1. Presentation on the 2015 Appropriation Bill Director- General: TW Zulu
15 May 2015
Director- General: TW Zulu
Confidential

2. Purpose
The Presentation is to Brief the Standing Committee on the 2015 Appropriation Bill including matters as requested in the letter of invite including inter alia:
Medium Term Strategic Framework of the Department (MTEF) and
Strategic Plan
Annual Performance Plan MTEF

3. TABLE OF CONTENT Background Departmental Strategic Plan
Macro Performance Indicators
Strategic Goals by Programme
Departmental Annual Performance Plan
Delivery Agreements
Budget
Delivery Targets
Challenges and Mitigation Measures

4. Background
The National Development Plan (NDP) in Chapter 8 outlines a vision for human settlements and housing towards 2030.
The emphasis in the NDP is on a government-led strategy to fast-track the development of housing and human settlements whilst at the same time improving the quality of life of citizens.
The Department Medium Term Strategic Framework for prioritises the delivery 1,460 million housing opportunities in partnership with the private sector, all stakeholders and communities.
The human settlements development programme must in the next five years act as a catalyst for radically transforming the national space economy in order to achieve measurable results by 2030.

5. Background
The radical spatial transformation must ensure that poverty, unemployment and inequality must be addressed in the programmes and funding applied by the human settlements sector.
The delivery approach will focus on mega projects of integrated housing mix to cater for different incomes levels and needs and includes housing opportunities for:
the indigent, affordable housing sector, rental units, social housing and serviced stands and
will ensure integration of different income groups,
different races and lead to the building of a South Africa that truly belongs to all.

6. Outcome 8 Delivery Agreement
Background
The objective of the Outcome 8 Delivery Agreement is to ensure the implementation of the comprehensive human settlements programme with multiple projects that covers extensive geographical spread aiming to improve the workings of the space economy. This will be achieved by realization of the following outcomes:
Providing poor households with adequate housing in better living environments;
Supporting the development of functionally and equitable residential property market;
Improving the institutional capacity & coordination for better spatial targeting
Confidential

7. Outcome 8 Delivery Agreement
Housing Delivery: In terms of the Outcome 8 MTSF for Human Settlements, a total number of 1,46 million housing opportunities will be delivered over the MTSF period of five years. The 1,46 million housing opportunities will consist of:
households in informal settlements upgraded;
individual units for subsidy market;
loans ( FLISP plus DFIs)
social housing;
CRU;
affordable rental
Other targets
2 200 informal settlements will be assessed,
ha of well-located land will be rezoned and released for new developments targeting poor and lower to middle income households,
Confidential

8. Outcome 8 Delivery Agreement
50 catalytic projects will be implemented, title deeds will be issued to new homeowners in the subsidy market; and
The title deeds backlog of will be eradicated.
For purposes of the Delivery Agreements, the targets of each Provincial Department in terms of the various objectives will have to be formally agreed and approved by Human Settlements MINMEC;
The Provincial Departments have been requested to revise their business plans to focus on the priorities as set out in the MTSF;
30% housing opportunities to be delivered by Women contractors
1956 Houses per Province for delivery in Womens’ Month
10% Housing opportunities delivered by Youth in terms of the Youth Brigade Programme
5000 Housing Units for Military Vets
Hosting Provincial Social Contracts Forums
Hosting of Provincial Govan Mbeki Awards
Establishing Inter-Sectoral structures and supporting other sector Departments structures
Confidential

9. Human Settlements MTSF Outcomes and Targets
Background
Human Settlements MTSF Outcomes and Targets
The Human Settlements Development Medium Team Strategic Framework focuses on achieving the following outcomes:
Ensuring that poor households have adequate housing in better living environments;
Delivering settlements that are spatially, socially and economically integrated;
Supporting the development of a functionally and equitable residential property market; and
Improving institutional capacity and coordination for better spatial targeting.
Qualitative targets to be achieved through policy reforms
Quantitative targets to be achieved through the HSDG

