1. Presentation to Portfolio Committee Human Settlements Development Grant Business Plan 2012/ April 2012

2. Structure of Presentation
Legislative Prescripts
Provincial Allocations
Key Deliverables for 2012/13
Outcome 8
Other National Imperatives
Use of HSDG in Metropolitan Municipalities
National Summary

3. Prescripts & Determinants
DORA & Grant Framework
PFMA, 1999: Treasury Requirements
The National Priorities are determined by:
MTSF & Cabinet Lekgotla
SONA 2012
Outcome 8
Further Nat’l Imperatives for 2012/13
LEGISLATIVE PRESCIPTS
The start of every financial year presents the task of Provincial Human Settlements Departments preparing their annual Conditional Grant Business Plans which, in turn, collates to the preparation of the National Conditional Grant Business Plan.
NDHS to comply with National Treasury prescripts as contained in DORA and the Conditional Grant Framework for the 2012/13 financial year. In terms of section 10(1) (a)(iii) of the DORA …
Noted that DORA will again only be tabled at the end of April 2012; this has an impact on transfer of funds and by implication expenditure for the 1st qtr of the new financial year.
DETERMINING NATL PRIORITIES
Note that the Dept has previously made a presentation in respect of its response to SONA.
Outcome 8
Accelerate the Upgrading of Informal Settlements: HH by 2014
Upscale development of Affordable Rental Housing Stock: Urban focused
Land Assembly for Human Settlements
National Settlement Infrastructure Development
Facilitate increased supply of affordable housing finance
List the other Natl Human Settlements imperatives.
Rectification both RDP stock and Pre 1994.
FLISP
Rural Development
Emergency/Disaster Relief
National Priority Programme
HSDG within Metropolitan Municipalities

4. Provincial Allocations: 2012/13
PROVINCE
ALLOCATION
(‘000)
Eastern Cape
2,292,858
Free State
961,618
Gauteng
4,003,778
KZN
2,915,298
Limpopo
1,471,617
Mpumalanga
965,126
Northern Cape
339,551
North West
1,050,933
Western Cape
1,725,180
TOTAL
15,725,960
In this regard, it is noted that this occasion presents the first time that a newly-developed Business Plan template has been utilized in the crafting of the HSDG Business Plan. Significant improvements over the preceding template used include the accurate recording of project-level information, as well as detailed cashflows for projects, functional regions and for the province overall.
The numbers presented here have been extrapolated from the said b/plans, and confirmed by provinces.
The concern raised in respect of allocations to provinces has been noted previously. It should be noted that the allocation is formula based, and takes a range of aspect into consideration ….

5. Estimates of Natl Expenditure
PROGRAMME
SITES
UNITS
Financial Intervention
3,418
39,692
Incremental Housing
79,377
83,681
Social & Rental Housing
4,890
7,887
Rural Housing
6,597
37,619
TOTAL
94,282
168,880
Priority Projects
18,593
5,995
Provincial-specific Programmes
583
8,617
NATIONAL TOTAL
113,438
183,492
Under the Financial Intervention the following programmes were excluded in terms of the total number of sites and units.
State Asset Maintenance Programme
Social and Economic Facilities
Accredited Municipalities (level 1 & 2):
Operational Capital Budget
NHBRC enrolment (related to grant)
Land parcels procured(IHAHSD)
Housing chapters of IDP's

6. OUTCOME 8

7. Slum Upgrading PROVINCE SITES UNITS BUDGET (‘000) % of ALLOC.
Eastern Cape
6,823
7,455
816,852
35,63%
Free State
8,874
7,436
595,989
62,00%
Gauteng
11,101
14,618
1,231,251
31,6%
Kwa-Zulu Natal
7,007
8,993
831,855
28.53%
Limpopo
3,300
377
40,731
2.76%
Mpumalanga
7,764
2,527
300,285
31,11%
Northern Cape
200
450
66,550
19.60%
North West
976
3,463
230,399
21.92%
Western Cape
7,731
3,258
407,996
23.65%
Total
53,776
44,008
4,521,908
% National Allocation
28,75%
Informal Settlements Upgrading: The provinces allocated funds to Informal Settlements under the following National Housing Programmes:
Integrated Residential Development Programme
Peoples Housing Process (UISP);
Informal Settlement Upgrading; and
Social and Economic Facilities.
To be noted that, while these numbers may appear at odds with the demand pressure vis-à-vis slum upgrading, it should be noted that consensus still does not exist regarding the manner in which deliverables are determined.
Hence a number of programme deliverables are not included here …

