1. PROGRESS: OUTCOME 8 OF THE PROGRAMME OF ACTION
PRESENTATION TO SELECT COMMITTEE ON PUBLIC SERVICES: 5 NOVEMBER 2013

2. CONTENT OF PRESENTATION
OBJECTIVE OF OUTCOME 8
OUTPUTS AND TARGETS SET
PROGRESS:
Upgrading of Informal Settlements
National Support Programme (NUSP)
Well-located rental accommodation
Accreditation of Municipalities
Efficient utilisation of land for Human Settlements development
Improved property market

3. CONTENT OF PRESENTATION
OBJECTIVE OF OUTCOME 8: TO CREATE SUSTAINABLE HUMAN SETTLEMENTS AND IMPROVED QUALITY OF LIFE THROUGH:
Upgrading of households in informal settlements with access to secure tenure rights and basic services;
Implementation of a National Support Programme (NUSP)
Delivery of well-located and affordable rental accommodation;
Declaration of Restructuring Zones
Accreditation of 27 municipalities to undertake human settlements functions;
Efficient utilisation of state land for human settlements development;
Improved Property Market (Mortgage Default Insurance Scheme, Finance Linked Individual Subsidy, Loans granted by Finance Development Institutions

4. UPGRADING OF INFORMAL SETTLEMENTS
The Delivery Agreement makes provision for each Province to deliver a specific portion of the households targeted;
Targets and budget amounts for each financial year are contained in the provincial business plans en municipal built environment plans;
Various human settlements programmes utilised for this purpose such as the Upgrading of Informal Settlements (UISP), Integrated Residential Development Programme(IRDP), People’s Housing Process (PHP), Rural Housing Programme and Emergency Housing Programme;
Various funding streams are utilised for this purpose such as the Human Settlements Development Grant (HSDG), Urban Settlements Development Grant (USDG), Municipal Infrastructure Grant (MIG), Rural Housing Development Grant (RHIG) and Municipal/ Metropolitan own funding;

5. UPGRADING OF INFORMAL SETTLEMENTS
Performance comprises all forms of assistance that improve the lives of residents in informal settlements through access to basic services such as water, sanitation, electricity, refuse removal and access roads;
Access to at least two of the main services (water and sanitation), both individual and shared access to households that are residing in informal settlements either through in-situ upgrading or relocation – also other variations such as a top structure (shelter) and sanitation – both urban and rural areas;
Security of tenure – represents various stages of security of tenure such as a title deed, permission to occupy as well as other forms of tenure that recognises the right of an individual household to a specific piece of land;

6. UPGRADING OF INFORMAL SETTLEMENTS
Number of households provided with upgraded services as on 30 September 2013: households.
Represents 65.9% of 2014 target
Over same period Provinces delivered formal housing units to households in informal settlements – estimated that constructed on newly serviced sites;
Therefore total number of households provided with upgraded services:
Representing 95.7% of 2014 target

7. OUTCOME 8 : UPGRADING OF INFORMAL SETTLEMENTS (INCLUDING USDG)
PROVINCE
2014
TARGET
TOTAL DELIVERY (30 SEPTEMBER 2013)
% OF TARGET
INCLUDING TOP STRUCTURES ON NEW SITES EC
59 440
38 222
64.3
51 821
87.2 FS
26 400
24 475
92.7
36 948
139.9 GT
96 760
63 810
65.9
105.7
KZN
78 200
39 279
50.2
59 247
75.8 LP
31 200
20 709
66.4
23 083
74.0 MP
26 480
17 389
65.7
24 984
94.4 NC
9 320
11 819
126.8
15 659
168.0 NW
28 840
13 900
48.2
25 316
87.8 WC
45 360
34 159
75.3
47 519
104.8
TOTAL
66.0
96.8

8. NATIONAL UPGRADING SUPPORT PROGRAMME
Need identified in Provinces and Municipalities to categorise informal settlements (determine number of households, suitability of location, in-situ upgrading or re-location) and to develop upgrading strategies and specific informal settlement upgrading plans;
Therefore the National Department of Human Settlements introduced the National Upgrading Support Programme;
Technical assistance for upgrading of informal settlements in place in 43 Municipalities to date:
EC: Buffalo City (26 settlements): SLA being concluded with service provider; TOR submitted to Bid Specification Committee for Amahlathi, Elundini, Mhlonto and Mquma Municipalities; NMM: Negotiations in advanced stage ;
FS: Categorisation and mapping under way in six NUSP Municipalities;
GT: Categorisation underway in 21 settlements in City of Johannesburg, 66 settlements in Mogale City and 18 settlements in Ekurhuleni, SLA ‘s being concluded with service provider for City of Tshwane (30 settlements and Emfuleni (24 settlements);

