1. PRESENTATION TO THE PORTFOLIO COMMITTEE FOR HOUSING
DEPARTMENT OF HOUSING
PRESENTATION TO THE PORTFOLIO COMMITTEE FOR HOUSING
25 March 2003
BUDGET 2003/04 TO 2005/06

2. Presentation Index Aim, Vision and Mission of the Department
Our Values
Our Mandates
Housing Legislation and Regulations
Our Policy Framework
Strategic overview and policy shifts
Housing environment since 1994 white paper
Challenges facing Housing
Linkages to Government Policy Priorities
Strategic Policy: Shifts
Budget overview
Conclusion

3. DEPARTMENT OF HOUSING
AIM: The aim of the Department of Housing is to determine, finance, promote, coordinate, communicate and monitor policy in respect of housing and human settlement.
Vision: A nation housed in sustainable human settlements
Mission: To establish and facilitate a sustainable process that provides equitable access to adequate housing within the context of affordability of housing, services, and access to amenities and economic opportunities

4. OUR VALUES Our values, based on the constitution, are:
Human dignity,equality, advancement of human rights and freedoms;
Non-racialism and non-sexism;
Supremacy of the constitution and the rule of law;
Accountability, responsiveness and openness.

5. OUR MANDATE SA CONSTITUTION
Section 26: Access to adequate housing a basic human right; Govt. to ensure environment conducive to the progressive realisation of the right
Schedule 4: Housing is a concurrent national and provincial legislative function
Botshabelo Housing Accord (1994) Signed by all housing stakeholders
Reconstruction and Development Programme (RDP) – set out framework and principles for sustainable development

6. HOUSING LEGISLATION
Housing development programme continues to operate in the following legislative framework.
Housing Act 107 of 1997
Prevention of Illegal Eviction from and Unlawful Occupation of Land Act No. 19 of 1998
Housing Consumers Protection Measures Act 95 of 1998
Rental Housing Act 50 of 1999
Home Loan Mortgage Disclosure Act 63 of 2000
Disestablishment of South African Housing Trust Limited Act 26 of 2002

7. HOUSING LEGISLATION CONT.
Currently in process
Community Reinvestment (Housing) Bill.
Housing Amendment Bill
Social Housing Bill

8. REGULATIONS AND GUIDELINES
National Housing Code
Sets out National Housing Policy in detail including a user friendly guide
Contains the detail prescripts pertaining to the Housing Subsidy Scheme
National Norms And Standards For Permanent Residential Structures
Sets amount of the subsidy which may be used for infrastructure
Sets the minimum size of houses

9. REGULATIONS AND GUIDELINES
Guidelines For Human Settlement Planning And Design (“Red Book”)
Planning – movement networks, transport, open space, subdivision layouts, design to reduce crime
Engineering services -stormwater, roads, water supply, sanitation, solid waste, energy
Guidelines For Environmentally Efficient Low Cost Housing
Energy and water efficient planning and design for low cost housing; and
Urban greening guidelines

10. REGULATIONS AND GUIDELINES
Regulations under the Housing Consumers Protection Measures Act, 1998 relating to the subsidy only sector have been drafted;
Regulations under the Home Loan and Mortgage Disclosure Act have been outsourced and should be finalized shortly; and
Regulations under the yet to be promulgated Community Reinvestment Act

11. OUR POLICY FRAMEWORKS
Policy framework as determined by the White paper on a new housing policy and strategy for South Africa, 1994

12. STRATEGIC OVERVIEW Housing environment since 1994 white paper
More than 1,47m houses have been built or under construction and 1,8m subsidies approved benefiting more than 5,6m people
Early focus was on quantity, rather than quality housing to address housing needs and backlogs
Focus was on development of policies and legislative instruments
Introduction of the Housing subsidy scheme consisting of seven subsidy instruments
Special subsidy dispensation for the disabled
Procurement regime compliant to constitution

13. STRATEGIC OVERVIEW Current challenges facing the housing programme
Lack of private sector investment and resource constrains
Moving towards medium density housing as a priority and integrated development
Creating higher quality housing and living environments
Reducing dependency and promoting a culture of savings
Need for interventions to deal with emergency situations resulting from natural disasters and other incidents - Grootboom case.

