1. A Dialogue On Partnerships For Affordable Housing And Infrastructure Development 31 th May 2012 Cape Town

2. Context NeedBasis of Quantification Number of Households Households needing services HH in formal houses who do not have universal access to services: 2,848,961  HH< R10,000pm (basic level of service)2,693,395  HH> R10,000pm (high level of service)155,566 Households needing access to housing (including services) Total additional housing : 3,029,693  All HH in informal settlements, backyard dwellings and hostels2,504,550  20% of HH in formal rental who purchase a new house (trade up) 525,143 Households needing access to secondary market transactions * * Based on 2% churn per year Total secondary transactions supported:1,593,512  20% of HH in traditional and owned1,438,392  4% of HH in formal rental105,028  2% of HH in informal settlements, backyard rental and hostels50,092

3. Context Context%R0-R3,500R3,500-R7,000R7,000-R10,000 R10,000- R15,000 R15,000- R20,000 R20,000+Total A: Formal - owned 2,595,398880,882415,107522,558308,9201,026,4205,749,285 21.0%7.1%3.4%4.2%2.5%8.3%46.4% B: Formal - rented, plus Room/Flatlet not in backyard 1,380,830433,093224,180228,985103,018255,6112,625,717 11.2%3.5%1.8% 0.8%2.1%21.2% C: Informal settlement - regardless of whether it is owned or rented 903,349192,43961,25424,0609,99111,6641,202,757 7.3%1.6%0.5%0.2%0.1% 9.7% D: Backward dwelling - regardless of whether it is owned or rented 626,984166,50769,82038,88514,33028,803945,329 5.1%1.3%0.6%0.3%0.1%0.2%7.6% E: Traditional dwelling - regardless of whether it is owned or rented 1,133,113210,20337,34120,29817,99823,7221,442,675 9.2%1.7%0.3%0.2%0.1%0.2%11.7% F: Hostel 181,202108,65853,5127,5981,9863,508356,464 1.5%0.9%0.4%0.1%0.0% 2.9% G: Other 33,5829,7045,3003,2951,1653,48356,529 0.3%0.1%0.0% 0.5% Total 6,854,4582,001,486866,514845,679457,4081,353,21112,378,756 55.4%16.2%7.0%6.8%3.7%10.9%100.0%

4. 4Draft and Confidential

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6. I ntegrated Infrastructure & Affordable Housing Project Management Land ID & Acquisition Deal Structuring Project Packaging Marketing & sales Relationship Management Project Finance Property Finance Home LoansPublic Sector Bulk & Link Services Social Amenities Mortgage finance Instalment sales State Relationships Policy and subsidies Bridging loans Term finance Internal reticulation House construction Commercial

7. Current Initiatives Establishment of the Human Settlements Department –Proposed Consolidation of the Development Finance Institutions in the Human Settlements Department –Review of the Finance Linked Subsidy Programme –Proposed introduction of a Default Insurance Programme –Impact & Performance Evaluations & Policy Review Establishment of improved Development Finance Institutions within the scope of the state to finance infrastructure – IDC and DBSA initiatives Establishment of the Presidential Infrastructure Coordinating Commission 7Draft and Confidential

8. Current Initiatives Draft National Development Plan released by the National Planning Commission. Establishment of the Urban Settlements Development Grant to allow for bulk, link, development of serviced stands and informal settlement upgrading. The introduction of the “Each One, Settle One” Programme. “Improving the Property Market” is a key output of the Minister included in the Delivery Agreement signed with the President. 8Draft and Confidential

9. Points of Dialogue What is we want to address…”access to adequate housing and infrastructure in respect of affordable housing” Are we addressing economic growth, household access, infrastructure development or all of the above Do we know what the individual requires – location, price, choice, affordability Demand and supply led initiatives – Striking a balance What does each of the stakeholders contribute and take out of implementation of the programmes. 9Draft and Confidential

10. Points of Dialogue Is the current development model relevant….”individual affordable housing sectors in integrated projects”… Why is affordable housing not form of informal settlements upgrading programmes…Inclusion and investment in infrastructure and its catalytic effect… The operational costs related to housing and human settlements infrastructure does not receive attention – Cosmo City, Tsustumani Village and Olivienhoutsbosch are good practice examples to review… 10Draft and Confidential

11. Points of Dialogue Affordable Housing Requires a societal response – role of state, private sector, individual and community. The State has a role and we need to review the current role in order to ensure that we address the required developmental need, priorities within the resource capabilities. Who does what – land release, planning, funding and implementation 11Draft and Confidential

12. 12 Thank You 12Draft and Confidential