8. Slum Upgrading These targets represent sites + units.
Importantly, it must be remembered that these numbers do not include other greenfields projects that are undertaken via programmes such as IRDP – as much as 20% of the total allocation.

9. Affordable Rental Housing
Province
Sites
Units
Amount (‘000) %
Eastern Cape
641
58,500
2.55%
Free State
630 
97,239
10.11%
Gauteng
580,575
14.5%
Kwa-Zulu Natal
2,967
239,689
8.22%
Limpopo
250
70,000
4.76%
Mpumalanga
944
70,100
7.26%
Northern Cape
373
297
34,608
10.19%
North West
3,730
432
101,907
9.70%
Western Cape
1,007
234,273
13.58%
Total
4,103
7,168
1,486,891
% National Allocation
  9.46%
Noted that some 10% of natl allocation to be spent on rental for the coming year.
Of particular interest is the fact that the provinces containing the major metros of Cpt, Dbn, Jhb, etc. have set aside significant commitments for this year.

10. Affordable Rental Housing
Chart to show provincial contribution.
10% of total allocation toward rental … with major contributors being, Gauteng, KZN and W/Cape.

11. FLISP Province Units Budget % Allocation Eastern Cape 40 500,000 0.2 %
Free State
200
21,000,000
2.18%
Gauteng
Kwa-Zulu Natal
10,000
0.34%
Limpopo 0%
Mpumalanga 79
6,557,000
0.68%
Northern Cape 21
1,764,000
0.52%
North West
144
14,389,712
1.37%
Western Cape
250
16,800,000
0.97%
Total
934
61,020,712
% National Allocation
0.39% 

12. Affordable Hsg Finance
Province
Units
Amount (‘000)
% Allocation
Eastern Cape
449
35,660
1.56%
Free State 0%
Gauteng
14,294
0.36%
Kwa-Zulu Natal
90,000
3.09%
Limpopo
Mpumalanga
279
18,557
1.92%
Northern Cape
4,284
1.26%
North West
144
14,389
1.37%
Western Cape
500 
38,000
2,20%
Total
1,372
215,184
% National Allocation
The allocation for Affordable Housing Finance is a summary of the Individual Housing Programmes (Credit and Non-Credit Linked as well as the FLISP Programme)

13. Acquisition of Land Province Amount (‘000) % Allocation Eastern Cape
30,000
1.31%
Free State
35,168
3.66%
Gauteng
150,000
3.75%
Kwa-Zulu Natal
5.16%
Limpopo
51,464
3.50%
Mpumalanga
3.11%
Northern Cape
North West
24,919
2.37%
Western Cape
2,636
0.15%
Total
474,187
% National Allocation
3.02%

