1. TITLE RESTORATION PROJECT: Progress Report Briefing to Portfolio Committee 27 October 2015

2. Presentation Index Institutional Arrangements Current Conjuncture
Accountability, Project Management & Reporting
Current Conjuncture
Recent Registration Figures & Trends
Current Registration Backlogs
Towards Implementation
Target-setting, Funding the Registration Backlog
Implementation Plans
Proposed Policy Amendments

3. Institutional Arrangements
Since initial pronouncement, ensure alignment of all resources attached to project.
Understood that said resources be located in one place:
Funding
Project Management
Secretariat

4. Institutional Arrangements
Centralized vs Decentralized Debate
Largely determined by Funding Source
Confirmed that HSDG to fund registration backlog.
Specific DORA prescripts that govern how Grants are disbursed.
By implication, Provinces [& Metros] need to procure for any capital expenditure.
Decidedly hands-on support by NDHS
Programme Management
Project Support

5. Institutional Arrangements
Overall accountability resides with Minister & National Department of Human Settlements;
In support thereof, EAAB will avail project management and secretariat support; &
Official reporting line: through Office of DDG: Strategy & Planning, NDHS.

6. Institutional Arrangements
MinMec
Tech. MinMec
TRP
Project Team
(NDHS & EAAB)
National
Steering Comm.
9x Provincial
Steering Committees
Logistic Support
Contract Management
PRTs
Korbitec
Inst. Support
Govt Depts
Proffessional Inst.
Research Inst.

7. CURRENT CONJUNCTURE: Recent Registration Trends Current Registration Backlogs Provincial Plans: Registration Anomaly

8. Recent Registration Trends
Registrations have increased
49% in 2009
from
60,5% in 2014!!! to
Registrations for 2014/15
140,000 Units Delivered
71,000 Registered!!
of which

9. Registration Backlog: Delivery
2014/15
2015/16
TOTAL
Planned
Delivered*
Pre ’94 stock
1,435
6,100
8,750
10,185
Post ‘94 stock
25,700
52,302
23,863
49,563
Total
27,135
58,402
32,613
59,748
* As at Sept

10. Handover Schedule: 2015/16 EC: BCM - 1700 EC: NMBM Intervention - 2298
FS: >1000
Gauteng: >4000 pre’94 units
NW: 11,500
Limp: >1300, of which 126 are pre’94 stock

11. Backlog & Targets as at 14 July 2014
PROVINCE
REGISTR.
BACKLOG
MTEF TARGET
( )
% of Backlog
SHORTFALL
Eastern Cape
102,771
24,900
24%
77,811
Free State
78,598
39,262
50%
39,336
Gauteng
165,711
39,000
126,711
KZN
136,594
98,065
72%
37,469
Limpopo
22,208
22,605
100%
Mpumalanga
81,021
80,100
Northern Cape
31,893
33,818
North West
79,381
56,471
71%
22,910
Western Cape
78,871
36,700
59%
32,171
TOTAL
775,928
440,921
57%
338,637
REMOVE THIS SLIDE, OR ALTER TO ONLY REFLECT THE BACKLOG!!!

12. Current Conjuncture
While registrations have increased, significant backlog remains.
From 49% in 2009, to 60% in 2014.
140,000 delivered vs 71,000 registrations in 2014/15.
Registration backlog remains unconfirmed.
Mindful of recurring backlog, re. Current Projects.
PDHS targets low:
441,000 over MTEF;
57% of Backlog

13. TOWARDS IMPLEMENTATION: A Different Way of Doing Business Funding the Backlog Beneficiary Reconciliation Policy Amendments Regulatory & Institutional Reform

14. Funding Commitments Backlog: 776,000
R1, per site, to include:
Township Establishment, Ownership Contestations, Conveyancing, etc.
Estimated cost: R1,4 Billion
Funding from HSDG Allocation
Specific amounts ring-fenced & stated in DORA,
Inputs made to draft Grant Framework for HSDG.
Tentative amounts already provided, and supported by National Treasury

15. Outstanding Transfers
3. Funding Commitments
Province
Outstanding Transfers
Cost
PRE-94
POST-94
SUB-TOTAL
(‘000)
Eastern Cape
24,533
78,178
102,711
184,880
Free State
1,531
77,067
78,598
141,476
Gauteng
12,808
152,903
165,711
298,280
KZN
26,018
109,516
135,534
243,961
Limpopo
568
21,640
22,208
39,974
Mpumalanga
100
80,921
81,021
145,838
Northern Cape
3,075
28,818
31,893
57,407
North West
22,910
56,471
79,381
142,886
Western Cape
12,000
66,871
78,871
141,968
TOTAL
107,173
672,385
775,928
1,396,670
These are the amounts that are proposed be listed in DORA that are to be ring-fenced per Province.

