Annual Performance Plan Presentation – 2018/19 29 May 2018 Director-General - Mr. M. Tshangana

Departmental Strategic Performance Measures Priority Programmes focused on achieving the objectives of the NDP and MTSF will be focus of attention in terms of monitoring, evaluation and active management by the Department. Programme Delivery Technical Expertise will be contracted in to ensure current poor performance in the Mining Towns, Catalytic Projects and Land and Property Acquisition and Development, with Entities, Municipalities and Provinces. Active, Strict, Developmental Management and Compliance to be applied to application of Departmental Capital Grants to ensure prioritisation and impact – Proposed that poor performance will result in reallocations in second quarter of the financial year Focused support to Provinces and Municipalities to improve Provincial and Municipal Contract Management Based on recommendations of the Auditor-General emphasis will be placed on monitoring completeness, controls and verification of performance information 11/17/2018

Departmental Strategic Performance Measures Momentum to improve Department Capacity will continue with finalisation of filling of vacancies and contracting-in of capacity support. Focused and improved programme and project risk management based on the prioritisation of risk management as a performance improvement tool. Focused emphasis on the capacity and technical support provided to the Provinces, Municipalities and Entities to ensure achievement of MTSF targets – NUSP, HDA, SHRA Capacity Grants and NHBRC Contractor Training and Support and NURCHA and NHFC Financial support. Coordinated effort with Parliament to pass the Property Practitioners Bill, Housing Consumers Protection Measures Amendment Bill and Home Loans and Mortgage Disclosure Amendment Bill. Measures and mechanisms to improve intergovernmental planning and contracting. Resource optimisation in management will result in improved monitoring and reporting on targeted procurement related to Women, Youth, Military Veterans and Persons Living with Disabilities 11/17/2018

Departmental Strategic Performance Measures As part of the new DPSA requirements/expectations; 60% of performance of Branch Manager will be linked to individual performance, 20% will be directly linked to the Performance of the Department and 20% will be linked to compliance and regulation . All Branch Managers are expected to ensure that their operational Plans are linked to the Departmental Annual Performance Plans and Strategic Plan- The Departmental Operational Plans are signed off by the Accounting Officer to ensure implementation of the Strategic and Annual Performance Plans. The activation of the Title Deeds Restoration Grant will now allow the Department to better improve accountability and consequence management over poor performance in the Provinces, for the Programme. The Emergency Housing Grant allows the Minister to ensure agile, responsive and immediate measures to settlements and households which are impacted by fire, wind, flooding and other natural catastrophic events The Department will coordinate the development of 2019-24 MTSF. 11/17/2018

Policy, Legislative and Regulatory Overview The following are the Department policy and legislative priorities for 2018/19: Development of the Human Settlements Code Amendment of the Housing Act to Human Settlements Legislation Repealing the Housing Consumer Protection Measures Act Human Settlement Development Bank Bill Amending the Prevention of Illegal Evictions and Unlawful Occupation of Land Act Revision of the Social Housing Policy and Regulations Policy Review and Evaluations Development of a Policy Framework for the Human Settlements Ombud. 11/17/2018

Summary of Strategic and Annual Performance Targets Per Programme Strategic Plan Target Strategic Plan targets APP Targets Consolidated Targets Programme 1 4 9 13 Programme 2 3 8 11 Programme 3 21 24 Programme 4 1 Grand Total 10 46 57

Strategic Plan Priorities –Objectives and Targets Programme 1 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Enhanced efficiency and effectiveness To promote efficient and effective administrative processes Unqualified audit opinion with no matters of emphasis unqualified audit opinion 2017/18 with no matters of emphasis 2018/19 with no matters of emphasis 2019/20 with no matters of emphasis 100 % compliance with statutory tabling and prescripts 100% implementation of the approved internal audit plan 100% implementation of the approved risk management plan 11/17/2018

