1. Revised Strategic Plan 2015-2020 and 2016-2017 Annual Performance Plan 10 May 2016 Mr. M. Tshangana 1

2. Presentation Overview Introduction Vision and Mission Departmental Goals and Strategic Objectives MTSF Sub-outcomes to achieve the vision Process followed in developing the plans Revised Strategic Plan targets (2015-2020) Summary of APP Priorities per programme APP Targets and performance indicators per Programme Budget Allocation 2

3. Introduction In line with the NDP, the Human Settlements aims at achieving visible results from effectively coordinated spatial planning systems by 2030 and this is done through : The development of the Spatial Master Plan for Human Settlements that will direct investments to the priority precincts Implementation of Catalytic Projects Prioritizing, targeting and focusing resources (financial and other) towards scale delivery Supporting and encouraging government and private sector collaboration and integration Promoting the participation of Youth and Women in human settlements development programmes Scaling up delivery on the informal Settlements Upgrading Programme 3

4. Vision and Mission Vision A nation housed in sustainable Human Settlements Mission To facilitate the creation of Sustainable Human Settlements and Improved Quality of Household Life. 4

5. Departmental Strategic Goals Enhanced efficiency and effectiveness of the department Integrated and responsive human settlements sector planning and policy environment Increased delivery of adequate housing in quality living environments 5

6. Departmental Strategic Objectives Promote efficient and effective administrative processes A capacitated and diverse workforce in a conducive working environment Effective and efficient legal support Promote internal and external communication on human settlements The ICT infrastructure is reliable, secure and available Development of human settlements policies and programmes for improved alignment Establishment and strengthening of partnerships for human settlements development Provide implementation support on the delivery of adequate housing Improved support and capacity for the human settlements sector Efficient and effective utilization of human settlements grants and monitoring lending patterns by financial institution 6

7. MTSF Sub-Outcomes to Achieve The Vision In order to achieve the vision of sustainable human settlements and improved quality of household life the DHS will drive effective programmes to achieve the following: Adequate housing and improved quality living environments A functionally equitable residential property market Enhanced institutional capabilities for effective coordination of spatial investment decisions 7

8. Strategic Planning Process The First Draft of APP was submitted to DPME for assessment as per the Framework requirements (31 August 2015) and to Auditor General A second draft of the APP submitted on the 30 November 2015 took into consideration the comments by the oversight bodies Engagement meetings to address the comments by DPME and AG were arranged The revised strategic plan and the final APP was submitted to AG and DPME for further assessment The Strategic Plan was revised to comply with the DPME requirements on planning The plan is MTSF based but also compliant to the 2015-2020 instruction DPME AG’s final findings were taken into consideration in the final APP adopted the executive management of the department 8

9. Strategic Plan Priorities in line with the MTSF Policy for Coherent and Inclusive Approach to Land for Human Settlements Human Settlements White Paper Housing Code revised Housing Act amended 2200 Informal settlements upgraded 750 000 Households provided with basic services 563 000 subsidy housing opportunities provided 110 000 loans (70 000 FLISP and 40 000 DFI supported) issued 27 000 social housing units 35 000 affordable rental housing opportunities provided 9

10. Strategic Plan Targets - (2015-2020) Framework on coherent and inclusive approach to land developed Seven evaluations of key human settlements strategic thrust completed Human Settlements White Paper approved Housing Act amended and Human Settlements Legislation approved Housing Code revised and Human Settlements Code approved Approved Human Settlements Master Spatial Plan Guidelines for Human Settlements Planning and Design revised Increase in partnerships and stakeholders participating in human settlements development 10

11. 2016 / 2017 APP- Priorities The Department through the 2016 /17 APP has prioritised the : Achievement of Good Corporate Governance by putting management systems to support institutional performance in critical areas for efficiency Development and Finalization of the White Paper for Human Settlements Revision of the Housing Code Delivery of housing opportunities through: Informal Settlements Upgrading Programme including PHP Provision of technical support to municipalities for informal settlement upgrading Upscaling the delivery of affordable rental housing opportunities Implementation of Catalytic Projects 11

12. 2016 /2017 APP- Priorities ….. Housing of Military Veterans Implementation of human settlements interventions in mining towns Eradication of the title deeds backlog and the transfer of title deeds for new properties in the subsidy market Acquiring, rezoning and release of well located land targeting poor households Implementation of capacity building support programme across the sector Strengthening of partnerships for better delivery 12

