DEPARTMENT OF HUMAN SETTLEMENTS

DEPARTMENT OF HUMAN SETTLEMENTS
FINANCIAL PORTFOLIO COMMITTEE BOKSBURG CIVIC CENTRE 15 November 2016

TABLE OF CONTENTS Overview Financial Performance Report Non – Financial Performance Report Financial Vs Non – Financial Performance Information on Work in Progress Transfers to Public Entities Challenges and Interventions Questions & Answers

OVERVIEW Performance against the Human Settlement Development Grant [HSDG] was below expected levels by the end of the Quarter however, a detailed recovery plan has been prepared and duly endorsed at organizational level. The quarterly target for stands was and (68%) of the planned stands were serviced. Resulting in a variance of stands. To date (25%) stands have been serviced against an annual target of Regarding houses/units, it was planned that houses/units would be built. The quarterly target was not achieved as (22%) was delivered. Resulting in a variance of houses/units. To date (13%) houses/units have been delivered against an annual target of In terms of overall performance, the programme achieved 33% of the 2nd Quarter planned targets. To date overall performance of the programme is at 17% of the annual target.

EXECUTIVE SUMMARY OF QUARTERLY FINANCIAL PERFORMANCE
FINANCIAL PERFORMANCE REPORT

Summary of Sub-Programmes Performance to date (Financials)
Housing Programmes QUARTER 2 ANNUAL BUDGET Funds Allocated R'000 Expenditure R'000 Variance R'000 Variance Funds Allocated & Spent R'000 1. Financial Intervention 1.1 a Individual Housing Subsidies (R0 - R3 500) - 1.1b Individual Housing Subsidies (R0 - R3 500) Non-credit linked 2 087 -2 087 2 447 -2 447 1.2 Housing Finance Linked Individual Subsidies (R R15 000) 20 378 5 193 15 185 53 319 48 126 1.3 Enhanced Extended Discount Benefit Scheme 25 000 12 304 12 696 51 000 23 418 27 582 1.4 State Asset Maintenance Programme 15 250 37 939 46 500 56 173 -9 673 1.5a Rectification of RDP Stock 1.5b Rectification of housing Stock (pre 1994) 1.6 Social and Economic Facilities 38 225 39 834

Housing Programmes QUARTER 2 ANNUAL BUDGET Funds Allocated R'000 Expenditure R'000 Variance R'000 Variance Funds Allocated & Spent R'000 1. Financial Intervention 1.7 Accreditation of Municipalities (1&2) - 1.8 Accredited Municipalities (level 1 & 2): housing programmes to be approved and funded 1.8 Operational Capital Budget 62 783 69 192 -6 409 1.9 Unblocking of blocked projects 1.10 NHBRC Enrolment Fees 13 250 17 542 -4 292 27 099 28 832 -1 733 1.11 Land parcels procured (IHAHSD grant) 60 000 1.12b Land parcels procured (Other funding) 1.12 Housing chapters of IDP's Sub-total: Financial Intervention 85 442

Housing Programmes QUARTER 2 ANNUAL BUDGET Funds Allocated R'000 Expenditure R'000 Variance R'000 Variance Funds Allocated & Spent R'000 2. Incremental Housing Programmes 2.1 Project Linked Subsidies (current commitments approved up to 31/03/07) - -428 428 2.2a Integrated Residential Development Programme: Phase 1 Planning and Services 56 629 2.2b Integrated Residential Development Programme :Phase 1:Planning and Services INFORMAL SETTLEMENTS 681 2.2c Integrated Residential Development Programme: Phase 2: Top Structure Construction 2.2d Integrated Residential Development Programme :Phase 2:Top Structure Construction INFORMAL SETTLEMENTS 2.3a Enhanced People's Housing process 2.3b People's Housing Process INFORMAL SETTLEMENTS 2.4 Informal Settlement Upgrading 76 912 2.5a Consolidation Subsidies (Excluding Blocked Projects) 2.5b Consolidation Subsidies (Blocked Projects) 2.6 Emergency Housing Assistance 47 379 2.7b Emergency Housing Assistance (planned projects - possible disaster area) Sub-total: Incremental 10 943

Housing Programmes QUARTER 2 ANNUAL BUDGET Funds Allocated R'000 Expenditure R'000 Variance R'000 Variance Funds Allocated & Spent R'000 3. Social and Rental Housing 3.1 Institutional Subsidies 49 697 - 3.2a Social housing: operational support 3.2b Social Housing:Capital Grants for rental housing (Funded by NDoH) 16 642 61 021 3.3a Community residential units (CRU) Converted/Upgraded 1 500 8 822 3.3b Community residential units (CRU) Constructed 63 010 20 095 42 915 39 851 Sub-total: Social and Rental Housing 7 912 4. Rural Housing Programmes 4.1 Farm Worker Housing Assistance 10 928 6 293 4 635 52 836 32 639 20 197 4.2 Rural Housing Communal rights 1 000 Sub-total: Rural Housing Programmes 11 928 5 635 53 836 21 197 5.Priority Projects 6. Provincial Specific Programmes 37 664 1 347 36 317 1 441