9. NATIONAL UPGRADING SUPPORT PROGRAMME
KZN: Service providers on site to conduct classification in Ladysmith: Newcastle (10 settlements) and Mzundusi (72 settlements); TOR approved by Bid Specification Committee for 20 settlements in Ethekwini; TOR for Umhlatuzi (7 settlements) was advertised on 18 October 2013 and further engagements are planned for KwaDukuza ;
LP: Developing of specific upgrading plans underway and additional 10 Municipalities identified for the same exercise;
MP: Service provider finalising classification in Govan Mbeki (43 settlements); TOR for Emalahleni (29 settlements) submitted to Bid Specification Committee; Agreement with TOR awaited from Thembisile (9 settlements), Steve Tshwete and Lekoa;
NC: Service provider busy with categorisation and detailed upgrading plans in Gamagara (2 settlements), Phokwane (7 settlements), Sol Plaatje (28 settlements) and Tsantsabane (5 settlements); List of settlements to be confirmed in //Kara Hais and Ga-Segonyana, :

10. NATIONAL UPGRADING SUPPORT PROGRAMME
NUSP:
NW: Rustenburg: SLA’s to be concluded with service provider for categorisation and detailed settlement plans in Rustenburg (10 settlements), Madibeng (30 settlements); TOR advertised for another 8 settlements, : TOR submitted to Bid Specification Committee for Tlokwe, Kgetlengrivier and Maquassi Hills – will form one contract; and
WC: Drakenstein: Service provider appointed to produce development frameworks for 25 informal settlements in the COCT; 32 settlements in Drakenstein; SLA’s in the process of concluding in George (12 settlements) and Mossel Bay to produce development frameworkd and update master plan; TOR submitted to Bid Specification Committee in Stellenbosch (Nkanini and Langrug) while confirmation is awaited for the confirmation of the list of settlements in the Theewaterskloof

11. INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION
Number of Rental Units delivered through HSDG up to 30 September 2013: units;
Programmes utilised: Social Housing Programme, Community Residential Unit Programme (CRU) and the Institutional Housing Subsidy Programme;
Represents 41.3% of 2014 target
Including USDG: Increased to units
Represents 46.5% of 2014 target
Over same period private rental units delivered: units
Total number delivered: units representing 59.4% of 2014 target
SHRA:
Completed Projects: 2143 units
Running Projects: units
Approved pipeline and in various planning stages: units

12. INCREASED PROVISION OF WELL-LOCATED RENTAL ACCOMMODATION
PROVINCE
TOTAL DELIVERY
% OF 2014
TARGET EC
3 065
25.8 FS
3 519
66.6 GT
10 678
55.5
KZN
8 677
56.9 LP
197
3.2 MP
739
14.0 NC
101
5.4 NW
2 868
49.7 WC
8 688
95.8
Total
37 189
46.5

13. WELL-LOCATED AFFORDABLE RENTAL ACCOMMODATION
Revision of CRU, Social and Institutional Policies currently receiving attention as well as Low-income Rental Policy (Backyard) is being developed in consultation with SALGA;
Restructuring Zones: 75 approved and 55 still under discussion- a number of smaller towns have been identified as restructuring zones for expansion of the social housing programme;
Agreements signed with all Provinces and provincial Steering Committees in place to ensure increased geographical spread of Social Housing Institutions including Limpopo which was under represented
Establishment of rental tribunals in Provinces and advisory offices within municipalities will be investigated to enhance institutional and regulatory capacity.
In order to respond to the funding challenges a social housing programme budget review will be undertaken

14. ACCREDITATION OF MUNICIPALITIES
Performance to date:
Level 1: 8 District Municipality/Municipalities;
Level 2: 8 Metros, 12 District Municipalities/Local Municipalities
Implementation Protocols concluded: 24 Municipalities
Assignment (Level 3 accreditation) of Metros: FFC response identified a number of operational issues that are currently receiving attention.
The target date for signing the Executive Assignment Agreement is still being negotiated

