SABELO MNGUNI 23 JUNE 2015

OVERVIEW OF HOUSING POLICY AND PROGRAMMES Committees Section OVERVIEW OF HOUSING POLICY AND PROGRAMMES Sabelo Mnguni

Committees Section PRESENTATION OUTLINE Ten year review of the housing programme ( 1994 to 2004) - achievements and challenges Outcomes of an extensive consultation process The Goals of the Comprehensive Plan The various interventions contained in the Plan The National Housing Code: Background National Housing Programme interventions

THE 2004 REVIEW OF THE TEN YEARS OF HOUSING PROGRAMME Committees Section THE 2004 REVIEW OF THE TEN YEARS OF HOUSING PROGRAMME Unintended consequences and challenges: Peripheral development of low cost housing continued Apartheid settlement patterns Poor quality product and settlements lacking social and economic infrastructure Inadequate community participation

THE 2004 REVIEW OF THE TEN YEARS OF HOUSING PROGRAMME (CONT….) Committees Section THE 2004 REVIEW OF THE TEN YEARS OF HOUSING PROGRAMME (CONT….) Corruption and mal-administration Slowdown in delivery Under spending of housing budgets Limited and decreasing private sector participation Increasing backlog owing to new household formation and migration pressures Growing informal settlements

OUTCOMES OF A COMPREHENSIVE CONSULTATION PROCESS Committees Section OUTCOMES OF A COMPREHENSIVE CONSULTATION PROCESS Policy principles in the Housing White Paper, 1994 continue to underpin the programme Need to shift to a demand driven approach Emphasis on quality of the product and the living environment Need to strengthen the contract with civil society

(Plan approved by Cabinet 1 September 2004) Committees Section Goal: “Human Settlements which are economically, socially and environmentally sustainable” (Plan approved by Cabinet 1 September 2004)

THE COMPREHENSIVE PLAN, 2004 Committees Section THE COMPREHENSIVE PLAN, 2004 FOCUS AREAS: Creating quality living environments Needs oriented approach Building a non-racial, integrated society Unblocking delivery constraints Building capacity Rooting out corruption and mal-administration

THE INTERVENTIONS Creating quality living environments Committees Section THE INTERVENTIONS Creating quality living environments A need oriented approach Building and integrated non-racial society Unblocking delivery constraints Rooting out corruption and mal-administration Investigative Unit established and operational – Linked to Special Investigation Unit (SIU) Upgrading of Housing Subsidy System and Housing Demand Database National Monitoring and Evaluation Unit

THE NATIONAL HOUSING CODE Committees Section THE NATIONAL HOUSING CODE

THE NATIONAL HOUSING CODE Committees Section THE NATIONAL HOUSING CODE Is a required in terms Section 4 of the Housing Act, 1997 Guides the housing development programme Contains all approved Housing programmes and suggested guidelines for implementation The discretionary guide-lines provide maximum flexibility to housing practitioners and decision makers (MECs)

THE INTERVENTIONS Financial Interventions Committees Section THE INTERVENTIONS Financial Interventions Social and Rental Interventions Rural interventions Incremental Interventions

1. FINANCIAL INTERVENTIONS: INDIVIDUAL SUBSIDY Committees Section 1. 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 Credit linked and non-credit linked

Committees Section 2. FINANCIAL INTERVENTIONS: FINANCE LINKED INDIVIDUAL SUBSIDY PROGRAMME Income categories - R3500- 15000 Gap- market families Is a subsidy towards the reduction of home loan – not for transfer fees and administration fees Negative relationship (income and subsidy) Application process: Provincial Dept or municipality Financial institutions Non-qualifiers – usually R3500-7000 - can buy serviced stands or rental option

3. FINANCIAL INTERVENTIONS: ENHANCED EXTENDED DISCOUNT BENEFIT SCHEME Committees Section 3. FINANCIAL INTERVENTIONS: ENHANCED EXTENDED DISCOUNT BENEFIT SCHEME EEDBS is for transfer of public housing stock to qualying occupants Seeks to ensure tenure security Entails discounting of an amount up to the prevailing housing subsidies on the balance of the properties in question

4. FINANCIAL INTERVENTIONS: ACCREDITATION OF MUNICIPALITIES Committees Section 4. FINANCIAL INTERVENTIONS: ACCREDITATION OF MUNICIPALITIES Programme is aimed at Municipal to administer National Housing Programmes A progressive process of delegation, evaluated against pre- agreed criteria, leading to eventual assignment of all the functions by formal proclamation Does not include the power to design housing programmes to be funded from national housing subsidy funds

5. FINANCIAL INTERVENTIONS: OPERATIOINAL CAPITAL BUDGET PROGRAMME Committees Section 5. FINANCIAL INTERVENTIONS: OPERATIOINAL CAPITAL BUDGET PROGRAMME Provide 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 Settlements Upgrading Programme Projects that facilitate integrated delivery