Housing Programmes QUARTER 2 ANNUAL BUDGET Funds Allocated R'000 Expenditure R'000 Variance R'000 Variance Funds Allocated & Spent R'000 7. Disaster Relief Ring-Fenced Amount R'000 Gauteng 47 379 - Total: Disaster Relief 8. Informal Settlements in Mining Towns Gauteng: Westonaria 44 700 Randfontein 32 700 Mogale City 20 000 Merafong 26 300 Sub-total: Gauteng 9. Title Deeds 62 142 10. Military Veterans 22 162 GRANT TOTAL

NON-FINANCIAL PERFORMANCE REPORT

SUMMARY OF PERFORMANCE PER REGIONAL OFFICE

Summary of Sub-Programmes Performance Per Region
Annual Target Delivery to date Target Q2 Delivery Q2 Variance Stands Housing Units Johannesburg 2372 6672 2999 1382 712 2002 2306 1021 627 -5290 Ekurhuleni 1837 6239 581 887 2404 276 -1837 -5658 Tshwane 1380 8100 896 930 2398 422 -1380 -7204 Sedibeng 3189 5021 451 562 1466 399 -3189 -4570 West Rand 3050 4141 897 300 1855 91 -3050 -3244 Head Office 1229 -1229 Grand Total 11828 31402 4207 3391 10125 2209 -8829 -27195 It should be noted that, out of 2 306 serviced stands for the current quarter, 982 were not captured on HSS and of the total delivery for housing units, 42 completed houses have also not been entered on HSS due to contractual limitations. This delivery will be recorded on HSS during the 3rd quarter, upon finalisation of contracts/or addendums.

ERADICATION OF BACKLOG IN THE ISSUING OF TITLE DEEDS

ERADICATION OF BACKLOG IN THE ISSUING OF TITLE DEEDS
Summary of Performance: Second Quarter (Financial & Non-Financial) ERADICATION OF BACKLOG IN THE ISSUING OF TITLE DEEDS FY Program Budget Expenditure No. of Title Deeds Q2 Achievement Actual achieved [April to September 2016] Title Deeds post 1994 R R 26 983 2 571 4 358 Title Deeds pre 1994 R 7 461 1 065 1 494 Total R 34 444 3 636 5 852 Firm of attorneys has been appointed to facilitate and fast track the process of issuing of title deeds. The project management attorneys will work with a team of conveyancers who are currently on our panel A separate budget is needed for ongoing title deeds application to avoid the accumulation on a new backlog Firms of Town Planners are being appointed to deal with outstanding township establishment matters

Summary of Performance: Second Quarter: (Non Financials)

Summary of Performance: Second Quarter: (Non Financials)
Programmes Planned Target 1 July 2016 to 30 September 2016 Variance (under achievement must reflect a negative figure) Sites Units Other UISP 2826 6277 1053 -2826 -5224 New Individual units 565 2692 2306 378 -1741 -2314 Social and Rental Housing 589 -589 CRU 227 45 -182 FLISP 340 733 393 Other Programmes 4 Military Veterans 185 -185 Title Deeds: Pre 1994 1 865 1 065 -800 Title Deeds: Post 1994 19 699 2 571 -17128 Title Deeds: New dev Disaster Relief Total 3 391 10 125 21 749 2 306 2 209 3 640 -4567 -7 916 *New Indiv units consist of the following programmes: 1.1a Individual housing subsidies (R0 - R3 500) credit linked 1.1b Individual housing subsidies (R0 - R3 500) Non - Credit Linked 2.2a Integrated Residential Development Programme :Phase 1:Planning and Services 2.2c Integrated Residential Development Programme :Phase 2:Top Structure Construction 2.3a People's Housing process 2.5a Consolidation Subsidies (Excluding Blocked Projects) Farm Worker Housing Assistance Rural Housing 5. PRIORITY PROJECTS 6. PROVINCIAL SPECIFIC PROGRAMMES *Other Programmes (not MTSF) consist of 1.5a Rectified RDP stock b Rectification of Housing Stock(pre 1994) 1.9 Blocked projects 1.12 Housing chapters of IDP's 2.1 Project Linked Subsidies(current commitments approved up to 31/03/07) 2.5b Consolidation Subsidies (Blocked Projects) 2.6 Emergency Housing Assistance 3.3a Community residential units (CRU) Converted/Upgraded , 1.3 Enhanced Extended Discount Benefit Scheme (EEDBS) 1.4 State Asset Maintenance Programme 1.6 Social and Economic Facilities 1.8 Operational Capital Budget 1.11a Land parcels procured(IHAHSD) , 1.10 NHBRC enrolment (related to grant) 3.2a Social Housing:operational support 1.7 Accredited Municipalities (level 1 & 2): .