14. Summary of Outcome 8 Priorities
Province
Informal Settlement Upgrading
Affordable Rental Housing Stock
Affordable Housing Finance
Land
Amount (‘000) %
Eastern Cape
816,852
35.63%
58,500
2.55%
35,600
1.56%
30,000
1.31%
Nat allocation
137,571
160,500
22,929
Free State
595,989
62,00%
97,239
10,11%
0.00%
35,168
3.66%
57,697
67,313
9,616
Gauteng
1,231,251
31,60%
580,575
14,50%
14,294
0.36%
150,000
3.75%
240,227
280,264
40,038
Kwa-Zulu Natal
831,855
28,53%
239,689
8,22%
90,000
3.09%
5.16%
174,918
204,071
29,153
Limpopo
40,731
2,76%
70,000
4,76%
51,464
3.50%
88,297
103,013
14,716
Mpumalanga
300,285
31,11%
70,100
7.26%
18,557
1.92%
3.11%
57,908
67,559
9,651
Northern Cape
66,550
19,60%
34,608
10,19%
4,284
1.26%
20,373
23,769
3,396
North West
230,399
21,92%
101,907
9.70%
14,389
1.37%
24,919
2.37%
63,056
73,565
10,509
Western Cape
407,996
23,65%
234,273
13.58%
38,000
2.20%
2,636
0.15%
103,511
120,763
17,252
Total
4,521,908
1,486,891
215,184
474,187
Nat Total
943,558
1,100,817
157,260
% National Allocation
28,75%
9.46%
3.02%

15. NATIONAL PRIORITIES

16. Rectification Province Units Budget % Allocation Eastern Cape 5,700
415,983
18.14%
Free State
1,076
41,425
4.31%
Gauteng
20,004
34,570
0.86%
KZN
3,249
274,590 9%
Limpopo
881
60,684 4%
Mpumalanga
120
3,960
0.41%
Northern Cape
180
11,500
3.39%
North West
1,285
52,683 5%
Western Cape
1,734
34,355 2%
Total
34,229
929,750
47.07%
% National Allocation
5.91% 
Summary of the two Rectification Programmes
Rectification and pre 1994

17. Rural Province Sites Units Budget % Prov Allocation Eastern Cape 5,384
Province
Sites
Units
Budget
% Prov Allocation
Eastern Cape
5,384
5,060
329,377
14.3%
Free State
801
38,849 4%
Gauteng 0%
KZN 42
13,250
813,406
27.9%
Limpopo
12,744
847,694
57.6%
Mpumalanga
5,720
318,000
Northern Cape
200
15,000
4.4%
North West
2,146
2,206
159,734
15.2%
Western Cape
Total
7,597
39,981
2,243,560
% National Allocation
14.27%
Consist of Rural and Farm worker Assistance

18. National Priority Target
Priority projects
Province
Town
National Priority Target
Provincial Planned
% Prov Allocation
Eastern Cape
Duncan Village
103,458
157,710
6.87%
Gauteng
Lufhereng
172,430
65,000
1,62%
Diepsloot
86,215
40,970
1.02%
Sweetwaters
43,107
37,086
0.92%
Khutsong
90,526
41,313
1.03%
Sub Total
392,277
298,863
4.75%
KZN
Cornubia
113,804
56,000
1.92%
Limpopo
Lephalale
274,888
226,531
15.39%
Western Cape
Drommedaris
59,130 0%
Total
943,558
581,394
% National Allocation
3.69%
[1] Gauteng has not provided information on the Lufhereng project therefore no allocation is provided.

19. Disaster Relief Province Sites Units Budget % Allocation Eastern Cape
327
121,572
5.30%
Free State
1,674
102,572
10,67%
Gauteng
KZN
1,680
82,790
2.84%
Limpopo 99
5,709
0.39%
Mpumalanga 60
3,600
0.37%
Northern Cape
16,949
4.99%
North West
139
120
8,073
0.77%
Western Cape
29,700
1.72%
Total
3,960
370,965
% National Allocation
 2,36%
The information was sourced from the Emergency Housing Assistance Programme

20. PROVINCIAL PRIORITIES

21. Provincial Priorities
Eastern Cape
Slums 35.63%
Rental 2.55%
FLISP 1.10%
Aff. Finance 1.50%
Land 1.30%
Rect. 17%
Rural 14.30%
Disaster 5.30%
Priority 3%
Other 18.32%
Northern Cape
Slums 2.07%
Rental 2.28%
FLISP 0.52% Aff.
Finance 1.10%
Land 0%
Rect. 3.39%
Rural 4.40%
Disaster 5.74%
Priority 0% Other 80.50%

