1. DEPARTMENTAL PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES
08TH MAY 2015
DIRECTOR- GENERAL: T. ZULU
Confidential

2. Purpose
The purpose of the presentation is to brief the Select Committee on the Department’s :
Strategic Plan for the Medium Term Expenditure Framework (MTEF) and
Annual Performance Plan

3. TABLE OF CONTENT Background Departmental Strategic Plan
Macro Performance Indicators
Strategic Goals by Programme
Departmental Annual Performance Plan
Delivery Agreements
Budget
Delivery Targets

4. Background
The National Development Plan (NDP) in Chapter 8 outlines a vision for human settlements and housing towards 2030.
The emphasis in the NDP is on a government-led strategy to fast-track the development of housing and human settlements whilst at the same time improving the quality of life of citizens.
The Department Medium Term Strategic Framework for prioritises the delivery 1,460 million housing opportunities in partnership with the private sector, all stakeholders and communities.
The human settlements development programme must in the next five years be a catalyst for radically transforming the national space economy in order to achieve measurable results by 2030.

5. Background
The radical spatial transformation must ensure that poverty, unemployment and inequality must be addressed in the programmes and funding applied by the human settlements sector.
The delivery approach will focus on mega projects of integrated housing mix to cater for different incomes levels and needs and includes housing opportunities for:
the indigent, affordable housing sector, rental units, social housing and serviced stands and
will ensure integration of different income groups,
different races and lead to the building of a South Africa that truly belongs to all.

6. STRATEGIC PLANS

7. Macro Performance Indicators
Macro Indicators
Strategic Goal or Programme Most Closely Linked to the Achievement Indicator
Target Estimates
2015/16
2016/17
2017/18
Clean Audit
Programme 1: Administration
Purpose:
Provide strategic leadership, governance oversight and essential support and promote a compliant and well-functioning department & agencies 1
Revised Housing Act and Housing Code
Programme 2: Human Settlements Strategy, Policy and Planning
Purpose
Manage the development of human settlement policies, strategies & planning

8. Macro Performance Indicators
Macro Indicators
Strategic Goal or Programme Most Closely Linked to the Achievement Indicator
Target Estimates
2015/16
2016/17
2017/18
Programme 3: Programme Management Unit
Purpose
Build, oversee, support & monitor the sector institutional capability & capacity to deliver human settlement programmes & projects
.3 mill opportunities
Programme 4: Housing Development Finance
Provide funding for the delivery of all human settlements programmes in line with approved policies, planning and strategies
R30.9 bill
R33.2 bill
R35.2 bill

9. Strategic Goals By Programmes
Programme & Purpose
Programme 1: Administration
Purpose:
Provide strategic leadership, governance oversight and essential support and promote a compliant and well-functioning department & agencies
Strategic Goal
Provide strategic leadership, governance oversight and essential support and promote a compliant and well-functioning department & agencies
Strategic objectives
1. To provide Human Resources services to the Department
2. Provide effective and efficient communication services to ensure the understanding
of the MTSF objectives
3. Information Management System and Information Technology
4. Effective and efficient legal support
5. Provide advice on risk management internal controls and governance issues
6. To provide Corporate Support Services
7. To the Department Oversee the enhancement of human settlements operations
through effective enterprise architecture service
8. To provide financial management services
9. Provide advisory services to the Department on matters relating to Parliamentary
oversight committee services, project quality assurance and integration
10. Provide executive support to Ministry
11. Provide executive support to the office of the Director General

10. Strategic Goals By Programmes
Programme & Purpose
Programme 2: Human Settlements Strategy, Policy and Planning
Purpose
Manage the development of human settlement policies, strategies & planning
Strategic Goal
Development of human settlements policies, strategies & planning towards promoting adequate housing and improved quality living environments
Strategic objectives
1. Evaluate, review and improve existing housing instruments and subsidy regime to
better direct housing and human settlement investments, fast track delivery and
ensure affordability and diversity of the product and finance options
2. Develop policy and administrative systems that support individual transactions in
the affordable secondary housing market
3. Strengthen programme for the accreditation of municipalities
4. Develop a monitoring and support programme for municipalities that have been
accredited
5. Increase the supply of housing opportunities using different tenure types to ensure
the diversity necessary to address social, economic and cultural needs
6. Increase Participation of stakeholders in housing development
7. Strengthen current mechanism to mobilise private sector to contribute to human
settlements development
8. Develop horizontal and vertical consultative mechanisms among spheres of
government
9. Review Planning System to achieve better spatial targeting
10. Issuing of title deeds form part of housing development process