16. Implementation Strategy
PROVINCE
STRATEGY/ CAPACITY
Eastern Cape
Multi-disciplinary team consisting of Provincial COGTA, SG’s Office & Deeds Registry and the ECDOHS established has been set up with a view to visit municipalities to identify and facilitate resolution of challenges on site.
Specific interventions in both Metros.
Panel of conveyancers established.
Free State
D: Informal Settlements & Land Tenure responsible for administration of project.
Appointment of Service Providers
Database of 14 conveyancing firms
4606 instructions from backlog issued equitably to firms
Gauteng
D: Asset Disposal & Regularization
Panel of Conveyancers
Adjudication Team
Adjudication Managers

17. Implementation Strategy
PROVINCE
STRATEGY/ CAPACITY
KwaZulu-Natal
Internally, with support of HDA:
Land Admin, Land Assembly & Plng
Panel of 14 conveyancers will effect all transfers once readied for transfer after process of attendance to land-legal matters .
Limpopo
Reliant of External Capacity
2 Services Providers already appointed to tfr some 3,000 properties.
In process of doing same for further 700 properties.
N/Cape, W/Cape, Mpumalanga
Ditto
North West
Appointment of Service Providers
Department has appointed PMU to conduct an occupancy survey on the backlog and to proceed with conveyancing
Internal Capacity
The Department has Regional teams and Inspectors to assist the PMU with the Title Restoration Project.
Pre ‘94 stock managed by NW Housing Corporation.

18. Provincial Plans & Arrangements
Notwithstanding Provincial interventions:
Critical to give traction to eradication
PDHS to commission/develop Provincial Implementation Plans
To be oncluded by November 2015.
Appoint Provincial Implementing Agents

19. Provincial Plans & Arrangements
Review:
Exact backlog, per category, per municipality;
Nature & extent of each type of blockage;
Capacity & institutional constraints.
Implementation Plan:
Targets, timeframes, and costs for next three financial years;
Indicate nature & volume of work to be undertaken internally, along with work that is to be outsourced.
Provincial Implementation Teams tasked with actioning Plans

20. Towards Implementation
Backlog Confirmation Numbers:
End of Oct. 2015
Provincial Implementation Plans
Targets, Cash-flows, Deliverables
End of Nov. 2015
2016/17 HSDG B/Plans
M&E, and Reporting

21. Proposed Policy Amendments
Due attention is still not being given to close-out of projects.
Recurring registration backlog, address the causal factors from policy aspect.
2002: Delinking of Housing Subsidy from [Confirmed] Beneficiary List; and
2004: Removal of Sequential Milestone Payments from Housing Delivery Value Chain.

22. Proposed Policy Amendments

23. Proposed Policy Directive
Not intented to reverse past policy decisions. However, unintended consequences need to be addressed:
Final NHBRC sign-off is only done after lodgement of papers;
Final tranche amount to be increased to a minimum of R2, per subsidy, and only paid over once the Title Deed has been registered.

24. Regulatory & Institutional Reform
Important that State & Finance Institutions supportive of lower end of residential market.
Failure to do so, may well result in return to informality.
Recent Peruvian Experience:
Huge Title Restoration Drive
De Soto, & the Revival of Dead Capital
However, the process and cost of transacting proved both too Complex and Costly …
As a consequence, many have returned to informal trading of property

25. Regulatory & Institutional Reform
Transactional costs- & processes seen as too complex & costly.
Commission work:
Develop more streamlined systems of bulk registration of properties;
Investigate and make proposals for less complex methods of land surveying;
Understand and establish alternative forms of secure tenure

26. Thank You