1. DEPARTMENT OF HOUSING
PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC SERVICES (NATIONAL COUNCIL OF PROVINCES)
18 MAY 2005
BUDGET 2005/06 TO 2007/08

2. STRUCTURE OF THE PRESENTATION
Aim, Vision and Mission of the Department
Our Values
Our Mandates
Housing Legislation and Regulations
Our Policy Framework
Strategic overview and policy shifts
Housing Comprehensive Plan
Key Challenges and Trends
Linkages to Government Policy Priorities
Strategic Policy: Shifts
Budget overview and Key activities per Programme
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, 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 (as amended);
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 (not yet in operation);

7. HOUSING LEGISLATION (CONT.)
Currently in process
Housing Amendment Bill ( Being amended to take into account all matters related to the new plan);
Social Housing Bill ( Being amended to take into account all matters related to the new plan);
Rental Housing Act 50 of 1999;
Community Reinvestment (Housing) Bill (Held in abeyance pending negotiations through the Charter);
Less Formal Township Establishment Amendment 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
Currently under review/ being overhauled in order to be in line with the “BNG” plan
National Norms and Standards For Permanent Residential Structures
Sets guidelines on the amounts to be used from the subsidies for various aspects of housing development (to be reviewed)
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 - storm water, 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. OUR POLICY FRAMEWORKS
Our overall policy framework continues to be as determined by the White paper on a new housing policy and strategy for South Africa, 1994

11. STRATEGIC OVERVIEW Comprehensive Plan for Housing Development
To find a new focus for housing policy for the next decade of government, the Department embarked on a comprehensive policy consultation process, which culminated in the National Housing Summit in November 2003.
The comprehensive Plan adopted by Cabinet in September 2004 builds on the 1994 White Paper for housing and envisages expanding the mandate of the Department to encompass the entire housing market.
The Plan focuses on moving from housing to sustainable human settlements.

12. STRATEGIC OVERVIEW
The nature of demand for government-assisted housing in South Africa has changed significantly over the last five years:
A 30% increase in the absolute number of households over the period , where only a 10% increase was expected and household size has also declined.
One fifth of urban residents are relative newcomers to urban areas (i.e. first generation residents) and urban areas are expected to continue to grow at a rate of 2.7% per annum.
Population growth trends however reveal significant regional differences and increasing spatial concentration in metros & secondary cities.

13. STRATEGIC OVERVIEW
Unemployment, on the official definition, leapt from 16% in 1995 to 30% in 2002, placing pressure on household incomes.
Housing and service provision has not kept pace with household formation, and a range of other factors have had negative impact on social coherence and crime, particularly contact crimes (comprising 40% of all crimes).
The size of the backlog has increased. There are over 1.8 million dwellings which can be classified as inadequate housing. The number of households living in shacks in informal settlements and backyards increased by 26%, which is far greater than the 11% increase in population over the same period.

14. STRATEGIC OVERVIEW Key Challenges and Trends.
Over the last 10 years, state-assisted housing investment of some R29.5bn has provided 1.6 million housing opportunities, often on the urban periphery and achieving limited integration.
Transforming the extremely complicated bureaucratic, administrative, financial and institutional framework inherited from the previous government and building capacity of all spheres of government.
The 1.6 million subsidy-houses that have been built have not in most cases become “valuable assets” in the hands of the poor.
Housing subsidy grants increased from R2,692bn in 1996/97 to some R4,5bn in 2004/2005 and will increase to R5,3bn in 2006/07. These increases in housing development funding have largely gone towards funding the increases in the quantum of the housing subsidy, which is now adjusted annually for inflation.

15. STRATEGIC POLICY SHIFTS
The key policy developments embedded in the Comprehensive Plan include:
A policy to upgrade informal settlements progressively based on an integrated community development approach and involving the community as a whole.
A housing land policy will serve to prioritise the release of public land and the acquisition of private land for low cost housing projects.
A social housing and medium density policy and programme aims to establish social housing institutions that will develop and manage quality, well located, largely rental housing stock on a sustainable basis.
A policy and programme to provide primary social and economic infrastructure in low income housing developments will contribute towards enhancing the quality of the living environments by providing for community needs.

16. 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.