10. MTSF in Numbers MTSF In Numbers Primary MTSF Target Secondary Target
5-Year Target
Annual Target
households in informal settlements upgraded to level 2 services
Households located in
2 200 Informal Settlements
individual subsidy units
5 854 units for Military Veterans included
5 854*
1 951
Gap Housing
FLISP
70 000
14 000
DFIs
40 000
10 000
Affordable rental through the private sector
Mineworker housing
2 000
Affordable Private Rental
25 000
5 000
state led social housing -
27 000
5 400
CRU
Title Deeds backlog eradicated
Total number of housing opportunities created by the state* (excl private rental and title deeds backlog)

11. Funding Requirements To Meet MTSF Targets
Funding Requirements Against Available MTEF Funding
Funding Requirements To Meet MTSF Targets
MTSF Priority per programme
Stand or unit costs
Annual Target
Annual Costs
5-Year Target
Total Cost*
UISP phase 2 (with interim services)
R 34,426.49
150,000
R 5,163,973,500.00
750,000
R 25,819,867,500.00
new subsidies
R 170,573.00
111,429
R 19,006,812,931.60
557,146
R 95,034,064,658.00
5 854 Units for Military Veterans
R1 60,
1,951
R 313,277,923
5,854
R 939,994,342
FLISP
R 52,500.00
14,000
R 735,000,000.00
70,000
R 3,675,000,000.00
DFI
8,000
40,000
Social Housing (Institutional subsidy)
R 110,947.00
5,400
R 599,113,800.00
27,000
R 2,995,569,000.00
CRU (50 complexes comprising 40 units each per 1000m2 complex
R 180,061.79
2,000
R 360,123,580.00
10,000
R 1,800,617,900.00
TOTALS
292,781
R 26,178,301,734.60
1,460,000
R 130,265,113,400.00
MTEF Allocation
2015/16
2016/17
2017/18
USDG:
R 10,554,345,000.00
R 11,075,877,000.00
R 11,708,123,000.00
HSDG Portion
R 16,929,975,000.00
R 18,594,187,000.00
R 19,776,499,000.00
Total
R27,484,315,000.00
R29,670,064,000.00
R31,484,622,000.00
*Required funding
R26, 178,

12. STRATEGIC AND ANNUAL PERFROAMNCE PLAN

13. Macro Performance Indicators
Macro Indicators
Strategic Goal or Programme Most Closely Linked to the Achievement Indicator
Target Estimates
2015/16
2016/17
2017/18
Clean Audit
Programme 1: Administration
Purpose:
Provide strategic leadership, governance oversight and essential support and promote a compliant and well-functioning department & agencies 1
Revised Housing Act and Housing Code
Programme 2: Human Settlements Strategy, Policy and Planning
Purpose
Manage the development of human settlement policies, strategies & planning

14. Macro Performance Indicators
Macro Indicators
Strategic Goal or Programme Most Closely Linked to the Achievement Indicator
Target Estimates
2015/16
2016/17
2017/18
Programme 3: Programme Management Unit
Purpose
Build, oversee, support & monitor the sector institutional capability & capacity to deliver human settlement programmes & projects
.3 mill opportunities
Programme 4: Housing Development Finance
Provide funding for the delivery of all human settlements programmes in line with approved policies, planning and strategies
R30.9 bill
R33.2 bill
R35.2 bill

15. Strategic Goals By Programmes
Programme & Purpose
Programme 1: Administration
Purpose:
Provide strategic leadership, governance oversight and essential support and promote a compliant and well-functioning department & agencies
Strategic Goal
Provide strategic leadership, governance oversight and essential support and promote a compliant and well-functioning department & agencies
Strategic objectives
1. To provide Human Resources services to the Department
2. Provide effective and efficient communication services to ensure the understanding
of the MTSF objectives
3. Information Management System and Information Technology
4. Effective and efficient legal support
5. Provide advice on risk management internal controls and governance issues
6. To provide Corporate Support Services
7. To the Department Oversee the enhancement of human settlements operations
through effective enterprise architecture service
8. To provide financial management services
9. Provide advisory services to the Department on matters relating to Parliamentary
oversight committee services, project quality assurance and integration
10. Provide executive support to Ministry
11. Provide executive support to the office of the Director General

