Thabo Maisela Acting ED Housing

Synopsis Financial Performance: City wide SUMMARY CONDITIONAL GRANT CAPITAL SPENDING Description No. of Projects   Budget 2017/18 Year to Date Expenditure 2017/18 C/G Amount Adjustment Approved Adjusted Spending to Mar 2018 R'000 % Spent 30 June % Allocated R'000 Allocation R000 Budget R'000 to Revised Budget 2017 F/Cast Forecast 79 1 864 730 (362 999) R 1 501 731 728 731 48.5% 1 501 731 100% Urban Settlement Development Grant

Synopsis Financial Performance: Housing SUMMARY CONDITIONAL GRANT CAPITAL SPENDING Description No. of Projects   Budget 2017/18 Year to Date Expenditure 2017/18 C/G Amount Adjustment Approved Adjusted Spending to May 2018 R'000 % Spent 30 June % Allocated R'000 Allocation R000 Budget R'000 to Revised Budget 2017 F/Cast Forecast 31 1 037 000 822 972 R 647 972 378 458 58 % 269 513 68 % Urban Settlement Development Grant

Issues raised at the Portfolio Committee Concerns of the Portfolio Committee Lack of working relations between the City and Province and Coffee between CoJ and Province proposed Severe Storm Report to be submitted Capacity within the department to be strengthened No procurement plan Resolution On better working relations with Province Meeting held between MEC and EM to discuss challenges in the South of Johannesburg Meeting resolved on forming a joint task team Issues of Power of Attorney resolved Discussion with DDG Ongoing discussions with Province Agreements with SHRA and HDA Hail Storm Acting ED only informed on Friday of the need to submit this report. Housing Capacity Skills audit to be done Structure to be reviewed against delivery programs and mayoral priorities (pro poor; inner city; site and service and high densities in strategic areas) The review will be used to determine which positions will be prioritized for filling

Impediment on USDG performance ( Challenges in 2017/18 FY) Late start on procurement for 2017/18 projects Poor Contract Management (including preparation of contracts and service level agreements) Implementation Community unrest 30% on SSME Poor General Management lack of project management Lack of Project Pipeline Lack of Project readiness Human factors

Intervention: Mitigation on USDG low expenditure (Non Performance) Procurement Department will be following MFMA regulation 32 to procure consultants form JPC panel of consultants Copy of Copy of Housing Annexure B Detail Capex 2017 18 (3).xlsm Acquisition Plan to be reviewed and finalised Resolution of Minmec : National to provide capacity to the City of Joburg to assist in improving USDG expenditure Poor Contract Management Tighten controls on contract management Training and development Improving Implementation to unlock Expenditure AED has signed all reports to EAC South Hills Malibongwe Ridge Fleurhof Diepsloot Riverside Pipeline Regulation 32 projects Southren Farms 38 000 Zandspruit 13 000

South of Joburg : Input of 01 June Meeting Task Team consisting of: Province MEC Senior official City of Joburg Mayor of the City Joburg MMC housing Senior Officials Brief of the Task Team Will focus of on projects in the south of Joburg through site and service Land resonlution.pptx Key Decision Following discussion between Mayor and MEC City will provide Power of Attorney on city owned sections of land implementation protocol

Summary Of Estimated Project Yield For Johannesburg South Area Project Yield Eldorado Park 2 703 Ennerdale/Finetown 23 466 Lenasia/Lawley/Kliprivieroog/Unaville 11 772 Orange Farm/Dark City of Poortie 30 192 Slovo Park (Nancefield) 47 588 Total 115 721

Thank you

EXPENDITURE ON HOUSES CONSTRUCTED – 2017/18 Project Budget Spending Variance Projected Expenditure to June 2018 % expenditure Riverside 202 899 000 165 854 090 37 044 909 167 554 000 82% Fleurhof 68 304 000 17 415 000 50 888 999 25% South Hills 52 618 000 45 957 721 6 660 278 51 157 721 87% Elias Motsoaledi 7 841 000 2 022 942 5 818 057 26% Kliptown 6 371 000 621 562 5 749 437 10% Golden Triangle 10 096 000 4 721 306 47% Lufhereng 25 074 000 100%