17. LINKAGES TO GOVERNMENT PRIORITIES
The Strategic vision of the Departmental Strategic plan is informed by the following national policies, programs and initiatives:
The White Paper on a New Housing Policy and Strategy which remains the basis for housing policy and program;
The Urban Renewal Program;
The Integrated Sustainable Rural Development Strategy;
The Expanded Public Works Program;
The program to develop entrepreneurship among previously disadvantaged communities;
The Presidency’s National Spatial Development Perspective;
The Strategic Development Initiatives (SDIs);
Provincial development frameworks;
Integrated Development Plans (particularly at the municipal sphere); and
National and provincial multi-year housing development plans; and
The Presidential Job Summit project.

18. LINKAGES TO GOVERNMENT PRIORITIES
The following objectives have been defined by the national Department of Housing in line with the State of the Nation Address, the budget speech by the Minister of Finance and the Strategic Vision of the Department:
Accelerating the delivery of housing as a key strategy for poverty alleviation
Utilizing provision of housing as a major job creation strategy
Ensuring property can be accessed by all as an asset for wealth creation and empowerment.
Leveraging growth in the economy
Promoting social cohesion and improving quality of life for the poor.
Support the functioning of the entire single residential property market to reduce duality within the sector by breaking the barriers between the first economy residential property boom and the second economy slump.
Utilizing housing as an instrument for the development of sustainable human settlements in support to spatial re-structuring.

19. LINKAGES TO CLUSTER PRIORITIES
The National Department and the Provincial Departments of Housing have integrated their activities with the following Cluster priorities:
Job Creation and Expanded Public Works Programme.
Integrated Sustainable Rural Development and Urban Renewal
Entrepreneur Development Programme and BEE
Promotion of Women Entrepreneurs
Internships
The employment of Community Development Workers (CDW) and their interface within Multipurpose Community Centres (MPCC’s).

20. BUDGET OVERVIEW: ENE 2005 Programme 2005/06 2006/07 2007/08
1 Administration
83,737
92,246
97,948
2 Policy Planning and Research
24,634
26,112
27,418
3 Program Management
95,061
69,893
96,887
4 Housing Sector Performance
130,607
190,258
211,620
5 Housing Equity
5,949
6,306
6,621
6 Housing Development Funding
4,851,724
5,668,648
6,927,081
Total
5,191,712
6,053,463
7,367,575
Net Increase to baseline
19,629
569,535
1,609,451

21. BUDGET OVERVIEW: ENE 2005

22. BUDGET OVERVIEW: ENE 2005 Additional funding:
R50 million in 2005/06 for institutional reform , capacity building and accreditation activities
Decrease of R28,8m as a result of transfer of Loans for the previous Housing Boards
R600 million in 2006/07 (R500 million for various aspects of the new plan, R50 million for institutional reform and capacity building and R50 million for finalising the portfolio of Servcon Housing Solutions)
R1,6 billion 2007/08 (R1,5 billion for various aspects of the new plan, R80 million for institutional reform , capacity building and accreditation activities, and R60 million for Servcon).

23. Variances: Allocation 2004/05 vs. 2005/06
Programme
2004/05
2005/06
Variance
1 Administration
66,833
83,737
16,904
2 Policy Planning and Research
22,139
24,634
2,495
3 Programme Management
152,477
95,061
-57,416
4 Housing Sector Performance
92,240
130,607
38,367
5 Housing Equity
5,612
5,949
337
6 Housing Development Funding
4,509,640
4,851,724
342,084
Total
4,848,941
5,191,712
342,771

24. BUDGET OVERVIEW

25. BUDGET OVERVIEW

26. Allocation of funds in respect of Strategic Priorities / Measurable objectives
Programme 2: Policy Planning and Research - (R24,634,000)
Adequate housing for all South Africans by 2024, through policy, legislation and research that enables housing delivery in sustainable human settlements.
Programme 3: Programme Management - (R95,061,000)
Increase access to and improve the delivery of adequate housing in sustainable human settlements by effectively providing officials with systems, knowledge, skills, guidance and funding.
Programme 4: Housing Sector Performance - (R130,607,000)
Effective monitoring of policy implementation by using an effective data bank and housing and human settlement information systems that provide accurate, strategic and statistically sound data to allow for regular evaluation of the impact of housing policy, and to support decision-making on improvements to housing policy and programmes.