13. Summary of programme 1 targets 2016/17 Compliance with statutory tabling and prescripts and implementation of the approved internal audit plan for good governance Compliance to Human Resource Statutory Requirements and Implementation of the Human Resource Plan Development and roll out of the Legislative Programme Ensuring that the ICT infrastructure is reliable, secure and available Implementation of the approved communication strategy Knowledge and information management systems developed and implemented Ensuring a secure working environment 13

14. Summary of programme 2 targets 2016/2017 Development of Multi Year plan for Human Settlements An approved Human Settlements Master Spatial Plan Revised Guidelines for Human Settlements Planning and Design (Red Book) A Draft White Paper for Human Settlements A framework for the revision of the housing code A Revised Accreditation Framework Provinces and Metros supported in the implementation of PHP Policy Mobilisation and strengthening of stakeholder participation in Human Settlements Development 14

15. Summary of programme 3 targets 100 000 title deeds backlog eradicated 2 455 hectares of well-located land acquired, rezoned, and released for new developments targeting poor households 15 catalytic projects implemented 9 human settlements interventions implemented in mining towns 500 Feasibilities conducted on informal settlements 444 Informal settlement upgrading plans developed 175 000 households provided with basic services 115 000 housing opportunities provided including Military Veterans Title deeds for new home owners in the subsidy market issued 15

16. Summary of programme 3 targets 6 301 Social Housing units delivered 3 700 affordable rental opportunities delivered Projects under implementation monitored and verified (HSDG and USDG) Evaluation studies (Affordable Housing, Access Evaluation) conducted DFI operational integration completed 22 860 youth, women, military veterans participating on human settlements skills development programmes 16

17. Summary of targets programme 4 Approved Human Settlements Grants Frameworks HSDG & USDG quarterly performance reports Annual report on the performance of financial institutions and their lending patterns State Finance Products for the affordable market revised 17

18. APP - Programme 1 Strategic Objective2016/2017 TargetPerformance Indicators To Promote efficient and effective administrative processes 100 % compliance with statutory tabling and prescripts Percentage compliance with statutory tabling and prescripts Unqualified audit report 2015/16Unqualified audit report 100% adherence to Cabinet and Cluster schedule as per approved protocol Percentage adherence to Cabinet and Cluster schedule as per approved protocol 100% implementation of the approved internal audit plan Percentage implementation of the approved audit plans 100% implementation of the approved risk management plan Percentage Implementation of the approved risk management plan 100% implementation of approved Departmental anti-fraud and corruption Percentage implementation of approved Departmental anti-fraud and corruption 100% PAIA information requests processed % of PAIA information requests processed 18

19. APP - Programme 1 Strategic Objective2016/2017 TargetPerformance Indicators A capacitated and diverse workforce in a conducive working environment 100% compliance to HR Statutory Requirements Percentage compliance to HR Statutory Requirements 100% Implementation of the HR Plan Percentage implementation of HR Plan Effective and efficient legal support 100 % of` litigation matters received and attended to Percentage of litigation matters received and attended to 100% of contracts processed within reasonable time frame Percentage of contracts processed within reasonable time frame The ICT infrastructure is reliable, secure and available 90 percent availability of HSS Database Systems to provinces Percentage availability of the HSS Database Systems to provinces 90% availability of IT ServicesPercentage availability of IT Services 19

20. APP - Programme 1 Strategic Objective2016/2017 TargetPerformance Indicators Promote internal and external communication on human settlements 100 %implementation of the approved communication strategy Percentage implementation of the approved communication strategy 500 000 consumers reached through various communication platforms Number of consumers reached through various communication platforms 20

21. APP - Programme 2 Strategic Objective2016/2017 TargetPerformance Indicators Development of Human Settlements Policies and Programmes for improved alignment An approved National Human Settlements Development Plan for Provinces 1 st draft of the revised Guidelines for Human Settlements Planning and Design (Red Book) approved for consultation Revised Guidelines for Human Settlements Planning and Design Approved Human Settlements Master Spatial Plan 100 000 title deeds backlog eradicated Number of title deeds Backlog eradicated 2455 hectares of well-located land acquired, rezoned, and released for new developments Number of Hectares of well-located land acquired, rezoned, and released for new developments 21

22. APP - Programme 2 Strategic Objective2016/2017 TargetPerformance Indicators Development of human settlements policies for improved alignment and compliance A draft White Paper for Human Settlements Approved Human Settlements White Paper A framework for the code developed Human Settlements Code approved Revised Accreditation Framework Establishment and strengthening of partnerships for human settlements development Five Provinces and four Metros supported on the implementation of PHP Policy Number of Provinces and Metros supported on the implementation of PHP Policy Mobilisation and strengthening of stakeholder participation on Human Settlements Development Reports on stakeholder participation in Human Settlements Development 22

