1. Strategic Plan and Annual Performance Plan 2016/17 Portfolio Committee on Human Settlements 6 April 2016

2. Table of Contents 2 1.SHRA’s Vision of the Future 2.State of Housing in South Africa 3.Situational Analysis 4.Social Housing Actors’ Roles and Responsibilities 5.Improvement Areas 6.Goals, Objectives and Programmes 7.Programme Priorities and Way Forward Capacitation Investment Compliance Accreditation 8.Resource Considerations 9.Medium Term Expenditure Framework 10.Priority Areas for remainder of 2015/16 and 2016/17 11.Strategic Issues 12.Strategic Issues to be addressed in 2016/17 13.Annual and Quarterly Targets per Programme

3. SHRA’s Vision of the Future 1.Vision “A thought-leader, stimulator and regulator of world-class self- sufficient social housing solutions.” 2.Mission “Facilitate delivery of quality, sustainable social housing at scale to advance the needs of low and middle income groups in support of spatial, economic and social restructuring.” 3.Values Service Excellence Independence Transparency Integrity Innovation 3 Bjarke Ingels Group design for housing project in Toronto

4. State of Housing in South Africa 4 National Department of Human Settlements Strategic Plan 2014 – 2019 Census 2011 data 1.25 million households live in informal settlements 700,000 households live in backyard rentals 1.1 million households live in traditional dwellings

5. Situational Analysis 5 Legislation & Policy Social Housing Act No. 16 of 2008 National Development Plan Directives Inner City Renewal Responding to rapid urbanisation MTSF target of delivery of 27,000 units by 2019 Environment Slow economic growth impacting on retrenchments and tenants’ ability to pay rentals Rationalisation of State Owned Enterprises Pressure on available resources Lessons Learnt Need for coordinated planning and budgeting between SHRA, NHFC, Provinces and Municipalities Cumbersome regulatory framework Need for better long term planning and pipeline management Challenges Strategic and programme capacitation at regional and local level SHRA’s reputation and performance Grant quantum and income band indexing

6. Social Housing Actors’ Roles and Responsibilities 6 National Government Enabling policy Funding Designate restructuring zones (RZ) Monitor the SHRA ProvinceProvincial social housing strategies Project prioritisation Disburse institutional subsidy SHRAPromote the growth of the social housing sector Facilitate national social housing programmes Advise the Minister on the social housing sector Provide best practice and research Accredit SHIs Agreements with SHIs and ODAs Compliance monitoring Prepare an annual Social Housing Investment Plan Prepare an annual Social Housing Regulatory Plan Provide financial assistance to SHIs for institutional capacity, accreditation and project viability MunicipalitiesIdentify RZs Mobilise local SHIs Provide land & buildings Provide bulk infrastructure and public environs Enter into performance agreements on approved projects with SHIs NASHOBest practice for members Grow social housing capacity Represent member interests SHIs / PPPs / MoEs / Private Sector Develop and manage housing Consult with Municipalities with a view to developing SH stock Compile project proposals within approved restructuring zones Financiers (NHFC/Banks/ GPF/TUHF) Loan Funding

7. Improvement Areas Improvement areas DeliveryPerformanceReputation Research & data analysis Capacity Regulatory environment 7 1. Stimulate social housing delivery 2. Effective, risk- based and automated regulatory system 3. Professionalised and sustainable social housing sector 4. Enhanced performance of the entity

8. Goals, Objectives and Programmes 8

9. Capacitation Programme Priorities Areas of workPriorities  Policy research and development  Financial modelling  Research  Sector M & E  Growth and development of social housing entities  Sector capacity building  Assessment of Institutional Investment grants  Coordination and management of Institutional Investment Grants Ensuring viability of RCG SHI sustainability Norms and standards Impact assessments Capacity building Research 9

10. Capacitation Programme Way Forward 10 A more programmatic and strategic approach will be adopted so that the Capacitation Programme supports the overall National Social Housing Programme intent. Capacitation will have a locational and restructuring focus. The relevant authorities who govern particular localities will also be the focus of the SHRA’s Capacitation Programme on a strategic partnering basis (Municipal and Provincial Strategies). Local areas identified for a restructuring focus would be supported through a capacity assessment and a capacity plan. The PSCs will also be the focus of capacity support in the short term where this is a need identified between the stakeholders. A revised Social Housing Capacitation Framework will seek to achieve both multi-year project readiness and position SHIs to scale up. The sector will be consulted to create an appropriate research agenda to grow the National Social Housing Programme.

