TITLE RESTORATION PROJECT ADDRESSING THE HISTORIC BACKLOG IN PRIMARY TRANSFER OF SUBSIDY HOUSES TO APPROVED SUBSIDY BENEFICIARIES

Basic definition – understanding the nature of the “Backlog” A historic (1994-2014) build-up of primary transfer from the Municipality to the original intended housing subsidy beneficiary that was not or could not be concluded timeously after construction; Backlog varies from 2% in Swartland to 45% in Knysna; NOT a backlog at Deeds Office; NOT about just transferring to the current occupant; Current uncertainty in up to 40% of cases about who to transfer the subject property to as a different qualifying or non-qualifying household now occupy the subject house permanently; Possible obligation to or expectations from Original Beneficiaries;

Current Status of Backlog 10 000+ annual BNG transfers in the W/Cape in both new and old developments; Primary focus on “historic” developments from 1994-2010; Secondary focus on “current” developments from 2011-2014; W/Cape DHS TRP main focus is the transfer of remaining houses to permanent occupant households, not subsidies awarded as such; 253 811 BNG houses transferred since 1994; There are still 33 554 qualifying properties in municipal ownership;

Origin/cause – contributing factors : Subsidy approved, house occupied but no valid original Deed of Sale – decade later it’s much more complex to resolve transfer with limited records/officials; Requirement to resolve old cases via qualifying criteria for new developments – permanent occupants often do not qualify i.t.o. Housing Code; Earlier strategy of build-now-do-paperwork-later, but never concluded; Township establishment processes not concluded, development rights outstanding/lapsed, or land NOT released; Informal sales, house exchanges, rapid migration & house invasion; Municipal/developer focus on new developments and construction;

Challenges to fast tracking the eradication/transfer of backlog cases Changes in structure of occupant household – deaths, divorces, disappearances; Single/multiple informal sales e.g. to non-qualifiers (for example foreign nationals); House sold informally, but original beneficiary now attempts to regain occupation/ownership when contacted about transfer; Protests, resistant non-responsive occupants and false statements; Weak systems to trace original beneficiaries; Weak recorded institutional link between a person and a specific property, especially where no Deed of Sale; Slow release of land by National Department of Public Works and State-owned Enterprises; No incentive for conveyancers to prioritize transfers of subsidy houses at a 1/4 of the recommended rate; Complex beneficiary substitution, procurement, transfer and township establishment processes, Unapproved house extensions, encroachments across erf boundaries, unpaid municipal accounts;

Interventions / Progress The Western Cape Government relies on 23 Municipalities as implementing agencies, thus focusses on creating an enabling environment for Municipalities to address the backlog; Progress is monitored quarterly by the Nat. Dept. Human Settlements, the W/Cape Social Cluster Audit Committee and DHS HoD; W/Cape DHS has accomplished the following: Developed an affordable process of tracking Deeds Office transfers digitally - 67 000 checks monthly; Developed an online GIS Web-Map facility to geographically identify cases that may require primary transfer; Host the quarterly Provincial Steering Committee meeting to build capacity/awareness/progress; Approved/transferred R77 million in additional HSDG Funding – R 2 000.00 each for further survey/transfers; Offers institutional support to Municipalities by 3 dedicated project coordinators; Identified and addressed Municipalities that are underperforming; Directly appointed occupancy survey and conveyancing teams if so requested by Municipalities; Compiled new Title Restoration Grant Business Plan which replaces HSDG funding; Several policy initiatives;

Example 1: All Properties to HSS Beneficiaries (GREEN)

Example 2: Some Municipal properties remain (RED)

Example 3: Multiple transfers outstanding (RED)

Possible Policy Amendments to address Title Deed Backlog Phase 1: Improvement of transfers to beneficiaries in NEW developments; Policy Resolution: “Greenfields” policy to improve title transfer in new subsidy housing projects approved and phased in from 2014 - DONE; Phase 2: Identification of subject backlog properties and transfer to remaining original beneficiaries; Policy Resolution: Policy for spending of Additional HSDG Funding approved by the Minister of Human Settlements on 15 September 2017 - DONE; Phase 3: Transfer to current established occupant households both qualifying and non-qualifying, plus dealing with minor disputes; Policy Resolution: POLICY FOR THE IDENTIFICATION AND CONFIRMATION OF HOUSING SUBSIDY BENEFICIARIES TO ENABLE TRANSFER OF OWNERSHIP IN SUBSIDY-FINANCED HOUSING SCHEMES: 1994 -2014 on route to the Minister of Human Settlements by 1 Sep 2018 - DONE; Phase 4: Creation of a Tribunal or Commissioner to resolve disputed claims to ownership; Policy Resolution: Regulatory impact assessment required; awaiting the National Department of Human Settlements to take a lead in respect of the Tribunal; 2 to 3 years lead time; Current interim alternatives are being investigated: Community Scheme Ombud Service, National Human Settlements Ombud; Conciliation Panel; Trained Mediators; Panel of experienced conflict resolution professionals; Phased 5: Resort to existing Courts of Law

WAY FORWARD Solutions not so much about more funding but building sufficient capacity equipped with effective policy or legislative tools to address a complex challenge that will take time to resolve.

Lionel Esterhuizen Director: Land and Asset Management +27 21 483 4444 +27 21 483 4738 Lionel.Esterhuizen@westercape.gov.za