23. APP - Programme 3 Strategic Objective2016/2017 TargetPerformance Indicators Provide implementation support on the delivery of adequate housing provided 500 Feasibilities conducted on Informal Settlements Number of Informal settlements assessed 444 Informal settlement upgrading plans developed Number of Informal settlement upgrading plans developed 9 human settlement interventions implemented in mining towns Number of human settlement interventions implemented in mining towns 175 000 households upgraded to phase 2 Number of households upgraded to phase 2 115 000 subsidy housing opportunities provided Number of housing opportunities provided 6 301 Social Housing units delivered Number of Social Housing units delivered 2 000 Community Residential Units (CRU) Number of Community Residential Units (CRU) delivered 23

24. APP - Programme 3 Strategic ObjectiveTargetPerformance Indicators Provide implementation support on the delivery of adequate housing provided 15 catalytic projects implemented Number of catalytic projects implemented Enhanced sector monitoring and evaluation 75% of projects monitored and verified (HSDG and USDG) Percentage of projects monitored and verified 2 evaluation studies (Affordable Housing, Access Evaluation ) completed Number of evaluation studies completed 24

25. APP - Programme 3 Strategic ObjectiveTargetPerformance Indicators Provide implementation support on the delivery of adequate housing provided Single DFI operational integration completed Single Development Finance Institution established 4 Shareholder Compacts of the human settlements entities aligned to the MTSF targets Number of Shareholder Compacts of the human settlements entities aligned to the MTSF Improved support and capacity for the human settlements sector Nine (9) Provincial departments and eight (8) municipalities supported in the implementation of capacity development programmes 2760 youth, women, military veterans trained on human settlements skills development programmes Number of youth, women, military veterans trained on human settlements skills development programmes 25

26. APP - Programme 4 Strategic ObjectiveTargetPerformance Indicators Efficient and effective utilization of human settlements grants, and monitoring lending patterns by financial institution Approved Human Settlements Grants Frameworks Quarterly reports on HSDG & USDG performance submitted Reports on HSDG & USDG quarterly performance Annual report on the performance of financial institutions and their lending patterns developed Approved annual report on the performance of financial institutions and their lending patterns 26

27. 2016 MTEF Allocation The budget of the Department was negatively affected by the economic downturn.

28. Budget Reductions over 2016 MTEF R1.6 billion cut to the Human Settlements Development Grant in the 2016/17 financial year; R807 million reduction of the Urban Settlements Development Grant as follows; – R236.4 million in 2016/17 financial year; – R235.8 million in 2017/18 financial year; and – R335 million in 2018/19 financial year. 28

29. Budget Reductions over 2016 MTEF The goods and services budget was reduced by: – R6.6 million in 2016/17; – R10.8 million in 2017/18; and – R41 million in 2018/19. Compensation of employees was reduced by: – R28.9 million in 2017/18; and – R43.1 million in 2018/19. 29

30. Net Budget Based on Allocation Letter Economic Classification2016/172017/182018/19Total Compensation of employees38 70121 857-5 653 54 905 Goods and services-6 652-10 807-41 022 -58 481 Grants and transfer payments-2 548 430-692 674-625 586 -3 866 690 Payment for Capital assets1 2731 3401 374 3 987 Total-2 515 108-680 284-670 887-3 866 279

31. Compensation of Employees 2016/172017/182018/19 Costs to company establishment 383 491 000416 449 000424 352 000 Allocation after budget cut 383 491 000387 519 000381 217 000 Shortage 0-31 930 000-43 135 000 The current staff establishment consists of 893 positions. Of these 646 are funded positions, of which 605 are filled and 41 are vacant. Of the 893 positions 247 are unfunded. The Department will have to implement measures as to ensure that the Department will be able to meet the shortage, otherwise other severe measures will have to be implemented.

32. Impact of the Reduction on the Human Settlements Development Grant Provinces 2016/17 2017/18 2018/19 R`000 DORA 2015 Published Allocation Revised Allocation Reduction Total Allocation by province EASTERN CAPE 2 167 1561 991 457-175 699 2 332 862 2 334 906 FREE STATE 1 210 6301 098 411-112 219 1 285 972 1 364 176 GAUTENG 5 473 3365 022 669-450 667 5 769 301 6 161 483 KWAZULU-NATAL 3 414 9573 124 702-290 255 3 632 106 3 857 283 LIMPOPO 1 311 7091 208 370-103 339 1 362 651 1 482 446 MPUMALANGA 1 419 9731 314 645-105 328 1 488 961 1 579 219 NORTHERN CAPE 402 276371 109-31 167 427 374 453 421 NORTH WEST 2 297 2862 151 817-145 469 2 435 403 2 579 011 WESTERN CAPE 2 186 6682 000 811-185 857 2 325 713 2 469 898 Total 19 883 991 18 283 991-1 600 000 21 060 343 22 281 843

