1. PUBLIC HEARING ON VOTE NO.28 – PORTFOLIO COMMITTEE ON HOUSING
9th MAY 2006
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

2. Public Hearings on Budget 2004/5
Introduction
Background
In developing our plans we recognized that the emphasis of housing delivery in Gauteng and indeed South Africa had moved beyond the issue of numbers to the enhancement of quality and building of thriving communities while at the same time trying to turn around the apartheid spatial development patterns that we had inherited
We had shifted away from quantity to quality housing. In the past, in the quest to meet the huge demand in housing, we unfortunately concentrated on numbers (quantity). We then were dealing with the two (quantity and quality) as mutually inclusive components of the same delivery process.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

3. Public Hearings on Budget 2004/5
Introduction (cont)
The rapid economic growth and expanded social services delivery has led to increased in-migration and placed pressure on housing budget and available resources
Gauteng Department of Housing during 2004/5 had moved from applying the one size fits all to implement principles of the Breaking New Ground
Department revised its strategic plan document to address challenges and build on the desire to implement a people’s contract in order to fight poverty, create work and continue building a better life for all.
Our focus was and is still on development of mixed income and mixed use settlements on well located land and to allow people to have access to economic opportunities.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

4. Public Hearings on Budget 2004/5
Introduction (cont)
The number of people in our Housing Demand Data Base (Waiting List) is increasing yearly
In taking further the principle of the People’s Contract, the Department continues with its outreach programmes of ensuring that government interact with communities who have benefited from our programmes.
Our delivery programme is guided by the Elections Manifesto of the ANC – which has since been adopted by Gauteng Government Executive Council as a policy framework guide.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

5. FIVE PILLARS ON WHICH THE DEPARTMENT IS ANCHORED
The Gauteng Housing Policy in the new term of government rests on 5 key pillars which determine our new direction as we break new ground in accelerating housing delivery:
Dealing with issues of quantity and quality as mutually inclusive components of the same using different delivery processes;
Mainstreaming the participatory development paradigm;
Transforming settlements, especially the 20 old established townships, into sustainable and vibrant communities;
Accelerating implementation of the Rental Housing Policy in the Province;
Promoting good governance.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

6. Public Hearings on Budget 2004/5
OVERVIEW
Vision
A province where all households inhabit quality homes
in vibrant and sustainable communities.
Mission
To provide appropriate quality services, tenure, housing in targeted precincts and communities working in partnership with stakeholders.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

7. PROVINCIAL STRATEGIC PRIORITIES FOR THE FIVE YEAR TERM OF GOVERNMENT
Enabling faster economic growth and job creation
Fighting poverty and building safe , secure and sustainable communities
Developing healthy, skilled and productive people
Deepening democracy and nation building
Building an effective and caring government
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

8. DEPARTMENTAL PRIORITIES DURING THE NEW TERM OF GOVERNMENT
Formalisation of informal settlements which can be formalised ( basic services and infrastructure for all by 2009 ; The department has already registered shacks in 372 informal settlements out of which 40% were locked shacks
Eradication of all informal settlements in Gauteng by 2014
Building of top structures through – ;
PHP programme
Community Builders programme (To built top-structures (medium density) over a 5 year period
Formal Housing programme – Mainly For 1996/97 beneficiaries
MEC priority projects programme – For 1996/97 beneficiaries
Densification and infill development through Social Housing , Medium Density and Inner City Regeneration processes;
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

9. DEPARTMENTAL PRIORITIES DURING THE NEW TERM OF GOVERNMENT – CONT:
Hostel Redevelopment and Regeneration by 2009;
Promote home ownership through Regularisation and transfer of Ownership Process (RETRO)
Completion of TORPS in former Black areas by 31March 2006
Complete RETRO in the former –”own affairs” by 31 December for provincial stock
Complete RETRO in the former own affairs by 31 March 2008 for municipal stock
Densification of Housing on well located land
Provisioning of social and economic amenities to all developments to ensure sustainable settlements
Implementation of the Expanded Public Works Programme
Increase intakes for construction specific learnerships in pursuance of skills development and poverty alleviation
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

10. DEPARTMENTAL PRIORITIES DURING THE NEW TERM OF GOVERNMENT
Mobilize Resources through exploration of various options, i.e. Public-Private Partnerships, DFEA and/or other donor funding as well as other departments;
Upgrading of the 20 old established townships in Gauteng
Upgrading of all RDP houses delivered between and 2002 financial years i.e. built before the introduction of the NHBRC norms and standards ( deadline )
Provisioning of top structures to all projects serviced/ delivered between 1994 and 2005
Use of Labour Intensive work on all capital projects;
Promotion of Good Governance.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