Strategic Plan Priorities –Objectives and targets Programme 1 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Enhanced efficiency and effectiveness To promote efficient and effective administrative processes Unqualified audit opinion with no matters of emphasis 100% implementation of approved anti-fraud and corruption plan 100% implementation of approved anti-fraud and corruption plan 100% of the annual Human Resource Plan implemented Effective and efficient legal support   Comprehensive Human Settlement Legislation developed Development of Human Settlements Development Bank, Development of Human Settlements, Development of PIE Amendment, Development of Property practitioners, Development of Housing Consumer Protection and Development of The Home Loan and Mortgage Disclosure Amendment Bills of 2018   Regulations for Human Settlements legislation developed To provide effective dispute resolution services 100% of disputes lodged investigated within 90 days 100% of lodged disputes investigated within 90 days 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 1 Enhanced efficiency and effectiveness To provide ICT infrastructure that is reliable, secure and available Integrated information and communication technology services provided 90 percent availability of HSS Database Systems to provinces 90 percent availability of HSS Database Systems to provinces 90% Availability of secured ICT services 90% Availability of secured ICT services 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 2 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Integrated and responsive human settlements sector policy environment To develop evidence based policies and programmes Policy framework for Human Settlements developed A policy Framework for Human Settlements developed: Human Settlements Ombudsman Policy framework for Human Settlements developed Programmes in the code revised Human Settlements code developed No target   3 Researches to support policy development conducted To establish partnerships to support the delivery of Human Settlements sector priorities National Human Settlements development plan developed Approved National Human Settlements Development Plan (HSDG funded) 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 2 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Integrated and responsive human settlements sector policy environment To establish partnerships to support the delivery of Human Settlements sector priorities National Human Settlements development plan developed Urban Settlement Development plan for Metropolitan municipalities developed (USDG funded) Urban Settlement Development plan for Metropolitan municipalities developed (USDG funded) Increased participation of stakeholders in human settlements development 14 partnerships mobilised towards human settlements development 6 initiatives on international cooperation aligned to Human Settlement priorities serviced 32 intergovernmental fora coordinated in line with human settlements priorities 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 3 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Increased delivery of adequate housing in sustainable Human Settlements Provide implementation support on the delivery of sustainable human settlement 9 Provinces supported on the implementation of human settlements programmes Project Readiness Matrix implemented in 9 provinces Provide support on the implementation of catalytic programme Provide implementation support to the Revitalization of Distressed Mining Communities Program 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 3 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Increased delivery of adequate housing in sustainable Human Settlements Provide implementation support on the delivery of sustainable human settlement 9 Provinces supported on the implementation of human settlements programmes 477 informal settlements assessed (Feasibility studies conducted) 200 informal settlements assessed (Feasibility studies ) 200 informal settlements assessed (Feasibility studies conducted) 500 Informal settlement upgrading plans developed plans 554 Informal settlement upgrading plans developed 9 provinces and 8 metros supported in implementing the informal settlements upgrading programme 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 3 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Increased delivery of adequate housing in sustainable Human Settlements Provide implementation support on the delivery of sustainable human settlement 9 Provinces supported on the implementation of human settlements programmes 9 provinces supported in implementing the subsidy housing programme 9 provinces supported in implementing the housing subsidy programme Provide support on the implementation of private affordable rental housing Provide support on the implementation of Social Housing programme Provide support on the implementation of Social Housing programme Provide support on the implementation of social housing programme 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 3 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Increased delivery of adequate housing in sustainable Human Settlements Provide implementation support on the delivery of sustainable human settlement 9 Provinces supported on the implementation of human settlements programmes Provide support on the delivery of Community Residential Units   Multiyear land assembly plan for human settlement development plan compiled Multiyear land assembly plan for human settlement development plan reviewed 9 Provinces supported in the implementation of the Title Deeds restoration programme (Pre and Post 1994) 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 3 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Increased delivery of adequate housing in sustainable Human Settlements Provide implementation support on the delivery of sustainable human settlement 9 Provinces supported on the implementation of human settlements programmes 9 Provinces supported in the implementation of Title Deeds programme (from April 2014) Nine (9) Provinces supported in the delivery of 1000 housing opportunities to Military Veterans Nine (9) Provinces supported to deliver 1000 housing opportunities to Military Veterans Nine (9) Provinces Supported to deliver 1000 housing opportunities to Military Veterans 7 Provinces and 6 Metros supported in the implementation of PHP Policy 8 Provinces and 7 Metros supported in the implementation of PHP Policy   9 Provinces and 8 Metros supported in the implementation of PHP Policy 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 3 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Increased delivery of adequate housing in sustainable Human Settlements Provide implementation support on the delivery of sustainable human settlement 9 Provinces supported on the implementation of human settlements programmes Operational integration implemented Single DFI established (Human settlements development bank) No target Improved support and capacity for the human settlements sector 9 provincial departments supported in the implementation of Human Settlements apex Programmes 9 Provincial departments supported in the implementation of Human Settlements apex Programmes 560 practitioners trained in human settlements Programmes 300 practitioners trained in human settlements Programmes 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 3 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Increased delivery of adequate housing in sustainable Human Settlements Improved support and capacity for the human settlements sector 9 provincial departments supported in the implementation of Human Settlements apex Programmes 75 youth supported through scholarship programme Enhanced sector monitoring and evaluation 8 Evaluation studies completed   100% of projects under implementation monitored and verified (HSDG and USDG) 1 evaluation study (UISP three year impact) completed 1evaluation study initiated 1 Evaluation study to completed 1 evaluation study initiated 1 Evaluation study completed 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 4 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Increased delivery of adequate housing in sustainable Human Settlements Efficient and effective utilization of human settlements grants Approved human settlements grants framework 4 HSDG & USDG quarterly performance assessments conducted 30% of the HSDG construction budget allocated to designated groups as per the Regulation 30% of the USDG construction budget allocated to designated groups as per the Regulation 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 4 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Increased delivery of adequate housing in sustainable Human Settlements Efficient utilization of human settlements grants Approved human settlements grants framework 4 FLISP performance assessments conducted 4 Assessments on the volume of loans granted by DFIs for the affordable housing market conducted Bi-annual assessments of employers’ contribution towards Employer Assisted Housing 11/17/2018