16. Strategic Goals By Programmes
Programme & Purpose
Programme 2: Human Settlements Strategy, Policy and Planning
Purpose
Manage the development of human settlement policies, strategies & planning
Strategic Goal
Development of human settlements policies, strategies & planning towards promoting adequate housing and improved quality living environments
Strategic objectives
1. Evaluate, review and improve existing housing instruments and subsidy regime to
better direct housing and human settlement investments, fast track delivery and
ensure affordability and diversity of the product and finance options
2. Develop policy and administrative systems that support individual transactions in
the affordable secondary housing market
3. Strengthen programme for the accreditation of municipalities
4. Develop a monitoring and support programme for municipalities that have been
accredited
5. Increase the supply of housing opportunities using different tenure types to ensure
the diversity necessary to address social, economic and cultural needs
6. Increase Participation of stakeholders in housing development
7. Strengthen current mechanism to mobilise private sector to contribute to human
settlements development
8. Develop horizontal and vertical consultative mechanisms among spheres of
government
9. Review Planning System to achieve better spatial targeting
10. Issuing of title deeds form part of housing development process

17. Strategic Goals By Programmes
Programme & Purpose
Programme 3: Programme Management Unit
Purpose
Build, oversee, support & monitor the sector institutional capability & capacity to deliver human settlement programmes& projects
Strategic Goal
Ensure that human settlement programmes and projects are executed in a manner that provide access to adequate housing in improved living environments for all
Strategic objectives
1. Build & ensure institutional capabilities and capacity for execution & delivery of
transformed human settlements & better spatial targeting
2. Develop bolder measures to execute & implement sustainable human settlements provide
access to adequate housing in improved living environments for all
3. Monitor & evaluate the execution & delivery of human settlement projects & programmes
to assess and report on the extent of access to adequate housing in improved living
environments for all
4. Intensify homeownership education programmes for the affordable housing market
5. Implement projects that ensures spatial, social and economic integration
6. Analysis of new housing units constructed in the entire residential property market
7. Effective support and monitoring of entities
8. Fast track release of well-located land for housing and human settlements targeting poor
and lower middle income household

18. Strategic Goals By Programmes
Programme & Purpose
Programme 4: Housing Development Finance
Purpose
Provide funding for the delivery of all human settlements programmes in line with approved policies, planning and strategies
Strategic Goal
Strategic objectives
1. Develop minimum standards and finance options for investment in
public spaces
2. Diversify finance options and products for the affordable gap market in
particular
3. Increase in the number of properties in the subsidy housing submarket
entering the municipal rates roll
4. To manage and provide overall grants management services;
administer the Home Loan and Mortgage Disclosure Act and promote
investments
5. Collect, analyse and disseminate information on property trends and
values in the affordable housing market
6. Establish transactional support for affordable housing market
7. Monitor and reporting transactions in the secondary housing subsidy
submarket

19. Allocations 2015 MTEF Allocations
Net Effect on Departmental Budget
MTEF
Total
R`000
2015/16
2016/17
2017/18
Departmental Baseline from 2014/15 MTEF
Plus Additional Allocation (Consolidated)
Minus Reduction in Allocation (Consolidated)
( )
( )
( )
( )
Revised Baseline

20. Consolidated Additional Allocations
2015/16
R`000
2016/17
2017/18
Total
MTEF
Housing Development Agency
National Urban Reconstruction and Housing Agency
61 000 -
Rural Housing Loan Fund
50 000
National Housing Finance Corporation