11. Strategic Goals By Programmes
Programme & Purpose
Programme 3: Programme Management Unit
Purpose
Build, oversee, support & monitor the sector institutional capability & capacity to deliver human settlement programmes& projects
Strategic Goal
Ensure that human settlement programmes and projects are executed in a manner that provide access to adequate housing in improved living environments for all
Strategic objectives
1. Build & ensure institutional capabilities and capacity for execution & delivery of
transformed human settlements & better spatial targeting
2. Develop bolder measures to execute & implement sustainable human settlements provide
access to adequate housing in improved living environments for all
3. Monitor & evaluate the execution & delivery of human settlement projects & programmes
to assess and report on the extent of access to adequate housing in improved living
environments for all
4. Intensify homeownership education programmes for the affordable housing market
5. Implement projects that ensures spatial, social and economic integration
6. Analysis of new housing units constructed in the entire residential property market
7. Effective support and monitoring of entities
8. Fast track release of well-located land for housing and human settlements targeting poor
and lower middle income household

12. Strategic Goals By Programmes
Programme & Purpose
Programme 4: Housing Development Finance
Purpose
Provide funding for the delivery of all human settlements programmes in line with approved policies, planning and strategies
Strategic Goal
Strategic objectives
1. Develop minimum standards and finance options for investment in
public spaces
2. Diversify finance options and products for the affordable gap market in
particular
3. Increase in the number of properties in the subsidy housing submarket
entering the municipal rates roll
4. To manage and provide overall grants management services;
administer the Home Loan and Mortgage Disclosure Act and promote
investments
5. Collect, analyse and disseminate information on property trends and
values in the affordable housing market
6. Establish transactional support for affordable housing market
7. Monitor and reporting transactions in the secondary housing subsidy
submarket

13. ANNUAL PERFORMANCE PLANS

14. Outcome 8 Delivery Agreement
Background
The objective of the Outcome 8 Delivery Agreement is to ensure the implementation of the comprehensive human settlements programme with multiple projects that covers extensive geographical spread aiming to improve the workings of the space economy. This will be achieved by realisation of the following outcomes:
Providing poor households with adequate housing in better living environments;
Supporting the development of functionally and equitable residential property market;
Improving the institutional capacity & coordination for better spatial targeting
Confidential

15. Outcome 8 Delivery Agreement
Housing Delivery: In terms of the Outcome 8 MTSF for Human Settlements, a total number of 1,46 million housing opportunities will be delivered over the MTSF period of five years. The 1,46 million housing opportunities will consist of:
households in informal settlements upgraded;
individual units for subsidy market;
loans ( FLISP plus DFIs)
social housing;
CRU;
affordable rental
Other targets
2 200 informal settlements will be assessed,
ha of well-located land will be rezoned and released for new developments targeting poor and lower to middle income households,
Confidential

16. Outcome 8 Delivery Agreement
50 catalytic projects will be implemented, title deeds will be issued to new homeowners in the subsidy market; and
The title deeds backlog of will be eradicated.
For purposes of the Delivery Agreements, the targets of each Provincial Department in terms of the various objectives will have to be formally agreed and approved by Human Settlements MINMEC;
The Provincial Departments have been requested to revise their business plans to focus on the priorities as set out in the MTSF;
30% Houses delivered by Women
1956 Houses per Province for delivery in Womens’ Month
10% Houses delivered by Youth in terms of the Youth Brigade Programme
5000 Housing Units for Military Vets
Hosting Provincial Social Contracts Forums
Hosting of Provincial Govan Mbeki Awards
Establishing Inter-Sectoral structures and supporting other sector Departments structures
Confidential

17. Budget

18. MTEF allocation
The budget of the Department was negatively affected by the economic downturn.
The Department’s total allocation for the 2015/16 financial year amounts to R30.9 billion a decrease of R1.9 billion from the previous baseline of R32.8 billion.
The allocation is projected to grow over the 2015 MTEF period to R35.2 billion in 2017/18.

