1. Title of Power Point presentation DATE Housing Development Agency: Strategy Plan and APP - 2016/17 Mr Pascal Moloi (CEO: HDA) February 2016

2. The HDA will be responsible for the revitalisation programme of 22 mining towns. HDA to identify catalytic projects, prepare, role out and manage the projects implementation plan N2 Gateway to be refocused as a national priority project – and lessons learnt documented and the project closed. Housing information covering both housing and land needs to be established. The HDA to be repositioned to become a the preferred developer whose objective is not only to acquire and prepare land, but to facilitate the development and project manage agreed projects. The HDA is responsible for raising appropriate funding in developing sustainable human settlements Develop, implement & maintain an approved Master Spatial Plan (MSP) for the human settlements sector Expectations of the Minister Minister’s expectations Revitalisation programme of 22 mining towns HDA to identify catalytic projects, prepare, role out and manage the projects implementation plan N2 Gateway to be refocused as a national priority Housing information covering both housing and land need HDA to be repositioned to become a the preferred developer The HDA is responsible for raising appropriate funding in developing sustainable human settlements Develop, implement & maintain an approved Master Spatial Plan (MSP)

3. 10 000 of well located hectares land rezoned and released for new development targeting poor and lower middle income households Number of national priority programmes provided with oversight and implementation support (Mining towns, Catalytic project, NUSP) –Identification of catalytic projects, Strategy on deliverables for 22 prioritised Mining Towns, and Improved living conditions for 750 000 households living in the 2200 informal settlements 9 provinces supported with HDA services through technical capacity programmes for human settlements development Develop, implement and maintain an approved Master Spatial Plan (Framework for Spatial Investment for Human Settlements developed with related planning tools) The following additional functions are also undertaken by the HDA: –Management of the N2 Gateway Project in the Western Cape Province –Management of the Zanemvula Project in the Eastern Cape Province –Nelson Mandela Bay Metro Human Settlements Programme –Management and Implementation of specified projects in Limpopo Province –Supporting NDHS in the GP intervention initiative MTSF targets supported by the HDA MTSF targets supported by HDA 10 000 of well located hectares land rezoned and released for new development targeting poor and lower middle income households National priority programmes provided with implementation support Improved living conditions for 750 000 households living in the 2200 informal settlements Strategy on deliverables for 22 prioritized Mining Towns, Identification of catalytic projects 9 provinces supported with HDA services through technical capacity programmes for human settlements development Develop, implement and maintain an approved Master Spatial Plan Additional functions are also undertaken by the HDA: N2 Gateway Project in the Western Cape Province Zanemvula Project in the Eastern Cape Province Support Nelson Mandela Bay Metro Human Settlements Programme Implementation of specified projects in Limpopo Province Supporting NDHS in the GP intervention initiative

4. Most important for the 2016/17 financial year is going to be to reposition the HDA to play a more direct role in property and land development ! From 2015/16 to 2016/17

5. Confidential Understanding the HDA Developer role based on the Business Process Map…

6. Confidential A developer perspective requires the HDA to have a number of key functions centred on development management as a critical function… HDA - Activating the Development Agency Role: Business Case Roadmap Version 3.0 Strategic Spatial Planning Project Packaging Urban / Development Planning Financial Modelling IG & Stakeholder Management Monitoring and Evaluation Land Assembly * Technical Analysis ** Legal (Transactions) Funding Mobilization & Management Procurement & Contract Management * Includes: Acquisition; Holding; Release ** Includes: Includes: Spatial; Transportation; Economic; Geotechnical; Land Legal; Infrastructure ; Environmental etc. Financial Management Human Resources Corporate Services Business Intelligence / GIS Programme Design & Management Strategy Development Management Support / Crosscutting functions Functions mainly or could be partially outsourced (project-linked)

7. Confidential Implication of the Developer Role for the HDA Once the Minister of Human Settlements has approved the new direction, it may result: in the realignment of functional structure But, for now, the HDA will execute its responsibilities within the existing Goals, objectives & functional structure