21. Consolidated Reduction Per Allocation
Reduction in Allocation (Consolidated)
2015/16
R`000
2016/17
2017/18
Total
Departmental Operational
(81 244)
(99 982)
( )
( )
Compensation of employees
(54 726)
(58 052)
(63 947)
( )
Goods and services
(6 398)
(21 605)
(23 797)
(51 800)
Payment for Capital assets
(120)
(325)
(358)
(803)
National Upgrading Support Programme (Moved to HDA)
(20 000)
(60 000)
Grants
( )
( )
( )
( )
Urban Settlements Development Grant
( )
( )
(85 331)
( )
Municipal Human Settlements Capacity Grant
( )
( )
Human Settlements Development Grant
( )
( )
( )
( )

22. Reduction in Allocation (Consolidated) cont.
2015/16
R`000
2016/17
2017/18
Total
Entities
( )
( )
( )
( )
Social Housing Regulatory Authority: Restructuring Capital Grant
( )
( )
Social Housing Regulatory Authority: Operational
(21 617)
(10 457)
(2 398)
(34 472)
Community Schemes Ombuds Services
(13 479)
(4 080) -
(17 559)
Housing Development agency
(28 432)
(42 648)
(71 080)
Sanitation moving to Department of Water and Sanitation
( )
( )
( )
( )
Sanitation Operational
(91 153)
(83 290)
(88 037)
( )
Human Settlements Development Grant: Indirect
( )
Rural Households Infrastructure Development: Indirect Grant
(67 328)
Rural Households Infrastructure Development: Direct Grant
(51 000)
( )
( )
( )
( )
( )
( )
( )

23. Impact Of Budget Reductions Over MTEF
Net Impact
2015/16
R`000
2016/17
2017/18
Total MTEF
Departmental Baseline 2014/15 MTEF
Revised Baseline 2015/16 MTEF
Increase/(Reduction)
( )
( )
( )
( )

24. Allocation Per Programme
2015/16
R`000
2016/17
2017/18
Total MTEF
1. Administration
2. Human Settlements Policy, Strategy and Planning
74 337
79 252
83 760
3. Programme Delivery Support
4. Housing Development Finance
Total

25. Allocation By Economic Classification
Total allocation
2015/16
R`000
2016/17
2017/18
Total MTEF
Departmental Operational
Compensation of employees
Goods and services
Payment for Capital assets
3 983
4 193
4 400
12 576
Payments for financial assets
Grants and transfer payments
Grants
Human Settlements Development Grant
Urban Settlements Development Grant
Municipal Human Settlements Capacity Grant
Entities
Social Housing Regulatory Authority: Operational
34 560
36 392
38 212
SHRA: Capital Restructuring Grant
Housing Development Agency
Community Schemes Ombuds Services
39 521
23 920
29 400
92 841
National Housing Finance Corporation
Rural Housing Loan Fund -
50 000
National Urban Reconstruction and Housing Agency
61 000
SHRA: Institutional Investment Grant
41 936
40 183
38 490
Departmental Transfers
9 913
10 612
11 140
31 665
Bursaries Scheme
8 719
9 355
9 822
27 896
UnHabitat
1 150
1 211
1 272
3 633
Transfer to Households 44 46
136
Total

26. Human Settlements Development Grant
Provinces
2015/16
R`000
2016/17
2017/18
EASTERN CAPE
FREE STATE
GAUTENG
KWAZULU-NATAL
LIMPOPO
MPUMALANGA
NORTHERN CAPE
NORTH WEST
WESTERN CAPE
Total

27. Urban Settlements Development Grant
Provinces
Metros
2015/16
R`000
2016/17
2017/18
EASTERN CAPE
Buffalo City
Nelson Mandela
Sub Total
FREE STATE
Mangaung
GAUTENG
Ekurhuleni
Jo'burg
Tshwane
KWAZULU-NATAL
eThekwini
WESTERN CAPE
Cape Town
Grant Total