27. Allocation of funds in respect of Strategic Priorities / Measurable objectives
Programme 5: Housing Equity - (R5,949,000)
Increase the level of private sector finance for affordable housing by R20 billion by 2010, through monitoring and analysing lending practices, and by supporting the development of appropriate instruments by lending institutions and appropriate partnerships between lending institutions, government, housing support institutions and other lenders.
Programme 6: Housing Development Funding - (R4,509,640,000)
Disburse and monitor funds for housing delivery in compliance with the Public Finance Management Act (1999) and Division of Revenue Act requirements, to ensure that expenditure matches annual delivery commitments.

28. Trends in the budget allocation : 2004/05 vs. 2005/06
The allocation of several of the programmes fluctuates due to the project-based activities in these programmes, as well as reprioritisation to accommodate the implementation of the comprehensive plan.
In the 2005 Budget, additional allocations were made of R50 million for 2005/06, R600 million for 2006/07 and R1,6 billion for 2007/08, most of these funds will go towards implementing the comprehensive plan for the development of sustainable human settlements
Programme 1: Administration allocation increases to support the expansion of administrative capacity to accommodate new functions and the incorporation of the communications function into the Corporate Services;
Programme 2: Policy Planning and Research increase is related to inflationary adjustment.

29. Trends in the budget allocation: 2004/05 vs. 2005/06
Programme 3: Programme Management, allocation declines between 2004/05 and 2005/06 as a result of the consolidation of the human settlement redevelopment grant with the housing subsidy grant in Programme 6: Housing Development Funding;
Programme 4: Housing Sector Performance consist mainly of transfer payments, largely to public entities, and it is the year-on-year changes in these that determine overall allocation. Servcon Housing Solutions, a joint venture between government and the banking industry to manage the disposal of properties owned by banks, allocation for 2004/05 amounts to R38,6 million and increased to R55,9 million in 2005/06. In 2005/06, a small transfer to the Peoples’ Housing Partnership Trust is introduced to fund administrative and personnel costs associated with supporting self-build housing projects.
Programme 5: Housing Equity allocation increase is for goods and services, for the IT system required to monitor reporting from banks,

30. KEY ACTIVITIES PER PROGRAMME AND
BUDGET OVERVIEW
OVER THE MTEF (2005/08)

31. PROG 1: ADMINISTRATION

32. PROG 1: ADMINISTRATION
Purpose is to provide strategic leadership and administrative and management support services to the department. Promote and facilitate the flow of information between the department and its stakeholders.
The key strategic objectives include the following
Provision of strategic corporate communication services to all stakeholders;
Provision of Strategic Financial Management Services;
Provision of Corporate Services (such as HRM, Transport, Security and IT) to ensure corporate efficiently;
Provision of strategic support services for the Minister and Accounting Officer;
Implementation of the department's anti corruption initiative and investigative programme.

33. BUDGET OVERVIEW MTEF Allocation:
2006/07 – R92,246,000; and
2007/08 – R97,948,000.
A real average increase over the MTEF at 7,3 %
Increase over MTEF mainly as a result of the increase in staff component for enhanced service delivery and aligning of functions to strategic objectives
This include the expansion of the Director-General office and the creation of security function.

34. BUDGET SUMMARY

35. BUDGET SUMMARY

36. PROG 2: POLICY PLANNING AND RESEARCH

37. PROG 2: POLICY PLANNING AND RESEARCH
PURPOSE
To develop sound national human settlement and housing policies, supported by research and underpinned by an appropriate legislative framework

38. OBJECTIVES POLICY PLANNING
Develop and manage sustainable human settlement policy and promote and maintain human settlement integration
Establish effective national housing policy and strategy
Develop, coordinate and monitor the implementation of housing framework legislation

39. STRUCTURE
Human Settlement Policy and Integration focuses on sustainable urban and rural human settlement development policy and is responsible for international cooperation on human settlement policy.
National Housing Policy and Strategy develops national housing policy and strategies. It also maintains the national housing code, manages the integrated multi-year housing development plans, and guides the design of appropriate institutional frameworks for implementing housing policy and strategy.

