1. Medium Term Strategic Plan 2011/12 to 2013/14 MARCH 2011

2. Structure of the strategic plan Recap of HDA objects and functions Strategic overview Legislative and policy mandates Human settlement sector challenges: role of the HDA HDA vision, mission and functions Visionary goals, goal statements and strategic objectives Programme and sub-programmes plans Institutional arrangements Financial aspects

3. Objects of the Agency Identify, acquire, hold, develop and release state, communal and privately owned for residential and community purposes and for the creation of sustainable human settlements Project manage housing development services for the purposes of the creation of sustainable human settlements Ensure and monitor that the centrally coordinated planning and budgeting of all infrastructure required for housing development Monitor the provision of all infrastructure required for housing development

4. Functions of the Agency 1. Land assembly Identification, acquisitions, holding and release of land (state/ private/ communal) Processing and preparation of land development (permits/ approvals etc) 2. Project delivery support services to organs of state - provinces and municipalities Informal settlements upgrading Project management services in human settlements development 3. Monitoring and facilitation

5. Vision and Mission of the Agency Vision: Sustainable human settlements and communities developed on land and landed properties made available by the HDA Mission: A public development Agency that promotes sustainable communities by making available well located and appropriately planned land

6. Government priority and Outcome 8 alignment According to the delivery agreement signed by the Minister of Human Settlements: The HDA is directly responsible for the acquisition of 6 250 hectares of well-located and publicly-owned land and buildings Provide project management services relating to: Assist in the upgrading of informal settlements Emergency housing solutions Incomplete (blocked) housing development projects

7. Key achievements Financial performance Operating within the grant provided Financial policies and procedures in place SCM - HDA compliant The HDA achieved a clean audit in its first financial year 2009/2010

8. Key achievements IGR and Strategy Alignment Implementation Protocols signed with: 5 provinces (Limpopo, Northern Cape, Western Cape, Eastern Cape and Free State) and 3 municipalities (Tshwane, eThekwini and Ekurhuleni)

9. IGR&SA: Intergovernmental relations Signing IP with Eastern Cape Signing IP with Western Cape Introducing HDA to municipalities Meeting with Free State after signing IP Looking at land with municipal official Introducing HDA to municipalities

10. HDA Projects & Programmes Projects in process New projects Legacy projects (N2, Zanemvula) Mandated ito Section 29 Requests from organs of state received to date Based on IPs, land portfolio & mandated functions

11. Key achievements Land Acquisitions and Management In excess of 33 000 hectares of well-located state land has been identified and prioritised. This was submitted to the DPW and DRD&LR for release - this will meet the target of 6 250 hectares required as part of Outcome 8 75 hectares of land has been purchased in Bela-Bela with funding provided by Limpopo province An Implementation Protocol has been signed with Free State province and via Servcon eight Transnet-owned properties (105.5401 hectares) are in transfer and registration stages The HDA undertook due diligence and assessment of the Servcon property portfolio (transfer has not taken place as anticipated) LaPsis and NaHSLI are established and operational

12. Enhanced Framework for the Release of State Land to the HDA

13. Objectives of the Framework The Framework proposes a seamless and efficient procedure for the release of state-owned land for human settlement development in order to overcome: Complexities Inefficiency Long red tape Asset management fragmentation

14. State land release methodology and effective date Release enables HDA to prepare the land Secure reservation of land for Human Settlements Accountant General endorses asset transfer Release of land may take various forms

15. Recommended State Land Release Framework 90 properties requested

16. National Department of Public Works Land Vested and Registered Land a. assesses submitted property by evaluating the request against other requests/ interests of other departments and entities for similar land, if any b. commission valuation of requested properties c. submits request to the relevant approving authority (Minister or Board) for decision Owner Department/ Entity Relevant Ministers (Completion within 60 Days from date of receipt of request)

17. National Department of Public Works Land Land that is not Vested and Unregistered a. confirmation of ownership through vesting and concurrence by the Minister of Rural Development and Land Reform b. assesses submitted property by evaluating the request against other requests/ interests of other departments and entities for similar land, if any c. land survey, subdivision, land claims confirmation and Provincial Land Disposal Committee Approval d. commission valuation of requested properties e. submits request to the relevant approving authority (Minister or Board) for decision Owner Department and Department of Rural Development and Land Reform Relevant owner Minister and Minister of Rural Development and Land Reform Completion within 180 days from the date of receipt of request