28. Municipal Human Settlements Capacity Grant
Provinces
Metros
2015/16
R`000
2016/17
2017/18
EASTERN CAPE
Buffalo City
9 253
10 640
Nelson Mandela
9 847
11 324
Sub Total
19 100
21 964
FREE STATE
Mangaung
9 206
10 587
GAUTENG
Ekurhuleni
14 313
16 460
Jo'burg
16 505
18 981
Tshwane
12 831
14 755
43 649
50 196
KWAZULU-NATAL
eThekwini
14 342
16 493
WESTERN CAPE
Cape Town
13 703
15 758
Total

29. Departmental MTEF Allocation
The budget allocation of the Department was negatively impacted upon by National Treasury budget reductions as a result of the economic downturn.
The total allocation to the Department for the 2015/16 financial year amounts to R30.9 billion a decrease of R1.9 billion from the previous baseline of R32.8 billion.
The allocation is projected to grow over the 2015 MTEF period to R35.2 billion in 2017/18.

30. Summary
The Operational Budget of the National Department constitutes 2% of the Capital allocation of the Department – This is below the current good practice norm applicable which is 3%.
The Human Settlements Grants constitute 93% of the total allocation made available for actual programmes and projects.
Transfer payments to public entities constitute 5% of the total allocation – These transfer payments contribute towards the MTSF targets and outcomes .

31. Budget Impact
The net impact over the MTEF on the Departmental Budget is a reduction of R4 billion which is mainly made up of the following:
R1.6 billion is due to the transfer of sanitation to Department of Water and Sanitation.
R2.1 billion reduction on grants allocation.
R722 million reduction on the transfer to Departmental Entities’ allocation.
R289.3 million reduction on operational budget.

32. Proposed Targets For the 2015/16 Financial Year including Challenges and Opportunities

33. Planned Provincial Delivery Per Programme
Sub-Programme
Rectification/repairs
Other
Sites
Budget (000")
Units
Total Annual Budget (000")
Financial Interventions
4 790
11 632
2 191 R
4636 R R
Incremental Housing Programmes
10227
47 102 R
60 852 R R
Social & Rental Housing
1209
281 R
5602 R R
Rural Housing
6148 R
25504 R R
Priority Projects
2250
2430 R
4 057 R R
Provincial Specific Projects
3500
105 R
2 025 R R
GRAND TOTAL
28 818
58 257 R R R

34. Planned Delivery in Mining Towns
Gauteng Towns
Sites
Budget
R’m
Unit
Overall Budget
Westonaria
1 120
57 188
Randfontein
400
316
63 248
Merafong
615
54 923
TOTAL
1 520
931
Mpumalanga Towns
Sites
Budget
R’m
Units
Overall Budget
Emalahleni
3 000
823
Steve Tshwete
732
50 482 76
10 431
60 913
Thaba Chweu
1 000
43 626
220
32 408
76 034
TOTAL
4 732
1 119
Northern Cape Towns
Sites
Budget
R’m
Units
Overall Budget
Tsantsabane
8 630
Gasegonyana
100
4 500
13 635
18 135
Gamagara
9 805
TOTAL
13 130
23 440
36 570

35. Planned Delivery in Mining Towns
Limpopo Towns
Sites
Budget RM
Units
Overall Budget
Lephalale
26 006
922
214625
Burgersfort / Steelpoort
390
9 634
450
34 070
Fetakgomo
200
4 920 92
9 811
14 731
Elias Motsoaledi
800
19 680
294
26 547
46 227
Thabazimbi
32 665*
195
20 663
53 328
TOTAL
1390
60 240
1 953
429170
* Rectification
North West Towns
Sites
Budget RM
Units
Overall Budget
Kgetleng
866
Madibeng
1 042
Rustenburg
402
17 537
1129
Moses Kotane
484
TOTAL
3521

36. Ensuring Improved Entities Performance
The financial and non-financial performance of the public entities are monitored by the Department on a quarterly basis through performance review sessions and through an analysis of quarterly reports;
The public entities are required to motivate deviations from the planned performance targets and expenditure projections and to implement remedial actions to achieve the planned targets and expenditure projections in the subsequent quarters, in order to achieve the annual targets;

37. Ensuring Improved Entities Performance
All virement applications where requested and appropriate, are evaluated against strategic and annual performance plans to optimize expenditure performance by the public entities;
The Department has planned to conduct administrative and project visits of the public entities to discuss challenges that may be experienced by the public entities that may affect performance and to verify the integrity of the information that is being presented in the quarterly reports, and sampled on the basis through the project visits; and
Funding requested by public entities are submitted to the Department on a quarterly basis for payment to them.