11. Investment Programme SHIPFYNo. of projects approved No. of units approved Total RCG approved SHIP 12010/1151,050R141,420,230 SHIP 22011/12153,979R513,218,108 SHIP 32012/13125,121R644,952,415 SHIP 42013/1472,279R257,200,000 SHIP 52014/15115,396R678,117,850 SHIP 62015/1671,979R248,592,085 TOTAL5719,804R2,483,500,688 11

12. Investment Programme Priorities Areas of workPriorities  Development planning  Development facilitation  Identification and Acquisition of stock  Holding of stock (regular update of register)  Management of RCG contracts  Pipeline planning  Partnerships with Provinces and Municipalities.  Partnerships with other Funders.  Partnerships with private sector. Acquisition, holding and development strategies (inner city) Partnering with (SLAs) enablers (Provincial and Local government) Fast tracking of delivery Systems to manage distressed rental stock 12

13. Investment Programme Way Forward 13 Extract from SHRA’s 2016/17 Annual Performance plan Performance Indicator Audited / actual performance Estimated performance Medium - term targets 2014/152015/162016/172017/182018/19 3Strategic Objective: To facilitate the growth of social housing development 3.1Consolidated cashflow and construction dashboard for social housing programme developed New indicatorConsolidated cashflow and construction dashboard developed Dashboard updated This indicator is designed to move the RCG budgeting methodology from an ‘in- year project budget’ to a ‘multi-year cashflow budget’. The Capacitation Programme will be clustered with the Social Housing Investment Programme to accommodate a multi-year project planning approach that will both ensure project readiness and achieve restructuring results.

14. Compliance Programme Priorities Areas of workPriorities  Ensuring compliance  Auditing of entities  Maintain a register of all entities  Tracing all stock  Maintain a register of all stock  Legal intervention and enforcement  Limitation of exposure of the SHRA to risk  Inspecting stock  High risk sub-unit to ensure security of stock Strategies based on risk profile Auditing, inspecting Automation Efficacy Intervention and legal 14

15. Accreditation Programme Priorities Areas of workPriorities  Entities  Projects  Service Providers Efficiency, integrity, transparency Policies and procedures Driven by quality standards Refinement of the rules and criteria 15

16. Accreditation Programme Way Forward The Accreditation Programme will be split from the Social Housing Investment Programme to ensure the independence of the grant and regulatory process from the funding process thereby establishing better governance controls. “The Accreditation process will be open, equitable, fair, transparent and as simple as possible while at the same time being efficient and cost-effective”. Accreditation and Compliance criteria, requirements and evidence indicators will be refined, presented and discussed with the sector/industry by 30 June 2016 for consideration by Council on 27 July 2016. 16

17. Accreditation Programme Way Forward In our effort to ensure openness, equity, fairness and transparency in the Accreditation process and therefore to ensure the trust and support of our partners in the industry, the list of 61 SHIs will be subjected to an independent audit between April and June 2016. The recommendations of the auditors, should they have queries and require further work by SHRA’s management, will require SHRA to communicate with the accreditation applicant about the matters raised by the auditors. All applicants wishing to be re-accredited will be asked to apply in July 2016. This process will be concluded by no later than 30 November 2016 and will result in the issuing of accreditation certificates. Proposal There will only be two categories of accredited institutions: – Conditional Accreditation Certificates will be valid for 2 years and will be linked to a Conditional Compliance Plan supported through the Capacitation Programme. – Full Accreditation Certificates will be valid for 5 years, maintained through the compliance monitoring rules, thereafter the applicant will have to re-apply for accreditation 6 months before the certificate expires. 17

18. Resource Considerations 18 The SHRA needs to ensure that it has the requisite systems and capacity to implement the new strategy and ensure enhanced performance of the entity. The new strategy provides the framework for a revised structure of the entity and the SHRA is embarking on an organisational design process.