18. Rural Development and Land Reform Land a. Verification of ownership and material encumbrances DRDLR [National] Minister of Rural Development and Land Reform 1 Week b. Obtain a community resolution in support of the transfer of land for purposes of the envisaged development DRDLR [Provincial] & HDA Minister of Rural Development and Land Reform 30 days c. Valuation of land HDA Minister of Human Settlements 30 days d. Creation of leasehold diagrams or unapproved sub- divisional diagrams in the event of un-surveyed state- land in emergency situations. HDA Minister of Human Settlements 30 – 60 days e. Obtain PSLDC Recommendation for disposal (and vesting where applicable) DRDLR [Provincial] Minister of Rural Development and Land Reform 14 days f. Meeting with affected Executive Authorities for simultaneous approval of disposal1 and signing of whatever agreement [land availability agreement for un- surveyed land or in emergency situations; temporary assignment; and donation] DRDLR [National] Minister of Rural Development and Land Reform 14 days

19. Record endorsement of the transfer of asset from Owner departments/ entity to hda Owner Department Accountant General Relevant Ministers Minister of Finance Completion within 21 Days Release and transfer of land to had Owner Department/ Entity HDA Relevant Minister Minister: HS Two months

20. LAM: Identifying land and spatial analysis The HDA undertakes spatial analysis, to inform land identification Acquisitions, planning and programming are done in collaboration with PDHS and municipalities

21. LAM: Land assembly (identification & feasibility)

22. Property Portfolio Total of 9 properties 5 properties occupied 4 vacant land R105 million

23. FREE STATE Area Description Property Description Size (±Ha) Development Status Purchase Price (m) Valuation Price (m) Rates and Taxes p/a BethlehemErf 1816 (DHC Du Plessis club)4.886 Land & buildings 1.75R 4.40R 3 292.20 BethlehemSub 20 (of ptn 7) of erf 4049 (rest rooms)0.39 Land & buildings 0.25R 0.45R 3 292.20 Bloemfontein Portions of remainder of portion 1 of farm Bloemfontein 654 (Liquinda), 40.91Vacant land3.6R 16.30R 24 776.04 Bloemfontein Portion of remainder of erf 2116 (Hamilton nursery, Tempe Sid B 5.028Vacant land1.35R 6.00R 18 856.68 KroonstadPortions of Erf 524648.61Vacant land1.5R 5.50R 73 685.64 KroonstadErf 4919 (Hostel),2.065 Land & buildings 1.41R 3.30R 13 428.84 Kroonstad Portion of remainder of erf 229 (Heckroodt park recreation club), 1.228 Land & buildings 0.54R 2.20R 0.00 Welkom Portions of remainder of Welkom 41 (Old RMT Depot) 2.42 Land & buildings 0.45R 1.85R 3 155.28 LIMPOPO Bela-Bela Portion of portion 170 and portion of portion 5 of the farm Roodepoort number 467 (Erf 1Warmbad Extension 25) 72Vacant land65.40N/a TOTAL177.53776.25R40.00R140 486.88 Current Property Portfolio

24. FREE STATE Area DescriptionProperty LocationAmenities Rent Receivable Rates &Taxes Payable Erf 1816, Bethlehem Located +- 1km from the Bethlehem CBD along the commissioner street. Schools, Churches, Libraries, Taxi rank. R 1 818.58R 593.71 Lease Status: Expired. Was fully leased to DHC Du Plessis recreational club by Transnet. Tenant interested to enter into new lease agreement with HDA. Property utilisation status: Used as the sports recreational club. Facility Structures: Sports fields (soccer, rugby, actuary, tennis and netball), two sports club houses (tennis and actuary), toilets, braai area, spectators viewing compound, caretakers house, recreational club (sports bar, 2 halls, boardrooms and offices) Maintenance and Services Requirements: Roof repairs and painting, building structural survey and repairs. Estimated Maintenance and Services Costs: R100 000.00