Summary of Sub-Programmes Performance to date (Non Financials) Narrative
Q2 Human Settlements Development Grant (HSDG) Performance Recovery Plan Highlights To ensure the number of houses delivered are improved and aligns to the funds spent Currently payment of service providers is according to milestones as captured on HSS Monies transferred to capacity providers like the HDA, GPF Metros and munipalities and other entities the Department partners with, are monitored on a monthly basis sealed with a Quarterly Reporting Forum already operationalised at Provincial level Quarterly MEC MMC intergovernmental Relations meetings to track performance against monies transferred and generally managing any other strategic issues The Project Management Office( PMO) meets weekly with Regional Heads and Excutive Managers respectively The office of the Premier has also set up a delivery support Unit that tracks priorities bi-weekly with the HoD and MEC required to meet the Premier every six weeks on Human Settlements priorities To also ensure that paid invoices are correctly captured on HSS All claims received from contracted service providers are registered on the claims management system ( CMS) established for HSDG management purposes for the 5 coordination of the 5 regional management offices post verification and authorisation by the regional Head. These are then sent for processing at Head Office as a central point. The CMS is then updated to acknowledge receipt and track the claims movement. The claims are verified against a checklist and captured on the Housing Subsidy System. This is where authorisation of claims and final signature for authorisation is undertaken with ultimate authorisation by the Director Grant Management then to the CFO and HoD as per PFMA financial delegation of powers.

Summary of Sub-Programmes Performance to date (Non Financials) Narrative cont..
Q2 Human Settlements Development Grant (HSDG) Performance Recovery Plan Highlights Q2 Human Settlements Development Grant (HSDG) Performance Recovery Plan Highlights cont. Cont… Such authorised claims are also sent for financial administration for capturing and processing on BAS post disbursements or payment of claims for reconciliation of BAS and HSS. The Provincial Treasury also monitors the payment of service providers within 30 days with the Departmental performance rate pitched at 98% as at end September 2016. Expected outputs from the NHFC transfer for implementation of Flips are specified in a specified spec. the transfer effected to the NHFC was R this represents initial capitalisation of the Programme which has been used by the NHFC for disbursements of transactions linked to approved Flips subsidies issued to them. These monies were deposited into an interest bearing account on behalf of the Department. The movement of funds from and to this account are monitored by means of monthly reconciliation statements compiled and submitted by the NHFC as duly supported by details of all transactions incurred. Details of transfers to the 3 Gauteng Metropolitan Municipalities linked to expected outputs and amounts transferred are outlined in specific slides of this presentation. A detailed explanation of the strategy in place towards improved delivery of housing opportunities under the upgrading of informal settlements in mining towns Priority areas like Kokosi ( Merafong), Bekkersdal ( Westonaria) and Randfontein was intended to address the upgrading and relocation of 24 informal settlements comprising of households. Mining houses seen to be willing to contribute land and resources. Refer to slides for details of projects under implementation in the 2016/17 financial year. The ongoing construction of houses in Westonaria Borwa ( houses in total) is underway and beneficiaries allocated to these houses come from the identified informal settlements The HDA has also completed the audit of informal settlements across Westrand and 24 Informal Areas have been identified for upgrading starting this financial year.

Summary of Performance: Second Quarter (Financials)

Summary of Performance: Second Quarter (Financials)
Programmes Planned: Budget 1 July to 30 September 2016 R’000 Actual : Expenditure Variance (under achievement must reflect a negative figure) Sites Units Other UISP 33 264 - 14 000 19 264 -5 565 New Individual units* 949 12 364 Social and Rental Housing 31 097 CRU 20 095 86 628 FLISP 20 378 5 193 15 185 Other programmes * (not MTSF) Military Veterans Title Deeds: Pre 1994 50 000 12 304 37 696 Title Deeds: Post 1994 Title Deeds: New dev. Disaster Relief Total 26 364 *New Indiv units consist of the following programmes: 1.1a Individual housing subsidies (R0 - R3 500) credit linked 1.1b Individual housing subsidies (R0 - R3 500) Non - Credit Linked 2.2a Integrated Residential Development Programme :Phase 1:Planning and Services 2.2c Integrated Residential Development Programme :Phase 2:Top Structure Construction 2.3a People's Housing process 2.5a Consolidation Subsidies (Excluding Blocked Projects) Farm Worker Housing Assistance Rural Housing 5. PRIORITY PROJECTS 6. PROVINCIAL SPECIFIC PROGRAMMES *Other Programmes (not MTSF) consist of 1.5a Rectified RDP stock b Rectification of Housing Stock(pre 1994) 1.9 Blocked projects 1.12 Housing chapters of IDP's 2.1 Project Linked Subsidies(current commitments approved up to 31/03/07) 2.5b Consolidation Subsidies (Blocked Projects) 2.6 Emergency Housing Assistance 3.3a Community residential units (CRU) Converted/Upgraded , 1.3 Enhanced Extended Discount Benefit Scheme (EEDBS) 1.4 State Asset Maintenance Programme 1.6 Social and Economic Facilities 1.8 Operational Capital Budget 1.11a Land parcels procured(IHAHSD) , 1.10 NHBRC enrolment (related to grant) 3.2a Social Housing:operational support 1.7 Accredited Municipalities (level 1 & 2): .