19. Medium Term Expenditure Framework 19

20. Priority Areas for 2016/17 20 ChallengesMitigation Measures Lack of coordinated planning Investment Going forward, SHRA’s focus will be on the establishment of a consolidated cashflow and construction plan for all projects. A meeting of all sector stakeholders took place on 9 March 2016 to commence work on this consolidated pipeline. This is expected to take 3 months to complete. Priority will also be given in providing sound advice to the Minister and Department on the grant quantum and addressing blockages on the project pipeline. Capacitation Going forward, this programme will be used to achieve greater alignment between key stakeholders including Province, Municipalities and implementing agents. As well as acting as the “think tank” for social housing to ensure innovation and future delivery and sustainability of the social housing programme.

21. Priority Areas for 2016/17 21 ChallengesMitigation Measures Integrity of the accreditation process Regulatory Programme The intention is to separate Accreditation and Compliance to effect greater control on the Accreditation process and to allow for more effective monitoring of each work area. The efficacy and efficiency of the re-accreditation and accreditation process is prioritised for review and revision.

22. Strategic Issues RZsCorruption Who do we serve? Payment administration What determines policy? Opportunity Common purpose 22 Is there a SH industry/ sector? Institutional arrangements Public interest Reliable and predictable systems SHRA or shRa or sHra Future vision Relationships Opportunities Segregation of duties are a deliberate control

23. Strategic Issues to be addressed in 2016/17 23 Scale and pace of housing delivery Integrity of programme pipeline The optimal programme design to enhance coordination and alignment Municipal and Provincial human settlement strategies Budget alignment to Provincial and Municipal governments and NHFC Determine the capacity the SHRA requires to deliver on the National Social Housing Programme

24. APP 2016/17 Administration Programme – Annual Targets 24 Performance IndicatorAudited / actual performance Estimated performance Medium - term targets 2014/152015/162016/172017/182018/19 1.1Strategic Objective: To ensure sound corporate and financial governance and best practice adhering to statutory regulations 1.1.1Maintain an unqualified audit opinion Unqualified audit opinion 1.1.2Number of Council Evaluation reports developed and submitted to the Department NoneOne (1) Council Evaluation report developed and submitted to the Department 1.2Strategic Objective: To enhance SHRA’s performance and effective corporate services 1.2.1Average number of months to fill approved positions New indicator3 months 1.2.2Implementation of a comprehensive performance management system that includes performance targets and performance standards New indicatorPerformance management system including performance targets and standards for all positions developed, approved and implemented Performance management system including performance targets and standards for all positions implemented

25. APP 2016/17 Administration Programme – Quarterly Targets 25 Performance IndicatorReporting PeriodAnnual Target 2016/17 Q1Q2Q3Q4 1.1.1Maintain an unqualified audit opinion AnnualUnqualified audit opinion 1.1.4Number of Council Evaluation reports developed and submitted to the Department AnnualOne (1) Council Evaluation report developed and submitted to the Department One (1) report submitted 1.2.1Average number of months to fill approved positions Annual3 months 1.2.2Implementation of a comprehensive performance management system that includes performance targets and performance standards QuarterlyPerformance management system including performance targets and standards for all positions developed, approved and implemented Performance management system implemented Performance contracts signed with all staff Half year performance assessments conducted with all staff One on one reviews conducted with all staff End of year performance assessments conducted with all staff

26. APP 2016/17 Capacitation Programme – Annual Targets 26 Performance IndicatorAudited / actual performance Estimated performance Medium - term targets 2014/152015/162016/172017/182018/19 2.1Strategic Objective: Ensuring the sustainability of the social housing programme 2.1. 1 Norms and standards for social housing developed and approved New indicatorNorms and standards for social housing developed and approved Maintain and enhance norms and standards for social housing 2.1. 2 Number of new social housing institutions accredited by 2019 9196109 2.1. 3 Number of social housing institutions re- accredited by 2019 374150 2.1. 4 Number of State of the sector reports published 0One (1) State of the Sector report published