40. STRUCTURE
Housing Framework Legislation drafts housing legislation required to implement approved policy and strategies monitors the implementation of housing legislation and assesses the impact of other legislation on the housing function.
BUDGET 2005/2006: R 24,6 M

41. KEY ACTIVITIES OVER MTEF
HUMAN SETTLEMENT POLICY AND INTEGRATION:
Housing land policy
Guide lines for farm worker housing
Densification, integration and inner city renewal programme
Aligning IDPs and housing sector plans
Energy efficient housing
Substantive inputs to multi-lateral processes

42. KEY ACTIVITIES OVER MTEF
NATIONAL HOUSING POLICY AND STRATEGY:
Special Housing needs assistance policy
Medium density housing policy investigation
Developing guidelines for sustainable housing development – by revising the National Housing Code
Revisit rural subsidy programme
Back yard rental policy intervention
Guidelines for informal settlement pilot projects
New housing typologies and designs

43. KEY ACTIVITIES OVER MTEF
FRAMEWORK LEGISLATION :
Social Housing Act
Regulations to the Social Housing Act
Housing Development Act (New)
Review of national, provincial and local legislation impacting on the Comprehensive Plan

44. KEY ACTIVITIES OVER MTEF
Amendments to various acts administered by the Department in accordance with need Including:-
- An efficient and implementable Housing Act that complies with DORA and PFMA - An equitable PIE Act that is constitutional and unambiguous and allows for the orderly eviction of unlawful occupiers - An efficient Housing Consumers Protection Measures Act that is unambiguous and serves the interests of housing consumers - An efficient and implementable Rental Housing Act that gives Rental Housing Tribunals the power to enforce their rulings

45. CHIEF DIRECTORATE RESEARCH
The Chief Directorate Research initiates, undertakes and manages research on human settlements and housing.

46. STRATEGIC OBJECTIVE RESEARCH
To establish internal and external research networks and foster a research culture within the Department to progressively improve the relevance, alignment, quality, and usefulness of research activities so that the Department is able to maintain a leading role in national, and international, debates around human settlements and influence practice to more efficiently and effectively fulfil the housing mandate.

47. KEY ACTIVITIES OVER MTEF
RESEARCH
Research on informal settlement upgrading and support
Promoting alternative technologies and improved housing design
Level of socio-economic and ethnic integration in SA
International experience in densification and integration
Study on housing ex servicemen
International research seminar

48. BUDGET SUMMARY

49. BUDGET SUMMARY

50. PROG 3: PROGRAMME MANAGEMENT

51. PROGRAMME 3 : PROGRAMME MANAGEMENT
Purpose
Manage National Housing and Human Settlement Programs to enable, support and promote the implementation of projects
Measurable Objectives
Increase access to and improve the delivery of adequate housing in sustainable Human Settlements by effectively providing officials, structures and systems with knowledge, skills, guidance and funding

52. STRUCTURE 3 Directorates 4 Sub-Programs Budget : R95 million
National Housing Programs
Special Programs Support
Capacity Building
4 Sub-Programs
Budget : R95 million

53. KEY ACTIVITIES OVER MTEF
“OLD BUSINESS”
Enhanced Phasing Out Program (March 2006)
First Time Home Buyers Interest Subsidy Scheme (Monthly)
NHBRC Warranty Cover (October 2005)
Human Settlement Redevelopment Program (Monthly)
Presidential Pilot Project on Rental Housing (Monthly/Ongoing)

54. OLD BUSINESS (CONT) Housing Professional Body (Dec 2005)
Housing Practitioners Skills Audit (Oct 2005)
Consumer Education (Roll-out : May 2005)
Housing Policy Workshops/seminars (Continuously)
Accredited train-the-trainer program (March 2006)
Housing Education and Training Standards (March 2006)

55. “NEW BUSINESS” New Procurement Regime (Oct 2005)
Rural Housing enhancement (Dec 2005)
Guidelines for new subsidy bands (Dec 2005)
Accreditation : Framework and Promotion (Ongoing)
EPWP : Regulating Framework (Completed)
Rectification of houses : pre/post 1994 (Post : completed) (Pre- Oct 2005)

56. NEW BUSINESS (CONT) HIV/AIDS assistance program (March 2005)
New Hostels Program (Dec 2005)
Farm worker Housing guidelines (March 2005)
New PHP guidelines (Nov 2005)
Guidelines for a phased development approach (Oct 2005)
Framework for social/econ amenities (Completed)
Alignment of infrastructure policy (Ongoing with sector Depts)

57. NEW BUSINESS (CONT) Training Program for Accreditation (Ongoing)
Social/Econ facilities training/awareness (June 2005)
Informal Settlement Capacity building (Ongoing)
Roll out of Consumer Education Strategy (May 2005)
Training/Capacity Building Programs
Social Housing (May 2005)
Phasing Out (March 2006)
Procurement (Jan 2006)