SUMMARY OF MTSF AND OTHER PROGRAMMES PERFORMANCE Q2

Upgrading of Informal Settlement Programmes

Upgrading of Informal Settlement Programmes
Informal Settlements Upgrading In the 2nd Quarter, the following was delivered: IRDP: Phase 1: Planning & Services: Informal Settlements: 146 (7%) of stands were delivered IRDP: Phase 2: Top Structure: Informal Settlements: In total 729 (14%) of houses/units were delivered Informal Settlements Upgrading. Only 324 (26%) of houses/units were built; no (0%) stands were delivered against the quarterly target of 770 As at the end of the 2nd Quarter a total of (16%) houses/units were delivered against the annual target of ; and 146 (2%) stands against a target of stands Performance on this priority is far below expected levels. Considering that our targets are below expected MTSF targets, there is serious underperformance.

MTSF PER PROGRAMME Planned Target 1 July 2016 to 30 September 2016 Actual Delivery to date Variance Total Planned Sites Total Planned Units Total Budget Allocation Sites Units Total Expenditure 2.2b Integrated Residential Development Programme :Phase 1:Planning and Services INFORMAL SETTLEMENTS 2056 0 R 146 R 0 -1910 0 2.2d Integrated Residential Development Programme :Phase 2:Top Structure Construction INFORMAL SETTLEMENTS 5053 R 729 R -4324 2.2e Integrated Residential development Programme :Phase 4:Top Structure Construction (INFORMAL SETTLEMENTS) R 0 2.3b People's Housing Process INFORMAL SETTLEMENTS 2.4 Informal Settlement Upgrading 770 1224 R 324 R -770 -900 Total UISP 2826 6277 R 146 1053 R -2680 -5224

Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated&Spent R'000 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 2.2b Integrated Residential Development Programme :Phase 1:Planning and Services INFORMAL SETTLEMENTS 2 056 146 - 0% Slovopark project, Kagiso/Azaadville (Chief Mogale Phase II), Chief Luthuli, Tsakane Ext 22, Vosloorus Ext 28 - construction of services is underway. The Delays experienced are due to slow appointment process of contractors, community unrest arising from community and political intercession. Golden Gardens - delivered 146 stands this quarter. The project is implemented by COJ. Slovopark - The Department is engaging COJ to fast track the approvals of electricity and water, there is a meeting a being organised to finalise relocation programme. Kagiso/Azaadville (Chief Mogale Phase II) - servicing of stands will commence once planning work is concluded. Chief Luthuli - Legal services is in the process of drawing up the contract.

Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated Spent R'000 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 2.2c Integrated Residential Development Programme: Phase 2: Top Structure Construction - 1 315 139 R187380 R R144511 177% Construction is underway and is delayed by lack of bulk infrastructure in some projects, political/community involvement, delays in the approval of house plans, township applications and Site Development Plans. Olievenhoutbosch Ext 27 - Contractor has completed the relocations of the 44 Shacks. A request for the re-appointment of contractor for water and sewer and houses has been submitted to Head office for approval. Obed Mthombeni Nkosi Phase I (Mose) - Signing of the agreement will be fast tracked. Lady Selbourne Phase 2 (Mega - Tshwane West Capital) a meeting with the QA is to be arranged to address the delayed specs for the house plans.

Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated Spent R'000 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 2.2d Integrated Residential Development Programme :Phase 2:Top Structure Construction INFORMAL SETTLEMENTS - 5 053 729 42% Implementation is underway in a most projects. Implementation has been hampered by a number of reasons in the various projects like delays in the appointment of contractors, community unrests, delays in approval of house plans, delays in approval of Spatial Development Plans, delays of approval of top-up funding, delays in delivery of material on site and contractors having cashflow challenges. None required

Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated&Spent R'000 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 2.2e Integrated Residential Development Programme: Phase 4: Top Structure Construction : Informal Settlements - No targets and expenditure incurred. None required 2.3a Enhanced People's Housing process 2.3b People's Housing Process INFORMAL SETTLEMENTS

Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated Spent R'000 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 2.4 Informal Settlement Upgrading 770 - 1 224 324 173482 346985 200% Implementation is underway in different projects and is at different stages. Delays experienced are caused by various factors such as community labour unrest, service delivery protests, lack of bulk infrastructure, slow performance of contractors, non-compliance on NHBRC enrolments and changes in funding agreement where communities demanded 40sqm houses instead of the 36sqm. Soshanguve Ext 19: Construction of stands is complete but NHBRC stopped the projects due to non-compliance on enrolment. Rethabiseng Ext 5 - A new cession agreement has been concluded and a request for extension of time will be submitted Nellmapius Ext 24 and Soshanguve BB,FF&GG projects - Awaiting NHBRC enrolment confirmation from QA. At Soshanguve Block 1A & NN and Soshanguve Block X Ext 1 there is a slow contractor who has been put on terms. SCM to fast track appointment of contractors at Soshaguve Ext 1,2 &3 and Soshanguve MM. Soshanguve South Ext 7 (Thorntree view) - contractor to submit a revised programme for the recovery plan.

