1. TITLE RESTORATION PROJECT
ADDRESSING THE HISTORIC BACKLOG IN PRIMARY TRANSFER OF SUBSIDY HOUSES TO APPROVED SUBSIDY BENEFICIARIES

2. Basic definition – understanding the nature of the “Backlog”
A historic ( ) build-up of primary transfer from the Municipality to the original intended housing subsidy beneficiary that was not or could not be concluded timeously after construction;
Backlog varies from 2% in Swartland to 45% in Knysna;
NOT a backlog at Deeds Office; NOT about just transferring to the current occupant;
Current uncertainty in up to 40% of cases about who to transfer the subject property to as a different qualifying or non-qualifying household now occupy the subject house permanently;
Possible obligation to or expectations from Original Beneficiaries;

3. Current Status of Backlog
annual BNG transfers in the W/Cape in both new and old developments;
Primary focus on “historic” developments from ; Secondary focus on “current” developments from ;
W/Cape DHS TRP main focus is the transfer of remaining houses to permanent occupant households, not subsidies awarded as such;
BNG houses transferred since 1994;
There are still qualifying properties in municipal ownership;

4. Origin/cause – contributing factors :
Subsidy approved, house occupied but no valid original Deed of Sale – decade later it’s much more complex to resolve transfer with limited records/officials;
Requirement to resolve old cases via qualifying criteria for new developments – permanent occupants often do not qualify i.t.o. Housing Code;
Earlier strategy of build-now-do-paperwork-later, but never concluded;
Township establishment processes not concluded, development rights outstanding/lapsed, or land NOT released;
Informal sales, house exchanges, rapid migration & house invasion;
Municipal/developer focus on new developments and construction;

5. Challenges to fast tracking the eradication/transfer of backlog cases
Changes in structure of occupant household – deaths, divorces, disappearances;
Single/multiple informal sales e.g. to non-qualifiers (for example foreign nationals);
House sold informally, but original beneficiary now attempts to regain occupation/ownership when contacted about transfer;
Protests, resistant non-responsive occupants and false statements;
Weak systems to trace original beneficiaries;
Weak recorded institutional link between a person and a specific property, especially where no Deed of Sale;
Slow release of land by National Department of Public Works and State-owned Enterprises;
No incentive for conveyancers to prioritize transfers of subsidy houses at a 1/4 of the recommended rate;
Complex beneficiary substitution, procurement, transfer and township establishment processes,
Unapproved house extensions, encroachments across erf boundaries, unpaid municipal accounts;

6. Interventions / Progress
The Western Cape Government relies on 23 Municipalities as implementing agencies, thus focusses on creating an enabling environment for Municipalities to address the backlog;
Progress is monitored quarterly by the Nat. Dept. Human Settlements, the W/Cape Social Cluster Audit Committee and DHS HoD;
W/Cape DHS has accomplished the following:
Developed an affordable process of tracking Deeds Office transfers digitally checks monthly;
Developed an online GIS Web-Map facility to geographically identify cases that may require primary transfer;
Host the quarterly Provincial Steering Committee meeting to build capacity/awareness/progress;
Approved/transferred R77 million in additional HSDG Funding – R each for further survey/transfers;
Offers institutional support to Municipalities by 3 dedicated project coordinators;
Identified and addressed Municipalities that are underperforming;
Directly appointed occupancy survey and conveyancing teams if so requested by Municipalities;
Compiled new Title Restoration Grant Business Plan which replaces HSDG funding;
Several policy initiatives;

7. Example 1: All Properties to HSS Beneficiaries (GREEN)

8. Example 2: Some Municipal properties remain (RED)

9. Example 3: Multiple transfers outstanding (RED)

10. Possible Policy Amendments to address Title Deed Backlog
Phase 1: Improvement of transfers to beneficiaries in NEW developments;
Policy Resolution: “Greenfields” policy to improve title transfer in new subsidy housing projects approved and phased in from DONE;
Phase 2: Identification of subject backlog properties and transfer to remaining original beneficiaries;
Policy Resolution: Policy for spending of Additional HSDG Funding approved by the Minister of Human Settlements on 15 September DONE;
Phase 3: Transfer to current established occupant households both qualifying and non-qualifying, plus dealing with minor disputes;
Policy Resolution: POLICY FOR THE IDENTIFICATION AND CONFIRMATION OF HOUSING SUBSIDY BENEFICIARIES TO ENABLE TRANSFER OF OWNERSHIP IN SUBSIDY-FINANCED HOUSING SCHEMES: on route to the Minister of Human Settlements by 1 Sep DONE;
Phase 4: Creation of a Tribunal or Commissioner to resolve disputed claims to ownership;
Policy Resolution: Regulatory impact assessment required; awaiting the National Department of Human Settlements to take a lead in respect of the Tribunal; 2 to 3 years lead time;
Current interim alternatives are being investigated: Community Scheme Ombud Service, National Human Settlements Ombud; Conciliation Panel; Trained Mediators; Panel of experienced conflict resolution professionals;
Phased 5: Resort to existing Courts of Law

11. WAY FORWARD
Solutions not so much about more funding but building sufficient capacity equipped with effective policy or legislative tools to address a complex challenge that will take time to resolve.

13. Lionel Esterhuizen Director: Land and Asset Management +27 21 483 4444