14. STRATEGIC OVERVIEW Current policy trends in housing programmes.
Housing Finance Challenges - Contributions required from Government, the financial sector, the NGO sector and ultimate beneficiaries
Extension of the Housing Warranty Scheme through the NHBRC to beneficiaries
More emphasis on monitoring of policy impact, expenditure and delivery
More emphasis of oversight on housing institutions
Promoting new and innovative building technologies

15. STRATEGIC POLICY SHIFTS
New policy approaches
Having achieved the target of 1 million houses the housing programme now has to reflect on the outcomes and how these can be improved – a Consolidation Phase
A shift in focus from “numbers of units” to quality of products and environments –
Medium density integrated housing programme and emphasis on PHP
Social housing policy and legislation
Rental housing
NHBRC warranty

16. STRATEGIC POLICY SHIFTS
Promotion of social responsibility through:
Own contribution to access housing subsidies and the NHBRC warranty scheme
Savings linked housing subsidy to promote a culture of savings
Improving access to housing credit:
Community Reinvestment Legislation (CRA)
Home Loan Mortgage Disclosure Act, 2000

17. STRATEGIC POLICY SHIFTS
Improving human settlement environments:
Programme to main stream environmentally efficient housing
Disemmination of good practice
Measures to cater for needs of special groups (eg. Differently-abled, people living with HIV, elderly,youth and children, farm worker and emergency housing)

18. STRATEGIC POLICY SHIFTS
Improving integration in service delivery:
Multi-year national and provincial housing development plans linked to Integrated Development Plans (IDPs)
Identification of and access to centrally located land for integrated medium density housing developments
Contributions to Urban Renewal and Integrated Rural Development Programmes

19. STRATEGIC POLICY SHIFTS
Improving service delivery:
New demand led procurement regime
Capacity building programmes for stakeholders, including government and industry

20. STRATEGIC POLICY SHIFTS
Improving international cooperation on human settlement development:
Lead Ministry for UN Habitat (Habitat Agenda) – World Urban Forum, WSSD
Cities Alliance – “cities without slums” initiative
Supporting NEPAD regarding sustainable human settlement development in the African region is concerned.
Bi-lateral and multi-lateral cooperation programmes with donor countries

21. LINKAGES TO GOVERNMENT PRIORITIES
Housing activities are focused in the following Government priorities areas
Urban renewal
Integrated Sustainable Rural Development
The eradication of poverty
Transformation
Black Economic Empowerment
Engendering a culture of saving

22. BUDGET OVERVIEW Programme 2003/04 2004/05 2005/06 1 Administration
44 850
59 063
67 128
2 Housing Policy Planning and Research
16 448
22 139
24 634
3 Programme Management
4 Housing Sector Performance
5 Communication
10 177
11 768
12 388
6 Housing Development Funding
7 Housing Equity
5 347
5 612
5 949
Total
Change to baseline

23. BUDGET OVERVIEW Programme 1: Administration
Purpose of this Programme is to provide administrative and management support services to the Department
Changes in the MTEF
A real average increase over the MTEF at 7 %
Decrease from 2002/03 to 2003/04 at 16 % mainly as a result of the of reduction in Prof. and Special services
Reduced development costs of the Debtors system
Completion of the preparation of the Housing Funds statements and the transformation tenders
Completion of auditing and related costs for the Housing Funds statements for past years
Housing Debtors Management system maintenance
Reprioritization within the department

24. KEY ACTIVITIES OVER MTEF
Provision of Strategic Financial Management Services
Provision of Human Resources Management Services
Provision of General Corporate Services to ensure corporate efficiently
Provision of strategic support services for the Minister and Accounting Officer
Implementation of toll free number to address public enquiries and as anti-corruption initiative
Implementation of the transformation imperatives

25. BUDGET OVERVIEW Programme 2: Policy Planning
Purpose of this Programme is to ensure a sound national housing policy framework
Changes in the MTEF
Effect of restructuring, function shift and reprioritization resulted in increase of 20 % between 2002/03 and 2003/04
2003/04 and 2004/05 increase mainly for framework legislation projects
Fairly stable over the MTEF period

26. KEY ACTIVITIES OVER MTEF
Drafting of new legislation
Community Reinvestment Bill
Social Housing Bill
Amendments to current legislation
Rental Housing Amendment Bill
Housing Consumers Protection Measures
Prevention of Illegal Eviction from and unlawful Occupation of Land Amendment Bill (PIE)
Drafting of Regulation under HLAMDA, CRA, and Social Housing Act