New Individual Units per Programme

New Individual Units per Programme
MTSF PER PROGRAMME Planned Target 1 July 2016 to 30 September 2016 Actual Delivery to date Variance Total Planned Sites Total Planned Units Total Budget Allocation Sites Units Total Expenditure 1.1a Individual housing subsidies (R0 - R3 500) credit linked 0 1.1b Individual housing subsidies (R0 - R3 500) Non - Credit Linked 2087 0 2.2a Integrated Residential Development Programme :Phase 1:Planning and Services 160 56629 264143 -160 2.2c Integrated Residential Development Programme :Phase 2:Top Structure Construction 2056 187380 146 331891 -1910 2.3a People's Housing process 2.5a Consolidation Subsidies (Excluding Blocked Projects) 4.1 Farm Worker Housing Assistance 50 10928 6293 4.2 Rural Housing: Communal land rights 200 1000 -200 5. PRIORITY PROJECTS 405 979 156483 2160 239 220675 1755 -740 6. PROVINCIAL SPECIFIC PROGRAMMES 148 37664 1347 -148 Total New Individual Units 1229 168411 226968 -940

Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated Spent R'000 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 1.1 a Individual Housing Subsidies (R0 - R3 500) - No target and no expenditure None required 1.1b Individual Housing Subsidies (R0 - R3 500) Non-credit linked 2,087 -2,087 Payment to individual housing subsidy applications. The department did not anticipate the applications for this programme in the month under review. 1.2 Housing Finance Linked Individual Subsidies (R R15 000) 340 733 20,378 5,193 15,185 25% The delivery of 733 houses are achieved in Quarter 2. We have deviated from the planned expenditure because the initial capitalisation of the programme of R92.5m has not been fully disbursed by NHFC.

Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated&Spent R'000 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 2.2a Integrated Residential Development Programme: Phase 1 Planning and Services 160 - 56,629 264,143 207,514 466% Lady Selbourne - Project has not commenced. The contractor has been finalised outstanding work in Phase 1. PRT will submit the BOQ to the Department. 2.2c Integrated Residential Development Programme: Phase 2: Top Structure Construction 1,315 139 187,380 331,891 -144,511 177% Construction is underway and is delayed by lack of bulk infrastructure in some projects, political/community involvement, delays in the approval of house plans, township applications and Site Development Plans. Olievenhoutbosch Ext 27 - Contractor has completed the relocations of the 44 Shacks. A request for the re-appointment of contractor for water and sewer and houses has been submitted to Head office for approval. Obed Mthombeni Nkosi Phase I (Mose) - Signing of the agreement will be fast tracked. Lady Selbourne Phase 2 (Mega - Tshwane West Capital) a meeting with the QA is to be arranged to address the delayed specs for the house plans.

Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated & Spent R'000 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 2.3a Enhanced People's Housing process - No targets and expenditure incurred. 2.5a Consolidation Subsidies (Excluding Blocked Projects) 4. Rural Housing Programmes 4.1 Farm Worker Housing Assistance 10928 6293 4635 The over expenditure is due to the Planning work underway at Badirile Portion 18 (350 rural). The expenditure recorded is for the Badirile 1&2 project which has delivered 29 housing units this month in the IRDP: Phase 2: top structure INFORMAL SETTLEMENTS sub-programme.

Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated&Spent R'000 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 4.2 Rural Housing Communal rights - 50 1,000 0% Sokhulumi Rural Development - Contractor is casting only slabs and no progress is made on the actual construction and completion of houses. The contractor has intervened. South African Woman in Construction (SAWIC) to submit redemption claims for the 200 units budgeted on the Regional APP. Payment issues from Independernt Development Trust (IDT) need to be resolved to fast track delivery on site. Quality assurance approved 14 wall plates. Inspection for 2 show houses is still pending by quality assurance.

Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocate d& Spent R'000 % of Allocation spent Reason for variance (if any) / Comment 5. Priority Projects 135 2,160 340 39 - 53,534 74,266 -20,732 139% The annual target has been achieved. However not all the stands serviced in the current quarter in Sweetwater's have been captured on HSS due to the exceeded contract capacity. HSS will be fully updated upon receipt of addendum. Construction continuing in Cosmo City, Lufhereng, Thulamntwana, Fleurhof RDP, Diepsloot East and Khutsong 1,2&3. Winterveldt 3 Phase 1 the project is at procurement stage. Winterveldt/Slovoville contract being finalised. Construction is underway in some projects like Fleurhof, Kokosi Ext 6 & Cosmo City. Delays experienced are due to outstanding work on internal services , shack encrouchment around construction site, delays in appointment of contractors, challenges in the non-compliance SANS 1936 requirement in the Cosmo City as it is affected by dolomatic conditions and project enrolment approvals from NHBRC. Sweetwaters has delivered 2160 stands in the current month. 6. Provincial Specific Programmes 81 16,867 268 16,599 2% Delays in the approvals of the housing plans hindered in construction. Contractors are now on site.