Strategic Plan Priorities –Objectives and Targets Programme 4 Strategic Goals Objectives (High level output) Strategic Plan target Related targets 2018-2019 2019-2020 2020-2021 Increased delivery of adequate housing in sustainable Human Settlements Efficient utilization of human settlements grants Approved human settlements grants framework Annual performance analysis of financial institutions on their lending patterns conducted Annual performance analysis of financial institutions on their lending patterns on home loans conducted 4 performance assessments on the Office of Disclosure 4 performance assessments on the Office of Disclosure 11/17/2018

Departmental Budget 2018/19 11/17/2018

Adjusted Appropriation Medium Term Expenditure estimates Indicative Departmental Budget 2018/19 Programmes Audited Outcome Adjusted Appropriation Medium Term Expenditure estimates Indicative R`000 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 Administration 433 080 411 074 420 897 457 665 442 650 471 546 502 671 Human Settlements Policy, Strategy and Planning 78 703 75 738 86 600 93 573 89 781 95 966 102 611 Human Settlements Delivery Support 133 712 120 796 151 742 217 302 246 005 261 045 329 824 Housing Development Finance 28 712 737 29 426 936 29 927 992 32 695 760 31 577 280 32 859 348 34 851 058 Total 29 358 232 30 034 544 30 587 231 33 464 300 32 355 716 33 687 905 35 786 164 11/17/2018

MTEF Budget Overview 2018 MTEF period 2017/18 R`000 2018/19 2019/20 2020/21 MTEF Total Departmental Baseline from 2017 & 2018 MTEF 33 464 300 35 414 719 37 447 502 39 783 289 112 645 510 Net Reduction (3 059 003) (3 759 597) (3 997 125) (10 815 725) Revised Baseline Allocation 32 355 716 33 687 905 35 786 164 101 829 785 Departmental baseline has been reduced by R10.8 billion. The 2018/19 budget allocation is thus less than the 2017/18 allocation. The following funds were reprioritized through the HSDG over the MTEF: Title Deeds Restoration operational support – R95.1 million; Municipal Emergency Housing Grant – R447.8 million; Provincial Emergency Housing Grant – R831.7 million; Title Deeds Restoration Grant – R1.64 billion.