27. KEY ACTIVITIES OVER MTEF
Audit of all legislation impacting on housing
Outreach programme to provincial departments and local authorities for training and monitoring of implementation of legislation
Development of emergency relief housing
Development of Medium Density Housing policy
Development of CR Policy
Produce policy paper on Environmentally sound and efficient Housing
Produce report on child headed households and housing

28. BUDGET OVERVIEW Programme 3: Programme Management
Purpose of this Programme is to manage national housing programmes
Changes in the MTEF
Mainly dominated by transfer payments: 90%
Major Reduction from 2002/03 to on the Job Summit Project no more funding after 2002/03
Major increase conditional grant Human Settlement Redevelopment Programme
From 2003/04 :R109m; 2004/05: R116m and 2005/06: R122m
Fairly stable over the MTEF period
Experiencing staffing capacity problems

29. KEY ACTIVITIES OVER MTEF
Implementation of the Human Settlement Redev. Programme and the Presidential Pilot programme
Promotion of Improved Traditional Building methods and technology
Management of the Phasing Out programme
Produce guidelines and report on the possible extension of the Warranty cover to PHP
Produce report on outcome and lessons from implementation of the Presidential Pilot programme
Development of housing education and training programme and professionalisation of the Housing sector

30. PROVINCIAL ALLOCATION (HSRDP)

31. BUDGET OVERVIEW Programme 4: Housing Sector Performance
Programme is to monitor and assess the impact of housing delivery, manage housing information, and support housing institutions
Changes in the MTEF
Mainly transfer payments: 92%
Increase from 2002/03 to 2003/04 by 42%
Mainly as a result of increases in SAHT liabilities allocation to be transferred to National Treasury upon of finalization of the disestablishment of the SAHT
Fairly stable over MTEF period

32. KEY ACTIVITIES OVER MTEF
Monitoring the implementation of housing policy & programmes
Monitoring the performance of Housing Support Institutions
Impact assessment of Implemented Policy and programmes
Monitor identified economic and financial variables as well as Construction Industry trends & reciprocal impacts
Maintenance of Housing information systems.

33. BUDGET OVERVIEW Programme 5: Communication
Purpose of this Programme is to facilitate and promote the free flow of information between the Department and its stakeholders
Changes in the MTEF
Currently experiencing major staffing capacity constraints and it is planned to increase staffing levels to reach 85 % by the end of the first quarter of 2003/04
Increases by an average of 7% over the MTEF period
Various ministerial programmes
National Housing Awards
Rand show Exhitions
Staffing problems being resolved

34. KEY ACTIVITIES OVER MTEF
Dissemination of information to stakeholder and facilitate feedback
Development and maintenance of a communication strategy in support of housing programme
Production of publications on targeted basis
Consumer awareness campaigns

35. BUDGET OVERVIEW Programme 6: Housing Development Funding
Purpose of this Programme is to manage the funding of national housing programmes
Consist mainly of Transfer payments to provinces in terms of DORA as conditional grants
Allocation of funds to provinces is based on a new formula which introduces urban bias and will be phased in throughout the MTEF.
Need of each province as measured by the housing backlog takes into account factors such as homelessness, shack dwelling, caravan dwelling, tents, backrooms, rooms in flats.
A poverty indicator measured by households earning less than R3,500 in each province.
Population share: Indicator as measured by each province’s share of total population.

36. PROVINCIAL ALLOCATIONS (SAHF)

37. BUDGET OVERVIEW Programme 7:Housing Equity
To promote fair lending practices by banking institutions, and provide for setting and enforcing specific minimum targets by financial institutions in lending to the low and medium income level households for housing purposes.
Take responsibility for implementing the Home Loans and Mortgage Disclosure Act (63 of 2000) (HLAMDA), its regulations and the Community Reinvestment Bill when the latter comes into operation.
Funding provides for setup costs

38. BUDGET OVERVIEW

39. Conclusion
Need to improve access to housing credit by the low income group
Need to address dysfunctional secondary low cost housing market
Improve governance – non-adherence to prescripts – Corruption Investigating capacity
Improvement in information to beneficiaries – lack of adequate communication

40. Conclusion Addressing unresolved housing land issues
Implementation of new policy regimes eg. Procurement regime, own contribution, phasing out programme.
Housing backlog
Improvement in delivery capacity

41. Thank You