeds of grant already handed to beneficiaries

CHALLENGES (Cont.) 3.5 million bricks shortfall per month Municipal elections Loading of subsidy quantum Institutional capacity Contractors capacity to deliver at scale

Interventions New appointment in line with new structure: 6 Senior managers 7 Cuban engineers Negotiated with DBSA to second project management expert Further 30 project managers with technical expertise will be appointed Project Management Unit has been established to assist with management of contractors Non performing contractors have been profiled and will be restricted Housing Subsidy Scheme has been linked to Financial system to improve speed in payment of claims Strategy to deal with blocked projects is in place Sites audit of developable land is completed for 2007/8 projects Call of profiles for Geotechnical engineers to conduct geotechnical investigation 2006/7 has been done Trilateral agreement facility has been created for material suppliers to assist emerging contractors

Conclusion THANK YOU