MTEF Allocation by Economic Classification 2018 MTEF PERIOD Total Allocation R`000 2017/18 2018/19 2019/20 2020/21 Departmental Operational 933 039 793 583 844 934 952 271 Compensation of employees 383 257 376 945 405 680 436 107 Goods and services 394 097 410 660 432 951 509 515 Payment for Capital assets 5 685 5 978 6 303 6 650 Payments for financial assets 150 000 80 000 50 000 - National Housing Finance Corporation 100 000 Rural Housing Loan Fund Grants and transfer payments 32 531 943 31 482 133 32 792 971 34 833 893 Grants 31 351 590 30 391 312 31 687 288 33 667 897 Human Settlements Development Grant 19 969 343 18 166 520 18 832 802 20 101 904 Urban Settlements Development Grant 11 382 247 11 306 137 11 880 786 12 534 479 Municipal Emergency Housing Grant 140 000 149 100 158 792 Provincial Emergency Housing Grant 260 000 276 900 294 899 Title Deeds Restoration Grant 518 655 547 700 577 823 Entities 1 167 031 1 079 034 1 093 236 1 152 864 Social Housing Regulatory Authority: Operational 46 815 51 980 55 201 58 237 Social Housing Regulatory Authority: Institutional Investment 20 490 20 132 21 259 22 428 Social Housing Regulatory Authority: Restructuring Capital Grant 851 658 743 640 738 414 778 527 Social Housing Regulatory Authority: Regulations 8 000 10 000 10 560 11 141 Community Schemes Ombuds Services 29 400 31 105 32 847 34 654 Housing Development Agency 210 668 222 177 234 955 247 878 Departmental Transfers 12 640 11 787 12 447 13 132 Bursaries Scheme 9 822 6 892 10 974 11 578 UN Habitat 1 272 1 346 1 421 1 499 Nelson Mandela Metropolitan University 3 500 Transfer to Households (e.g. leave gratuity and donations to households ) 46 49 52 55 Total 33 464 300 32 355 716 33 687 905 35 786 164

Human Settlements Development Grant 2018 MTEF PERIOD Provinces R`000 2017/18 2018/19 2019/20 2020/21   Eastern Cape 2 239 316 1 908 439 1 982 512 2 123 601 Free State 1 193 038 1 072 422 1 111 476 1 185 866 Gauteng 5 528 050 5 046 583 5 236 578 5 598 471 Kwazulu-Natal 3 477 567 3 152 757 3 275 125 3 508 205 Limpopo 1 319 493 1 287 681 1 331 247 1 414 229 Mpumalanga 1 395 774 1 278 427 1 322 832 1 407 412 Northern Cape 402 668 474 791 487 930 512 958 North West 2 186 679 1 926 644 1 987 972 2 104 786 Western Cape 2 226 758 2 018 776 2 097 130 2 246 376 Total 19 969 343 18 166 520 18 832 802 20 101 904

Urban Settlements Development Grant 2018 MTEF period Provinces Metros 2017/18 2018/19 2019/20 2020/21 EASTERN CAPE Buffalo City 768 128 762 992 801 772 845 886   Nelson Mandela 911 761 905 664 951 696 1 004 059 Sub Total 1 679 889 1 668 656 1 753 468 1 849 945 FREE STATE Mangaung 761 307 756 216 794 652 838 374 GAUTENG Ekurhuleni 1 985 010 1 971 737 2 071 952 2 185 954 Jo'burg 1 864 731 1 852 262 1 946 406 2 053 499 Tshwane 1 616 415 1 605 607 1 687 214 1 780 046 5 466 156 5 429 606 5 705 572 6 019 499 KWAZULU-NATAL eThekwini 1 980 109 1 966 869 2 066 837 2 180 557 WESTERN CAPE Cape Town 1 494 786 1 484 790 1 560 257 1 646 104 Grant Total 11 382 247 11 306 137 11 880 786 12 534 479