11. DEPARTMENTAL PRIORITIES DURING THE NEW TERM OF GOVERNMENT - cont:
Urban Regeneration
Business Plans to ensure Integrated Development had been developed for the three identified areas, being Alexandra, Evaton and Bekkersdal.
The lead agency for Kliptown is the NHFC – the housing initiatives in Kliptown includes medium density Social Housing (1200), giveaway units (1 400 units) and the spatial linkage of Kersiesdorp to Kliptown.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

12. Public Hearings on Budget 2004/5
PERFORMANCE REVIEW 2004/05
OBJECTIVE
TARGET
ACHIEVEMENTS AS AT
31 MAR 2005
Formalisation of informal settlements : - Serviced stands
51 000
43 690
People’s Housing Process
3 251
3 369
Relocation Assistance
1 336
2 297
TORPS
15 000
16 766
In-Situ Rightsizing [Servcon Programme] -
6 803
Formal Housing
4 452
5 132
MEC Priority Projects
14 000
14 547
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

13. Public Hearings on Budget 2004/5
PERFORMANCE REVIEW 2004/05
OBJECTIVE
TARGET
ACHIEVEMENTS AS AT
31 MAR 2005
Rental and Social Housing Programme
150 Units
GPF 2301 units
592 Social Housing Units
GPF units
Affordable Rental Accommodation
UNITS
54 Hostels
828 Hostel units completed in six different hostels
Emergency intervention done in 33 Hostels
Housing Occupancy Audit
217 RDP Units
217 RDP Units audited
Beneficiary Education
Beneficiaries
beneficiaries educated on housing related skills
Empowerment -
BBBEE 70%
Women 30%
Disability 5%
Youth 5%
BBBEE 61%
Women 13%
Disability 0%
Youth 0%
Job Creation
233 54
8000 jobs created via Essential Services
870 jobs through PHP
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

14. PERFORMANCE REVIEW 2004/05 cont.
OBJECTIVE
TARGET
ACHIEVEMENTS AS AT
31 MAR 2005
HOUSING OPPORTUNITIES PLANNED
89 039
92 604
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

15. LEVEL OF EXPENDITURE AS AT 31 MARCH 2005
Budget
Expenditure
Over / Under Expenditure
R,000
R’ 000
TOTAL BUDGET
1, 440,226
1,394,135
( 96.8%)
46,091
(3.2%)
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

16. LEVEL OF EXPENDITURE AS AT 31 MARCH 2005
PROGRAM
Budget
Expenditure
Over / Under Expenditure
R,000
R’ 000
Prog 1. Administration
Prog 2. Housing Planning & Research
Prog 3. Housing Performance / Subsidy
Programme
Prog 4. Urban Renewal and Human
Settlement Redevelopment
Prog 5. Housing Asset Management
TOTAL
78,614
7,219
1,015,448
258,237
80,708
1,440,226
78,064
7,090
1,010,107
222,114
76,760
1,394,135
550
129
5,341
36,123
3,943
46,091
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

17. BUDGET FOR 2005/06 FY Thursday, 25 April 2019
PROGRAMME DESCRITION
Main Appropriation
(1)
Current
Payments
(2)
Transfers and subsidies
(3)
Payments for capital assets
(4)
Amounts specifically and exclusively appropriated
R’000
Administration
82 276
71 098
8 238
2 940
8 2 38
Housing Planning & Research
8 331
8 061
270
Housing Performance / Subsidy Program
22 667
8 818
1,176,657
Urban Renewal & Human Settlement
1 213
4 762
4,130 (Human Settl.)
125, 000 (Bekk& Evt)
8,000 (Alex – Land)
Housing Assets Management
51 232
20 367
30 780 85
TOTAL
16 875
1,352,805
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

18. Public Hearings on Budget 2004/5
BUDGET ALLOCATION 2005/06
Budget
R,000
2005/06
R’000
Equitable share ( Province)
295,182
Conditional Grants – (National)
- Housing Fund
- Human Settlements
- Land Distribution Alex
1,340,676
4,130
8,000
1,352,805
Total Budget
1,647,987
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

19. LEVEL OF EXPENDITURE AS AT 31 MARCH 2006
Budget
Expenditure
Available Balance
R,000
R’ 000
TOTAL BUDGET
1, 764,295
1,673,206
R91,089
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

20. LEVEL OF EXPENDITURE AS AT 31 MARCH 2006
DESCRIPTION
BUDGET
TOTAL YEAR TO DATE
AVAILABLE BUDGET
% OF EXPENDITURE OVER BUDGET
R '000
Programme 1: Administration
82,394
78,017
4,377 95
Programme 2: Housing Planning & Research
9,255
7,514
1,741 81
Programme 3: Housing Performance / Subsidy Programmes
1,182,245
1,179,506
2,739 99
Programme 4: Urban Renewal & Human Settlement Redevelopment
385,161
305,382
79,779 79
Programme 5: Housing Asset Management
105,240
102,787
2,453 98
Total
1,764,295
1,673,206
91,089
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