33. Impact of the Reduction on the Urban Settlements Development Grant 2016/17 2017/18 2018/19 Original Allocation Revised Allocation Reduction Original Allocation Revised Allocation Reduction Original Allocation Revised Allocation Reduction ProvincesMetros EASTERN CAPEBuffalo City 748 370 731 499 -16 871 791 090 774 202 -16 888 836 973 813 335 -23 638 Nelson Mandela 888 308 868 282 -20 026 939 015 918 970 -20 045 993 478 965 421 -28 057 Sub Total 1 636 678 1 599 781 -36 897 1 730 105 1 693 172 -36 933 1 830 451 1 778 756 -51 695 FREE STATEMangaung 728 133 725 003 -3 130 769 697 767 326 -2 371 814 339 806 113 -8 226 GAUTENGEkurhuleni 1 933 951 1 890 351 -43 600 2 044 347 2 000 706 -43 641 2 162 919 2 101 836 -61 083 Jo'burg 1 816 766 1 775 809 -40 957 1 920 473 1 879 476 -40 997 2 031 861 1 974 478 -57 383 Tshwane 1 574 837 1 539 334 -35 503 1 664 734 1 629 196 -35 538 1 761 289 1 711 548 -49 741 Sub Total 5 325 554 5 205 494 -120 060 5 629 554 5 509 378 -120 176 5 956 069 5 787 862 -168 207 KWAZULU- NATAL eThekwini 1 929 176 1 885 686 -43 490 2 039 299 1 995 766 -43 533 2 157 578 2 096 646 -60 932 WESTERN CAPECape Town 1 456 336 1 423 504 -32 832 1 539 468 1 506 605 -32 863 1 628 757 1 582 760 -45 997 Grant Total 11 075 877 10 839 468 -236 409 11 708 123 11 472 247 -235 876 12 387 194 12 052 137 -335 057

34. Allocation by Programme for the 2016 MTEF period Programme 2016/17 R`000 2017/18 R`000 2018/19 R`000 1. Administration 442 274469 920 467 322 2. Human Settlements Policy, Strategy and Planning 83 06388 298 86 951 3. Programme Delivery Support 224 582208 339 199 921 4. Housing Development Finance 29 940 93733 799 769 35 865 833 Total 30 690 85634 566 326 36 620 027

35. Operational allocation by Programme for the 2016 MTEF period Programme 2016/17 R`000 2017/18 R`000 2018/19 R`000 1. Administration 402 328427 979423 282 2. Human Settlements Policy, Strategy and Planning 81 85287 02685 605 3. Programme Delivery Support 215 227198 517189 530 4. Housing Development Finance 25 08326 69426 657 Total 724 490740 216725 074

36. Allocation over MTEF by economic classification according to latest allocation letter Total allocation R`000 2016/172017/182018/19 Indicative allocation Departmental Operational 764 390 782 111769 063 Compensation of employees 383 491 387 519381 216 Goods and services 375 433 388 852381 817 Payment for Capital assets 5 466 5 7406 030 Payments for financial assets --- Grants and transfer payments 29 926 466 33 784 21535 850 964 Grants 29 123 459 32 532 59034 333 980 Human Settlements Development Grant 18 283 991 21 060 34322 281 843 Urban Settlements Development Grant 10 839 468 11 472 24712 052 137 Municipal Human Settlements Capacity Grant--- Entities 792 395 1 240 4851 505 196 Social Housing Regulatory Authority: Operational36 392 38 21240 428 Social Housing Regulatory Authority: Restructuring Capital Grant424 388 768 7151 006 064 Social Housing Regulatory Authority: Institutional Investment Grant40 183 38 49040 722 Housing Development Agency167 512 215 668228 177 Community Schemes Ombuds Services23 920 29 40031 105 National Housing Finance Corporation100 000 105 800 Rural Housing Loan Fund - 50 00052 900 Departmental Transfers10 61211 14011 788 Bursaries Scheme 9 3559 822 10 392 UN Habitat 1 2111 2721 346 Transfer to Households46 50 Total 30 690 856 34 566 32636 620 027

37. Recommendation It is recommended that the Select Committee notes the Annual Performance Plan for 2016/2017 and the Revised Strategic Plan for 2015-2020 It also recommended that the Select Committee notes that reporting on the APP will also include the number of beneficiaries allocated in projects 37

38. THANK YOU “We have come a long way – Celebrating 20 Years of Freedom!” 38