Social and Rental Housing Programme

Social and Rental Housing Programme
MTSF PER PROGRAMME Planned Target 1 July 2016 to 30 September 2016 Actual Delivery to date Variance Total Planned Sites Total Planned Units Total Budget Allocation Sites Units Total Expenditure 3.1 Institutional Subsidies 0 439 49697 0 -439 3.2b Social Housing: Capital Grants for rental housing (Funded by NDoH) 150 16642 -150 Total: Social and Rental Housing 589 66339 -589

Social and Rental Housing Programme
Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocate d& Spent R'000 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 3.1 Institutional Subsidies - 439 49,697 0% Projects are underway at GPF and will be reported once the walkup developments are completed. Contractors to be appointed in Alex Riverpark, Devland Ext 36. 3.2a Social housing: operational support No target and no expenditure None required 3.2b Social Housing:Capital Grants for rental housing (Funded by NDoH) 150 16,642 At Heatherly East (Nellmapius Ext 22) - contractor appointed but is now delayed by interference from the Ward Councillor regarding sub-contractor labour matters.

Actual Delivery to date Total Budget Allocation
CRU Programme MTSF PER PROGRAMME Planned Target 1 July 2016 to 30 September 2016 Actual Delivery to date Variance Total Planned Sites Total Planned Units Total Budget Allocation Sites Units Total Expenditure 3.3b Community residential units (CRU) Constructed 0 227 63010 0 45 20095 -182 Total: CRU 227 63010 45 20095 -182

CRU Programme Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated & Spent R'00 0 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 3.3a Community residential units (CRU) Converted/Upgraded - 1,500 102,842 -101,342 6856% Misallocation of budget. Expenditure is taking place in other programme. The specific programme where expenditure is taking place is: Community Residential Units (CRU) Constructed. None required 3.3b Community residential units (CRU) Constructed 227 45 63,010 20,095 42,915 32% Jabulani Hostel - has delivered 27 units and is in the process of extending the contract. Therefore the 27 units will only be reported on HSS once the new contract is finalised. Delays experienced are caused by different factors ranging from pending township approvals, illegal occupants at Alex Nobuhle Hostel. Appointment of contractor is delayed at Alex Ext 31. Rethabile LTA Hostel is delayed by the process of quantifying outstanding work with the contractor. At Alex M2 Nobuhle Hostel, the eviction of illegal tenants has to be finalized. SCM processes for appointment of PRT to be finalized for the Alex Ext 31 hostel. Work at Rethabile LTA hostel will commence once the new schedule, project cost and timeframes have been concluded.

GAP MARKET INTERVENTIONS

Actual Delivery to date Total Budget Allocation
FLISP MTSF PER PROGRAMME Planned Target 1 July 2016 to 30 September 2016 Actual Delivery to date Variance Total Planned Sites Total Planned Units Total Budget Allocation Sites Units Total Expenditure 1.2 Housing finance linked Individual subsidies (FLISP)-(R R7 000) 0 340 20378 733 5193 393 Total: FLISP 340 20378 733 5193 393

FLISP Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated & Spent R'00 0 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 1.2 Housing Finance Linked Individual Subsidies (R R15 000) - 340 733 20,378 5,193 15,185 25% The delivery of 733 houses are achieved in Quarter 2. We have deviated from the planned expenditure because the initial capitalization of the programme of R92.4m has not been fully disbursed by NHFC. None required

Other Programmes (Not MTSF)[TIMEBOUND]

Other Programmes (Not MTSF)
ALL OTHER PROGRAMMES Planned Target 1 July 2016 to 30 September 2016 Actual Delivery to date Variance Total Planned Sites Total Planned Units Total Budget Allocation Sites Units Total Expenditure 1.5a Rectified RDP stock 1.5b Rectification of Housing Stock(pre 1994) 1.9 Blocked projects 1.12 Housing chapters of IDP's 2.1 Project Linked Subsidies(current commitments approved up to 31/03/07) 2.5b Consolidation Subsidies (Blocked Projects) 2.6 Emergency Housing Assistance 3.3a Community residential units (CRU) Converted/Upgraded 1 500

Other Programmes (Not MTSF) con.
Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated & Spent R'00 0 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 1.5a Rectification of RDP Stock - No target and no expenditure 1.5b Rectification of housing Stock (pre 1994) 1.9 Unblocking of blocked projects The Department does not implement this programme. 1.12 Housing chapters of IDP's None required 2.1 Project Linked Subsidies (current commitments approved up to 31/03/07) -428 428 Misallocation of budget. Expenditure is taking place in other programmes. The specific programmes where expenditure is taking are: IRDP Phases: 1 Planning and IRDP Phase: 2 Top Structure Construction.