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26. Free State: Bethlehem

27. LIMPOPO Area DescriptionProperty LocationAmenities Rent Receivable Rates & Taxes Payable Portion of portion 170 and portion of portion 5 of the farm Roodepoort number 467; Erf1, Warmbad Extension 25. Bela-Bela Located along the Robertsons street +-2km from Bela-bela CBD. Property is adjacent to Sparpark township. Churches and schools R 0.00 N/a Development Status: Vacant land Lease Status: No lease. Property utilisation status: Illegal settlements. Facility Structures: Vacant. Vegetation is trees, grass and shrubs. Maintenance and Services Requirements: Fire breaks. Estimated Maintenance and Services Costs: R 10 000.00

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29. Limpopo: Bela Bela

30. Key achievements Projects and Programmes N2 Gateway and Zanemvula projects stabilised and on track – business and funding plans were developed and presented to the respective provinces and the signing of these agreements was concluded in 2010 Draft policy for the Priority Housing Development Areas (PHDA) is being developed Project and planning support provided to Cornubia, Ekurhuleni, NDHS, Northern Cape province

31. P&P: N2 Gateway Human Settlement Development Project The N2 Gateway (Cape Town) is a national priority project involving the building of: fully-subsidised rental affordable bonded homes Seeks to create sustainable communities in designated precincts along the N2 highway Aims to provide 120 000 people with 23 000 homes Phase 1 is nearing completion and will deliver approximately 15 000 houses. Approximately 7 000 houses built to date

32. Role of the HDA The HDA was appointed in June 2009 as an implementing agent and overall project manager to provide the following services: Contract management and oversight Project design, feasibility and approval processing Project costs and budgets management Community liaison and communications Funding applications

33. N2 Gateway Moving beneficiaries into houses in Delft Erecting TRAs Completed houses Delft 7-9 Building Joe Slovo

34. P&P: Zanemvula Informal Settlement Upgrading and Human Settlement Project Zanemvula (Nelson Mandela Bay Metro) is one of government’s flagship mega projects and aims to: deliver approx 10 557 houses (2 664 to date) in-situ upgrade 1 565 units (subject to Metro replanning) rectification phase one 460 (380 to date) and phase two aims to rectify 2 500 provide rental housing opportunities to subsidy non- qualifiers The project is driven by the Eastern Cape province with the HDA as its implementing agent

35. Role of the HDA The HDA is the implementing agent with overall project management responsibility, including: Construction management Procurement and tender processes Establishment of site characteristics Project design, feasibility and approval processing Project costs and budgets Health and safety Communications and beneficiary management Submission of plans for statutory approvals Funding applications

36. Zanemvula Plans for Soweto-on-Sea multi-purpose community centre Building houses in Chatty Rectification of houses at Soweto-on-Sea Party for pensioners Building multi-purpose community centre

37. P&P: Cornubia - Mixed Use & Housing Project Cornubia is situated between Phoenix/Ottawa and Umhlanga R5 billion development (mixed-use, mixed-income) 1 200 Ha of land of which 750 Ha will be developed 50 000 houses will be developed: 19 313 subsidised (by 2017) eThekwini Metro and Tongaat Hulett signed a Cooperation and Alignment Agreement in 2008 for release of the land An Implementation Protocol entered with Metro/ HDA/ KZN PDHS HDA supports the project management function of the Metro and land acquisition for the project.

38. Cornubia The land The location Development plans Constructing the bridge A vision of the future

39. Key achievements Organisational development Board and Board Subcommittees of the HDA in place Executive Management Team in place with key departments operational Policies and procedures that govern the HDA operating environment are in place Implementation of the strategy linked to performance management Written mandate concluded between the Minister and the Board

40. Key statutory and regulatory challenges Misalignment between the fiscal arrangements and the mandate of the Agency In some cases, sector role players view the HDA as a private sector service provider/ consultant, which adversely impacts on its ability to provide support in line with its legislated functions and mandate. More effort is needed to appropriately position the mandate, role and functions of the HDA within the sector in order to expedite achievement of the objects and functions of the Agency