19. Summary
Operational budget of the National Department constitute 2% of the total allocation.
Grants constitute 93% of the total allocation.
Transfer payments to public entities constitute 5% of the total allocation.

20. Allocations over the 2015 MTEF period
Net Effect on Departmental Budget
MTEF
Total
R`000
2015/16
2016/17
2017/18
Departmental Baseline from 2014/15 MTEF
Plus Additional Allocation (Consolidated)
Minus Reduction in Allocation (Consolidated)
( )
( )
( )
( )
Revised Baseline

21. Additional allocations (Consolidated)
Additional Allocation (Consolidated)
2015/16
R`000
2016/17
2017/18
Total
MTEF
Housing Development Agency
National Urban Reconstruction and Housing Agency
61 000 -
Rural Housing Loan Fund
50 000
National Housing Finance Corporation

22. Reduction in Allocation (Consolidated)
2015/16
R`000
2016/17
2017/18
Total
Departmental Operational
(81 244)
(99 982)
( )
( )
Compensation of employees
(54 726)
(58 052)
(63 947)
( )
Goods and services
(6 398)
(21 605)
(23 797)
(51 800)
Payment for Capital assets
(120)
(325)
(358)
(803)
National Upgrading Support Programme (Moved to HDA)
(20 000)
(60 000)
Grants
( )
( )
( )
( )
Urban Settlements Development Grant
( )
( )
(85 331)
( )
Municipal Human Settlements Capacity Grant
( )
( )
Human Settlements Development Grant
( )
( )
( )
( )

23. Reduction in Allocation (Consolidated) cont.
2015/16
R`000
2016/17
2017/18
Total
Entities
( )
( )
( )
( )
Social Housing Regulatory Authority: Restructuring Capital Grant
( )
( )
Social Housing Regulatory Authority: Operational
(21 617)
(10 457)
(2 398)
(34 472)
Community Schemes Ombuds Services
(13 479)
(4 080) -
(17 559)
Housing Development agency
(28 432)
(42 648)
(71 080)
Sanitation moving to Department of Water and Sanitation
( )
( )
( )
( )
Sanitation Operational
(91 153)
(83 290)
(88 037)
( )
Human Settlements Development Grant: Indirect
( )
Rural Households Infrastructure Development: Indirect Grant
(67 328)
Rural Households Infrastructure Development: Direct Grant
(51 000)
( )
( )
( )
( )
( )
( )
( )

24. Net impact on the Department’s budget over the MTEF period
2015/16
R`000
2016/17
2017/18
Total MTEF
Departmental Baseline 2014/15 MTEF
Revised Baseline 2015/16 MTEF
Increase/(Reduction)
( )
( )
( )
( )

25. Allocation over MTEF by Programme
2015/16
R`000
2016/17
2017/18
Total MTEF
1. Administration
2. Human Settlements Policy, Strategy and Planning
74 337
79 252
83 760
3. Programme Delivery Support
4. Housing Development Finance
Total

26. Net impact
The net impact over the MTEF on the Department’s budget is a reduction of R4 billion which is mainly made up of the following:
R1.6 billion is due to the transfer of Sanitation to Department of Water and Sanitation.
R2.1 billion reduction on Grants allocation.
R722 million reduction on the transfer to Departmental Entities allocation.
R289.3 million reduction on operational budget.

27. Allocation over MTEF by economic classification
Total allocation
2015/16
R`000
2016/17
2017/18
Total MTEF
Departmental Operational
Compensation of employees
Goods and services
Payment for Capital assets
3 983
4 193
4 400
12 576
Payments for financial assets
Grants and transfer payments
Grants
Human Settlements Development Grant
Urban Settlements Development Grant
Municipal Human Settlements Capacity Grant
Entities
Social Housing Regulatory Authority: Operational
34 560
36 392
38 212
SHRA: Capital Restructuring Grant
Housing Development Agency
Community Schemes Ombuds Services
39 521
23 920
29 400
92 841
National Housing Finance Corporation
Rural Housing Loan Fund -
50 000
National Urban Reconstruction and Housing Agency
61 000
SHRA: Institutional Investment Grant
41 936
40 183
38 490
Departmental Transfers
9 913
10 612
11 140
31 665
Bursaries Scheme
8 719
9 355
9 822
27 896
UnHabitat
1 150
1 211
1 272
3 633
Transfer to Households 44 46
136
Total

