1. DEPARTMENTAL PRESENTATION TO THE PORTFOLIO COMMITTEE ON HUMAN
SETTLEMENTS
(24 MARCH 2015)
DIRECTOR- GENERAL: T. ZULU
Confidential

2. PURPOSE To present the departments:
Strategic plans for the coming Medium Term Expenditure Framework (MTEF) period and
Annual Performance Plans

3. TABLE OF CONTENT Background Strategic Plan APP Budget Delivery Targets
Macro Performance Indicators
Strategic Goals by Programme
APP
Delivery Agreements
Budget
Delivery Targets

4. BACKGROUND
The National Development Plan (NDP) places a responsibility on government on the need to fast track the delivery of housing and improving the living conditions of citizens. In response to the Constitutional mandate and the call by the NDP to integrate settlements and develop in strategic and well located areas, the department has prioritized the delivery of houses using different tenure types with special emphasis on integration and densification.
The Medium Term Strategic Framework prioritizes the delivery 1,5 million housing opportunities in partnership with the private sector, all stakeholders and communities.

5. BACKGROUND
The human settlements development programme will in the next five years ( ) be a catalyst for transforming the national space economy in order to achieve measurable results by 2030.
The delivery approach will focus on mega projects of integrated housing mix to cater for different incomes levels and needs, These will include houses for:
the indigent, gap housing, 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. STRATEGIC PLANS

7. MACRO PERFROMAMNCE 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

8. MACRO PERFROMAMNCE INDICATORS
Macro Indicators
Strategic Goal or Programme Most Closely Linked to the Achievement Indicator
Target Estimates
2015/16
2016/17
2017/18
Delivery
Programme 3: Programme Management Support
Purpose
Build, oversee, support & monitor the sector institutional capability & capacity to deliver human settlement programmes& projects
.3 mill opportunities
 Financing the Delivery
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

9. 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
Consolidation of the Development Finance Institutions (DFI)
Intensify homeownership education programmes for the affordable housing market
Establish transactional support for affordable housing market
Monitor and reporting transactions in the secondary housing subsidy submarket
Collect, analyse and disseminate information on property trends and values in the affordable housing market
Issuing of title deeds form part of housing development process
Analysis of new housing units constructed in the entire residential property market
Fast track release of well-located land for housing and human settlements targeting poor and lower middle income household
Utilize various communication platforms to communicate about the strategic thrust of human settlements

10. 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
Develop policy and administrative systems that support individual transactions in the affordable secondary housing market
Strengthen programme for the accreditation of municipalities
Increase the supply of housing opportunities using different tenure types to ensure the diversity necessary to address social, economic and cultural needs
Mining Towns Strategy (A special Strategy for mine worker housing)
Increase Participation of stakeholders in housing development
Strengthen current mechanism to mobilize private sector to contribute to human settlements development
Develop horizontal and vertical consultative mechanisms among spheres of government
Review Planning System to achieve better spatial targeting

11. STRATEGIC GOALS BY PROGRAMMES
Programme & purpose
Programme 3: Programme Management Support
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
Build & ensure institutional capabilities and capacity for execution & delivery of transformed human settlements & better spatial targeting
Develop bolder measures to execute & implement sustainable human settlements provide access to adequate housing in improved living environments for all
Implement projects that ensures spatial, social and economic integration
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

12. 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
Develop minimum standards and finance options for investment in public spaces
Diversify finance options and products for the affordable gap market in particular
Increase in the number of properties in the subsidy housing submarket entering the municipal rates roll

13. ANNUAL PERFORMANCE PLANS

14. 4. DELIVERY AGREEMENT (OUTCOME 8)
Background
Objective of Outcome 8 is to manage a 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:
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

15. DELIVERY AGREEMENT (OUTCOME 8)
Housing delivery: In terms of the Outcome 8 MTSF for Human Settlements, a total number of 1,5 million housing opportunities will be delivered over the MTSF period of five years. The 1,5 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

16. DELIVERY AGREEMENT (OUTCOME 8)
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;
Provincial Departments need to revise their business plans to focus on the priorities as set out in the MTSF;
30% Houses delivered by Women
1956 House per Province for Women delivery
10% Houses delivered by Youth (The Youth Brigade Programme)
5000 Housing Units for Military Vets
Hosting Provincial Social Contracts Forums
Hosting of Provincial Govan Mbeki Awards
Confidential

21. BUDGET

22. Allocations over the 2015 MTEF period
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

23. Additional allocations (Consolidated)
Additional Allocation (Consolidated)
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

24. 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
( )
( )
( )
( )

25. 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)
( )
( )
( )
( )
( )
( )
( )

26. Net impact on the Department’s budget over the MTEF period
2015/16
R`000
2016/17
2017/18
Total MTEF
Departmental Baseline 2014/15 MTEF
Revised Baseline 2015/16 MTEF
Increase/(Reduction)
( )
( )
( )
( ) At
It must be noted that the R 4 billion reduction on the baseline includes an amount of R1 6 billion in respect of the Sanitation function.

27. Allocation over MTEF by 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

28. Allocation over MTEF by Branch
2015/16
R`000
2016/17
2017/18
Total MTEF
Ministry
47 867
52 105
57 049
Management
85 757
91 048
95 952
Corporate Services
Property Management
37 677
39 900
41 895
Human Settlements Delivery Frameworks
39 961
42 533
44 996
Human Settlements Strategy and Planning
43 108
45 980
48 565
Programme and Project Management Unit
Housing Development Finance
Chief of Operations
58 789
62 647
66 188
Total 

29. Allocation over MTEF 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

30. 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

31. 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

32. 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

33. DELIVERY TARGETS

34. Summary of Consolidated 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

35. Planned Provincial Delivery in Mining Towns
Gauteng Towns
Sites
Budget
Unit
Overall Budget
Westonaria
1 120
Randfontein
400
316
Merafong
615
TOTAL
1 520
931
Mpumalanga Towns
Sites
Budget
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
Units
Overall Budget
Tsantsabane
8 630
Gasegonyana
100
4 500
13 635
18 135
Gamagara
9 805
TOTAL
13130
23440
36 570

36. Planned Provincial Delivery in Mining Towns
Limpopo Towns
Sites
Budget
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
Units
Overall Budget
Kgetleng
866
Madibeng
1 042
Rustenburg
402
1129
Moses Kotane
484
TOTAL
3521

41. 4.2 MTSF ACTIONS
The Departments Structure is being revised to match strategy.
The department is now reporting on 25 Strategic Objectives and 59 high-level Targets
Programme 1
10 Objectives
15 Targets
Programme 2
9 Strategic objectives
21 Targets
Programme 3
3 Strategic objectives
14 Targets
Programme 4
9 Targets
The sharper focus from the current 163 targets to 55 will bring much needed efficiencies in performance and Monitoring.
A much extensive process will be undertaken during the Budgeting period to align budgets against strategy.
Confidential

42. END