27. APP 2016/17 Capacitation Programme – Annual Targets Continued 27 Performance Indicator Audited / actual performanc e Estimated performance Medium - term targets 2014/152015/162016/172017/182018/19 2.2Strategic Objective: To achieve social, economic and spatial restructuring through social housing 2.2.1Evaluation of restructuring zones report New indicatorEvaluation of restructuring zones reportAdvise the Minister and Department on policy relating to restructuring zone report 2.2.295% disbursement of Institutional Investment grant New indicator 1% disbursement of Institutional Investment grant 95% disbursement of Institutional Investment grant 2.2.3No. of work opportunities for women New indicatorResearch completed on opportunities created for women within sector Policy and procedures for monitoring work opportunities created for women in sector developed Targets for work opportunities in sector determined Policy and monitoring implemented Policy and monitoring implemented and evaluated 2.2.4No. of work opportunities created for youth New indicatorResearch completed on opportunities created for youth within sector Policy and procedures for monitoring work opportunities created for youth in sector developed Targets for work opportunities in sector determined Policy and monitoring implemented Policy and monitoring implemented and evaluated 2.2.5No. of training days for women New indicatorResearch completed on training created for women within sector Policy and procedures for monitoring training created for women in sector developed Targets for training days in sector determined Policy and monitoring implemented Policy and monitoring implemented and evaluated 2.2.6No. of training days for youth New indicatorResearch completed on training created for youth within sector Policy and procedures for monitoring training created for youth in sector developed Targets for work training days in sector determined Policy and monitoring implemented Policy and monitoring implemented and evaluated

28. APP 2016/17 Capacitation Programme – Quarterly Targets 28 Performance Indicator Reporting Period Annual target 2016 / 17 Q1Q2Q3Q4 2.1.1Norms and standards for social housing developed and approved QuarterlyNorms and standards for social housing developed and approved Data collection and analysis concluded Norms and standards developed Consultation with sector concluded Norms and standards approved 2.1.2Number of new social housing institutions accredited by 2019 Quarterly6Data collection and analysis concluded SHIs targeted for assistance identified Terms of Reference for service providers concluded Procurement process concluded and service providers appointed 6 2.1.3Number of social housing institutions re-accredited by 2019 Quarterly50Data collection and analysis concluded SHIs targeted for assistance identified Terms of Reference for service providers concluded Procurement process concluded and service providers appointed 50 2.1.4Number of State of the sector reports published QuarterlyOne (1) State of the Sector report published Data collection and analysis concluded State of the Sector Framework concluded Draft report workshopped with EXCO State of the Sector report published

29. APP 2016/17 Capacitation Programme – Quarterly Targets Continued 29 Performance Indicator Reporting Period Annual target 2016 / 17Q1Q2Q3Q4 2.2.1Evaluation of restructuring zones report QuarterlyEvaluation of restructuring zones reportService provider appointed Data collection and analysis concluded Draft report submitted by service provider Report finalised and presented to Council sub- committee 2.2.295% disbursement of Institutional Investment grant Quarterly95% disbursement of Institutional Investment grantRequest for drawdown of grant submitted 20% disbursement of Institutional Investment grant 60% disbursement of Institutional Investment grant 95% disbursement of Institutional Investment grant 2.2.3No. of work opportunities created for women QuarterlyResearch completed on opportunities created for women within sector Policy and procedures for monitoring work opportunities created for women in sector developed Targets for work opportunities in sector determined Data collection and analysis completed Research completed on opportunities created for women within sector Policy and procedures for monitoring work opportunities created for women in sector developed Targets for work opportunities in sector determined 2.2.4No. of work opportunities created for youth QuarterlyResearch completed on opportunities created for youth within sector Policy and procedures for monitoring work opportunities created for youth in sector developed Targets for work opportunities in sector determined Data collection and analysis completed Research completed on opportunities created for youth within sector Policy and procedures for monitoring work opportunities created for youth in sector developed Targets for work opportunities in sector determined 2.2.5No. of training days created for women QuarterlyResearch completed on training created for women within sector Policy and procedures for monitoring training created for women in sector developed Targets for training days in sector determined Data collection and analysis completed Research completed on training created for women within sector Policy and procedures for monitoring training created for women in sector developed Targets for training days in sector determined 2.2.6No. of training days created for youth QuarterlyResearch completed on training created for youth within sector Policy and procedures for monitoring training created for youth in sector developed Targets for work training days in sector determined Data collection and analysis completed Research completed on training created for youth within sector Policy and procedures for monitoring training created for youth in sector developed Targets for training days in sector determined

