The National Housing Code Presentation to the Portfolio Committee August 2009

The National Housing Code Is required in terms of Section 4 of the Housing Act, Guides the housing development programme 3.Replaces the Code of Is aligned to the Comprehensive Plan for the Development of Sustainable Human Settlements (“Breaking New Ground”) 5.Approved by Minister on 19 February 2009

The Housing Code Is cast in a user friendly format - each programme is a complete unit and there is no need to cross reference; 2.Contains prescripts only in as much as required by law (Eg. the Public Finance Management Act and the Municipal Finance Management Act); 3.The discretionary guide-lines provide maximum flexibility to housing practitioners and decision makers (MECs).

Alignment to the Comprehensive Plan 1. Stimulating the Residential Market: Finance Linked Individual Subsidy Programme (FLISP); 2. Spatial Restructuring and Sustainable Human Settlements: Integrated Residential Development Programme (IRDP); Social & Economic Amenities Programme; Enhanced People’s Housing Process; Farm Residents Housing Programme

Alignment to the Comprehensive Plan 3. Social Housing: Social Housing Programme; Community Residential Units Programme 4. Informal Settlement Upgrading: The Upgrading of Informal Settlements Programme; The Emergency Housing Assistance Programme

Alignment to the Comprehensive Plan 5. Subsidy Funding Reforms: Review of FLISP; Annual adjustment of the subsidy quantum 6. Job Creation: The Expanded Public Works Programme (EPWP) and its principles form part of the Code; IRDP provides for a range of contracting strategies to maximise community employment opportunities

Structure of the Code Policy context Technical & General Guidelines Financial Interventions Incremental Interventions Social & Rental Interventions Rural Interventions

Financial Interventions

Individual Subsidy Programme intended to stimulate the growth of secondary housing market; For individual households who wish to apply for a housing subsidy to purchase an existing house; or To purchase a vacant stand and enter into a building contract for the construction of a house; The latter subsidy option may only be awarded to households that have entered into loan agreements with a financial institution

Enhanced Extended Discount Benefit Scheme EEDBS is intended to stimulate and facilitate the transfer of public stock to qualifying beneficiaries; To ensure that occupants are provided with the opportunity to secure individual ownership of their housing units; Entails discounting of an amount up to the prevailing housing subsidies on the balance of the properties in question

Operational Capital Budget Programme Provides for the application of a certain percentage of voted provincial housing funding allocation to support the implementation of national and provincial housing programmes; For the appointment of external expertise to augment capacity with particular emphasis on, amongst others: The Informal Settlement Upgrading Programme Projects that facilitate integrated delivery

Rectification of pre 1994 housing stock To facilitate the improvement of certain state financed residential properties created through any of the pre 1994 State financed housing; Could be utilised for: Renovation and / upgrading or complete construction of structurally damaged dwellings; Services upgrading;

Social and Economic Amenities Programme Promotes provision of certain basic social & economic amenities in existing townships and new housing areas Grants to Municipalities to fund: Community halls Parks Sport fields Taxi rank facilities Informal trading areas

Housing Chapters of IDP To support housing planning as a component of the Integrated Development Plans; Municipal housing needs assessed and defined; Community participation a key component of this process; Local situations to dictate local solutions; Councillors to also be actively involved in the planning process

Incremental Interventions

Consolidation Subsidy Provides for the completion of houses on serviced sites received through state housing schemes pre 1994; Applicable to serviced sites that were obtained on the basis of ownership, leasehold and deed of grant, and must be used to construct a house complying to the current norms and standards.

Integrated Residential Development Programme To promote social, spatial and economic integration; To facilitate the development of projects with a variety of land uses and income groups (subsidy and bonded housing) which make for sustainable communities; To improve/simplify subsidy beneficiary administration; To facilitate the participation of the private sector in low income housing

Informal Settlement Upgrading To upgrade the living conditions of poor people by providing secure tenure and access to basic services and housing; An area wide/community approach, In situ upgrade of informal settlements; Relocation recommended as a last resort; Housing construction from basket of options; Community involvement a key requisite

Emergency Housing Assistance Provides temporary housing relief to households in stress as a first phase towards a permanent housing solution; The programme applies in the following cases: Second phase disaster intervention; Persons living in dangerous conditions; The totally destitute; To assist households facing the threat of imminent evictions

Enhanced People’s Process To assist households to access housing subsidies (consolidation, institutional or rural subsidies) with technical, financial, logistical and administrative support to build their own homes; Empowers communities to participate in satisfying their own housing needs and has the potential to deliver quality housing and promote “ownership”.

Social & Rental Interventions

Social Housing A rental or co-operative housing option which requires institutionalised management; Contributes to addressing structural, economic, social and spatial dysfunctionalities; Promotes non-racial and integrated society in sustainable human settlements; Social housing projects in designated restructuring zones e.g. economic, spatial and social objectives.

Institutional Housing Targeted at housing Institutions that provide tenure arrangements alternative to immediate ownership (e.g. rental, installment sale, share block or co- operative tenure) to subsidy beneficiaries; The programme applies outside of Restructuring areas of Social Housing Programme

Community Residential Units Facilitate the provision of secure, stable rental tenure for lower income persons; Target persons & households earning below R3500 not able to access private rental and social rental market; Covers hostels; Replaces National Hostel Re- development programme

Rural Interventions

Farm Residents Programme A flexible approach to the needs of farm residents to provide secure tenure to farm workers; Practicable development options: Provision for rental as well as ownership options; On farm and off-farm development options; For farm residents and occupiers as defined in ESTA; Not for seasonal workers

Farm Residents Programme Project based developments for beneficiaries of the Labour Tenant Strategy: The programme will apply in alignment with the projects under the LRAD programme; It will fund houses and residential engineering services where required; The subsidy will be granted to individual households; However, the funding will only be available in the context of a project based approach

Informal Land Rights Facilitates project based housing development on communal land of both old order and new order land tenure secured in terms of ClaRA, 2004; Not accessible on an individual basis; Housing development for households in rural areas who enjoy functional security of tenure (communal tenure); Beneficiaries should have uncontested land rights on State or communal land

Informal Land Rights Funding is allocated for: Construction of new housing structures; Repair and upgrading of existing houses; Purchasing of building materials where persons wish to construct, repair or upgrade their own houses; Where houses are adequate, subsidy can be used for provision of residential engineering services or other housing purposes

Thank You