22. Provincial Priorities
Free State Slums 27.70% Rental 6.41% FLISP 2.18% Aff. Finance 2.29% Land 3.66% Rect. 4% Rural 4.00% Disaster 3.16% Priority 0% Other 46.29%
Mpumalanga Slums 4.72% Rental 7.00% FLISP 0.68% Aff. Finance 1.90% Land 4% Rect. 0.41% Rural 4.00% Disaster 0.37% Priority 0% Other %

23. Provincial Priorities
North West Slums 7.17% Rental 6.72% FLISP 1.37% Aff. Finance 1.00% Land 2.30% Rect. 5% Rural 15.20% Disaster 0.77% Priority 6.52% Other 53.95%
Limpopo Slums 1.27% Rental 4.60% FLISP 0.00% Aff. Finance 0.00% Land 4% Rect. 4.00% Rural 57.60% Disaster 0.39% Priority 0% Other 28.44%

24. Provincial Priorities
KZN Slums 10.66% Rental 17.78% FLISP 0.34% Aff. Finance 3.09% Land 3.75% Rect. 9% Rural 27.90% Disaster 2.84% Priority 1.60% Other 23.04%
Western Cape Slums 12.71% Rental 15.44% FLISP 0.97% Aff. Finance 0.00% Land 0.15% Rect. 2.00% Rural 0.00% Disaster 1.72% Priority 0% Other 67.01%

25. Provincial Priorities
Gauteng Slums 21.80% Rental 38.27% FLISP 0.00% Aff. Finance 0.36% Land 3.75% Rect. 0.86% Rural 0.00% Disaster 0.00% Priority 7.32% Other 27.64%

26. USDG/HSDG Allocations in Metros
TOTAL
(‘000)
Amount
% of
Allocation
Buffalo City
499,474
241,170
10.52%
740,644
Nelson Mandela
592,870
400,971
17,49%
993,841
Mangaung
485,967
197,365
20,52%
683,332
Ekurhuleni
1,290,748
848,027
21%
2,138,775
Jo’burg
1,212,537
726,379
18.1%
1,938,916
Tshwane
1,051,070
700,731
17.5%
1,751,801
eThekwini
1,287,561
751,819
25.7%
2,039,380
Cape Town
971,980
1,059,429
61.3%
2,031,409
7,392,207
4,925,891
12,318,098
% National Allocation
31,32%

27. NATIONAL SUMMARY

28. Summary: HSDG-2012 PROGRAMME BUDGET % ALLOCATION Outcome 8 5,860,256
37%
Slum Upgrading
4,521,908
29%
Affordable Rental Housing Stock
1,486,891 9%
Affordable Housing Finance
215,184 1%
Acquisition of Land
474,187 3%
National Priorities
4,186,689
27%
Rectification
929,750 6%
FLISP
61,020
<1%
Rural
2,243,560
14%
Disaster
370,965 2%
Priority Projects
581,394 4%
Other
5,679,015
31%
Total
15,725,960
I HAVE INCLUDED THE TABLE HERE AS IT DOES NOT DISPLAY WELL IN THE NOTES.
There is a shortfall of 1,505,827
We have the same problem in the National Plan.

29. Summary: HSDG – 2012/13
HSDG: National Slums 24.00% Rental 9.00% Aff. Finance 1.00% Land 3.00% Rect. 6.00% FLISP 1.00% Rural 14.00% Disaster 2.00% Priority 3.00% Other 37.00%
Other consist of the following programmes:
Extended Enhanced Discount Benefit Scheme
State Asset Maintenance
Social and Economic Facilities
Accreditation
Operational Capital Budget
Blocked Projects
NHBRC
Housing Chapters of IDP
Project Linked
IRDP Phase 1 and 2 excluding Informal Settlements
PHP excluding Informal Settlements
Consolidation subsidies both blocked projects and excluding blocked projects.
Provincial Specific (programmes (policy) developed by province ie Backyard Rental.

30. THANK YOU