Presentation to the Port Folio Committee for Human Settlements The Allocation Strategy for housing opportunities created through the National Housing Programmes

Background In response to allegations of mal- administration and fraud regarding the allocation of housing subsidy financed properties, the Previous Minister of Housing approved the Allocation Strategy in 2008; Investigations also revealed the need for a National Housing Needs Register from which selection of beneficiaries could be undertaken

Salient features of the Strategy The allocation process has been depoliticised; A structured process for the selection and approval of applications was introduced; Priority criteria have been introduced; The Strategy provides procedures for each National Housing Programme; and It is directly linked to the National housing Needs register.

Qualification Criteria – The entry level and general criteria of the subsidy scheme still apply; – Programme specific criteria also still apply Priority criteria were introduced: – The Aged and disabled; – Families; and – Women headed households with children. Salient features of the Strategy

Persons registered on the National Housing Needs Register do not automatically qualify for subsidies; Persons on the Register will be invited to complete application forms when housing opportunities become available; All applications so received will be subject to verification and a structured evaluation and approval process. Salient features of the Strategy

It applies to housing opportunities created through: – Integrated Residential Development Programme (IRDP); and – The Upgrading of Informal Settlements programme Application of the Strategy

The Strategy will not apply to: – The individual Subsidy programmes; – Consolidation subsidies; – PHP subsidies; and – Rental housing programmes. Application of the Strategy

Institutional Architecture The Strategy entails the following role players: The Allocation Committee (AC); The Provincial Departments of Human Settlements/Housing; The Municipality; The National Department; The Project Manager; and External auditors, where applicable.

The Allocation Committee must: – As a minimum comprise the following public sector officials: Two members from the Office of the City Manager of the Municipality; Two members representing the Provincial Department of Human Settlements/Housing; and – May not include any political office bearer. Institutional Architecture

Allocation process When houses/opportunities become available: – The municipality will determine the selection criteria to apply for the specific project- region, priority status etc.; – It will request the province to obtain a list of potential beneficiaries from the National Needs Register that meet the set criteria; – Once received, the AC will verify the list and request the project manager to contact the persons on the list and invite them to apply for housing subsidies; – The PM will liaise with each applicant in collecting all the documents and the selection of stands and houses; – Application documents may not be older that three months; – The applications received will be assessed by the AC against the list of invitees and qualification criteria; – The applications are then submitted to the MEC for approval.

Once the application is approved it will be recorded on the NHSDB; The conditional purchase agreement between the developer and beneficiary will take effect; The property will be transferred to the beneficiary; The National Housing Needs Register will be adjusted to reflect this status Allocation process

Thank you