30. APP 2016/17 Investment Programme – Annual Targets 30 Performance Indicator Audited / actual performance Estimated performance Medium - term targets 2014/152015/162016/172017/182018/19 3Strategic Objective: To facilitate the growth of social housing development 3.1Consolidated cashflow and construction dashboard for social housing programme developed New indicatorConsolidated cashflow and construction dashboard developed Dashboard updated 3.2 Number of units approved for RCG award 5 398 5 400 10 000 12 000 14 000 3.3 Number of units delivered 2 053 2 939 3 500 6 000 12 508 3.4 95% disbursement of RCG grant 4% disbursement of RCG grant 100% disbursement of RCG grant 95% disbursement of RCG grant

31. APP 2016/17 Investment Programme – Quarterly Targets 31 Performance IndicatorReporting Period Annual target 2016/17 Q1Q2Q3Q4 3.1Consolidated cashflow and construction dashboard for social housing programme developed Annual Consolidated cashflow and construction dashboard developed Consolidated cashflow and construction dashboard updated 3.2 Number of units approved for RCG award Quarterly 10 000 Finaloisation of project pipeline 3 000 2 000 5 000 3.3 Number of units delivered Quarterly 3 500 500 1 000 3.4 95% disbursement of RCG grant Quarterly 95% disbursement of RCG grant 10%50%75%95%

32. APP 2016/17 Compliance Programme – Annual and Quarterly Targets 32 Performance IndicatorAudited / actual performance Estimated performance Medium - term targets 2014/152015/162016/172017/182018/19 4 Strategic Objective: To regulate social housing institutions, other delivery agencies and safeguard social housing stock 4.1 Number of social housing units under regulation 20 447 23 386 26 886 32 886 45 394 Performance IndicatorReporting Period Annual target 2016/17 Q1Q2Q3Q4 4.1 Number of social housing units under regulation Quarterly 26 886 23 886 24 886 25 886 26 886

33. APP 2016/17 Accreditation Programme – Annual Targets 33 Performance Indicator Estimated performance Medium - term targets 2014/152015/162016/172017/182018/19 5 Strategic Objective: To ensure the accreditation of entities and projects is undertaken promptly and with the greatest integrity 5.1Percentage application of quality standards on accreditation of entities New indicatorQuallity standards on accreditation of entities approved and implemented 90% adherence to quality standards on accreditation of entities 90% adherence to quality standards on accreditation of entities 5.2Percentage application of standards on accreditation of projects New indicatorQuality standards on accreditation of projects approved and implemented 90% adherence to quality standards on accreditation of entities 90% adherence to quality standards on accreditation of projects

34. APP 2016/17 Accreditation Programme – Quarterly Targets 34 Performance IndicatorReporting Period Annual target 2016/17 Q1Q2Q3Q4 5.1Percentage application of quality standards on accreditation of entities QuarterlyQuallity standards on accreditation of entities approved and implemented 90% adherence to quality standards on accreditation of entities Accreditation standards approved Accreditation standards implemented 90% adherence to quality standards on accreditation of entities 5.2Percentage application of standards on accreditation of projects QuarterlyQuality standards on accreditation of projects approved and implemented 90% adherence to quality standards on accreditation of entities Accreditation standards approved Accreditation standards implemented 90% adherence to quality standards on accreditation of projects

35. THANK YOU 35