1. Housing report to the Portfolio Committee on the 15 th January 2008

2.  The municipality has for the past 10 years managed and implemented 2 housing projects  Both of these projects are at the ‘urban areas’ in Flagstaff and Lusikisiki ◦ Joe Slovo settlement in Lusikisiki-1117 units ◦ Thabo Mbeki settlement in flagstaff-503 units  Two rural housing projects implemented by O.R. Tambo District Municipality ◦ Mantlaneni ward 2-300 units ◦ Nkozo ward 4-300 units

3.  Joe Slovo settlements-1117 units ◦ Approved in 1999 under the Lusikisiki TLC ◦ 1111 units have been completed and 6 others have various problems including slope, land invasion and encroachment of the nearby school ◦ Roads were constructed ◦ Sanitation system is pit latrine ◦ Water is available in some areas of the project ◦ Local municipality has provided 5 stand pipes servicing 500 households ◦ No electricity

4.  Joe Slovo…… ◦ Transfers have not been stated due to township validity problems ◦ The matter is under investigation by the Special Investigation Unit (SIU)  Challenges ◦ The issue of title deeds for beneficiaries remains a major challenge ◦ Management and processing of beneficiaries is also a challenge because many houses are currently occupied by persons who are not necessarily the approved beneficiaries

5.  Challenges ◦ The Township validity has since expired and as such a new process of Township establishment has to be done and the municipality has no funds for that. ◦ It may also include a process of relocating the beacons which is costly and once more the municipality does not have funds for this.

6.  Thabo Mbeki settlement ◦ Approved in 1998 under Flagstaff TLC and implementation started in 2000 ◦ Project very slow; 10 years on and yet not close to completion ◦ Declared ‘blocked’ by the Provincial Government in 2003/04 ◦ At the time the Municipality was under section 139 of the Constitution

7.  Thabo Mbeki ◦ 258 units completed albeit with serious defects as a result of poor monitoring and poor workmanship ◦ 245 units still outstanding ◦ The municipality has made attempts to get provincial intervention to resolve the problems ◦ Municipality has little information because file were seized as part of the SIU investigation ◦ Still waiting for NHBRC report for rectification process

8.  Thabo Mbeki-services ◦ Gravel roads were constructed and have since degenerated ◦ Water pipes were laid but not used and have degenerated ◦ Sanitation was designed for septic tanks and holes were dug but no septic tanks were buried ◦ The holes for septic tank are dangerous ◦ No electricity

9.  Thabo Mbeki-challenges ◦ Transfers not yet done ◦ 24 houses affected by storm on July 2007 and reported to the Provincial government but not yet attended to ◦ Sanitation a health hazard ◦ Township establishment problems ◦ Support from the province not entirely coordinated ◦ Communication between the Municipality and the Department needs to improve

10.  Nkozo (300) ◦ 195 units completed ◦ 40 on roof ◦ 15 on wall plate ◦ 46 at slab

11.  Challenges ◦ Access to material is a huge challenge in terms of cost ◦ Delivery to the rural area because of roads that are sometimes not designed to carry heavy load vehicles and at times roads are generally not good. ◦ Access to water for construction is also a challenge. ◦ Poorly organises building teams and high level of turn over of technical staff (project coordinators) ◦ Topography on the project site is not easily accessible ◦ Security of material is sometimes a challenge

12.  Progress ◦ 88 units completed ◦ 2 on roof ◦ 14 wall plate ◦ 10 at slab ◦ 183 still outstanding

13.  Challenges ◦ Access to material is a huge challenge in terms of cost ◦ Delivery to rural areas because of roads ◦ Access to water for construction ◦ Poorly organised building teams ◦ Topography of the construction site ◦ Security of building material

14.  Communication with the Provincial department for the construction of 11 units started by Minister and Members  Formal correspondence expressing concern on the slow pace of implementation  Arranged a meeting with the survey and planning directorate to assist in Town Planning and Survey matters  Obtained engineering designs from the consultant

15.  Reviewal of the HSP with the assistance of the department  Improve communication and support from the province and the District  Look at finance administration problems between the municipality and the Department  Municipality would love to be prioritised in terms of the BNG projects  Support from both Provincial and National department in relation to developing housing market for the middle income earners  Subsidy allocation for rural housing remains a matter that needs careful consideration noting the problem of cost of transport to rural areas that eats up the subsidy for building a descent house