21. Public Hearings on Budget 2004/5
8. PERFORMANCE REVIEW 2005/06
OBJECTIVE
TARGET
ACHIEVEMENTS AS AT
28 February 2006
Formalisation of informal settlements : - Serviced stands
29 750
30 135
People’s Housing Process
1 440
1 414
Relocation Assistance
650
273
TORPS
7 200
17 000
In-Situ Rightsizing [Servcon) -
Formal Housing
2 294
Serviced Stands = 9 607
Houses = 4 114
MEC Priority Projects
6 868
6 243
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

22. DEPARTMENTAL PRIORITIES TILL 2008/9
The Department of Housing has refocused its plan and the following has been prioritised
Formalisation and Eradication of Informal Settlement
Development of Social and Mixed Income Settlements
Regeneration of Twenty Old established Townships
Affordable Rental Accommodation
Urban Regeneration
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

23. DEPARTMENTAL PRIORITIES TILL 2008/9
This will be achieved through:
Fast tracking of top structure delivery
Provision of Housing in targeted areas in line with GDS and Global City Region approach.
Renewal of 20 old established township
Social Housing program to be refocused to include affordable rental – low and middle income earners
Job Creation through housing development
SMME/ BBBEE - Empowerment and Participation
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

24. DEPARTMENTAL PRIORITIES TILL 2008/9
Current approach
Housing delivery driven by national and provincial priorities
Creation of sustainable human settlements through the identification and development in well located land
Emphasis on sustainability and quality of life through the provision of housing and other social and economic amenities.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

25. DEPARTMENTAL PRIORITIES TILL 2008/9
Key Interventions to realize our objectives:
The Department of Housing has regionalized its operations and teams have been appointed for each municipality.
Capacity at regional and local level will be done via Programme Management Office based at municipal level.
Implementation and promotion of mixed income settlements in each Municipal area in line with the principles of the Breaking New Ground - Two of these projects already underway in Cosmo City and Oliventhoutbosch.
Plan to engage and mobilize established developers to get involved in government drive housing projects.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

26. ENVIRONMENTAL CHALLENGES IMPACTING ON SERVICE DELIVERY
Insufficient funding
Need of increased funding to meet the targets as per the Breaking of New Ground strategy
Housing Backlog
The department has a backlog for the serviced stands which have no top structure at the tune of :
Land Invasions
Illegal land invasions and capacity challenges within most local municipalities
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

27. ENVIRONMENTAL CHALLENGES IMPACTING ON SERVICE DELIVERY (…continued)
Migration patterns
The migration of households into Gauteng is estimated at households per annum.
Provincial Population Growth
The Provincial Population growth is estimated at households per annum.
Unemployment
28% of the economically active population of Gauteng is unemployed and thus unable to pay for services.
HIV/Aids
The impact of HIV/Aids has resulted in an increasing number of child-headed families with no contractual rights.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

28. Public Hearings on Budget 2004/5
BUDGET ALLOCATION 2005/06
Budget
R,000
2005/06
R’000
Equitable share ( Province)
295,182
Conditional Grants – (National)
- Housing Fund
- Human Settlements
- Land Distribution Alex
1,340,676
4,130
8,000
1,352,805
Total Budget
1,647,987
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

29. Public Hearings on Budget 2004/5
CROSS CUTTING ISSUES
Broad Based Black Economic Empowerment
BBEE – 70%
Gender
The Department has set a target of 30% of all procurement from women (Both Ownership and Participation). The department has created a database for all women contractors.
Disability and Youth
The Department has set a target of 5% respectively of all procurement from disabled people and Youth (Both Ownership and Participation). The Department is currently developing a database to cater for each of the targeted sector.
HIV/AIDS
The HIV/AIDS Policy developed in 2004/05 will be implemented in 2005/06
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

30. Public Hearings on Budget 2004/5
WAY FORWARD
We need to have proper plans and re-prioritised approach that speaks to the principles of the Breaking New Ground policy.
There’s a need for greater integration of plans and funding for Human Settlements in all spheres of government and private sector
Better coordination and integration of planning process and implementation between province and municipalities to realize our key priorities with focus on the following:
Utilization of Municipal Infrastructure Grant
Utilization of Land Acquisition Grant
National Infrastructure Support Grant
Reinforcing diversity of housing and settlement types, in increasing choice, through densities, locations, tenure options, housing credit and delivery routes.
Intervening in land and rental markets to ensure that equitable development and integration is achieved.
Harnessing the resources of the private sector to deliver at scale – through the intended PPP approach
Thursday, 25 April 2019
Public Hearings on Budget 2004/5

31. Public Hearings on Budget 2004/5
THANK YOU.
Thursday, 25 April 2019
Public Hearings on Budget 2004/5