58. BUDGET SUMMARY

59. BUDGET SUMMARY

60. BUDGET OVERVIEW MTEF allocation: 2005/06 – R95,061,000;
2006/07 – R69,893,000; and
2007/08 – R96,887,000.
Reason for fluctuation over MTEF is due to the integration of the Human Settlement Redevelopment Program grant into the Integrated Housing and Human Settlement Development Grant.
Commitments on projects for 2005/06 amounts to R24,395,000
Additional funding for capacity building

61. PROVINCIAL ALLOCATION (HSRDP)
PROVINCE
2005/06
R`000
EASTERN CAPE
FREE STATE
9,475
GAUTENG
4,129
KWAZULU-NATAL
LIMPOPO
1,418
MPUMALANGA
NORTHERN CAPE
NORTH WEST
WESTERN CAPE
9,373
TOTAL
24,395

62. PROG 4: HOUSING SECTOR PERFORMANCE

63. PROG 4: HOUSING SECTOR PERFORMANCE
Purpose:
Monitor the performance and assesses the impact of housing delivery, manages housing information, and monitors and analyses the impact of government’s housing policy and programmes on the construction sector, the financial sector and the economy, and the housing institutions.

64. STRATEGIC OBJECTIVES To monitor, evaluate and assess:
The implementation, performance and impact of Government’s national housing programs;
The impact th1ereof on the construction sector;
The oversight management of the Housing Support Institutions; and
The provision of IT systems and its management in relation to the distribution of housing subsidies

65. STRUCTURE There are five subprogrammes:
Policy and Programme Monitoring assesses the implementation of national housing policy and programmes, and the impact of these on beneficiaries, the environment and the roles of the three spheres of government.
Information Management maintains national housing databases and information systems.
Industry Analysis and Development Finance monitors and analyses the impact of government’s housing policy and programmes on the construction sector, the financial sector and the economy.
Housing Institutions monitors the performance of the following housing institutions: National Housing Finance Corporation, Servcon Housing Solutions (Pty) Ltd, Peoples’ Housing Partnership Trust, Social Housing Foundation, National Home Builders’ Registration Council, Thubelisha Homes, National Urban reconstruction and Housing Agency, and the Rural Housing Loan Fund.
Contributions administers the transfer payments to these institutions.

66. BUDGET SUMMARY

67. BUDGET SUMMARY

68. CHIEF DIRECTORATE : INFORMATION MANAGEMENT
Strategic Objective: To provide human settlement information to support Government’s housing provision process
Deliverables MTEF:
Develop, manage and maintain housing information systems (HSS, HUIS, NHSDB);
ensure an effective library and resource service;
Manage the provision and maintenance of the Housing Subsidy System to accredited Local Governments; and
Manage the level of quality of data continuously to ensure accurate and reliable data.

69. CHIEF DIRECTORATE : HOUSING SECTOR PERFORMANCE
Strategic Objective: To monitor, evaluate and assess the implementation, progress and impact of national as well as entrepreneurial development and job creation programs
Deliverables MTEF:
Develop monitoring, evaluation and impact assessment system based on the BNG Housing Plan;
Create and develop publications to advise management and stakeholders;
Establish effective and efficient communication channel between three tiers of Government

70. CHIEF DIRECTORATE : INDUSTRY ANALYSIS
Strategic Objective : To monitor and evaluate Government’s programs in the construction sector, accessibility of development finance and impact of economic indicators
Deliverables MTEF:
Effective monitoring of the construction sector, quality of houses, alternative building technologies and capacity;
Monitor and evaluate the housing finance sector, effectiveness of housing finance products and the impact of the economy on the housing sector;
Monitor the performance of Housing Support Institutions against the BNG Housing Plan, founding mandates and products offered

71. BUDGET OVERVIEW MTEF allocation Average increase of 22% over the MTEF
2006/07 – R190,258,000; and
2007/08 – R211,620,000 million.
Average increase of 22% over the MTEF
Mainly as a result of increases in allocation to SERVCON as a result of SERVCON concluding its work.
Fairly stable over MTEF period

72. PROG 5: HOUSING EQUITY

73. PROG 5: HOUSING EQUITY Purpose:
Eradicate discrimination and unfair practices to do with access to housing finance, by implementing and administering the Home Loan and Mortgage Disclosure Act (2000) and its regulations.

