1. BACKGROUND
The Servcon rehabilitation programme offered to the occupants contains the following elements:
·        Subsidised rental option
·        Buy back or loan reschedule option
·        Rightsizing option (assistance towards an alternative affordable house)
·        Special Assistance to the Aged and Disabled
Servcon’s prime objective is to normalise the situation and specifically to dispose of the
portfolio over an 8-year period from 1 April 1998 to 31 March 2006.
Four years have now been completed under the new dispensation.

2. PROGRESS REDUCTION IN THE PORTFOLIO – SATISFACTORILY DISPOSED OF (SDO)
Key Performance Area Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Accumulative since 1/4/1998
Target 2.5% 2.5% 2.5% 2.5% 10% 40%
Performance 2.68% 3.16% 2.78% 2.79% 11.41% 41.8%
SDOs ACHIEVED FROM THE FOLLOWING SOURCES
  Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Accumulative
Outright Sales
Instalment Sales/Rescheduling
Rightsizing
Evictions
Vacated & Vandalised
Debt Settled Account Normalised
TOTAL

3. IMRPOVE RENTAL RETURN Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Quarter 1 Quarter 2 Quarter 3 Quarter Year
1. NUMBER OF ACCOUNTS PAID
Target % % % % %
Performance 32.67% % % % %
2. AMOUNT PAID AS PERCENTAGE OF VALUE
Target % % % % %
Performance % % % % %
3. NUMBER SIGNED AGREEMENTS PAYING
Target % % % % %
Performance 47.29% % % % %

5. REDUCTION IN PROBLEM AREAS
Common issues that have been identified are:
·        Breakdown of law and order/defiance thereof
·        Unemployment and poverty
·        Structural defects
·        Environmental conditions
·        HIV/AIDS and other health issues
·        Poor community leadership
·        Lack of education and understanding of housing issues
·        Lack of Financial Discipline
A package of measures to address each issue within a holistic context is required in
order to:
·        Create an enabling environment
·        Re-establish the secondary market
·        Uplift communities

6. RESOLUTION
  The following areas have been “normalised” or at least improved to a status in keeping with the norm for Servcon areas or have been removed as they are relatively insignificant from a Servcon perspective.
Zola, Wedela, Gelvandale, Bultfontein (insignificant only 17 properties), Kanana, Drieziek, Bethelsdorp, Kwa Dabeka
Problem Areas Remaining
Vosloorus Tokoza & Katlehong-Self Help
Tembisa Soshanguve Block GG & FF
Protea Glen Ennerdale, Lawley, Lenasia South
Emdeni Khuma
Evaton North & Lakeside Sebokeng Zone 6 Ext. 3
Palm Springs Crossroads
Khayelitsha Motherwell 4A & 7A (CPA Houses)
Daleview Motherwell NU5 (Disa Homes)
Thabong Meloding.

7. Job Creation/Community Development Projects
Purpose
Assist clients to reestablish themselves economically
Contribute to community redevelopment
Examples
Recycling Crèche
Baking, Computer Training
Sewing and Knitting Brick making
AIDS Project Vegetable Gardens
Counselling
Education
Homebased Care
AIDS orphan problem?

8. RE-ESTABLISHMENT OF THE SECONDARY MARKET
Resale of Vacant PIP’s
Institutional Approach

9. EVICTIONS Required when: Clients won’t respond
Default on new agreements
Refuse to rightsize
Emotive issue
Legal issues
Sheriffs
Failed Evictions

10. ISSUES Cut off date In situ subsidies New subsidy rules Amount
Contribution
Peoples Housing Process

11. RIGHTSIZING PROVINCE TOTAL HANDOVERS TO DATE EASTERN CAPE 229
FREE STATE
GAUTENG
KWAZULU NATAL
LIMPOPO
MPUMALANGA
NORTHERN CAPE
NORTH WEST
WESTERN CAPE
NATIONAL TOTAL