Committees Section 6. FINANCIAL INTERVENTIONS: RECTIFICATION OF PRE 1994 AND POST HOUSING STOCK To facilitate the improvement of certain state financed residential properties Pre 1994 - poor workmanship, not conforming to norms and standards Post 1994 – those houses not enrolled with NHBRC Could be utilize for: Renovation and/ upgrading Complete construction of structurally damaged dwellings Service upgrading

5. FINANCIAL INTERVENTIONS: SOCIAL AND ECONOMIC AMENITIES PROGRAMME Committees Section 5. FINANCIAL INTERVENTIONS: SOCIAL AND ECONOMIC AMENITIES PROGRAMME Promote provision of certain basic social & economic amenities in existing townships and new housing areas Grants to Municipality to fund the following: Community halls Parks Sport fields Taxi rank facilities Informal trading areas

6. FINANCIAL INTERVENTIONS: HOUSING CHAPTERS OF THE IDP Committees Section 6. FINANCIAL INTERVENTIONS: HOUSING CHAPTERS OF THE 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 of dictate local solutions Councillors to also be actively involved in the planning process

SOCIAL & RENTAL INTERVENTIONS Committees Section SOCIAL & RENTAL INTERVENTIONS

1. S&R INTERVENTIONS: SOCIAL HOUSING Committees Section 1. S&R INTERVENTIONS: SOCIAL HOUSING A rental or co-operative housing option which requires institutionalized 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 Targets income groups R3500 – R7500

2. S&R INTERVENTIONS: INSTITUTIONAL HOUSING Committees Section 2. S&R INTERVENTIONS: 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 Government grants to housing institutions to acquire, development and hold affordable rental housing accommodation for minimum of four years After four years, beneficiaries can take transfer and covert to individual ownership Targets income groups earning below R3500

3. S&R INTERVENTIONS: COMMUNITY RESIDENTIAL UNITS Committees Section 3. S&R INTERVENTIONS: COMMUNITY RESIDENTIAL UNITS Public sector residential accommodation Facilitate the provision of secure, stable rental tenure for lower income persons Target persons & households earning below R3500 not able to access formal market private rental & social rental market Replaces National Hostel Re-development programme Covers hostels, balance the public stock that cannot be transferred Cannot be sold or transferred to individual residents anytime

Committees Section RURAL INTERVENTIONS

1. RURAL INTERVENTIONS: FARM RESIDENTIAL PROGRAMME Committees Section 1. RURAL INTERVENTIONS: FARM RESIDENTIAL 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 Not for seasonal workers The Intergrated Residential Development Programme (IRDP) is applicable

2. RURAL INTERVENTIONS: INFORMAL LAND RIGHTS Committees Section 2. RURAL INTERVENTIONS: INFORMAL LAND RIGHTS Facilitate project based housing development on communal land tenure secured in terms of the 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 Funding for: construction of new houses, repairs or upgrading, or upgrading Where houses are adequate, subsidy can be used for provision of residential engineering services or other housing purposes

INCREMENTAL INTERVENTIONS Committees Section INCREMENTAL INTERVENTIONS

1.INCREMENTAL INTERVENTIONS: CONSOLIDATION SUBSIDY Committees Section 1.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 bases of ownership, leasehold and deed of grant, and must be used to construct a house complying to the current norms and standards

2.INCREMENTAL INTERVENTIONS: INFORMAL SETTLEMENT UPGRADING Committees Section 2.INCREMENTAL INTERVENTIONS: 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 participation In situ upgrade of informal settlements Relocation recommended as the last resort – after consideration of numerous factors Housing construction from a range of options Community involvement a key requisite

3.INCREMENTAL INTERVENTIONS: EMERGENCY HOUSING ASSISTANCE Committees Section 3.INCREMENTAL INTERVENTIONS: EMERGENCY HOUSING ASSISTANCE Provides temporary housing relief to households in stress as a first phase towards a permanent housing solutions 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

4.INCREMENTAL INTERVENTIONS: ENHANCED PEOPLE’S HOUSING PROCESS Committees Section 4.INCREMENTAL INTERVENTIONS: ENHANCED PEOPLE’S HOUSING PROCESS To assist households to access housing subsidies with technical, financial, logistical and administrative support to build their own houses Communities take ownership of the process- initiator and driver of process Houses better suited to the needs of the individuals

Committees Section 5.INCREMENTAL INTERVENTIONS: INEGRATED 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/simply subsidy beneficiary administration To facilitate the participation of the private sector in low income housing Requires integrated planning: race, income, and infrastructure

Committees Section 5.INCREMENTAL INTERVENTIONS: INEGRATED RESIDENTIAL DEVELOPMENT PROGRAMME (Cont……) A phased approach is as followed: FIRST PHASE: STAND PROVISION The creation of the serviced stands takes place during phase 1 SECOND PHASE: HOUSING CONSILIDATION Beneficiaries subsidies are approved during the housing consolidation phase only Housing Consolidation is linked undertaken from the basket of options – FLISP, Project based housing, etc

THANK YOU FOR YOUR ATTENTION Committees Section THANK YOU FOR YOUR ATTENTION