8. ProgrammeStrategic goalStrategic objectives Programme 1: Administration 1 (a) CFO’s office Provide financial sustainability  Effective internal control systems 1(b) Corporate Services Provide, operational efficiency and service excellence  The HDA is an internally cohesive and effective public sector developer with systems that are stable and accessible Programme 2: Policy, Research, Monitoring and Information Build partnerships, a knowledge base and monitor and evaluate the performance of the human settlements sector in achieving key national strategic priorities  Provide information and research in support of promoting spatial targeting Programme 3: National Programme Support 3(a) National Programme Support Support national programmes and developments, and release well-located land for human settlements development  Release of land for human settlements development  Specific support to national priority programmes - catalytic projects, mining towns and NUSP 3(b) Built Environment Implementati on Develop and implement sustainable human settlement projects for the public sector  Development and implementation of sustainable human settlements Programme 4: Land & Housing Services Provide land and housing development support services to provinces and municipalities to enable them to fulfil their responsibilities in the human settlement sector  Enhancing capacity, support and technical skills of provinces and municipalities for human settlement development

9. Confidential Existing Functional Structure HDA Administration (CFO’s office and Corporate Services) Policy Research Monitoring and Information National Programme Support: National Programme Support & Built Environment Implementation) Land and Housing Services (Regions 1-3) 2015/162016/172017/182018/192019/212021/22 182220250300 …with a staff complement of...

10. PROGRAMME 1: Administration Programme Strategic Goal: Provide financial sustainability SUB-PROGRAMME 1a: CFO’s office Strategic Objectiv e Measurable Objective (Strategic Activities) Performa nce Measure/I ndicator 2016/17 Target Quarter 1Quarter 2Quarter 3Quarter 4 Effective internal control systems Implement effective systems to manage: finance, budgets and performance management, SCM, risk management and compliance Obtain unqualified financial audit opinion on the financial statements from external auditors Obtain unqualified financial audit report for 2014/15 from external auditors published by 30 August 2015 Quarterly progress review undertake n and mitigating actions implement ed to ensure achieveme nt of annual target

11. PROGRAMME 1: Administration Programme Strategic Goal: Provide operational efficiency and service excellence SUB-PROGRAMME 1b: Corporate Services Strategic Objective Measurabl e Objective (Strategic Activities) Performa nce Measure/I ndicator 2016/17 Target Quarter 1Quarter 2Quarter 3Quarter 4 The HDA is an internally cohesive and effective public sector developer with systems that are stable and accessible Capacitate the HDA as a public sector developer Positions filled in line with approved establishm ent plan 100% of positions filled in accordanc e with approved establishm ent 25% of positions filled in accordanc e with approved establishm ent 75% of positions filled in accordanc e with approved establishm ent 100% of positions filled in accordanc e with approved establishm ent

12. PROGRAMME 2: Policy Research Monitoring and Information Sub-Programme Strategic Goal: Build partnerships, a knowledge base and monitor and evaluate the performance of the human settlements sector in promoting spatial targeting Strategic Objective Measurable Objective (Strategic Activities) Performa nce Measure/I ndicator 2016/17 Target Quarter 1Quarter 2Quarter 3Quarter 4 To provide information and research in support of promoting spatial targeting Promote, guide and monitor spatial investment for human settlements based the framework for spatial investment for human settlements (FSIHS) Number of monitoring and evaluation reports against the FSIHS 2 reportsProgress report on the implement ation of spatial targeting against the framework 1 monitoring and evaluation report on the implement ation of spatial targeting against the framework Progress report on the implement ation of spatial targeting against the framework 1 monitoring and evaluation report on the implement ation of spatial targeting against the framework

13. PROGRAMME 3: National Programme Support PROGRAMME 3a: National Programme Support Sub-Programme Strategic Goal: Support national programmes and developments, and release well-located land for human settlement development Strategic Objective Measurable Objective (Strategic Activities) Performance Measure/Indicator 2016/17 Target Quarter 1Quarter 2Quarter 3Quarter 4 Release of land for human settlements development Release of well- located land for housing and human settlements targeting poor and lower middle income households (* see note on rezoning under table) Number of hectares of well-located land released for human settlement development (targeting poor and middle income households) 3000 hectares of well-located land released -1 x Progress report 1500 hectares of well-located land released 1 x Progress report 1500 hectares of well- located land released Specific support to national priority programmes - catalytic projects, mining towns and NUSP Preparing and packaging of national priority programmes, namely catalytic projects, mining towns and NUSP National priority programmes provided with programme management and technical project support Provide 274 ISU with technical support 1 x Progress report 274 ISU provided with technical support Develop 3 x ISU guidelines --- 3 x ISU guidelines developed Technical support to projects in 22 mining towns 1 x Progress report Technical support to projects in 22 mining towns 50 catalytic projects supported 1 x Progress report 50 catalytic projects supported