38. Ensuring Improved Entities Performance

39. Inter-Spherical Planning and Funding Alignment
The National and Provincial Human Settlements Development Grant business plans are aligned as the annual national business plan is based on the nine provincial business plans;
Municipal plans are aligned on the basis of reference to the HSDG, the Built Environment Performance Plans and the Integrated Development Plans of municipalities; and
The Department holds quarterly performance review sessions to determine performance and alignment on delivery and spending by Provinces and Metropolitan Municipalities.

40. Inter-Spherical Planning and Funding Alignment and Monitoring
The National Department through its Monitoring and Evaluation and Planning undertakes monthly data and reports on expenditure, outputs, targets and outcomes, which is interrogated in order to ensure compliance with legislation as well as the approved policies and plans;
Through an active Technical MinMec and MinMec reports are tabled on performance and both administrative and political principle interrogation occurs on the reports tabled and corrective and mitigation measures taken.
The DPME undertakes active and robust monitoring and evaluation of performance of policy and programme and project funding.

41. Impact of Increased Costs for Subsidised Houses Versus the Capital Subsidy
The new building regulations of 2011 determine that houses have to be installed with ceilings and isolation material on top, inside walls be plastered and outside walls be finished off smoothly. Window size standards are also applicable to subsidized housing and the type of glass used is more expensive which all increases the cost of subsidized houses;
The cost of providing housing to military veterans housing requires a top up from the Department of Military Veterans of R and the Human Settlements Development Grant allocation covers the subsidy portion of these houses;
Housing for disabled beneficiaries increases the cost due to their specific needs; and
The subsidy quantum of R per house will remain unchanged in 2015/16.

42. Macro Human Settlements Drivers
South Africa’s urban population is currently at 59.3% and will grow to 79.6% by 2030;
The National Development Plan estimates that by 2030 South Africa’s urban population will grow by 7.8 million;
This will result in huge demand for housing, socio-economic services, employment opportunities and infrastructure;
The human settlements and housing programmes/instruments through the Human Settlements Development Grant and USDG has been able to facilitate access to cities to ensure sustainable development;

43. Macro Human Settlements Drivers
Various programmes including the Informal Settlements Upgrading Programme, the Integrated Residential Development Programme , the Finance Linked Individual Subsidy Programme and Social and Rental Housing Programme are the main interventions used in housing and human settlements sector to ensure poor urban South Africans are provided with sustainable livelihoods;
The Urban Settlements Development Grant is used by Metropolitan Municipalities to provide bulk infrastructure and land development to support the national human settlements development programme by focusing on poor households;
An evaluation was carried out of the USDG and the recommendations are in the process of being implemented including the adoption of an appropriate policy framework.

44. Macro Human Settlements Drivers
The Department will implement a partnership process with various metos to revitalise inner cities; and this includes activating subsidies available with the social and rental housing programme.
The Minister has and continues to have regular consultations with the Metropolitan Mayors and this includes a thorough process which led to the finalisation of the USDG policy by the Department.
As part of the process unused buildings will be expropriated and assigned for the purposes of building social housing adjacent to places of employment.

45. Departmental Cost Containment Measures
Travel and subsistence:
Officials that travel to the same venue should arrange that bulk transport is utilized to travel together.
Planning of trips is enforced ensuring officials utilize the most economic means of travelling.
Trips must be closely scrutinized by managers.
 Consultants and special services:
The utilization of consultants should be limited to the minimum.
Only in cases where the Department does not have the required skills and specialized services as well as services of a technical nature are needed should consultants be appointed.