28. Human Settlements Development Grant
Provinces
2015/16
R`000
2016/17
2017/18
EASTERN CAPE
FREE STATE
GAUTENG
KWAZULU-NATAL
LIMPOPO
MPUMALANGA
NORTHERN CAPE
NORTH WEST
WESTERN CAPE
Total

29. Urban Settlements Development Grant
Provinces
Metros
2015/16
R`000
2016/17
2017/18
EASTERN CAPE
Buffalo City
Nelson Mandela
Sub Total
FREE STATE
Mangaung
GAUTENG
Ekurhuleni
Jo'burg
Tshwane
KWAZULU-NATAL
eThekwini
WESTERN CAPE
Cape Town
Grant Total

30. Municipal Human Settlements Capacity Grant
Provinces
Metros
2015/16
R`000
2016/17
2017/18
EASTERN CAPE
Buffalo City
9 253
10 640
Nelson Mandela
9 847
11 324
Sub Total
19 100
21 964
FREE STATE
Mangaung
9 206
10 587
GAUTENG
Ekurhuleni
14 313
16 460
Jo'burg
16 505
18 981
Tshwane
12 831
14 755
43 649
50 196
KWAZULU-NATAL
eThekwini
14 342
16 493
WESTERN CAPE
Cape Town
13 703
15 758
Total

31. Delivery Targets

32. Planned Provincial Delivery Per Programme
Sub-Programme
Rectification/repairs
Other
Sites
Budget (000")
Units
Total Annual Budget (000")
Financial Interventions
4 790
11 632
2 191 R
4636 R R
Incremental Housing Programmes
10227
47 102 R
60 852 R R
Social & Rental Housing
1209
281 R
5602 R R
Rural Housing
6148 R
25504 R R
Priority Projects
2250
2430 R
4 057 R R
Provincial Specific Projects
3500
105 R
2 025 R R
GRAND TOTAL
28 818
58 257 R R R

33. Planned Delivery in Mining Towns
Gauteng Towns
Sites
Budget
Unit
Overall Budget
Westonaria
1 120
Randfontein
400
316
Merafong
615
TOTAL
1 520
931
Mpumalanga Towns
Sites
Budget
Units
Overall Budget
Emalahleni
3 000
823
Steve Tshwete
732
50 482 76
10 431
60 913
Thaba Chweu
1 000
43 626
220
32 408
76 034
TOTAL
4 732
1 119
Northern Cape Towns
Sites
Budget
Units
Overall Budget
Tsantsabane
8 630
Gasegonyana
100
4 500
13 635
18 135
Gamagara
9 805
TOTAL
13130
23440
36 570

34. Planned Delivery in Mining Towns
Limpopo Towns
Sites
Budget
Units
Overall Budget
Lephalale
26 006
922
214625
Burgersfort / Steelpoort
390
9 634
450
34 070
Fetakgomo
200
4 920 92
9 811
14 731
Elias Motsoaledi
800
19 680
294
26 547
46 227
Thabazimbi
32 665*
195
20 663
53 328
TOTAL
1390
60 240
1 953
429170
* Rectification
North West Towns
Sites
Budget
Units
Overall Budget
Kgetleng
866
Madibeng
1 042
Rustenburg
402
1129
Moses Kotane
484
TOTAL
3521

35. Current Measures To Improve Departmental Performance
The Departmental organisational structure is being revised to ensure that it ensure that state and government strategy and related planned outcomes is achieved.
The Department has reviewed its outputs and targets matrix and is now reporting on:
36 Strategic Objectives, that has
96 Indicators
The rationalisation allows for improved and will bring much needed efficiencies in performance and Monitoring.
A much extensive strategic and planning process will be undertaken during the period leading up the approval of the budgeting to align budgets against strategy.
Improvements in the alignment of strategies of the entities of the Department with the Departmental and Government mandates and strategies
Confidential

36. END