Other Programmes con. Housing Programmes Projected Outputs (Sites) Actual Delivery - (sites) Projected Outputs (Units) Actual Delivery - (units) Projected Outputs (Other) Actual Delivery - (Other) Funds Allocated R'000 Expenditure R'000 Variance Funds Allocated & Spent R'00 0 % of Allocation spent Reason for variance (if any) / Comment Intervention/Remedial Actions 2.5a Consolidation Subsidies (Excluding Blocked Projects) - No targets and expenditure incurred. 2.5b Consolidation Subsidies (Blocked Projects) 2.6 Emergency Housing Assistance 3.3a Community residential units (CRU) Converted/Upgraded 1,500 102,842 -101,342 6856% Misallocation of budget. Expenditure is taking place in other programme. The specific programme where expenditure is taking place is: Community Residential Units (CRU) Constructed. None required

CONTRIBUTION TOWARDS MTSF OBJECTIVES & TARGETS

CONTRIBUTION TOWARDS MTSF TARGETS
Informal Settlements Land Other MTSF Challenges, remedial measures taken and actions for NDHS. MTSF Targets: The Province is performing at a 5 year deficit specific to MTSF and still expected to create housing opportunities by 2019 plus. In our endeavor to consider the deficit in the MTEF remaining period, it is clear that we might struggle to meet the MTSF targets however, the following interventions have been prioritized and will be evidenced in the submitted 2nd draft Business Plan :- Strategic shift from ad-hoc and scattered housing projects to Mega Projects/New Towns/ Big Cities Phasing out of Legacy Projects Continuation of Informal settlement Upgrade Resuscitating the Urban Renewal Programme Repositioning GPF as revenue generation vehicle for HS programmes of the GDHS Focused attention on contractor incubation (women, youth & PwDs) Dedicated focus on beneficiary administration

CONTRIBUTION TOWARDS MTSF TARGETS
MTSF Objective Provincial MTSF target 2019 ACTUAL DELIVERY PROGRESS Deficit (MTSF Target) 2014/15 2015/16 2016/17 Total to date Q2 Number of Informal Settlements assessed with annual target of 8 255 405 65 120 590 40 685 Number of settlement-level upgrading plans compiled with annual target of 8 255 89 56 210 41 065 Number of Informal Settlements Upgraded to: 40 30 35 100 41 175 Phase 2 Phase 3 750 000 households in informal settlements upgraded to: 200 150 175 525

CONTRIBUTION TOWARDS MTSF TARGETS con
MTSF Objective Provincial MTSF Target 2019 ACTUAL DELIVERY PROGRESS 2014/15 2015/16 2016/17 Total to date: 30 September 2016 Deficit (MTSF Target) Q2 563 000 individual units for subsidy housing submarket provided (Individual, IRDP, UISP, Rural, PHP) 11 976 10 136 2 963 25 075 6 000 individual units for military veterans 3 320 3 4 2 9 3 311 Affordable housing loans for new houses in the affordable-gap housing submarket: FLISP: 27 850 696 818 733 2 247 25 603 government led social housing 9 905 829 973 1 802 8 103 CRU 2 800 20 306 70 396 2 404 Mine workers

CONTRIBUTION TOWARDS MTSF TARGETS con
MTSF Objective Provincial MTSF Target ACTUAL DELIVERY PROGRESS Deficit (MTSF Target) 2014/15 2015/16 2016/17 Total to date Q2 Title Deeds: Pre-1994 housing stock Post-1994 housing stock 7 461 2 690 2 846 1 065 6 601 860 5 118 6 041 2 571 13 730 of hectares of well-located land: Acquired 16 3 1 5 11 Rezoned All properties acquired are zoned Released Function moved to DID NHBRC : Number of Project and Home Enrolments 125 Project and 125 Home Enrolments 20 enrolments 23 Project Enrolments Q1=4 Home Enrolments 4Project and 7 Home Enrolments 84 Project and 118 Home Enrolments

INFORMATION ON WORK IN PROGRESS

TOP STRUCTURES AT VARIOUS LEVELS OF CONSTRUCTION (payments made during the 2nd Quarter of 2016/17)
LEVEL OF CONSTRUCTION (Partially complete outputs) NUMBER OF STRUCTURES (not reported previously) AMOUNT R'000 FOUNDATION/ SLABS COMPLETED 1,358 R 25,602,294.32 WALL PLATE 1,136 R 19,373,151.21 ROOF - FINISHES (SCCCA , PLUMBING , ELECTRICITY, CEILING , APRONS AND PAINTING) 653 R 4,547,619.52 TOTAL R 49,523,065.05

FOUNDATIONS Region July Aug Sept Ekurhuleni 167 625 586 Johannesburg 373 153 256 Tshwane 362 414 197 West Rand 227 66 229 Sedibeng 51 56 90 Total 1 180 1 314 1 358

WALLPLATES Region July Aug Sept Ekurhuleni 383 232 425 Joburg 89 46 176 Tshwane 356 285 332 West Rand 146 142 149 Sedibeng 10 67 54 Total 984 772 1 136

90/95% Completions Region July Aug Sept Ekurhuleni 13 132 Joburg 301 86 Tshwane 218 202 West Rand 188 Sedibeng 63 45 Total 433 294 653