41. Visionary goals and strategic objectives

42. Macro performance indicators

43. HDA Programmes Programme 1: Strategic Management, Finance and Administration Provides overall organisational support services to operate and function as an organisation with a track record of quality, effective delivery and professional service. Key targets: Effective governance structure Clean audit Effective and compliant policy framework Effective, efficient and compliant operational structure Effective performance management system

44. HDA Programmes Programme 2: Land Acquisitions and Management Coordinates the identification of suitable land and landed property and facilitate its acquisition and/or release for human settlements development. Manages acquired property as well as undertake spatial analysis and provide geo-spatial services Key targets: 36 000 hectares of public land identified for acquisition 6 000 hectares of private land identified for development 220 development feasibility assessments 6 000 hectares of public land released for human settlements purposes 9 250 hectares of urban public land released to HDA

45. HDA programmes Programme 3: Projects and Programmes Manages projects and programmes aimed at promoting sustainable human settlement development through various capacity and project support services to sector stakeholders. Key targets: Provide capacity support in 9 provinces to achieve human settlement targets Provide capacity support in 9 provinces/municipalities to achieve informal settlement upgrading targets Define blocked project assistance and support framework, and emergency housing and support framework for provinces Provide technical support to 20 targeted projects Approval of PHDA framework and regulations

46. HDA programmes Programme 4: Intergovernmental Relations & Strategy Alignment Secure key IGR relationships between the different spheres of government to facilitate and accelerate the development of human settlements, as well as fostering partnerships with identified sector stakeholders, concluding agreements that allow HDA to function effectively. Key targets: Approved IGR policy framework Outreach initiatives to improve appreciation of HDA role, mandate and functions Agreements and partnerships negotiated and concluded with stakeholders Facilitate strategy alignment with organs of state Facilitate HDA’s participation in fiscal planning process to ensure HDA funding

47. Organisation functional structure

48. Funding options and status thereof Funding options as per the HDA ActStatus Money appropriated by Parliament Currently only operating expenditure: 2011/ 2012 - R89.1 million 2012/ 2013 - R93.55 million Donations or contributions received by the Agency with the approval of the Minister; Nil Interest on investments of the Agency Minimal interest in earned on unspent operational funding Loans raised by the Agency, subject to section 26Nil Proceeds from the sale of landNil Fees for services rendered based on cost recoveryNil Subsidies and grants granted by the organs of StateLimited to cost recovery on S29 projects and grants from Provinces In order to enable the HDA to fully perform its legislated functions, the quantum of the monies (including subsidies and grants) available to the Agency needs review

49. Implications of different funding scenarios ScenarioImpact No capital funding is provided by the NDHS The HDA cannot achieve its (Land) mandate and will only be able to provide minimal support to provinces and municipalities Provinces allocate capital funding The impact will be limited to the provinces where funding is provided. The strategic impact will therefore be defined by the provinces Capital funding is provided by the NDHS The HDA will be able to fulfil its mandate and make a strategic impact in proportion to the capital at its disposal

50. Budget The current MTEF allocation for 2011/12 is R89.1 million increasing to R93.55 million in 2012/13. It is considered that in the light of the legislated functions that the Agency is to fulfil, the current MTEF allocation is inadequate and would require review. Should the HDA be sufficiently capitalised to achieve its mandate, the operational requirement would increase. The HDA is not (yet) recovering its operational costs from the Eastern Cape PDHS. The total budgeted amounts for projects are as follows: Project Funded 2011/12 budget R Total 2012/13 budget R Total 2013/14 budget R Total 2014/15 budget R Zanemvula8 675 4109 239 312TBA N2 Gateway16 435 01217 503 288TBA

51. Consolidated statement of financial position

52. Consolidated statement of financial performance TOTAL 201220132014 BUDGET DESCRIPTION RRR REVENUE 117 563 164 124 004 303 132 555 888 Grants: National Government 89 100 000 93 555 000 100 103 850 Other Income 28 463 164 30 449 303 32 452 038 EXPENDITURE 117 563 164 124 004 303 132 555 888 Administrative Costs 35 756 743 34 740 638 37 100 823 Operational costs 19 936 979 22 261 016 23 407 081 Salaries & related costs 61 869 442 67 002 650 72 047 984 NET (SURPLUS)/ DEFICIT (0)

53. Thank you