Programme 4: Housing Development Finance Purpose: Fund national housing and human settlement development programmes in terms of the Housing Act (1997), provide financial, grant and housing institutions management, and manage all matters provided for by the Home Loan and Mortgage Disclosure Act (2000).

Structure and Objectives - Housing Development Finance Financial and Grant Management: provide overall financial and grant management services. Housing Institutions, Housing Equity and Development Finance: monitor the performance of housing institutions reporting to the Minister of Housing, monitor trends, impacts and patterns in housing and investment finance against government’s development programmes and aims to eradicate discrimination and unfair practices to do with access to housing finance, by implementing and administering the Home Loan and Mortgage Disclosure Act (2000) and regulations through the Office of Disclosure.

Structure and Objectives - Housing Development Finance cont. Integrated Housing and Human Settlement Development Grant: reflects the conditional grant allocation that is transferred to provinces. Contributions: makes contributions to housing institutions. Interest and Redemption on Private Loans: administered the interest payments on liabilities held by the National Housing Development Board and the SA Housing Trust, all of which have been transferred to National Treasury.

Financial and Grant Management Purpose: Provide overall financial and grant management services.

Achievements : 2006/07 Financial Statements completed and submitted; Budget approved; Transfer of funds according to payment schedule; Monitoring of expenditure by provinces on the grant; Amending Housing subsidy grant framework; Provided and managed the transversal debtors system on behalf of provinces.

Deliverables for the MTEF 2007/10 Manage the provision of Financial Support and Internal controls To manage the provision of Supply Chain Management Services Provide Debtors System to Provinces

Deliverables for the MTEF 2007/10 To undertake financial planning, control and system maintenance To provide strategic financial management support to the Department To transfer and administer funds for housing delivery To monitor the financial performance of the conditional grant.

Housing Institutions, Office of Disclosure and Development Finance Purpose: Monitor the performance of housing institutions reporting to the Minister of Housing, monitor trends, impacts and patterns in housing and investment finance against government’s development programmes and aims to eradicate discrimination and unfair practices to do with access to housing finance, by implementing and administering the Home Loan and Mortgage Disclosure Act (2000) and regulations through the Office of Disclosure.

Achievements: 2006/07 Regulations gazette for public comments on the 24 November 2006 and closing on the 29 December 2006 Regulations presented to the Portfolio Committee on Housing on the 21 February 2007 as a means to conclude the consultative process The Office attended all FSC meetings as a means to promote equity in housing delivery Draft profile prepared and awaiting the appointment of Members of Office to have a full functional Office Compliance Manual’s Terms of Reference drawn up, presented to the Bid Committee and closed on the 20 February 2007

Achievements: 2006/07 Advertisement for Nominations close on the 16 February 2007 and the submission is send to Minister’s office for appointment of panel to shortlist applications Establishment and operationalisation of the new Directorate: Housing institutions established in Policy on monitoring of housing institutions was developed and approved during the financial year Business plans of housing institutions analyzed and approved Targets met in terms of quarterly performance analysis of housing institutions

Achievements: 2006/07 Mid term performance review of housing institutions conducted Review Framework for the rationalization of housing institutions developed Governance monitoring checklist for housing institutions developed Rationalization of housing institutions started in the light of requirements of the Comprehensive Plan on Sustainable human Settlement and the proposed new DPSA and NT policy framework on public entities.

Achievements: 2006/07 Four quarterly publication on Housing and economy Progress report to the implementation of Growth and Development Summit Agreement Economic Impact of 2010 World Cup on housing delivery Input to presidential survey on public investment Inputs for the medium term budget policy statement

Deliverables for the MTEF 2007/10 Approved annual business plans,budgets and corporate governance issues of housing institutions Four Performance Monitoring reports produced annually (financial, non-financial and corporate governance) Mid term performance monitoring report produced (financial, non-financial and corporate governance)

Deliverables for the MTEF 2007/10 Approved shareholders compact Approved governance monitoring framework Report on compliance of housing institutions

Deliverables for the MTEF 2007/10 Four reports per year on compliance of housing institutions to King Code requirements Approved Framework for Staff migration of rationalized institutions Percentage of institutions rationalized A report on trends and the impact of donor funding

Deliverables for the MTEF 2007/10 Reports on the savings linked products Reports on fixed interest rates and their impact Reports on tax incentives Reports on the financial risk factors on the provision of housing delivery

Deliverables for the MTEF 2007/10 Reports on Micro lending industry on housing delivery Reports on employer assisted housing A report on the impact of new finance instruments Reports the loss limit insurance

Deliverables for the MTEF 2007/10 Reports on secretariat function in terms of the Home Loans and Mortgage Disclosure Act Report on monitoring compliance by financial institutions in terms of the Financial Service Charter commitments in promoting housing finance equity

Deliverables for the MTEF 2007/10 Reports on investigations on the home loans and mortgage public complaints 50 Municipality help desks Annual report for the Minister

Deliverables for the MTEF 2007/10 Manage and investigate the home loans and mortgage public complaints Prepare annual report for the Minister

Housing Development Finance R thousand 2007/082008/092009/10 Medium-term estimates MTEF Baseline Management 2,749 3,079 3,388 Financial and Grant Management 24,529 25,168 58,124 Housing Institutions, Housing Equity and Development Finance 18,644 20,204 26,370 Contributions to Public Entities 59,416 37,399 35,462 Social Housing Programme 180, , ,000 Integrated Housing and Human Settlement Development Grant 8,237,946 9,852,842 11,530,823 Total of subprogrammes 8,523,284 10,188,692 11,951,167

Provincial Allocations (IHHSDG) Provinces 2007/082008/092009/10 Eastern Cape 1,052,554 1,251,018 1,481,567 Free State 653, , ,768 Gauteng 2,197,223 2,579,974 2,959,488 KwaZulu-Natal 1,310,555 1,575,586 1,853,917 Limpopo 651, , ,297 Mpumalanga 526, , ,023 Northern Cape 130, , ,572 North West 766, ,102 1,022,494 Western Cape 948,548 1,203,984 1,468,699 TOTAL 8,237,946 9,852,842 11,530,823

Provincial housing targets outputs and funds allocated ProvinceTargeted outputsFunds Allocated Eastern Cape 30,551R 1,052,554,000 Free State 17,383R 653,293,000 Gauteng 94,349 2,197,223,000 KwaZulu Natal 43,189R 1,310,555,000 Limpopo 8,803R 651,705,000 Mpumalanga 13,966R 526,286,000 Northern Cape 3,210R 130,976,000 North West 38,912R 766,806,000 Western Cape 33,700R 948,548,000 Total 284,063R 8,237,946,000