HSDG TRANSFERS TO PUBLIC ENTITIES (excluding NHBRC Enrollments)
2016/17 TRANCHE PAYMENTS Municipality Gazette no March 2016 TOTAL Disbursement Amount Total Transferred Balance City of Johannesburg R ,613,000.00 R ,613,000.00 R 315,070,149.25 R 96,542,850.75 City of Tshwane R ,033,000.00 R ,033,000.00 R 203,033,010.00 R City of Ekurhuleni R ,307,000.00 R ,307,000.00 R 148,307,000.00 Merafong City R ,809,000.00 R ,809,000.00 R 94,809,000.00 Mogale City R ,962,000.00 R ,962,000.00 R 45,962,000.00 Westonaria R ,700,000.00 R ,700,000.00 R 44,700,000.00 Randfontein R ,714,000.00 R ,714,000.00 R 32,714,000.00 TOTAL R ,138,000.00 R ,138,000.00 R ,103,159.25 R 463,034,840.75

HSDG TRANSFERS TO PUBLIC ENTITIES (excluding NHBRC Enrollments)
HOUSING DEVELOPMENT AGENCY HDA

HOUSING DEVELOPMENT AGENCY
Municipality Project Name Project Description Number of Units Budget Progress October 2016/17 Ekurhuleni Metropolitan Municipality Palm Ridge Extension 9 Construction of top structures (ISU) 1000 R126 390 030 Beneficiaries identification and verification underway. New contractors to commence construction from 21 November 2016. Eden Park West and Extension 1 100 R12 Beneficiaries verification concluded. 23 units currently under construction. New contractor to commence construction from 21 November 2016. McKenzieville Ext 2 (Holgatfontein) Construction of top structures (greenfield) 300 R37 917 009 Beneficiaries identification and profiling underway. Services contractor completing internal services. Top structures contractor to commence construction from 09 January 2017.

HOUSING DEVELOPMENT AGENCY
Municipality Project Name Project Description Number of Units Budget Progress October 2016 Mogale City Kagiso Extension 13 (Tudor Shaft) Site and services and top structures including delivery of 50 Milvets housing (greenfield) 223 R42 Beneficiaries identification and approvals underway. Construction of services has commenced. Top structures construction will commence from 16 November 2016. City of Tshwane Nellmapius Extension 21 and 24 Construction of top structures (ISU) 500 R63 Beneficiaries verification and approvals underway. New contractors to commence construction from 21 November 2016. Nellmapius Extension 6 106 R13 397 343 Beneficiaries verification and profiling underway. New contractors to commence construction from 21 November 2016.

HDA PROGRESS REPORT IMPLEMENTATION OF SEPTEMBER 2016 PROTOCOL PROJECTS GAUTENG PROVINCE
Municipality Project Name Project Description Number of Units Budget Progress October 2016 City of Tshwane Themba View Construction of top structures (ISU) 218 R27 Beneficiaries verification and profiling underway. New contractors to commence construction from 05 December 2016. City of Johannesburg Lufhereng and Lufhereng Extension Construction of Milvets top structures (greenfield) 30 R6 Construction of top structures underway. Milvets beneficiaries prioritization underway. TOTAL 2614 R347

GAUTENG PARTNERSHIP FUND
GPF

GPF PROJECTS

CHALLENGES AND INTERVENTIONS

CHALLENGES AND INTERVENTIONS FOR FINANCIAL AND NON-FINANCIAL INFORMATION
The Technical IGR meeting could not sit due to competing commitments between the province and municipalities. The technical meeting will be scheduled to ensure that the date will accommodate both the province and municipalities. The Department embarked on a process of strengthening intergovernmental relations in an effort to bring about speedy planning processes and improved service delivery. Delays in approval of business case by Finance and SCM affected the Project to be completed on time. Business case approved in quarter four and SCM has placed order with SITA. Due to delays from Finance and SCM the project will be carried over to be completed in the 2016/17 financial year. Delays in appointment of contractors. Department will not implement or place project that are not ready on Business plan or APP. The project must meet the readiness matrix criteria's. Lack of project management. Project managers were sent to training to enhance their project management to ensure fast delivery of project.

CHALLENGES AND INTERVENTIONS FOR FINANCIAL AND NON-FINANCIAL INFORMATION
Payment of suppliers within 30 days Contractors were engaged to update the implementation schedule or programmers and to invoice the department regularly. Finance division send correspondence to vendors whose tax clearance certificates (TCCs) has expired and facilitates the submission of the TCC to GDF. Project to clean up on Claims Management System has commenced and all claims are capture on CMS when deliver in regions to remove all duplicate claims and maintain credible information. The migration of functions from GPT to the fast track the payment process and to improved detection of potential rejections on the system. The introduction of the E-invoicing and migration from manual process to SAP system. Some of the performance indicators and targets we not measurable or meeting SMART criteria. APP will ensure that all targets are meet SMART criteria. Delays in appointing conveyancers. To fast-tack the appointment of conveyancers. Lack of capacity. Capacitating business units.

QUESTIONS / ANSWERS

DEPARTMENT OF HUMAN SETTLEMENTS

Similar presentations

Presentation on theme: "DEPARTMENT OF HUMAN SETTLEMENTS"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

DEPARTMENT OF HUMAN SETTLEMENTS

Similar presentations

Presentation on theme: "DEPARTMENT OF HUMAN SETTLEMENTS"— Presentation transcript:

Similar presentations

About project

Feedback