14. PROGRAMME 3: National Programme Support PROGRAMME 3b: Built environment implementation Sub-Programme Strategic Goal: Development and implementation of sustainable human settlement projects for the public sector Strategic Objective Measurabl e Objective (Strategic Activities) Performance Measure/ Indicator 2016/17 Target Quarter 1 Quarter 2 Quarter 3 Quarter 4 Development and implementati on of sustainable human settlements Preparing, packaging and implementa tion of assigned projects Number of projects implemented in line with approved project plans 5 projects plans approved and implement ation initiated in line with approved plans 5 projects identified Draft project plans developed Draft project plans approve d Initiating implemen tation

15. PROGRAMME 4: Land & Housing Services Programme Strategic Goal: Provide land and housing development support services to Provinces and Municipalities to enable them to fulfil their responsibilities in the human settlements sector Strategic Objective Measurable Objective (Strategic Activities) Performance Measure/Indic ator 2016/17 TargetQuarter 1Quarter 2Quarter 3Quarter 4 Enhancing capacity, support and technical skills of provinces and municipalities for human settlements development Implement technical support and capacity enhancement programmes for human settlements development as agreed with provinces and municipalities covering the HDA services Number of provinces provided with capacity support as per MTOPs and business plans 9 provinces provided with capacity support as per MTOPs and business plans Capacity support provided to 9 provinces Implementatio n support provided to programmes and projects 2645 housing units in Zanemvula 1 x progress report 2645 housing units delivered 1464 housing units and 591 serviced sites in N2 Gateway 1 x progress report 1464 housing units and 591 serviced sites delivered 4000 serviced sites and 2603 housing units in Nelson Mandela Bay 1 x progress report 4000 serviced sites and 2603 units delivered

16. PROGRAMME 4: Land & Housing Services Programme Strategic Goal: Provide land and housing development support services to Provinces and Municipalities to enable them to fulfil their responsibilities in the human settlements sector Strategic Objective Measurable Objective (Strategic Activities) Performan ce Measure/I ndicator 2016/17 TargetQuarter 1Quarter 2Quarter 3Quarter 4 Enhancing capacity, support and technical skills of provinces and municipalities for human settlements development Implement technical support and capacity enhancement programmes for human settlements development as agreed with provinces and municipalities covering the HDA services Implement ation support provided to programm es and projects 250 serviced sites in Bela Bela Limpopo Province 1 X Progress Report 250 sites serviced 1000 serviced sites in Lephalale Limpopo Province Approval of services design 1 X Progress Report 500 sites serviced 200 disaster/emergency units completed in Limpopo Province 1 X Progress Report 200 units completed 1660 serviced sites in Sol Plaatje, Northern Cape 1 x progress report 1660 serviced sites delieverd 1888 planned sites in Ga-segonyana, Northern Cape 1 x progress report 1888 planned sites delivered

17. Confidential Funding Year2013/142014/152015/162016/172017/182018/19 NDHS operational grant R97, 497R101, 047R156, 183R147,512R195, 668R207, 017 NUSP--R20, 000 R21,160 Total NDHS Grant Funding R97, 497R101, 047R176, 183R167, 512R215, 668R228, 170 Other provincial transfers R42, 446R49, 683R108, 248R227, 276R205, 926R219, 155 Administrative income R15, 294R7,090R20, 218R8, 941R9, 460R10, 009 Total FundingR129, 271R157, 820R304, 649R403, 729R431, 054R457, 341

18. Confidential Implications for finance  The HDA will receive an operational budget from the NDHS of R104 615m:  This will increase to R167 512m with NUSP – R20m and Priority Projects – R51 568m  It will increase further with various other operation initiatives / programmes, including MTOPs, to R403,729m  Notes: To be an effective Developer the Operational budget needs to be reviewed. An investment budget is required to capitalise the HDA to play a more direct role in property and land development!

19. Confidential Macro Indicators

20. Confidential In Summary What will go a long way to achieve the 1.5 million housing opportunities, will be to realise the Minister’s vision for the HDA to become a fully-fledged developer.

21. Thank you