74. STRATEGIC OBJECTIVES
To promote transformation in financial services associated with housing finance to low to medium income households;
To facilitate and ensure the availability and accessibility of affordable housing finance instruments/products and savings schemes to low to medium income households.

75. STRATEGIC OBJECTIVES ( continued )
To identify possible discriminatory lending patterns in housing finance to low to medium income households by implementing the Home Loan and Mortgage Disclosure Act.
To monitor that financial institutions meet the targets they set in terms of the financial services sector charter.

76. KEY ACTIVITIES OVER MTEF
Engage with financial institutions to :
ensure that they transform the way in which they engage with the target market ( immediate and on-going )
develop affordable housing finance instruments ( 31st December 2005 )
Explore risk sharing mechanisms to enable mobilising credit at scale ( 31st December 2005 )
Identify and resolve impediments to a properly functioning property market ( immediate and on-going )
ensure appropriate consumer education programs (31st December 2005 )
ensure expanding points of representation ( 31st December 2005 )

77. KEY ACTIVITIES OVER MTEF ( continued )
finalise and gazette regulations to implement the Home Loan and Mortgage Disclosure Act (30th June 2005);
receive, capture & analyse information disclosed by financial institutions (31st December 2005);
submit annual reports to Minister and other stakeholders. (31st March 2006 )

78. BUDGET SUMMARY

79. BUDGET OVERVIEW MTEF allocation: Average increase of 5% over MTEF
2006/07 – R6,306,000; and
2007/08 – R6,621,000.
Average increase of 5% over MTEF

80. PROG 6: HOUSING DEVELOPMENT FUNDING

81. PROG 6: HOUSING DEVELOPMENT FUNDING
Housing Development Funding manages the funding of national housing programmes.
The programme comprises three sub-programmes:
Fund Management administers payments of the conditional grant to provinces.
Integrated Housing and Human Settlement Development Grant reflects the conditional grant allocation that is transferred to provinces
Interest and Redemption on Private Loans administered the interest payments on liabilities held by the National Housing Development Board and the SA Housing Trust, all of which have been transferred to National Treasury.

82. KEY ACTIVITIES OVER MTEF
The Integrated Housing and Human Settlement Development Grant is the amalgamation of aspects of the Human Settlement Redevelopment (which previously fell under Programme Management) the previous Housing Subsidy conditional grants;
To accommodate the funding required for implementing the new comprehensive plan for the development of sustainable human settlements;
Will in the first year fund the current business and new pilot projects across the country;
National Department assisting provinces in finalising plans and targets in line with Comprehensive plan for 31 March 2005 target date for submission of these plans.

83. KEY ACTIVITIES OVER MTEF
Transfer of funds according to payment schedule;
Monitoring of expenditure on provincial & local authority level;
Amending Housing subsidy grant framework;
To provide a effective and efficient debtor system.

84. BUDGET SUMMARY

85. BUDGET SUMMARY

86. BUDGET OVERVIEW MTEF allocation:
2006/07 – R5,668,648,000; and
2007/08 – R6,927,081,000.
Accounts for the bulk of the department’s expenditure
Average increase of 15,6% over MTEF

87. PROVINCIAL ALLOCATIONS (IHHSDG)
6,917,946
5,659,948
4,843,481
TOTAL
652,362
533,733
456,740
WESTERN CAPE
668,274
546,751
467,880
NORTH WEST
114,146
93,389
79,917
NORTHERN CAPE
458,660
375,255
321,123
MPUMALANGA
567,963
464,682
397,650
LIMPOPO
1,142,153
934,457
799,659
KWAZULU-NATAL
1,914,887
1,566,674
1,340,676
GAUTENG
569,347
465,814
398,618
FREE STATE
830,154
679,194
581,218
EASTERN CAPE
R`000
2007/08
2006/07
2005/06
PROVINCE

88. Transfers to Provinces

89. Summary of the Housing Delivery Targets and Funding Allocations for the nine Provincial Housing Departments.

90. 2,164,941,040.00
124,787.00
Sub Total
266,319,300.00
8,900.00
- Limpopo
321,123,000.00
8,512.00
- Mpumalanga
125,976,000.00
0.00
- Kwa-Zulu Natal
314,740.00
16,170.00
- Western Cape
342,339,000.00
15,040.00
- Gauteng
51,387,000.00
33,968.00
- North West
558,000,000.00
25,813.00
- Eastern Cape
77,381,000.00
3,230.00
- Northern Cape
422,101,000.00
13,154.00
- Free State
Funding Allocations
Housing Delivery Targets
Objectives:
Construction of new Subsidy Houses
Summary of the Housing Delivery Targets and Funding Allocations for the nine Provincial Housing Departments.