Title Deeds Restoration Grant Provinces R`000 2018/19 2019/20 2020/21   Eastern Cape 65 583 69 250 73 056 Free State 50 187 52 993 55 905 Gauteng 105 811 111 726 117 890 Kwazulu-Natal 101 422 107 140 113 028 Limpopo 22 506 23 764 25 070 Mpumalanga 51 734 54 626 57 628 Northern Cape 20 364 21 503 22 685 North West 50 687 53 521 56 462 Western Cape 50 361 53 177 56 099 Total 518 655 547 700 577 823

Emergency Housing Conditional Grants The grants provide funding to Provinces and Municipalities to assist households affected by disaster through: Provision of temporary shelter Temporary relocation of households to safer accommodation and/ or shelter The grants is managed in terms of the Division of Revenue Act DORA. The grant allocations are: Total allocation R`000 2018/19 2019/20 2020/21 Municipal Emergency Housing Grant 140 000 149 100 158 792 Provincial Emergency Housing Grant 260 000 276 900 294 899

Support Provided to the Sector in Delivering MTSF Priorities and Related Budget 11/17/2018

Summary of the MTSF Targets – Provincial and Municipal Business Plans Planned Sites 2018/19 Planned Units 2018/19 Total Target Site & Units UISP - HSDG 35 547 37 514 73 061 Individual Units 24 589 43 683 68 272 Social CRU 1 888 FLISP 16 870 Total MTSF 60 136 99 955 160 091 11/17/2018

Summary of the MTSF Targets HSDG Business Plans Per Province 11/17/2018

Metropolitan Municipalities Metropolitan Cities Total Sites Total Units Buffalo City 448 1 230 Nelson Mandela Bay 2 190 Mangaung 860 1 587 COJ 1 484 1 570 City of Tshwane 1 787 4 848 Ekhuruleni 2 736 3 568 Ethekeni 2 080 4 796 City of Cape Town 2 536 5 295 Total 11 931 25 084 11/17/2018

Entities 11/17/2018

National Housing Finance Corporation 1 630 housing opportunities facilitated through disbursements 826 rental housing opportunities facilitated through disbursements 205 affordable housing opportunities facilitated through disbursements 3 973 housing opportunities facilitated through leveraged funds R782m leveraged from the private sector. 11/17/2018

Estate Agency Affairs Board 75% of compliant registered estate agents 14 million consumers reached through radio awareness campaigns 10% of compliant estate agents operating in affordable housing markets 1 000 youth placed with host employers Fidelity Fund Net Asset Value 1.25% per annum 10% increase in Estate Agencies operating in the affordable housing market -30% over MTSF period 11/17/2018

National Home Builders Registration Council 50 471 non-subsidy homes by private sector enrolled 123 600 subsidy homes enrolled 52 164 non-subsidy enrolled homes inspected 84 455 subsidy homes enrolled inspected 3 201 new homebuilder registrations approved 11/17/2018

National Home Builders Registration Council 11 297 renewals of homebuilder registrations 2 000 homebuilders trained 2 000 youth trained 500 home inspectors trained 400 Artisans trained 1 800 women trained 450 Military Veterans trained 300 people with disabilities trained 11/17/2018

Housing Development Agency 3 000 hectares of well-located land released for human settlement development 1 000 hectares released and rezoning of land 5 722 sites serviced 7 168 housing units provided 11/17/2018

NURCHA 1 365 affordable houses built and sites serviced with NURCHA bridging finance 10 120 subsidy houses built and sites serviced with NURCHA bridging finance 2 Infrastructure and community facility projects completed with NURCHA bridging finance 37 Contractors trained through the Contractor Finance and Development Programme 11/17/2018

Rural Housing Loan Fund 53 772 housing loans disbursed 60% of loans provided to people earning R3,500 or less per month R259. 680 million disbursed to retail intermediaries 30% loans issued to women by 2019 20% of loans issued to people earning over R15 000 100% of clients visited for loan verification 11/17/2018

Social Housing Regulatory Authority 14 000 Units approved for Restructuring Capital Grant Award 12 508 Social housing units delivered 37 085 units under regulation 95% expenditure of the Consolidated Capital Grant 11/17/2018

Community Schemes Ombud Service 30 000 community schemes registered 1 500 governance documentation quality assured 70% of disputes resolved through conciliation 2 Additional CSOS points of presence established 11/17/2018

Thank You 11/17/2018