15. OUTPUT 3: EFFICIENT UTILISATION OF LAND FOR HUMAN SETTLEMENTS DEVELOPMENT
Actual delivery:
,9 ha of state land identified for assessment and
70 934,8 ha thereof assessed for suitability for release;
7 587,4 ha well located land has been released (FS, GP,KZN,LP+NW) for the extension of existing settlements, land tenure upgrading, integrated development or GAP market while 1 336,4 ha has been acquired;
PHSD’s (private land acquired): ,9 ha
National Land Assembly Strategy for Human Settlements and accompanying land pipeline is being developed to:
Facilitate forward planning;
Justify proper funding;
ensure focus on national priorities and avoid missed opportunities;
14 implementation protocols concluded with various organs of State;

16. Actual delivery: continues……
OUTPUT 3: EFFICIENT UTILISATION OF LAND FOR HUMAN SETTLEMENTS DEVELOPMENT
Actual delivery: continues……
3 Medium term Operational Plans signed with Limpopo, Free State and Northern Cape setting out the support the Agency will provided over a three year period;
4 implementation protocols are currently pending (Gauteng PHSD, KwaDukuza Local Municipality, Buffalo City Metro and Free State PHSD including Mangaung Metro)
Challenges experienced:
Capital funding for acquisition;
Land release turn-around time;
Company interest on land;
Land claims on some prioritised properties;
Lack of planning and preparation for acquisition and release of land

17. OUTPUT 4: IMPROVED PROPERTY MARKET
Target is to provide housing finance opportunities to households in the GAP market;
Contributors: Development Finance Institutions (NHFC, NURCHA, RHLF), Banks, Credit-linked subsidies, Financed Individual Housing Subsidy Programme (FLISP) and Employer Assisted Housing Programmes;
Other interventions initiated to assist with reaching this objective:
Mortgage Default Insurance Scheme: Concurrence from the National Treasury for MDI is still outstanding;

18. OUTPUT 4: IMPROVED PROPERTY MARKET
Revised FLISP Policy implemented on 1 April 2012;
MOUs between NHFC and four banks signed to actively support the implementation of the programme.
Programme rolled out in EC, NC, GT, NW and FS while KZN, WC and LP started collaboration with NHFC in second quarter of current financial year – 36 FLISP projects approved representing units;
Total number of units delivered: 338 households assisted – Bank bond finance of R46 million committed against FLISP approvals;
Various marketing and communication initiatives (covered 215 municipalities) were launched to promote awareness of FLISP programme – includes 164 employer associations

19. OUTPUT 4: IMPROVED PROPERTY MARKET
An amendment to the revised policy has been proposed to address implementation problems:
Scrap maximum value cut-off margin;
Increase minimum subsidy quantum payable by R20 000;
Increase differential income increment band category;
Introduce open market payment subsidy route;
Amend claw back mechanism; and introduce mechanism to exclude FLISP form pre-emptive right
Long term fixed interest rate instrument
Planned for launching in 2014

20. OUTPUT 4: IMPROVED PROPERTY MARKET
Rationalisation of Development Finance Institutions:
Feasibility study and business case completed;
Service provider appointed to prepare the Legal Due Diligence;
Process to appoint service provider for legal drafting of Bill is being finalised
Loan funding from Banks:
Number of housing finance opportunities contributed by Banks: 2010/11 (28 952), 2011/12 (21 008), 2012/13 (44 812) Total: opportunities – remarkable increase in 2012/13 financial year can be attributed to increase of household income ceiling to R15 000;
Housing Finance Sector consultative meeting planned for mid-November 2013 with a view to introduce more robust policy instruments

21. PERFORMANCE : DEVELOPMENT FINANCE INSTITUTIONS: LOANS GRANTED
TOTAL DELIVERY
% OF 2014 TARGET
NHFC (Mortgage Loans)
1 938
100.5
NHFC (Incremental Loans)
12 968
31.9
NHFC (Wholesale funding)
26 841
68.2
NHFC (Leverage)
35 616
277.4
RHLF
82.8
NURCHA
8 357
75.7

22. OUTPUT 4: IMPROVED PROPERTY MARKET
INSTITUTION
NUMBER OF LOANS
DFI’s
Banks
94 772
Employer assisted housing
644
Total
(Representing 55,3% of target)

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