46. Departmental Cost Containment Measures
Inventory: Stationary and printing:
The photocopying of documents for management structure meetings can be eliminated by making documents electronically available to participants.
 Inventory: Other consumables:
Electricity could be saved by switching off the lights and air conditioning units between 18:00 to 6:00 every day and switched off completely over weekends and public holidays.
Coordination of provincial visits:
When visits are planned to provinces and metros by various Chief Directorates it is important that they be coordinated.
 Advertising:
Advertising of posts below level 13 should only be done in the Government circular which is free of charge.

47. Challenges The current challenges include:
Slow procurement processes within the Provinces and Municipalities;
Poor cash flow management by both Provinces and Municipalities;
Poor programme and project planning and alignment between the Provinces and Municipalities;
Non-approval of beneficiaries by banks due to credit records and affordability;
Poor or slow performance by contractors; and
Slow delivery due to protracted community consultation and inclement and adverse weather conditions.

48. Challenges Reduction in the Departmental Operational Budget;
Increased pressures on the National Department to improve monitoring, oversight and evaluation ;
Increased and intergovernmental coordination and alignment responsibilities for the national sphere ;
Non-approval of beneficiaries by banks due to credit records and affordability affecting the FLiSP programmes;
The lack of municipal medium and long term planning for bulk and link services
The lack of clear and decisive action within Provinces and Municipalities to proactively respond to the effects and impacts of urban migration

49. Current Measures To Improve Departmental Performance
The Departmental organisational structure is being revised to ensure that the s government strategy and related planned outcomes is achieved.
The Department has reviewed its outputs and targets matrix and is now reporting on:
36 Strategic Objectives, that has
96 Indicators
The rationalisation allows for improved and will bring much needed efficiencies in performance and Monitoring.
A much extensive strategic and planning process will be undertaken during the period leading up the approval of the budgeting to align budgets against strategy.
Improved alignment of strategies of the entities of the Department with the Departmental and Government mandates and strategies.
Confidential

50. Current Measures To Improve Departmental Performance
The Department is currently undertaking a process to develop a White Paper on Human Settlements and related legislation and regulations attached thereto.
The Department is in the process of undertaking an process to review and revise the application of the supply chain management process to improve value for money but also eradicate collusion and corruption which may exist in the systems and this includes with human settlement delivery chain including the municipal and provincial spheres.
A comprehensive study is being undertaken to analyze the current subsidy quantum in order to improve short, medium and long term financial as well as socio-economic sustainability of funding being made available.
The Minister has issued a directive that the consolidation of the Human Settlements Development Finance Institutions be expedited, in order to allow for improved leveraging and extension of the current funding sources for housing and human settlements
Confidential

51. Mitigation Measures
Appointment of appropriate built environment professionals and technical expertise to assist and improve provincial and municipal programme and project performance, in conjunction with entities;
Project facilitation task team established to fast track planning issues;
Active and response national oversight and intervention in planning, programme and project planning; and
Ensuring appropriate project readiness assessments and programme and project pipeline planning over the medium to long term – 10 to 15 year time frame planning

52. Mitigation Measures
The Department is in the process to discussing with the National Treasury to allow for redirection of funding within the current human settlements and housing envelope to allow for the Department to meet its operational and administrative responsibilities;
The Department has requested a redirection of approximately R100m within the current financial year to allow for the supplementing the capacity and technical human resources of the Department.
The approval within the frameworks within the Mining Town allocation to allow for application for bulk and link infrastructure as well as inter-town and city movement based on performance

53. Mitigation Measures
The Department is in the process to improve alignment of outputs, funding and outcomes between the Affordable Rental Programme and the Community Residential Unit Programme to ensure that eradication of the current hostels;
A key issue is the improvement between funding streams to allow for integration and mainstreaming of hostel eradication into particularly the integrated residential programme and the social and rental housing programme.

54. End