91. 88,462,000.00
5,896.00
Sub Total
0.00
- Limpopo
- Mpumalanga
66,000.00
3,065.00
- Kwa-Zulu Natal
40,000.00
- Western Cape
65,956,000.00
2,331.00
- Gauteng
2,500,000.00
- North West
7,000,000.00
- Eastern Cape
- Northern Cape
12,900,000.00
500.00
- Free State
Funding Allocations
Housing Delivery Targets
Objectives:
Hostels Redevelopment Programme

92. 48,709,614.00
792.00
Sub Total
510,864.00
16.00
- Limpopo
13,206,750.00
0.00
- Mpumalanga
5,865,000.00
- Kwa-Zulu Natal
50,000.00
- Western Cape
3,078,000.00
- Gauteng
7,500,000.00
251.00
- North West
5,000,000.00
- Eastern Cape
599,000.00
25.00
- Northern Cape
12,900,000.00
500.00
- Free State
Funding Allocations
Housing Delivery Targets
Objectives:
Emergency Housing Assistance

93. 905,314,408.00
67,020.00
Sub Total
159,645,000.00
5,000.00
- Limpopo
0.00
- Mpumalanga
40,238,408.00
2,300.00
- Kwa-Zulu Natal
50,000.00
- Western Cape
631,000,000.00
42,905.00
- Gauteng
62,000,000.00
7,400.00
- North West
6,031,000.00
344.00
- Eastern Cape
- Northern Cape
6,350,000.00
9,071.00
- Free State
Funding Allocations
Housing Delivery Targets
Objectives:
Informal Settlement Upgrading

94. 3,356,901,798.00
198,495.00
Grand Total: All Provinces
149,474,736.00
0.00
Sub Total:
- Limpopo
- Mpumalanga
- Kwa-Zulu Natal
- Western Cape
125,000,000.00
- Gauteng
10,000,000.00
- North West
5,000,000.00
- Eastern Cape
- Northern Cape
9,474,736.00
- Free State
Funding Allocations
Housing Delivery Targets
Objectives:
Human Settlement

95. THANK YOU

96. The New Plan in Action
“Breaking New Ground in Housing Delivery”

97. Bulembu Peoples Housing Project - King William’s Town
Province: Eastern Cape
[PMG note: photographs not included]
Bulembu Peoples Housing Project - King William’s Town
BCM WARD 9 RURAL HOUSING PROJECT, ALSO KNOWN AS BULEMBU PEOPLES HOUSING PROJECT.

98. Walmer - Port Elizabeth
Province: Eastern Cape
[PMG note: photographs not included]
Sakhasonke Village
Walmer - Port Elizabeth

99. Province: Free State
[PMG note: photograph not included]

100. Province: Free State
[PMG note: photograph not included]

101. Province: Northern Cape
[PMG note: photographs not included]

102. Province: Northern Cape
[PMG note: photographs not included]
Kuruman – 16 Days of Activism, December 2004

103. Province: Mpumalanga
[PMG note: photographs not included]
Gogo Nhlapho, 78 yrs received her house after the residential Imbizo in Ogies

104. Building Communities where people of all races live together
Province: Mpumalanga
[PMG note: photographs not included]
Building Communities where people of all races live together

105. Envisaged Output - N2 Gateway Project
Province: Western Cape
[PMG note: photographs not included]
Envisaged Output - N2 Gateway Project

106. Province: Western Cape
Envisaged Output – N2 Gateway Project

107. Province: Gauteng Brickfields Housing Project – Newtown Johannesburg
[PMG note: photographs not included]
Brickfields Housing Project – Newtown Johannesburg
Mixed income residential development comprising of 1400 housing units

108. Province: Gauteng 14 500 Formal Houses Built in 2004/5
[PMG note: photographs not included]
Formal Houses Built in 2004/5